[Federal Register Volume 76, Number 17 (Wednesday, January 26, 2011)] [Notices] [Pages 4614-4632] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2011-1583] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Economic Development Administration Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report AGENCY: Economic Development Administration, Commerce. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This annual report is submitted in accordance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter ``I'') of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to submit to Congress an annual report on the Trade Adjustment Assistance for Firms (TAAF) Program by the 15th of December each year. The TAAF Program is one of four Trade Adjustment Assistance (TAA) Programs authorized by the Trade Act of 1974 (19 U.S.C. 2341 et seq.) (Trade Act). Administered by the Department of Commerce's Economic Development Administration (EDA), the goal of the TAAF Program is to help economically distressed U.S. businesses develop strategies to compete in the global economy. In general, the program provides cost-sharing technical assistance to eligible businesses to create and implement targeted business recovery plans, called Adjustment Proposals under the program. Firms contribute a matching share to create and implement their plan. Technical assistance is provided through a nationwide network of eleven EDA-funded Trade Adjustment Assistance Centers (TAACs), which are either non-profits or university-affiliated. The TAACs provide assistance to firms petitioning EDA for certification of eligibility under the program and in the development and implementation of business recovery plans. Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent. Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009. The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days. ADDRESSES: Trade Adjustment Assistance for Firms Division, Room D100, Economic Development [[Page 4615]] Administration, U.S. Department of Commerce, Washington, DC 20230. FOR FURTHER INFORMATION CONTACT: Bryan Borlik, Director of the TAAF Program, 202-482-3901. SUPPLEMENTARY INFORMATION: Table of Contents Introduction Program Description Program Initiative Results/Findings Data for This Report (1) The Number of Firms That Inquired About the Program (2) The Number of Petitions Filed Under Section 251 (3) The Number of Petitions Certified and Denied (4) The Average Time for Processing Petitions (5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States (6) The Number of Firms That Received Assistance in Preparing Their Petitions (7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals) (8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce (9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification (10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-Year Period Following Completion (11) The Financial Assistance Received by Each Firm Participating in the Program (12) The Financial Contribution Made by Each Firm Participating in the Program (13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program (14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed Conclusion Introduction This report is provided in compliance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter ``I'') of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to provide an annual report on the Trade Adjustment Assistance for Firms (TAAF) program by the 15th of December each year. Section 1866 of the TGAAA states: IN GENERAL.--Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year. This report will provide findings and results to the extent that the data is available on the following 14 measures: 1. The number of firms that inquired about the program. 2. The number of petitions filed under section 251. 3. The number of petitions certified and denied. 4. The average time for processing petitions. 5. The number of petitions filed and firms certified for each congressional district of the United States. 6. The number of firms that received assistance in preparing their petitions. 7. The number of firms that received assistance developing business recovery plans (Adjustment Proposals). 8. The number of Adjustment Proposals approved and denied by the Secretary of Commerce. 9. Sales, employment, and productivity at each firm participating in the program at the time of certification. 10. Sales, employment, and productivity at each firm upon completion of the program and each year for the two-year period following completion. 11. The financial assistance received by each firm participating in the program. 12. The financial contribution made by each firm participating in the program. 13. The types of technical assistance included in the Adjustment Proposals of firms participating in the program. 14. The number of firms leaving the program before completing the project or projects in their Adjustment Proposals and the reason the project was not completed. Program Description The TAAF program is one of four Trade Adjustment Assistance (TAA) programs authorized under the Trade Act of 1974 (19 U.S.C. 2341 et seq.) (Trade Act). The responsibility for administering the TAAF program is delegated by the Secretary of Commerce to the Economic Development Administration (EDA). TAAF program provides technical assistance to manufacturers and service firms affected by import competition to help the firms develop and implement projects to regain global competitiveness. The mission of the TAAF Program is to help U.S. firms regain competitiveness in the global economy. Import-impacted U.S. manufacturing, production, and service firms can receive matching funds for projects that expand markets, strengthen operations, and sharpen competitiveness through TAAF. The program provides assistance in the development of business recovery plans, which are known as Adjustment Proposals under Section 252 of the Trade Act, and matching funds to implement projects outlined in the Adjustment Proposals. The TAAF Program supports a national network of 11 non-profit or university-affiliated Trade Adjustment Assistance Centers (TAACs) to help U.S. manufacturing, production, and service firms in all fifty states, the District of Columbia, and the Commonwealth of Puerto Rico. Firms work with the TAACs to apply for certification for TAAF assistance, and prepare and implement strategies to guide their economic recovery. The other TAA programs are TAA for Workers, Farmers, and Communities, which are administered by the Departments of Labor, Agriculture, and Commerce through EDA, respectively. Exhibit 1: TAA Programs [[Page 4616]] [GRAPHIC] [TIFF OMITTED] TN26JA11.011 Program Initiative As noted above, the TAAF Program provides technical assistance in the development and implementation of Adjustment Proposals. Projects are aimed at improving a firm's competitive position. Specifically, funds are applied toward the cost of consultants, engineers, designers, or industry experts for improvement projects in targeted areas that can better a firm's position, such as engineering, information technology, management, market development, marketing, new product development, quality improvement, and sales. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants. To certify a firm as eligible to apply for adjustment assistance, the Secretary must determine that three conditions are met: 1. A significant number or proportion of the workers in the firm have been or are threatened to be totally or partially separated; 2. Sales and/or production of the firm have decreased absolutely, or sales and/or production of an article or service that accounted for at least 25 percent of total production or sales of the firm during the 12, 24, or 36 months preceding the most recent 12, 24, or 36-month period for which data are available have decreased absolutely; and 3. Increased imports of articles like or directly competitive with articles produced or services provided by the firm have ``contributed importantly'' to both the layoffs and the decline in sales and/or production. BILLING CODE 3510-24-P Exhibit 2: TAACs and Their Respective Service Areas [[Page 4617]] [GRAPHIC] [TIFF OMITTED] TN26JA11.012 The main responsibilities of the TAACS include:Assisting firms in preparing their petitions for TAAF. Firms are not charged for any assistance related to preparing a petition. Once a petition has been approved, TAACs work closely with firm management to identify the firm's strengths and weaknesses and develop a customized Adjustment Proposal designed to stimulate recovery and growth. The program pays up to 75% of the cost of developing an Adjustment Proposal and the firm must pay the rest. EDA must approve all Adjustment Proposals to ensure they conform to statutory and regulatory requirements. After an Adjustment Proposal has been approved, company management and TAAC staff jointly identify consultants with the specific expertise required to assist the firm. Under the TAAF Program, EDA shares the cost of Adjustment Proposal task implementation. For an Adjustment Proposal in which proposed tasks total $30,000 or less, EDA will provide 75 percent of the cost and the firm is responsible for the balance. For an Adjustment Proposal in which proposed tasks total over $30,000, EDA and the firm share the implementation costs evenly; EDA pays 50 percent of the total cost and the firm pays 50 percent. Due to limited program funding, EDA limits its share of technical assistance to a certified firm to $75,000. After a competitive procurement process, the TAAC and the firm generally contract with private consultants to implement the Adjustment Proposal. There are three main phases to receiving technical assistance under the program. The phases are (1) petitioning for certification, (2) recovery planning, and (3) project implementation. Exhibit 3: Program Phases [[Page 4618]] [GRAPHIC] [TIFF OMITTED] TN26JA11.013 Phase I--Petitioning for Certification The first step to receiving assistance is the submission of a petition to EDA to be certified as a trade impacted firm. This petition is Form ED-840P ``Petition by a Firm for Certification of Eligibility to Apply for Trade Adjustment Assistance'' and any supporting documentation. Certification specialists within the TAACs generally work with the firm at no cost to complete and submit a petition to EDA. Upon receipt of the petition, EDA performs a thorough analysis of the petition and supporting documents to determine if the petition is complete and may be accepted. EDA is required to make a final determination on the petition within 40 days of accepting a petition.\1\ --------------------------------------------------------------------------- \1\ As of May 17, 2009, the deadline for making a final determination is 40 days. Before May 17, 2009, EDA had 60 days to make a determination. --------------------------------------------------------------------------- Phase II--Recovery Planning Certified firms then work with TAAC staff to develop a customized Adjustment Proposal and submit to EDA for approval. Once an Adjustment Proposal has been submitted, EDA is required to make a final determination within 60 days. Phase III--Adjustment Proposal Implementation The firm works with consultants to implement projects in an approved Adjustment Proposal. As projects are implemented and if the firm is satisfied with the work, the firm will first pay their match to the consultant, and then send a notice to the TAAC stating that they are satisfied with the work and that they have paid their matching share. The TAAC will then pay the Federal matching share. Firms have up to five years from the date of an Adjustment Proposal's approval to implement it, unless they receive approval for an extension. Generally, firms complete the implementation of their Adjustment Proposals over a two-year period. Results/Findings Data for This Report The data used in this report was collected from the TAACs as part of their reporting requirements, petitions for certification, and the Adjustment Proposals submitted by the TAACs on behalf of firms. Data from these sources were recorded into a central database by Eligibility Reviewers at EDA. Results for average processing times and the number of approved and denied petitions and Adjustment Proposal were derived by EDA. (1) The Number of Firms That Inquired About the Program In FY 2010, TAACs received 3,446 inquiries about the TAAF Program. Exhibit 4: Inquiries about the TAAF Program by TAAC ------------------------------------------------------------------------ Number of firms that TAAC inquired about the TAAF Program ------------------------------------------------------------------------ Great Lakes............................................. 106 Mid-America............................................. 137 MidAtlantic............................................. 376 Midwest................................................. 82 New England............................................. 163 New York State.......................................... 134 Northwest............................................... 806 Rocky Mountain.......................................... 351 Southeastern............................................ 42 Southwest............................................... 280 Western................................................. 969 Total............................................... 3,446 ------------------------------------------------------------------------ (2) The Number of Petitions Filed Under Section 251 (3) The Number of Petitions Certified and Denied (4) The Average Time for Processing Petitions In FY 2010, 305 petitions were filed under Section 251 of the Trade Act, up an additional 27 petitions, a 10 percent increase compared to the number of petitions filed in FY 2009. EDA certified 330 petitions, up an additional 114 petitions, a 53 percent increase compared to the number of certifications in FY 2009. Petitions are certified on a rolling basis throughout the year. Petitions certified in FY 2010 may be the result of those filed or accepted in FY 2009; and petitions filed or accepted in FY 2010 may not result in certification in FY 2010. The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions in FY 2010. Although there was a spike in petitions, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for [[Page 4619]] filing as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement. Exhibit 5: Petition Activity: FY 2008-FY 2010 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Number of Average days Average days Number of petitions Number of Number of between between filing FY petitions accepted for petitions petitions acceptance and and filed filing certified denied certification certification ------------------------------------------------------------------------------------------------------------------------------------------- 2008...................................... 189 190 188 0 45 N/A 2009...................................... 278 244 216 1 44 89 2010...................................... 305 325 330 0 40 74 % Change (2009 to 2010)............... 10% 33% 53% N/A (9)% (17)% ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Exhibit 6: Petitions Filed by TAAC: FY 2008-FY 2010 [GRAPHIC] [TIFF OMITTED] TN26JA11.014 Exhibit 7: Petitions Accepted by TAAC: FY 2008-FY 2010 [GRAPHIC] [TIFF OMITTED] TN26JA11.015 Exhibit 8: Petitions Certified by TAAC: FY 2008-FY 2010 [[Page 4620]] [GRAPHIC] [TIFF OMITTED] TN26JA11.016 Exhibit 9: Petitions Filed, Accepted and Certified by TAAC: FY 2010 \2\ --------------------------------------------------------------------------- \2\ Petitions are certified on a rolling basis throughout the year, therefore activity in these categories may not result in certification within the same FY. These totals represent the activity under each category within FY 2010. ---------------------------------------------------------------------------------------------------------------- Number of Number of petitions Number of TAAC petitions accepted for petitions filed \2\ filing \2\ certified ---------------------------------------------------------------------------------------------------------------- Great Lakes..................................................... 14 16 19 Mid-America..................................................... 26 30 28 MidAtlantic..................................................... 57 59 58 Midwest......................................................... 33 36 40 New England..................................................... 53 56 56 New York State.................................................. 22 26 25 Northwest....................................................... 19 22 21 Rocky Mountain.................................................. 17 16 18 Southeastern.................................................... 33 30 30 Southwest....................................................... 23 25 23 Western......................................................... 8 12 12 ----------------------------------------------- Total....................................................... 305 328 330 ---------------------------------------------------------------------------------------------------------------- Exhibit 10: Petitions Filed, Accepted, and Certified by TAAC: FY 2010 [GRAPHIC] [TIFF OMITTED] TN26JA11.017 [[Page 4621]] Exhibit 11: Firms Certified for TAAF by Industry: FY 2010 The majority of petitions certified for TAAF were submitted by firms in the manufacturing industry. Firms in wholesale trade and technical services rounded out the top three industries. Approximately 7 percent of firms certified in FY 2010 were service sector firms. Demand from service firms in FY 2011 is likely to increase at the same rate as FY 2010. [GRAPHIC] [TIFF OMITTED] TN26JA11.018 (5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States Exhibit 12: Petitions Filed by Congressional District: FY 2010 ------------------------------------------------------------------------ No. of Congressional district(s) petitions filed ------------------------------------------------------------------------ AK At Large............................................... 1 AL 4...................................................... 1 AR 1...................................................... 1 2...................................................... 4 3...................................................... 2 AZ 5...................................................... 1 6...................................................... 1 CA 13..................................................... 1 30..................................................... 1 32..................................................... 1 34..................................................... 1 43..................................................... 1 CO 1...................................................... 2 2...................................................... 2 3...................................................... 3 4...................................................... 1 5...................................................... 1 CT 1...................................................... 2 2...................................................... 2 5...................................................... 1 6...................................................... 1 FL 10..................................................... 1 21..................................................... 1 22..................................................... 1 24..................................................... 1 GA 2...................................................... 2 5...................................................... 1 6...................................................... 1 7...................................................... 1 9...................................................... 1 HI 1...................................................... 1 ID 1...................................................... 3 IL 3...................................................... 2 4...................................................... 1 5...................................................... 3 6...................................................... 3 8...................................................... 1 10..................................................... 1 13..................................................... 1 14..................................................... 4 16..................................................... 1 17..................................................... 1 IN 2...................................................... 1 7...................................................... 1 8...................................................... 1 13..................................................... 1 KS 1...................................................... 2 2...................................................... 2 3...................................................... 1 4...................................................... 2 KY 1...................................................... 1 2...................................................... 2 3...................................................... 1 LA 2...................................................... 2 3...................................................... 3 6...................................................... 1 7...................................................... 1 MA 1...................................................... 4 3...................................................... 3 4...................................................... 3 5...................................................... 3 6...................................................... 3 7...................................................... 3 9...................................................... 4 10..................................................... 2 MD [[Page 4622]] 2...................................................... 1 4...................................................... 1 ME 1...................................................... 3 2...................................................... 3 MI 1...................................................... 1 7...................................................... 1 9...................................................... 2 11..................................................... 3 12..................................................... 1 MN 3...................................................... 2 4...................................................... 1 5...................................................... 1 6...................................................... 1 7...................................................... 1 MO 1...................................................... 1 2...................................................... 1 4...................................................... 1 5...................................................... 2 6...................................................... 1 7...................................................... 4 8...................................................... 2 MS 1...................................................... 1 MT At Large............................................... 3 NC 7...................................................... 2 8...................................................... 1 9...................................................... 1 10..................................................... 1 11..................................................... 1 12..................................................... 1 ND 1...................................................... 3 NH ........... 1...................................................... 4 NJ 8...................................................... 1 12..................................................... 1 NY 1...................................................... 1 3...................................................... 1 8...................................................... 2 20..................................................... 2 22..................................................... 1 25..................................................... 6 26..................................................... 4 27..................................................... 1 28..................................................... 2 29..................................................... 2 OH 4...................................................... 1 14..................................................... 1 16..................................................... 1 OK 1...................................................... 5 2...................................................... 1 3...................................................... 3 OR 3...................................................... 1 4...................................................... 2 PA 3...................................................... 3 4...................................................... 1 5...................................................... 2 6...................................................... 1 7...................................................... 3 8...................................................... 2 9...................................................... 2 10..................................................... 2 11..................................................... 8 12..................................................... 1 13..................................................... 2 15..................................................... 8 16..................................................... 3 17..................................................... 6 18..................................................... 1 19..................................................... 6 RI 1...................................................... 8 2...................................................... 3 SC 2...................................................... 2 3...................................................... 1 5...................................................... 3 6...................................................... 2 SD At Large............................................... 1 TN 4...................................................... 1 6...................................................... 1 TX 3...................................................... 1 12..................................................... 4 13..................................................... 1 15..................................................... 1 UT 1...................................................... 1 2...................................................... 1 3...................................................... 1 VA 4...................................................... 1 6...................................................... 1 VT 1...................................................... 1 WA 4...................................................... 1 5...................................................... 2 6...................................................... 2 7...................................................... 2 9...................................................... 2 WI 1...................................................... 1 4...................................................... 1 5...................................................... 4 6...................................................... 2 7...................................................... 1 ------------------------------------------------------------------------ Exhibit 13: Petitions Certified by Congressional District: FY 2010 ------------------------------------------------------------------------ No. of Congressional district(s) petitions certified ------------------------------------------------------------------------ AK At Large............................................... 2 AL 4...................................................... 1 AR 1...................................................... 1 2...................................................... 4 3...................................................... 2 AZ 4...................................................... 1 CA 7...................................................... 1 20..................................................... 1 26..................................................... 1 30..................................................... 1 31..................................................... 1 32..................................................... 1 34..................................................... 1 43..................................................... 1 48..................................................... 1 CO 1...................................................... 1 2...................................................... 2 3...................................................... 3 4...................................................... 1 5...................................................... 1 6...................................................... 1 CT 1...................................................... 2 2...................................................... 2 5...................................................... 1 6...................................................... 1 FL 10..................................................... 1 22..................................................... 1 24..................................................... 1 GA 6 2...................................................... 2 3...................................................... 1 5...................................................... 1 6...................................................... 1 9...................................................... 1 HI 1...................................................... 2 IA 3...................................................... 1 ID 1...................................................... 3 IL 3...................................................... 2 4...................................................... 2 5...................................................... 3 6...................................................... 4 7...................................................... 1 8...................................................... 2 10..................................................... 1 13..................................................... 1 14..................................................... 5 16..................................................... 1 17..................................................... 1 IN 2...................................................... 1 7...................................................... 1 8...................................................... 1 13..................................................... 1 KS 1...................................................... 2 2...................................................... 1 3...................................................... 1 4...................................................... 2 KY 1...................................................... 1 3...................................................... 1 LA 2...................................................... 2 3...................................................... 2 6...................................................... 1 7...................................................... 1 MA 1...................................................... 4 3...................................................... 4 4...................................................... 3 5...................................................... 3 6...................................................... 3 7...................................................... 3 9...................................................... 5 10..................................................... 2 MD 2...................................................... 1 [[Page 4623]] 4...................................................... 1 ME 1...................................................... 3 2...................................................... 3 MI 1...................................................... 1 7...................................................... 1 9...................................................... 2 10..................................................... 1 11..................................................... 4 12..................................................... 1 MN 2...................................................... 2 3...................................................... 1 4...................................................... 1 5...................................................... 1 6...................................................... 1 MO 1...................................................... 2 2...................................................... 1 3...................................................... 1 4...................................................... 2 5...................................................... 2 6...................................................... 1 7...................................................... 5 8...................................................... 1 MS 1...................................................... 1 MT At Large............................................... 5 NC 1...................................................... 1 5...................................................... 1 7...................................................... 2 9...................................................... 1 10..................................................... 2 11..................................................... 1 12..................................................... 1 ND 1...................................................... 1 At Large............................................... 1 NH 1...................................................... 5 2...................................................... 1 NY 1...................................................... 1 3...................................................... 1 8...................................................... 1 20..................................................... 3 25..................................................... 6 26..................................................... 5 27..................................................... 1 28..................................................... 4 29..................................................... 3 OH 3...................................................... 1 4...................................................... 1 8...................................................... 1 10..................................................... 1 14..................................................... 1 16..................................................... 1 OK 1...................................................... 5 2...................................................... 2 3...................................................... 2 OR 3...................................................... 1 4...................................................... 2 PA 3...................................................... 3 4...................................................... 1 6...................................................... 3 7...................................................... 4 8...................................................... 2 9...................................................... 2 10..................................................... 3 11..................................................... 7 12..................................................... 1 13..................................................... 1 15..................................................... 8 16..................................................... 2 17..................................................... 7 18..................................................... 1 19..................................................... 8 RI 1...................................................... 8 2...................................................... 3 SC 2...................................................... 1 3...................................................... 1 5...................................................... 2 6...................................................... 2 SD At Large............................................... 1 TN 4...................................................... 1 6...................................................... 1 TX 3...................................................... 1 12..................................................... 4 15..................................................... 1 16..................................................... 1 21..................................................... 1 UT 1...................................................... 1 2...................................................... 1 3...................................................... 2 28..................................................... 1 VA 4...................................................... 1 6...................................................... 2 WA 4...................................................... 1 5...................................................... 2 6...................................................... 1 7...................................................... 3 9...................................................... 1 WI 3...................................................... 1 4...................................................... 1 5...................................................... 5 6...................................................... 3 ------------------------------------------------------------------------ (6) The Number of Firms that Received Assistance in Preparing Their Petitions In FY 2010, on average, 232 firms received assistance in preparing petitions per quarter. The total number of firms that received technical assistance varies each quarter as assistance is provided throughout the year. A firm receiving assistance in one quarter may continue to receive assistance in the following quarter. Exhibit 14: Petition Assistance Activity per Quarter: FY 2010 ------------------------------------------------------------------------ Average No. of firms receiving assistance with TAAC preparing petitions (per quarter) ------------------------------------------------------------------------ Great Lakes.......................................... 8 Mid-America.......................................... 61 MidAtlantic.......................................... 10 Midwest.............................................. 49 New England.......................................... 9 New York State....................................... 15 Northwest............................................ 15 Rocky Mountain....................................... 21 Southeastern......................................... 20 Southwest............................................ 5 Western.............................................. 19 ------------------ Total............................................ 232 ------------------------------------------------------------------------ (7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals) In FY 2010, on average, 146 firms received assistance in developing Adjustment Proposals; and 690 firms received assistance in the implementation of Adjustment Proposal plans per quarter. The total number of firms that received technical assistance varies each quarter as assistance is provided throughout the year. A firm receiving assistance in one quarter may continue to receive assistance in the following quarter. Exhibit 15: Adjustment Proposal Development Activity per Quarter: FY 2010 ------------------------------------------------------------------------ Average No. of firms Average No. of receiving firms assistance receiving with assistance TAAC adjustment with proposal adjustment development proposal (per implementation quarter) (per quarter) ------------------------------------------------------------------------ Great Lakes................................ 4 58 Mid-America................................ 14 63 MidAtlantic................................ 13 85 Midwest.................................... 13 64 New England................................ 16 103 New York State............................. 13 30 Northwest.................................. 5 61 Rocky Mountain............................. 18 79 Southeastern............................... 21 54 Southwest.................................. 16 54 Western.................................... 13 39 ---------------------------- Total.................................. 146 690 ------------------------------------------------------------------------ (8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce In FY 2010, EDA approved all 265 Adjustment Proposals that were submitted; an additional 93 business [[Page 4624]] recovery plans, a 54 percent increase as compared to FY 2009. Exhibit 16: Summary of Adjustment Proposals Approved: FY 2008-FY 2010 ---------------------------------------------------------------------------------------------------------------- Total Number of Total projected Average adjustment government Total firm adjustment government FY proposals share share proposal assistance approved (millions) (millions) costs per firm (millions) ---------------------------------------------------------------------------------------------------------------- 2008........................................... 139 $7.9 $7.5 $15.4 $56,835 2009........................................... 172 $10.3 $9.8 $20.2 $59,884 2010........................................... 265 $16.4 $15.6 $32.1 $61,958 % Change (2009 to 2010)........................ 54% 59% 59% 59% 3% ---------------------------------------------------------------------------------------------------------------- Exhibit 17: Adjustment Proposals Approved by TAAC: FY 2008-FY 2010 [GRAPHIC] [TIFF OMITTED] TN26JA11.019 Exhibit 18: Adjustment Proposals Approved by TAAC: FY 2010 ------------------------------------------------------------------------ Number of adjustment TAAC proposals approved ------------------------------------------------------------------------ Great Lakes................................................ 24 Mid-America................................................ 25 MidAtlantic................................................ 29 Midwest.................................................... 40 New England................................................ 48 New York State............................................. 14 Northwest.................................................. 20 Rocky Mountain............................................. 17 Southeastern............................................... 23 Southwest.................................................. 16 Western.................................................... 9 ------------ Total.................................................. 265 ------------------------------------------------------------------------ (9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification The average sales, employment and productivity of firms certified into the program in FY 2010 was higher than that of firms certified in FY 2009. For the purposes of this report, productivity is defined as net sales per employee. Since the certified firms are in various industries, which have a variety of ways to measure productivity, sales per employee was chosen as the productivity measure. This measure is used because it can be generally applied to all certified firms. Exhibit 19: Comparison of Average Sales, Employment, and Productivity at Firms at the Time of Certification: FY 2008-FY 2010 ---------------------------------------------------------------------------------------------------------------- Average Average FY Average sales employment productivity ---------------------------------------------------------------------------------------------------------------- 2008......................................................... $13,081,993 82 $159,537 2009......................................................... $10,338,422 79 $130,866 2010......................................................... $19,137,139 138 $138,675 % Change (2009 to 2010)...................................... 85% 74% 15% ---------------------------------------------------------------------------------------------------------------- [[Page 4625]] Exhibit 20: Summary Comparison of Average Sales, Employment, and Productivity for Firms at the Time of Certification by TAAC: FY 2010 ---------------------------------------------------------------------------------------------------------------- Average Average TAAC Average sales employment productivity ---------------------------------------------------------------------------------------------------------------- Great Lakes.................................................. $35,127,822 177 $198,462 Mid-America.................................................. 10,265,214 88 116,650 MidAtlantic.................................................. 15,122,655 89 169,917 Midwest...................................................... 22,062,757 114 193,533 New England.................................................. 7,632,080 51 148,649 New York State............................................... 14,585,421 91 160,279 Northwest.................................................... 8,720,395 72 121,117 Rocky Mountain............................................... 43,725,204 203 215,395 Southeastern................................................. 11,052,021 68 162,530 Southwest.................................................... 7,529,645 366 20,573 Western...................................................... 34,685,316 196 176,966 -------------------------------------------------- Total.................................................... 19,137,139 138 138,675 ---------------------------------------------------------------------------------------------------------------- Exhibit 21: Summary of Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification: FY 2010 ---------------------------------------------------------------------------------------------------------------- Productivity Firm No. Sales ($) Employment ($) ---------------------------------------------------------------------------------------------------------------- --2118051509................................................. $5,333,040 23 $231,871 --2111249509................................................. 1,208,258 7 172,608 --2104802926................................................. 2,455,461 39 62,961 --2103906847................................................. 1,328,000 10 132,800 --2083450313................................................. 42,874,044 185 231,752 --2073175636................................................. 16,101,898 137 117,532 --2068287522................................................. 11,938,999 31 385,129 --2059136725................................................. 60,764,758 181 335,717 --2023874564................................................. 2,518,000 21 119,905 --2010236141................................................. 3,019,178 25 120,767 --2007895508................................................. 613,906 6 102,318 --1997824464................................................. 4,171,401 41 102,795 --1990457870................................................. 7,559,350 98 77,136 --1973580510................................................. 45,487,139 457 99,534 --1958214488................................................. 7,467,369 49 153,429 --1956376675................................................. 1,780,606 24 74,973 --1941157067................................................. 612,124 5 122,425 --1899532397................................................. 2,037,257 4 479,355 --1898904502................................................. 315,272 5 63,054 --1884551502................................................. 9,040,000 58 155,862 --1880843073................................................. 5,265,708 41 128,432 --1838877792................................................. 3,483,609 31 112,374 --1828369285................................................. 17,140,309 162 105,804 --1759758341................................................. 6,010,971 50 120,219 --1742177269................................................. 9,976,653 62 160,914 --1740960093................................................. 13,154,390 45 292,320 --1740086291................................................. 26,940,727 147 183,270 --1739842518................................................. 2,310,068 27 85,558 --1704715418................................................. 12,875,152 171 75,293 --1661485163................................................. 3,393,780 31 109,477 --1635069591................................................. 7,537,000 51 147,784 --1542448328................................................. 9,922,578 120 82,688 --1520701304................................................. 4,697,310 77 61,004 --1484222959................................................. 1,444,014 11 131,274 --1471661205................................................. 6,322,000 40 158,050 --1461073515................................................. 92,484,000 302 306,238 --1454186553................................................. 282,778 4 70,695 --1432738384................................................. 3,528,890 33 106,936 --1427334167................................................. 37,484,000 359 104,412 --1417226723................................................. 983,006 11 89,364 --1281724603................................................. 4,028,000 38 106,000 --1243439974................................................. 22,596,956 99 228,252 --1241427110................................................. 10,487,391 104 100,840 --1187326382................................................. 707,341 4 176,835 --1169045359................................................. 5,046,000 43 117,349 [[Page 4626]] --1129223838................................................. 10,578,429 104 101,716 --1128703111................................................. 1,354,620 14 96,759 --1126326868................................................. 2,212,064 19 116,424 --1116912576................................................. 5,470,620 25 218,825 --1097459358................................................. 92,988,380 461 201,601 --1086130450................................................. 26,260,884 105 250,509 --1038621441................................................. 14,126,803 103 137,153 --1004329971................................................. 17,601,176 165 106,674 --1000240433................................................. 15,690,666 102 153,830 --999105849.................................................. 2,547,000 21 121,286 --995226650.................................................. 4,930,000 24 205,417 --947962116.................................................. 4,549,568 34 133,811 --934975561.................................................. 4,495,541 39 115,270 --885365563.................................................. 3,121,641 34 91,813 --857031178.................................................. 11,353,000 99 114,677 --852461053.................................................. 932,387 143 6,520 --843055880.................................................. 1,606,394 36 44,622 --840166025.................................................. 10,585,957 109 97,119 --806944983.................................................. 9,609,077 85 113,048 --794575305.................................................. 1,406,804 3 468,935 --788484912.................................................. 15,056,348 108 139,411 --779297214.................................................. 108,005,394 736 146,746 --759779489.................................................. 43,715,000 160 273,219 --726121634.................................................. 1,660,145 14 118,582 --702330654.................................................. 12,073,751 125 96,590 --692565138.................................................. 6,173,766 23 268,425 --681139744.................................................. 13,963,911 85 164,281 --674357347.................................................. 5,304,000 52 102,000 --672809309.................................................. 10,311,629 28 368,272 --654901806.................................................. 10,811,000 53 203,981 --622207779.................................................. 3,122,027 41 76,147 --591889087.................................................. 2,346,285 237 9,900 --585725005.................................................. 16,463,961 85 193,694 --560318612.................................................. 4,131,687 22 190,664 --554924474.................................................. 171,103 3 57,034 --550588573.................................................. 943,348 10 97,554 --543809333.................................................. 9,295,728 25 371,829 --504989951.................................................. 25,003,966 78 320,235 --436909589.................................................. 11,245,912 337 33,371 --429565845.................................................. 194,828 8 24,354 --426260672.................................................. 677,432 12 56,453 --413262258.................................................. 16,722,097 104 160,789 --370373838.................................................. 2,195,090 14 156,792 --356857349.................................................. 8,882,300 105 84,593 --347882712.................................................. 10,155,480 508 19,991 --334795766.................................................. 2,737,505 31 88,307 --334691552.................................................. 2,927,563 25 117,103 --325246775.................................................. 16,232,121 108 150,297 --322389137.................................................. 3,344,284 32 104,509 --311586268.................................................. 939,857 5 187,971 --297716183.................................................. 34,926,049 192 181,509 --263774128.................................................. 4,637,869 42 110,425 --229337262.................................................. 1,529,815 18 84,990 --222714747.................................................. 10,140,682 157 64,590 --172876934.................................................. 3,873,669 41 94,480 --167523770.................................................. 1,377,000 15 91,800 --138492743.................................................. 10,056,766 35 287,336 --126595790.................................................. 5,781,000 116 49,836 --111557939.................................................. 14,913,000 108 138,083 --106605238.................................................. 94,110,272 316 297,817 --80321537................................................... 2,496,868 28 88,135 --75360888................................................... 3,998,950 21 190,426 --72799676................................................... 14,999,842 67 223,878 --52573030................................................... 3,731,345 38 99,503 --41850669................................................... 20,268,686 98 206,823 --2420921.................................................... 1,191,242 13 91,634 --438018..................................................... 32,608,321 116 281,106 16573262..................................................... 2,803,311 21 133,491 22130970..................................................... 8,378,094 55 152,329 48907681..................................................... 1,447,117 11 136,779 83564872..................................................... 1,099,835 13 84,603 85474563..................................................... 3,475,788 50 69,516 92019186..................................................... 4,882,733 27 180,842 98077462..................................................... 6,103,725 66 92,481 [[Page 4627]] 132107069.................................................... 4,875,150 55 88,639 215326868.................................................... 8,232,877 105 78,408 235292569.................................................... 201,980,000 934 216,253 278618212.................................................... 313,150 5 62,630 294844867.................................................... 613,236 10 61,324 299352457.................................................... 1,090,852 14 77,918 300171006.................................................... 2,425,844 22 112,830 370006245.................................................... 45,317,479 260 174,634 375977128.................................................... 3,275,986 30 109,200 416345364.................................................... 6,160,767 431 14,294 431287226.................................................... 6,578,244 344 19,123 434352811.................................................... 853,056 19 43,972 447765204.................................................... 4,050,320 32 126,573 456495450.................................................... 22,274,281 77 289,276 457871548.................................................... 166,600,000 660 252,424 460220479.................................................... 5,323,864 37 143,888 461983321.................................................... 9,815,491 70 140,221 488397464.................................................... 3,814,820 2122 1,798 507638153.................................................... 1,168,480 14 83,463 605479507.................................................... 3,393,771 35 96,965 695555564.................................................... 3,774,516 18 209,695 709865456.................................................... 2,505,135 34 73,680 725507790.................................................... 134,197,000 914 146,824 737303963.................................................... 7,042,585 40 176,065 742517299.................................................... 3,196,691 52 61,475 765990946.................................................... 11,298,809 110 102,716 769259150.................................................... 7,770,655 16 485,666 774637751.................................................... 14,856,715 62 239,624 807998327.................................................... 19,015,349 846 22,477 816528506.................................................... 9,998,096 41 242,085 821736854.................................................... 4,502,400 57 78,989 831153636.................................................... 884,344 130 6,803 870096733.................................................... 10,389,478 82 126,701 916493089.................................................... 5,939,422 57 104,200 920775500.................................................... 13,044,545 691 18,878 921991757.................................................... 23,726,780 113 209,972 923653641.................................................... 2,722,000 18 151,222 931084257.................................................... 19,809,756 57 347,540 931353658.................................................... 13,942,054 69 202,059 936755382.................................................... 1,990,490 24 82,937 938704928.................................................... 9,793,612 126 77,727 952223001.................................................... 3,371,521 31 108,759 974323566.................................................... 7,510,846 78 96,293 998418962.................................................... 4,612,000 35 131,771 1008993417................................................... 1,065,256 21 50,726 1036673242................................................... 86,665,926 458 189,227 1047544912................................................... 12,706,348 167 76,086 1079241463................................................... 639,588 4 159,897 1080100154................................................... 13,493,317 86 156,899 1157306813................................................... 23,214,000 204 113,794 1170995123................................................... 1,954,476 13 150,344 1176704596................................................... 1,551,985 23 68,369 1190314840................................................... 16,885,829 808 20,898 1190725189................................................... 6,360,142 68 93,532 1199996737................................................... 12,773,634 66 193,540 1208792226................................................... 2,043,850 21 97,326 1237998436................................................... 14,291,766 134 106,655 1246033896................................................... 15,392,000 58 265,379 1246285115................................................... 11,261,303 61 184,612 1246302114................................................... 40,310,044 3115 12,941 1246892583................................................... 5,306,225 43 123,401 1247153819................................................... 7,454,736 63 118,329 1247167949................................................... 57,390,191 259 221,584 1247662700................................................... 105,504,196 395 267,099 1247670190................................................... 112,370,000 998 112,595 1247750161................................................... 158,893 4 39,723 1247758341................................................... 5,834,248 68 85,798 1247766035................................................... 5,108,385 34 150,247 1249481184................................................... 1,492,256 12 124,355 1250022715................................................... 7,189,955 76 94,605 1250103435................................................... 28,962,384 187 154,879 1250105714................................................... 4,800,000 53 90,566 1250174776................................................... 20,457,000 124 164,976 1250186876................................................... 88,739,000 333 266,483 [[Page 4628]] 1250192980................................................... 433,632 4 108,408 1250257754................................................... 3,281,352 41 80,033 1251302450................................................... 4,018,650 40 100,466 1252079576................................................... 110,491,969 497 222,318 1252436282................................................... 217,035 2 108,518 1253720272................................................... 14,816,335 77 192,420 1254322240................................................... 100,962,620 320 315,508 1255105505................................................... 465,216 5 93,043 1256321189................................................... 1,731,646 20 86,582 1256768152................................................... 2,917,626 34 85,813 1256819844................................................... 52,569,607 195 269,588 1256829696................................................... 5,821,437 62 93,894 1256861475................................................... 511,901 4 127,975 1256921129................................................... 7,230,791 24 301,283 1257376509................................................... 1,926,715 25 77,378 1257516574................................................... 10,874,000 99 109,838 1258743222................................................... 8,813,262 42 209,840 1260826068................................................... 1,978,584 22 89,936 1262959682................................................... 15,889,753 86 184,765 1264723282................................................... 3,640,000 20 182,000 1266339861................................................... 6,975,566 45 155,013 1266353281................................................... 11,331,686 135 83,938 1266507166................................................... 640,737 9 71,193 1266857885................................................... 1,625,000 19 85,526 1266942829................................................... 7,291,000 118 61,788 1266943121................................................... 16,868,347 115 146,173 1266947270................................................... 1,876,145 32 58,630 1267027715................................................... 1,656,638 29 57,622 1267462374................................................... 663,920 10 66,392 1267470068................................................... 10,547,269 76 138,780 1267543458................................................... 6,961,334 90 77,348 1267648076................................................... 3,323,141 26 127,813 1267651976................................................... 10,210,351 71 143,808 1268086064................................................... 10,016,000 34 294,588 1268146310................................................... 3,392,384 45 75,386 1268157420................................................... 25,542,464 321 79,572 1268224827................................................... 1,532,111 8 191,514 1268670167................................................... 355,324,231 1143 310,870 1268744533................................................... 2,474,000 43 57,535 1268751244................................................... 1,688,308 16 105,519 1268925702................................................... 1,794,208 14 128,158 1268951389................................................... 22,679,000 152 149,204 1269004689................................................... 161,938 3 52,577 1269269057................................................... 4,748,940 20 237,447 1269271489................................................... 3,866,340 30 128,878 1269291616................................................... 2,906,220 34 85,477 1269368306................................................... 20,343,681 108 188,367 1269436574................................................... 991,000 203 4,882 1269956130................................................... 48,092,000 352 136,625 1270041484................................................... 2,214,350 21 105,045 1270057007................................................... 11,118,850 90 123,543 1270480498................................................... 6,162,659 69 89,314 1270494120................................................... 7,701,343 64 120,333 1271250626................................................... 8,126,174 98 82,920 1271253012................................................... 3,574,300 26 137,473 1271254787................................................... 2,428,448 17 142,850 1271444344................................................... 3,399,635 38 89,464 1273082444................................................... 1,757,269 19 92,488 1273151594................................................... 2,636,265 18 146,459 1273511065................................................... 3,415,979 38 89,894 1273604467................................................... 935,330 16 59,386 1273670517................................................... 1,588,074 9 176,453 1274280512................................................... 185,220 1 185,220 1274377941................................................... 59,439,842 223 266,546 1274732253................................................... 4,418,363 33 133,890 1274891083................................................... 8,212,101 89 92,271 1274904043................................................... 7,013,000 55 127,509 1274977621................................................... 10,041,631 107 93,847 1274982453................................................... 24,617,949 165 149,200 1275498608................................................... 8,194,926 82 99,938 1275501481................................................... 8,854,439 42 210,820 1275511967................................................... 8,679,385 47 186,333 1276001619................................................... 1,921,000 10 192,100 1276010273................................................... 837,229 8 104,654 [[Page 4629]] 1276103578................................................... 6,547,098 43 152,258 1276522602................................................... 1,096,375 14 78,313 1276536764................................................... 1,760,404 7 251,486 1276720693................................................... 23,845,594 153 155,854 1276793499................................................... 912,115 8 114,014 1276868869................................................... 90,881,308 633 143,572 1276881128................................................... 6,249,947 65 96,153 1277148172................................................... 4,047,406 51 79,361 1277321808................................................... 29,153,315 202 144,323 1277389938................................................... 1,154,435 11 104,949 1277834733................................................... 32,327,732 144 225,280 1279745224................................................... 209,812,000 990 211,931 1280248531................................................... 9,645,673 48 200,952 1280327279................................................... 5,206,736 17 306,279 1280333008................................................... 1,855,202 19 97,642 1280413966................................................... 12,554,000 181 69,359 1280432405................................................... 9,508,149 73 130,249 1280778333................................................... 15,244,156 65 234,525 1281015259................................................... 4,717,220 56 84,236 1281019133................................................... 4,188,055 23 182,089 1281025757................................................... 4,588,575 31 148,019 1281031551................................................... 844,748 6 151,389 1281037430................................................... 686,821 8 85,853 1281105917................................................... 5,609,499 23 243,891 1281107514................................................... 2,896,917 16 180,157 1282051642................................................... 10,719,785 111 96,575 1282140686................................................... 4,415,042 35 125,534 1288447499................................................... 9,275,776 68 136,408 1294227725................................................... 1,198,400 19 63,074 1295078554................................................... 69,520,128 245 283,756 1350478164................................................... 7,764,988 73 106,735 1364503640................................................... 2,604,710 13 200,362 1397900651................................................... 20,812,200 72 289,058 1438893258................................................... 709,112 9 76,661 1442035945................................................... 104,000 62 1,677 1456199116................................................... 14,937,310 71 210,385 1461210273................................................... 688,001 5 137,600 1489228822................................................... 34,534,810 222 155,562 1508209231................................................... 58,126,775 247 235,331 1528554001................................................... 34,240,000 191 179,267 1531789493................................................... 6,468,184 656 9,860 1535674410................................................... 83,743,273 391 214,177 1565479699................................................... 4,024,755 31 129,831 1569320561................................................... 2,785,528 32 87,048 1605100384................................................... 1,196,061 172 6,954 1625376772................................................... 5,722,000 63 90,825 1658462633................................................... 191,092,628 608 314,297 1739021199................................................... 7,540,427 61 123,614 1751920052................................................... 4,841,397 70 69,163 1866991437................................................... 2,250,498 36 62,514 1871304606................................................... 1,807,141 17 106,302 1874228463................................................... 10,409,004 76 136,961 1919568775................................................... 1,769,572 18 98,310 1974568513................................................... 430,401 16 27,768 1974830581................................................... 1,518,225 16 94,889 1976603120................................................... 4,028,269 37 108,872 1995751409................................................... 14,548,104 254 57,276 2012969340................................................... 24,295,000 185 131,324 2044046179................................................... 27,293,631 110 248,124 2050270334................................................... 59,757,408 192 311,237 2071124572................................................... 30,636,210 212 144,510 2086748305................................................... 37,808,432 175 216,048 2109627131................................................... 11,900,000 75 158,667 ---------------------------------------------------------------------------------------------------------------- (10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-year Period Following Completion Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.9 million, average employment was 73, and average productivity was $150,674 (sales per employee). Between FY 2008 and FY 2009, one year after completing the program, firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reports that nationwide for the manufacturing industry, average employment decreased 12 percent and [[Page 4630]] average productivity increased by 4 percent. Between FY 2008 and FY 2010, two years after completing the program, firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reports that nationwide for the manufacturing industry, average employment decreased 12 percent and average productivity increased by 9 percent. For the purposes of this report, data was reported only for firms where all data was available. Since the certified firms are in various industries, which have a variety of ways to measure productivity, sales per employee was chosen as the productivity measure. This measure is used because it can be generally applied to all certified firms. However, BLS' productivity measures relate output to the labor hours used in the production of that output. Exhibit 22: Summary of Average Sales, Employment, and Productivity at Firms Upon Completion of the Program and the One-Year Period Following Completion ---------------------------------------------------------------------------------------------------------------- Average Average Program completion Average sales employment productivity ---------------------------------------------------------------------------------------------------------------- Completion (FY 2008)......................................... $10,999,200 73 $150,674 1st Year Following Completion (FY 2009)...................... $11,079,460 66 $167,871 % Change 1st Year Following Completion....................... 1% -10% 11% ---------------------------------------------------------------------------------------------------------------- Exhibit 23: Summary of Average Sales, Employment, and Productivity at Firms Upon Completion of the Program and the Two-Year Period Following Completion ---------------------------------------------------------------------------------------------------------------- Average Average Program completion Average sales employment productivity ---------------------------------------------------------------------------------------------------------------- Completion (FY 2008)......................................... $10,999,200 73 $150,674 2nd Year Following Completion (FY 2010)...................... $9,498,479 61 $155,713 % Change 2nd Year............................................ -14% -16% 3% Following Completion......................................... ---------------------------------------------------------------------------------------------------------------- Exhibit 24: Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Two-Year Period Following Completion ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Average Average Average Average Average sales Average sales Average employment employment Average productivity productivity Average sales 1st yr 2nd yr employment 1st yr 2nd yr productivity at 1st yr 2nd yr Firm ID at completion following following at following following completion (FY following following (FY 2008) completion (FY completion (FY completion completion completion 2008) completion (FY completion (FY 2009) 2010) (FY 2008) (FY 2009) (FY 2010) 2009) 2010) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ FY08-01............................................ $39,390,601 $37,698,350 $21,692,925 325 275 173 $121,202 $137,085 $125,393 FY08-05............................................ 10,630,000 10,800,000 4,800,000 64 55 38 166,094 196,364 126,316 FY08-03............................................ 28,400,000 31,500,000 25,150,000 190 180 158 149,474 175,000 159,177 FY08-04............................................ 5,130,000 5,800,000 5,325,204 33 35 31 155,455 165,714 171,781 FY08-02............................................ 16,500,000 17,800,000 17,000,000 53 55 56 311,321 323,636 303,571 FY08-23............................................ 3,000,000 2,000,000 2,000,000 25 25 23 120,000 80,000 86,957 FY08-24............................................ 7,500,000 7,000,000 7,020,687 67 65 65 111,940 107,692 108,011 FY08-20............................................ 2,000,000 1,000,000 2,400,000 21 10 22 95,238 100,000 109,091 FY08-25............................................ 4,200,000 4,000,000 4,200,000 33 31 33 127,273 129,032 127,273 FY08-26............................................ 1,700,000 1,100,000 1,200,000 9 9 9 188,889 122,222 133,333 FY08-21............................................ 6,056,458 5,500,000 3,006,918 27 31 21 224,313 177,419 143,187 FY08-28............................................ 3,070,000 3,080,000 2,300,000 19 18 15 161,579 171,111 153,333 FY08-22............................................ 10,200,000 9,000,000 10,000,000 58 55 57 175,862 163,636 175,439 FY08-27............................................ 18,750,000 17,000,000 18,500,000 86 80 85 218,023 212,500 217,647 FY08-30............................................ 275,000 248,000 229,000 6 8 7 45,833 31,000 32,714 FY08-29............................................ 313,000 416,000 533,000 22 12 12 14,227 34,667 44,417 FY08-34............................................ 3,081,000 2,220,000 1,597,000 39 25 22 79,000 88,800 72,591 FY08-31............................................ 17,500,000 14,200,000 10,900,000 195 160 120 89,744 88,750 90,833 FY08-32............................................ 3,210,000 4,273,000 4,637,000 36 41 35 89,167 104,220 132,486 FY08-36............................................ 18,592,000 18,227,000 16,852,000 130 105 125 143,015 173,590 134,816 FY08-37............................................ 354,000 859,000 1,117,000 5 7 6 70,800 122,714 186,167 FY08-33............................................ 30,000,000 40,000,000 40,000,000 200 100 120 150,000 400,000 333,333 FY08-35............................................ 14,300,000 14,200,000 13,000,000 38 35 37 376,316 405,714 351,351 FY08-38............................................ 6,500,000 7,100,000 8,400,000 50 68 80 130,000 104,412 105,000 FY08-39............................................ 37,000,000 40,000,000 43,000,000 440 429 439 84,091 93,240 97,950 FY08-41............................................ 7,500,000 8,900,000 9,400,000 25 29 31 300,000 306,897 303,226 FY08-40............................................ 8,500,000 10,500,000 10,750,000 15 25 28 566,667 420,000 383,929 FY08-44............................................ 911,948 881,669 430,401 20 16 11 45,597 55,104 39,127 FY08-42............................................ 1,972,425 1,629,361 945,420 18 14 14 109,579 116,383 67,530 FY08-43............................................ 19,493,382 15,767,000 19,000,000 88 86 86 221,516 183,337 220,930 FY08-47............................................ 520,610 452,662 301,635 8 6 5 65,076 75,444 60,327 FY08-49............................................ 4,250,000 3,386,346 1,818,408 22 19 15 193,182 178,229 121,227 FY08-57............................................ 769,184 816,322 674,255 11 11 10 69,926 74,211 67,426 [[Page 4631]] FY08-56............................................ 2,960,719 3,027,576 2,292,154 37 37 33 80,019 81,826 69,459 FY08-53............................................ 7,278,583 6,535,827 4,675,983 43 36 36 169,269 181,551 129,888 FY08-52............................................ 6,160,677 6,101,363 4,593,196 34 26 27 181,196 234,668 170,118 FY08-54............................................ 41,000,000 40,000,000 22,500,000 75 70 75 546,667 571,429 300,000 FY08-55............................................ 29,000,000 28,000,000 18,700,000 200 204 147 145,000 137,255 127,211 -------------------------------------------------------------------------------------------------------------------------------------------- Total.......................................... 10,299,200 11,079,460 9,498,479 73 66 61 150,674 167,871 155,713 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ (11) The Financial Assistance Received by Each Firm Participating in the Program (12) The Financial Contribution Made by Each Firm Participating in the Program In FY 2010, firms received $8.7 million in technical assistance provided by the TAACs to prepare petitions; and in the development and implementation of Adjustment Proposals (often through business consultants and other experts). Firms participating in the program contributed $6.1 million towards the development and implementation of Adjustment Proposals. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants. Exhibit 25: Summary of TAAF Program Financial Assistance by TAAC: FY 2010 ---------------------------------------------------------------------------------------------------------------- Total TAAC TAAC Amount paid to assistance to Financial TAAC assistance to consultants by firms (TAACs + contribution firms the TAACs consultants) by the firms ---------------------------------------------------------------------------------------------------------------- Great Lakes..................................... $196,060 $677,560 $873,620 $646,809 Mid-America..................................... 93,836 466,399 560,235 466,399 MidAtlantic..................................... 309,655 910,562 1,220,217 910,562 Midwest......................................... 178,428 705,954 884,382 631,906 New England..................................... 229,249 1,283,189 1,512,438 1,256,739 New York State.................................. 152,425 366,230 518,655 271,104 Northwest....................................... 53,257 499,053 552,310 443,905 Rocky Mountain.................................. 493,122 433,261 926,383 433,261 Southeastern.................................... 243,177 514,935 758,112 495,659 Southwest....................................... 128,997 453,751 582,748 373,376 Western......................................... 98,004 183,943 281,947 170,524 --------------------------------------------------------------- Total....................................... 2,176,210 6,494,837 8,671,047 6,100,244 ---------------------------------------------------------------------------------------------------------------- (13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program Firms proposed various types of projects in Adjustment Proposals. Marketing/sales projects are geared toward increasing revenue, whereas production/manufacturing projects tend to be geared toward cutting costs. Support system projects can provide a competitive advantage by either cutting costs or creating new sales channels. Management and financial projects are designed to improve management's decision making ability and business control. More than half of all firms proposed to implement marketing/sales or production/manufacturing projects. Sample projects are listed below in Exhibit 26. Exhibit 26: Characteristics of Technical Assistance in Adjustment Proposals: FY 2010 ---------------------------------------------------------------------------------------------------------------- Number of adjustment Adjustment Project classification Sample types of projects proposal proposal projects project costs ---------------------------------------------------------------------------------------------------------------- Financial.................................. Accounting systems upgrade 30 $517,000 Cost control tracking system. Automatic Data Processing development. Management................................. Strategic business 79 1,987,100 planning. Succession management..... Management development.... Marketing/Sales............................ Sales process training.... 228 11,416,092 Market expansion and feasibility analysis. Web site design and upgrade. Production................................. Lean manufacturing and 215 11,918,300 certification. New product development... Production and warehouse automation. Support Systems............................ Enterprise Resource 162 6,984,400 Planning. MIS upgrades.............. Computer Aided Design software. Supply chain management software. ---------------------------------------------------------------------------------------------------------------- [[Page 4632]] Exhibit 27: Adjustment Proposals by Project Classification: FY 2010 [GRAPHIC] [TIFF OMITTED] TN26JA11.020 (14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed In FY 2010, of the 102 firms that left the TAAF program, 57 completed the program and the remaining 45 firms left for the reasons listed below in Exhibit 28. Exhibit 28: Summary of Firms Leaving the TAAF Program: FY 2010 ------------------------------------------------------------------------ Number of Reason for leaving program firms ------------------------------------------------------------------------ Completed Assistance....................................... 57 Firm Filed Chapter 11...................................... 1 Firm Sold.................................................. 2 Inadequate Funds for Project Implementation................ 4 Lost Interest in Program................................... 4 Out of Business............................................ 11 Past 5-year Threshold...................................... 23 ------------ Total.................................................. 102 ------------------------------------------------------------------------ Conclusion TAAF effectively targeted small and medium sized firms FY 2010. The average sales, employment and productivity of firms certified into the program in FY 2010 was higher than that of firms certified in FY 2009. More than half of all firms proposed to implement a marketing/sales project or production/engineering project in their Adjustment Proposals. Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. BLS reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent. Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009. The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days. Dated: January 20, 2011. Bryan Borlik, Director, Trade Adjustment Assistance for Firms Program. [FR Doc. 2011-1583 Filed 1-25-11; 8:45 am] BILLING CODE 3510-24-P