Investing in Advanced Manufacturing
Transcript of this video –
0:01 >> Ladies and gentlemen.
0:03 Please welcome back the Honorable Bruce Andrews, Deputy Secretary of Commerce
0:08 of the United States, to moderate an armchair discussion on investing
0:12 in advanced manufacturing with Mr Pete Selleck,
0:16 Chairman and President of Michelin, North America.
0:20 And Mr Ludwig Willisch, President and CEO of BMW, North America.
0:36 >> Hello again.
0:36 And I’m excited to be here to talk about one of my favorite topics,
0:40 investing in advanced manufacturing.
0:44 From day one, manufacturing has been a top priority
0:48 for President Obama and this administration.
0:51 We have been laser focused on expanding this important part of our economy.
0:55 And as a result, in many ways today is the best time in years for US manufacturing.
1:03 I started working at Ford Motor Company in 2007 during one of the worst times
1:08 in the history of the auto industry.
1:10 Ford, along with other great American auto giants, were facing serious challenges.
1:16 I remember Alan Mullaly saying, Ford has been going out of business
1:20 for 62 years and we have to turn that around.
1:23 And he was right, and we did.
1:26 Ford and the auto industry slowly but surely became great examples
1:30 of the broader comeback in American manufacturing.
1:33 Today, the American manufacturing industry is on the rise
1:37 and America’s manufacturers are as competitive as ever.
1:42 Since February 2010, manufacturing has added more than 800,000 quality jobs,
1:48 the fastest pace of growth since the 1990s.
1:52 And for the first time since 1999, the number of factories is increasing.
1:58 Make no mistake, the renaissance in American manufacturing is underway.
2:02 The revitalization is real and the results are tangible.
2:06 Manufacturing is a growing segment of the economy.
2:11 Indeed, US manufacturing comprises 12.5 percent of our gross domestic product,
2:17 and it’s growing at twice the rate of GDP as a whole.
2:21 This morning, we’re going to hear from 2 companies who have weathered the storm
2:25 and are reaping the benefits of America’s manufacturing resurgence.
2:29 Pete Selleck is Chairman and President of Michelin, North America.
2:34 He’s been with Michelin since 1982 and today he oversees all
2:39 of the company’s North American operations which consist
2:42 of 19 manufacturing plants and 22,000 employees.
2:47 Our second panelist is Ludwig Willisch,
2:50 President and Chief Executive Officer of BMW, North America.
2:55 Before moving into his current position, he oversaw BMW’s European sales operation.
2:59 Both companies have operated in the United States for decades.
3:05 They’ve seen manufacturing in the United States go, go through periods
3:08 where production invested have stagnated and are now part of its resurgence.
3:15 So, gentlemen.
3:16 I would like to start by asking about your initial decision to invest in the United States.
3:20 What were the opportunities and challenges you faced?
3:22 Pete, let me begin with you.
3:25 Can you talk about that and why Michelin has continued to invest
3:28 in the United States again and again?
3:31 >> Well, Michelin arrived in the United States back in the mid ’70s.
3:35 And what drove us here was technology.
3:37 We had invented the radial tire back in the, the ’40s and the ’50s.
3:41 That technology had already spread through Europe and there was a little bit
3:44 of the resistance to the technology because it was very expensive to try
3:47 to modify plants, so Michelin dove in.
3:50 Fortunately we had a number of customers that were very interested,
3:53 particularly in the OE, the OE in the world.
3:55 They were interested in the technology.
3:57 So, we, we jumped in and we decided to build our first plants in the state of South Carolina.
4:02 We were one of the first automotive industry players to move into the southeast.
4:08 In large part, we were motivated by the fact the region in the upstate of South Carolina
4:13 at the time was going through a, a, a transition
4:16 because the textile industry was basically offshoring at that time.
4:20 And the company recognized that the type of manufacturing that we do is similar
4:24 to textile manufacturing in, in terms of the demands that we make on our employees.
4:29 So, the first generation of Michelin employees were in fact former textile workers.
4:33 And they, they have done marvelously.
4:35 So, we’ve actually gone through, since the creation of Michelin in south Carolina in,
4:40 in the early ’70s, we’ve had 2, 2 subsequent kind of growth spurts.
4:45 One was in the mid ’90s when we started building mining tire capacity.
4:48 And today we have 2 large plants in South Carolina that make mining tires.
4:53 80 percent of what we make is exported.
4:56 So, we’re using the United States as a base for exporting mining tires to the rest of the world.
5:02 So, that was 20 years ago and right now we’re, we’re still in the process of building plants.
5:06 We’ve actually opened up 2 new plants in the last 3 years.
5:09 So, it’s been a great success for us.
5:12 >> Ludwig?
5:12 >> Well, initially we had the plan, but it was only a plan, to enlarge to our footprint
5:19 as far as production is concerned.
5:21 That was late ’80s.
5:23 Then we were actually proactively approached by someone
5:28 from the Commerce Department of the state of South Carolina.
5:32 Actually from, it was actually from Spartanburg, and say, Why don’t you move and have a plant?
5:37 We only had plants in Germany to, to be precise, only in Bavaria.
5:42 And we said we’d give it a shot.
5:45 We, we’d think about it.
5:46 And then we looked at it closer and there was land available.
5:49 And if you not only produce locally but also want to export.
5:55 Actually, right now we are the biggest car exporter in the United States,
6:00 you may have to make sure that the logistics works both ways.
6:03 So, you need a port.
6:04 You need the connection between the port and the plant.
6:08 That worked out initially with the I85 Port Charleston.
6:13 Now we rail all the stuff back and forth and we have a, an inland port 200 miles inland
6:20 at Greer, South Carolina, Carolina.
6:22 And one of the more decisive points was too that there was a pool
6:28 of skilled workers to begin with.
6:30 There was a, an infrastructure of technical schools which we could build on and after all,
6:37 what also we found that struck, really impressed us to begin with, we found it impressing
6:44 that the state of South Carolina actually approached us in Germany and said come on over,
6:49 we’ll show you how to have a, an excellent, excellent location for a plant.
6:56 And so we started quite humbly, 1992, with a plant that was meant
7:04 to build 100,000 cars one fine day.
7:08 And we’ll now soon be the, the biggest plant, BMW in South Carolina, with 450,000 cars.
7:15 We’ve started with $600 million investment.
7:19 Now we have invested $7 billion so far.
7:22 We’ll invest another billion in the next year.
7:25 And so then we have the capacity of 450,000 cars and this is, is, generally perfect timing.
7:31 Today we build over 3 million car in south Carolina.
7:35 [ Applause ]
7:41 >> Both of your companies have been in the United States for a long time.
7:45 From your current perspective, or from your perspective, what does the current picture look
7:49 like on the ground and what advice would you have for companies
7:52 who are currently considering investing in the United States?
7:56 And Ludwig, why don’t we start with you?
7:58 >> Well, especially if you want to export, free trade is the name of the game.
8:04 So, that’s why TTIP becomes so important.
8:07 This will just foster demand.
8:10 It’s just something that you don’t like if you’re producing is import taxes, duties,
8:16 different standards and all that.
8:18 It just costs money.
8:18 There’s no benefit to society.
8:20 There’s no benefit to anyone.
8:22 Then you need to have a skilled workforce,
8:24 or you need an infrastructure for skilled workforce.
8:29 And of course you need a pro-business environment.
8:34 And last but not least, the United States needs to make sure that energy prices are kept low,
8:41 which means the United States really has to look
8:46 into staying independent as far as energy is concerned.
8:53 >> Well, obviously, it’s, it’s been remarkable to watch the US economy come back
8:57 from the, from the crisis of 2008, 2009.
9:00 I was working for Michelin in Europe, running the,
9:03 the truck tire business globally at the time.
9:05 And, and I was just back in Europe last week and it’s, it’s really quite remarkable to understand
9:10 that when you look at new car purchasing, Europe is still running 20 percent below the level
9:16 that they were at before the crisis, whereas the United States is now back
9:20 up to the same level before the crisis.
9:21 So, there’s been a, there’s been an adaptability of the economy here,
9:25 which has been absolutely remarkable.
9:27 And certainly the indicators today in the economy are very promising.
9:30 It’s, it’s a good time to be in this country.
9:31 But looking forward, and I think, I think we need to constantly be looking out 10 years,
9:35 20 years, and trying to anticipate what’s coming, I agree completely with Ludwig, that,
9:40 that anything we can do to reduce barriers to trade is something that’s,
9:45 that’s extremely necessary, particularly for companies like ours that want
9:49 to use the United States as, as a, as a manufacturing base.
9:52 So, that, that’s, that’s one thing.
9:54 And then as Secretary Lew mentioned, I spent a lot of time, unfortunately,
9:59 working on tax issues, because the tax rate, the more we’re profitable in North America,
10:04 the more that’s detrimental to Group Michelin because of the,
10:07 the relatively high corporate tax rate in the United States compared to the rest of the world.
10:12 So, you know, that, that’s not an easy problem to solve.
10:14 Everybody says we need to lower corporate tax rates.
10:17 Obviously both of us would be in favor of that.
10:21 But, but to do that, obviously there needs to be a complete look at the fiscal,
10:25 the federal fiscal situation, whether it’s, whether it’s the tax code,
10:29 whether it’s the entitlement system, whether it’s discretionary spending.
10:33 There are solutions to that.
10:34 I mean, that’s been looked at by Simpson Bowles,
10:36 it’s been looked at by a lot of different people.
10:38 But the country’s ability to resolve those, if we were successful, would put the United States
10:44 on an economic trajectory over the next 20 years that would be unbeatable.
10:49 >> Thank you.
10:50 >> Just one little comment.
10:52 The auto industry may be back to pre-crisis level.
10:56 We’re way beyond that.
10:57 So, I really want to spread some confidence here that it is possible to do,
11:02 I think we’re 30 percent above pre-crisis level.
11:07 >> Interesting.
11:08 Okay. Together, collectively you both have decades of experience,
11:12 global experience in manufacturing, and you’ve worked in manufacturing powerhouses
11:17 like Germany and Japan and France.
11:19 Based on your experience, why do you think the United States is an attractive place to invest.
11:23 And I guess conversely, what do you think we have to learn from other countries?
11:29 >> Well, obviously, the, the adaptability of the American culture is probably the,
11:34 the most remarkable aspect to it.
11:36 There, there simply are not the barriers to change that exist
11:40 in many other parts of the world.
11:43 Certainly we struggle with that in Europe.
11:45 We struggle with that in other parts of the world.
11:46 There are certainly issues here as well.
11:49 But, but the United States is, has had a very solid mechanism to adapt very quickly.
11:55 So, you know, one of the big challenges that’s facing this country
11:57 in particular is, is workforce development.
12:00 It’s education.
12:02 When I started at Michelin over 30 years ago, we could hire, and we did in fact have some people
12:07 in our facilities that could not read and write.
12:10 Today, that’s not even possible.
12:12 Today, today when we hire, when we go through the hiring process, we,
12:15 we don’t just accept diplomas, we actually test for literacy.
12:18 We test for math skills.
12:20 We test for problem solving.
12:22 We test for teamwork skills.
12:23 And then after all that, we do, we, we look at police records.
12:27 We look at, we look at, you know, ultimate, we give drug tests
12:31 and ultimately we go on Facebook.
12:33 And it’s amazing what you find out about people on Facebook.
12:36 But, you know, the, the process to get in as a production worker
12:39 at Michelin today is, is, is extremely rigorous.
12:42 Which basically means that if you do not succeed in the American education system today,
12:47 you know, back 30, 40 years ago, you could either go into industry
12:50 or you could go into agriculture.
12:52 Today you can’t, you can’t work at a BMW plant or you can’t work at a Michelin plant.
12:55 So, we’ve got to look not just at technical training at the high end but we also have
12:59 to look at, at how elementary school education works.
13:02 We’ve got to look at third grade reading levels.
13:04 We actually have 400 of our employees that on a regular basis are going
13:08 into title 1 elementary schools and helping the local educators just one on one reading with,
13:15 with, with young first, second and third graders.
13:17 That’s crucial.
13:18 And that, that’s a big problem in our society.
13:20 And if we don’t get on top of that fairly soon,
13:22 I think 20 years from now we’re going to have a major problem.
13:26 >> Thank.
13:26 >> I couldn’t agree more with you, Pete.
13:28 Really, it’s crucial that we team up with the universities that we have these programs.
13:32 We start to copy what we have in Germany, scholar programs,
13:35 which is sort of an apprentice program where workers work at our plant
13:39 but also go to school at the same time.
13:43 We help with tuition and books, but we then,
13:45 that way we make sure that we have skilled workers.
13:49 And it’s absolutely right, the more sophisticated our plants, you know,
13:53 nobody works on an assembly line today and just do, does one thing.
13:57 You do need skilled work force and this is what is our challenge.
14:01 >> And that, and that’s a good segue, because both of your companies have been real leaders
14:06 in developing skills and access to talent.
14:08 Could you just dig a little deeper and, and tell us a little more about the kind of partnerships
14:12 that you’ve done and the training, and what’s been effective for you in terms of building
14:16 that skilled workforce to work in your plants?
14:18 >> Well, first of all, we have a lot of partnerships with a lot of universities.
14:22 We have this scholar program, but we also team up with Clemson University.
14:28 I think the 2 companies do.
14:31 We started with just as Michelin, with partnering up with the institute
14:37 of Automotive research and started a program to attract the best and brightest
14:43 in the United States to join a curriculum that we developed together.
14:49 We started with an endowment of $10 million in 2002, I believe, in order to make sure
14:57 that the facilities were up to speed and also then to make sue
15:03 that once we’ve attracted these people, we can also offer them an international career.
15:07 This is important that, you know, you’re not limited, if you don’t want to,
15:11 you’re not limited to the plant in Spartanburg.
15:14 Make sure that these people have a career path throughout the United States
15:20 or even overseas within the corporation.
15:23 >> One of the most critical skills at Michelin are the reliability technicians.
15:29 These are the people that, that maintain, install, set up our, our production equipment.
15:36 We have a similar tech scholar program.
15:38 As a matter of fact, BMW and Michelin have sort of been comparing notes on this over the years.
15:42 And, and what we do today is we go into, not only to tech schools,
15:46 or technical colleges during the first couple of weeks of the first semester,
15:50 but we also are now going into high schools and we’re identifying promising young students.
15:55 We’re providing them full scholarships.
15:56 We pay for their books.
15:58 We provide them 20 hour a week internships working for us, paid about $15 an hour.
16:03 And then when they graduate 2 years later, 95 percent of them come to work for us.
16:09 They start at $50,000 a year.
16:11 $50,000 a year.
16:12 No debt. No debt, money in their pocket.
16:15 And that, that’s a formula that’s working.
16:16 And in addition, because of that, we also work with the technical colleges along with BMW to,
16:22 to tell them, this is the curriculum we need.
16:24 This is where we need for these students to be when they graduate from technical school
16:28 so that we, when we take them into our training program,
16:31 and we have a subsequent training program that, that they work on over the next 4 years
16:35 to get them up to the skill level where they need to be.
16:37 But that’s been a huge success.
16:38 It was based on a technical college system that was put in place in South Carolina in the 1960s.
16:43 And companies like, like BMW and Michelin have really been pushing the state
16:48 and the local technical colleges to continue to up their game.
16:51 >> Great. Ludwig, you made reference to the partnership with Clemson University.
16:56 And, you know, the unique, or, the unique ecosystem
16:59 of innovation that exists in South Carolina.
17:02 Could you just talk to a little bit about how you partner with universities on R and D
17:07 and what else you’ve been doing to invest in R and D here in America?
17:10 >> Well, first of all, we try to develop young engineers, young technicians,
17:18 beyond their specific skills, which means we try to team up with, to develop them in the sense
17:26 that the are knowledgeable about anything from material selection to system integration
17:34 and make sure that we have people that we can use
17:38 for different necessities for different tasks.
17:44 And the research and development as such is done now at the universities.
17:51 But we have part of research and development in our California tech office.
17:59 Which is to say an arm of our R and D department in Germany, meaning that we like to pick
18:08 up the latest knowledge and the latest development in Silicon Valley.
18:13 And otherwise we, we’ll have people also from the United States sent over to Germany
18:21 and will work closely together with the there.
18:24 So, it’s, so to say, you could call it almost a universal approach.
18:31 >> Interesting.
18:31 Pete?
18:32 >> We, we have a large research and development activity in,
18:35 in this country and also in South Carolina.
18:38 We work in partnership with Clemson, with, with other universities to work
18:42 on just some interesting technologies.
18:44 We’re working on right now probably the most, the most significant are technologies
18:49 that improve fuel economy and, and help cars reduce emissions.
18:53 A tire on a, on a, on a BMW consumes about 20 percent of the fuel that the BMW uses
18:59 through what’s called rolling resistance.
19:02 Otherwise put, if your car had steel wheels, if the BMW had steel wheels,
19:06 it would get 20 percent better fuel economy.
19:08 With, with some disadvantages.
19:09 >> With some.
19:10 >> It would never stop, or you know [laughter].
19:11 It’d be very uncomfortable.
19:13 >> The ride would also be a little rough.
19:14 >> It would not, it would not be, you know, it would not be a great car.
19:17 So, anyhow, pneumatic tires make sense.
19:19 But there are technologies today that we have and are putting into place that,
19:23 that improve the fuel efficiency.
19:24 And that’s, so that’s very important.
19:26 The second is that, you, you all may notice on 18 wheelers going down the road.
19:30 You may notice that some o them no longer just have dual tires.
19:33 Some of them now have wide single tires that are replacing duel tires.
19:37 That’s, that makes the, the ease of maintenance of the vehicle much better.
19:40 It improves fuel economy.
19:41 It also allows the truck to carry about 1,000 pounds more a load.
19:45 So there’s a productivity factor involved there.
19:47 And then, and then finally we’ve actually developed, here in the United States,
19:50 we developed a technology called the Tweel, which is an airless tire
19:55 which we’re now actually marketing in 2 applications, one for skid steer loaders
19:59 on construction sites, the other on commercial lawnmowers.
20:02 And these are tiers that simply cannot get flat tires.
20:04 There’s, there’s no air in them.
20:06 These are applications where people get more than one flat tire every week.
20:10 So we’re, we’re pushing that technology through our R and D center
20:13 and also we’ve just opened up a small manufacturing plant.
20:16 Really, there’s a lot of technology
20:19 in our company that’s being developed right here in the United States.
20:22 >> Thank you.
20:23 It’s interesting that both of you, that both of your companies started out in South Carolina
20:27 and have expanded your operations there.
20:30 How have the states, and we have, we have a number of state
20:32 and local governments represented here.
20:34 How have the state and local governments worked with you to provide customize services?
20:40 >> Well, first of all, we, we’re always looking at infrastructure, which,
20:46 which obviously have enjoyed as far as South Carolina’s concerned.
20:52 We also need the infrastructure in terms of schooling, in terms of teaching
21:00 where it’s a give and take just as much.
21:05 We’ll also see if we employ like 8,000 people in a plant in South Carolina,
21:13 we, we’re looking for tax breaks.
21:15 I mean, if we create jobs, I think it’s just fair enough to look for that.
21:21 And then of course also see what we can do on property taxes.
21:24 So, it’s, it’s a combination of it.
21:26 But the, the real crucial thing is the, the 2 infrastructural components.
21:31 One is the logistics that you need to have rail.
21:34 You have to have a port.
21:34 You have to have, like the I85, you have to, the highway to transport goods.
21:41 And you need to have a skilled workforce and that,
21:46 both available to begin with in South Carolina.
21:49 We actually looked at one point in time only at one other location, which would be further
21:53 out west, to cater to both sides of the country.
21:56 But in the end, you know, the decision was in favor of Spartanburg.
22:01 >> Unlike BMW, who’s the only car manufacturer in the state of South Carolina, we’re one,
22:07 now one of 4 tire manufacturers in the state.
22:10 Since we’ve arrived, we’ve had 3 competitors arrive.
22:12 Fortunately they’re, we’re all strategically placed around the state, so we’re not,
22:15 we’re not too close to each other.
22:17 But I agree with Ludwig in terms of the, in terms of what the needs are.
22:21 A lot of people think this is a, this is just a tax incentive game,
22:25 and certainly making sure the tax structure is correct is important.
22:29 But, but truly, first of all, having sites that, that you can build on are, are important.
22:34 You’ve got to have sites that, you know, that, that are large enough.
22:36 That are, that have the right terrain that, that you could permit rapidly enough
22:41 and that you get help from the state in getting all the permits necessary.
22:44 So, that’s very important.
22:46 The, the, certainly the transportation links.
22:47 And I really want to emphasize 2 things.
22:50 One, ports are really important, and Secretary Lew talked about it.
22:54 The deepening of the US ports, the deepening of the harbors to get down to 52 feet to be able
22:59 to handle these Post Panamax container ships is crucial.
23:02 Because, you know, the amount of exporting we’re doing,
23:05 and we also import most of our natural rubber.
23:08 So, there’s, there’s a lot of flow going in and out of ports
23:11 which is very important for our business.
23:12 And also on the infrastructure, again, the roads system that, the interstate highway system
23:18 in this country was built in the ’50s and the ’60s, and it’s really showing its age.
23:22 And we really need, we need a lot of focus put on making sure that roads, bridges,
23:27 the entire infrastructure is, is basically refurbished.
23:31 It’s politically difficult but it’s absolutely necessary.
23:35 And we need to be doing the things today that 10 years from now are going to pay off for us.
23:38 And then of course another, another aspect as, as we’ve said already is workforce development.
23:42 You’ve got to, you’ve got to have the people to able to operate your, your facilities.
23:46 >> And so we’re represented here.
23:48 Downstairs we have 44 states and Puerto Rico exhibiting.
23:52 We’ve got all 50 states and the territories represented here.
23:56 Let me ask you this question.
23:57 What advice would you give to those states and local governments?
24:00 And you mentioned some of the things, but what advice would you give to them
24:03 about attracting investment, frankly attracting companies like yours to come to their regions?
24:10 >> I think what’s been successful for the upstate
24:14 of South Carolina was that the region had a strategy.
24:17 It didn’t just happen.
24:18 It did not happen.
24:19 The, the leaders of the region back in the late ’60s, seeing the decline
24:23 of the textile industry said, Look, we have to do something
24:26 about this and we need to be proactive.
24:28 So, they, they actually defined a strategy, saying what can we do
24:33 to become the most attractive place for foreign companies to invest in the United States.
24:38 That was the, exactly the question that they, that they asked.
24:41 And they came up with a strategy that included the technical college system.
24:45 It included a modern airport, the Greenville Spartanburg airport.
24:49 And it also included a very aggressive recruiting program.
24:52 So, they went out and started recruiting.
24:53 But, you know, and right now there are 230 foreign-owned companies who,
24:58 whose North American headquarters are within 50 miles of Greenville, South Carolina.
25:02 It’s, it’s the region with the, the highest percentage
25:04 of foreign direct investment, I believe, in the country.
25:07 And again, but again, I insist it was not a, it was not a one afternoon event.
25:12 It was a, it was a defined strategy that they worked out over the years and it took them
25:16 about 5 years before Michelin took the hook.
25:19 And then it was about 19 years later that BMW came in.
25:24 And it’s a very, very long process but you need to have a strategy.
25:28 >> Ludwig?
25:29 >> Well, it didn’t take us 5 years, I can tell you.
25:32 But I think it was remarkable that someone representing the state
25:37 of South Carolina actually met our then chairman,
25:42 Eberhard von Kuenheim, in Berlin at a political event.
25:46 Was pretty sure he would be there.
25:48 This was in context with the uni, the reunification of Germany.
25:52 And said, Can I talk to you for a minute?
25:54 And Mr von Kuenheim said, Yes, I give you 5 minutes, literally.
25:57 And he said, you know, we have land, we have a port,
26:00 we have a highway, we have skilled workforce.
26:03 Why don’t you come to South Carolina?
26:04 And he said, okay, you convinced me, we’ll talk to this gentleman who’s in charge of production.
26:08 And 2 years later we broke ground.
26:11 So, it really is, to have a convincing proposal.
26:16 >> Good. Well, let me ask you this question.
26:20 So, we started out talking about what, what drove your first decisions.
26:26 I want to end by sort of looking forward, which is, you know, manufacturing is going
26:30 to change a lot over the next decade.
26:33 And how can the United States position itself to be a attractive place for cont,
26:37 for companies to continue investment for the next 10 years and going forward.
26:42 >> Well, we, we’re always looking for sustainable growth.
26:46 So, it’s not only today if you’re in the business of premium mobility that you can say,
26:54 well, design, safety, performance, that’s what is crucial.
27:00 What’s crucial for our customers today is that you act responsibly.
27:05 And that’s, financially that’s, socially, that’s environmentally.
27:09 And if the United States can help us meeting these targets that we are convincing.
27:14 For example, if you look at our plant in Moses Lake, Washington, where we build carbon fiber
27:21 for our electric and also for our new 7 series that’s coming with hydropower.
27:28 So, obviously to produce carbon fiber as a material instead
27:31 of steel uses a lot of electricity.
27:34 But if you can do that with the likes of hydropower, so fully sustainably, that’s great.
27:40 I mean, that’s really something that people are looking for.
27:43 And it’s the, the new aspect of premium.
27:45 And if the United States can help us with that just as much as we’ve talked before
27:49 about the infrastructural things, that would be very, very helpful.
27:55 >> Our industry has an interesting challenge.
27:59 I’m the, I’m the chairman of our, of our industry’s trade association
28:03 of the 8 manufacturers who make tires here in the United states.
28:06 And our trade association is in favor and, and is, is advocating regulation relating to the,
28:14 to the rolling resistance or the fuel economy of tires as well
28:17 as the wet braking capability, the safety of tires.
28:20 The United States is the only major developed country in the world today
28:23 that does not have thresholds for minimal levels of fuel economy
28:27 or wet braking capability of tires.
28:29 Other countries have been placing them in gradually over the last 10 years.
28:33 And today the United States has sort of become the dumping ground
28:38 for those manufacturers offshore that simply don’t have the technology
28:42 and cannot sell their products now in other parts of the world.
28:45 So, that, that’s, that’s a challenge facing companies that have technology and want
28:49 to sell environmentally sound and safe tires.
28:52 So, we’re actually, we’re actually advocating for regulation.
28:56 And, and we’re having a little bit of trouble today getting people to take us seriously
29:00 that we really, really think it’s in the interest of developing the American economy and,
29:04 and improving environment safety.
29:07 >> Good. Well, so closing thoughts.
29:09 What else, what other advice would you offer this crowd where we have investors
29:13 from around the world and we have companies, we have individual investors.
29:17 What else should they know as they think about making their decisions.
29:20 Or frankly, what else would you say are compelling reasons why they should be
29:25 considering investing in the United States?
29:26 >> Well, I think one thing that, that both of our companies and other companies
29:30 that are here are willing to do and that, and that is to talk with other companies,
29:36 other foreign companies that are considering making this investment.
29:38 We’re probably, we’re probably the best ambassadors based on what’s happened
29:43 to us for, for people to talk to.
29:46 So, if any, if, if there are people that are trying to court and,
29:49 and make those relationships, give us a call, give our companies a call, give other companies
29:54 that are, that have invested in the United States a call.
29:56 And, and let us tell our story.
29:58 You know, we’ll, we’ll, we’ll explain the good things, we’ll explain the bad things.
30:01 We’ll, we’ll give a balanced view.
30:03 But obviously people will see through our actions.
30:05 The investments that we’re making today, that, that we, we see the positive aspects of,
30:11 of investing more here in the United States.
30:14 >> If you just look at the fact that 20 years ago our plant
30:19 in Spartanburg was the smallest plant we had.
30:23 And now, by next year, it’s going to be the biggest plant on the planet in the BMW universe
30:29 that speaks more than 1,000 words.
30:31 It really makes sense to be here.
30:33 It’s the pro business attitude that the state of South Carolina has
30:36 and I can only encourage everyone, except
30:38 for of course make free trade happen, to be pro business.
30:44 Because it helps create jobs.
30:47 It helps to have a healthy environment.
30:50 If you look at the cities around our plans today, how they have prospered over the years,
30:57 you, you have been there 20 years ago and you look there today,
31:01 it’s just impressive how this whole region has grown
31:06 and has been becoming very happy, wealthy community.
31:11 >> Well, good.
31:12Well, you, yesterday President Obama was here talking about trade and talking
31:16 about the trade promotion authority legislation in Congress, the transpacific partnership,
31:22 the transatlantic trade and both investment partnership.
31:24 And that’s something we’re very focused on as an administration, because we recognize
31:28 that there are a lot of good things in place right now.
31:31 But we want to take that next step, and that next generation
31:34 to make America an even stronger place, both to manufacture
31:38 but also to export and to do business.
31:40 I can’t tell you how much we have enjoyed hearing your stories
31:43 and appreciate the opportunity to hear about the great things
31:47 that your companies have been doing.
31:48 And on behalf of the department of commerce, we appreciate the investments that you’ve made
31:52 in the United States, both now but also in the future.
31:56 And thank you for being here today with us to share your experiences.
31:59 >> My pleasure.
32:00 [ Applause ]