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Notice

Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report

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.

 

Table of Contents Back to Top

ADDRESSES: Back to Top

Trade Adjustment Assistance for Firms Division, Room D100, Economic Development Administration, U.S. Department of Commerce, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Back to Top

Bryan Borlik, Director of the TAAF Program, 202-482-3901.

SUPPLEMENTARY INFORMATION: Back to Top

Table of Contents Back to Top

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 Back to Top

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 Back to Top

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 Back to Top

Program Initiative Back to Top

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 Back to Top

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 Back to Top

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]

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 Back to Top

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 Back to Top

TAAC Number of firms that 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 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 Back to Top

FY Number of petitions filed Number of petitions accepted for filing Number of petitions certified Number of petitions denied Average days between acceptance and certification Average days between filing and 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 Back to Top

Exhibit 7: Petitions Accepted by TAAC: FY 2008-FY 2010 Back to Top

Exhibit 8: Petitions Certified by TAAC: FY 2008-FY 2010 Back to Top

Exhibit 9: Petitions Filed, Accepted and Certified by TAAC: FY 2010 [2] Back to Top

TAAC Number of petitions filed2 Number of petitions accepted for filing2 Number of petitions 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 Back to Top

Exhibit 11: Firms Certified for TAAF by Industry: FY 2010 Back to Top

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.

(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 Back to Top

Congressional district(s) No. of 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  
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 Back to Top

Congressional district(s) No. of 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
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 Back to Top

TAAC Average No. of firms receiving assistance with 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 Back to Top

TAAC Average No. of firms receiving assistance with adjustment proposal development (per quarter) Average No. of firms receiving assistance with adjustment proposal implementation (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 recovery plans, a 54 percent increase as compared to FY 2009.

Exhibit 16: Summary of Adjustment Proposals Approved: FY 2008-FY 2010 Back to Top

FY Number of adjustment proposals approved Total government share (millions) Total firm share (millions) Total projected adjustment proposal costs (millions) Average government assistance per firm
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 Back to Top

Exhibit 18: Adjustment Proposals Approved by TAAC: FY 2010 Back to Top

TAAC Number of adjustment 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 Back to Top

FY Average sales Average employment Average 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%

Exhibit 20: Summary Comparison of Average Sales, Employment, and Productivity for Firms at the Time of Certification by TAAC: FY 2010 Back to Top

TAAC Average sales Average employment Average 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 Back to Top

Firm No. Sales ($) Employment Productivity ($)
—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
—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
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
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
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 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 Back to Top

Program completion Average sales Average employment Average 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 Back to Top

Program completion Average sales Average employment Average 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 Following Completion −14% −16% 3%

Exhibit 24: Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Two-Year Period Following Completion Back to Top

Firm ID Average sales at completion (FY 2008) Average sales 1st yr following completion (FY 2009) Average sales 2nd yr following completion (FY 2010) Average employment at completion (FY 2008) Average employment 1st yr following completion (FY 2009) Average employment 2nd yr following completion (FY 2010) Average productivity at completion (FY 2008) Average productivity 1st yr following completion (FY 2009) Average productivity 2nd yr following completion (FY 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
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 Back to Top

TAAC TAAC assistance to firms Amount paid to consultants by the TAACs Total TAAC assistance to firms (TAACs + consultants) Financial contribution 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 Back to Top

Project classification Sample types of projects Number of adjustment proposal projects Adjustment proposal project costs
Financial • Accounting systems upgrade • Cost control tracking system • Automatic Data Processing development 30 $517,000
Management • Strategic business planning • Succession management • Management development 79 1,987,100
Marketing/Sales • Sales process training • Market expansion and feasibility analysis • Web site design and upgrade 228 11,416,092
Production • Lean manufacturing and certification • New product development • Production and warehouse automation 215 11,918,300
Support Systems • Enterprise Resource Planning • MIS upgrades • Computer Aided Design software • Supply chain management software 162 6,984,400

Exhibit 27: Adjustment Proposals by Project Classification: FY 2010 Back to Top

(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 Back to Top

Reason for leaving program Number of 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 Back to Top

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

Footnotes Back to Top

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.

Back to Context

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.

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