February 15, 2016

Affordable Energy Key to Manufacturing Success, Future Growth

Made in America. Those three powerful words represent the foundation of a resurgent manufacturing industry that’s creating growth and opportunity in communities across the nation. America’s manufactures depend on access to affordable energy immune from the often unpredictable nature of world markets.

Today, thanks to surging domestic oil and gas production, we now have the ability to deliver low-cost energy solutions to manufacturers, but lack the necessary pipeline infrastructure to do so. In fact, the National Association of Manufacturers (NAM) highlighted the lack of infrastructure in a Shopfloor blog post during the 2016 State of Manufacturing Tour:

As we continue our State of Manufacturing Tour, the National Association of Manufacturers is transforming the perception of manufacturing. Manufacturing creates opportunity and growth, and we see that with the construction and long-term operation of new pipeline infrastructure. To compete in the global market, manufacturers depend on access to affordable energy. Investing in pipeline infrastructure today will ensure the benefits of reliable energy for America’s manufacturing sector for generations to come.

Manufacturers across the nation benefit from creating infrastructure that delivers energy resources to market. In addition to creating jobs across the construction and manufacturing supply chain, pipelines also strengthen our nation’s energy security and increase access to affordable energy.

Furthermore, NAM also highlighted the significance of several key pipeline projects including the Rover Pipeline which would deliver natural gas from the Marcellus and Utica Shale formations to homes in businesses across Michigan, Ohio, Pennsylvania, and West Virginia.

The Rover Pipeline will amount to nearly $1 billion in direct spending in the United States with almost 80 percent of the pipe, all compression assembly, and the majority of other materials to be manufactured by American firms.

Across our region we are already beginning to see impact low-cost energy has on manufacturing. Just last month Ford announced that a new product line is being added to the company’s Ohio Assembly Plant in Avon Lake and Michigan continues to repeatedly surpass the national average for manufacturing job growth. The continued success of the manufacturing sector is heavily dependent on the availably of affordable energy. Expanding and upgrading our pipeline infrastructure will ensure long-term access to low-coast energy resources essential to future growth.