Findings From A National Survey And Focus Groups Of Likely 2014 Voters

Findings From A National Survey And Focus Groups Of Likely 2014 Voters

Key Findings Americans Are A Bit More Positive About The Economy But Uncertain About The Future Jobs, Particularly In Manufacturing, Top Voters Agendas Yet Voters See Their Leaders As More Of An Obstacle Than A Help Manufacturing Is Seen As The Most Critical Component Of Our Economy Support For American Manufacturing And Manufacturers Is Nearly Universal China Is A Serious Problem That Needs To Be Addressed, Not Ignored Outsourcing Is The Most Important Cause Of Lost Manufacturing Jobs Tax Dollars Spent On Infrastructure Should Stay Here Voters Support A Manufacturing Agenda, Including Worker Training Programs, Tougher Trade Policies, Keeping Tax Dollars Here, And Incentivizing Moving Jobs Back To The US Most Support A Career In Manufacturing, But Uncertainty About The Future Is An Impediment 22

Methodology Focus Groups: 6 groups in November 2013 - Portland, OR, Des Moines, IA, and Louisville, KY 2 of swing voters in Oregon, divided by dependence on manufacturing 2 of swing voters in Iowa, divided by dependence on manufacturing 2 of swing voters in Kentucky, divided by under 30/over 30 National Poll: 1,200 Likely 2014 General Election Voters conducted January 6-9, 2014 Margin Of Error +/- 3.1% (Higher For Subgroups) 33

Americans Are A Bit More Positive About The Economy But Uncertain About The Future 44

A Slim Majority Now Rate Their Economic Situation Positively However Majorities Are Negative Among Independents, Non-College, And Manufacturing HHs 100% How would you rate your economic situation - excellent, good, just fair, or poor? 80% 0% 50% 49% 53% 50% 47% 49% Positive Negative 52% 47% Positive Negative Democrat ID 50% 49% Independent ID 46% 53% Republican ID 61% 39% Male 51% 49% Female 53% 46% Under 50 53% 47% 50+ 51% 47% High School or Less 45% 55% Some College 45% 54% College Grad+ 59% Northeast 52% 48% Midwest 51% 48% South 54% 45% West 51% 49% White 57% 42% Black 37% 62% Hispanic 32% 67% Union Household 54% 46% Non-Union household 52% 47% Mfg household 46% 54% Non-mfg household 53% 46% 55

Perceptions Of The Economy Were Mixed, With Many Noting We Are At A Transition Point I would just say [the state of the economy is] checkerboard. I think there are areas that are robust and some probably more traditional areas that are suffering. OR Non-Manuf. I see [the economy as] steady but not necessarily strong. IA Manuf. I think there is growth in certain areas, but then there is stagnant parts too, so it s kind of in flux. IA Non-Manuf. Right now we re kind of in this weird growing pain stage that no one really knows what s going to happen. OR Manuf. Right now, I would say kind of like what she said, rebuilding. It was stagnant about two or three years ago, pretty hard to get a job 2008 to 2010 but stuff is opening up it seems like. KY 18-29 [The economy is] better than it was five years ago. KY 30+ 66

Jobs, Particularly In Manufacturing, Top Voters Agendas 77

Voters Greatest Concerns Continue To Revolve Around The Loss Of Manufacturing Jobs And Jobs Shipped Overseas For Those In Bad Economic Straits, Manufacturing Loss, Outsourcing, And China Debt Are Top we have lost too many manufacturing jobs in this country the federal budget deficit is too high too many jobs are being shipped overseas we are too deep in debt to China kids are not getting a good enough education these days The US is losing its place as most successful/strongest the U.S. is losing its place as the economy most successful in the world and Medicare and Social Security benefits are going to be cut our middle class is shrinking my kids will have a lower quality of life than I have we are paying too much in taxes good paying jobs are too hard to find the gap between rich and poor is growing* you won t have enough money to retire on Obama s hc plan too expensive/expands govt too much *Asterisk indicates split-sample income inequality in America is a growing* Ranked by mean 33% worries the most 36% 36% 37% 35% 32% 32% 26% 32% 31% 25% 29% 29% 33% 17% 3.30 4.00 3.98 3.96 3.96 3.88 3.81 3.79 3.70 3.65 3.63 3.63 3.60 3.51 3.49 2012 Rank 1 24% 2 3 4 5 2 1 3 5 8 7 NA NA NA 13 4 NA 14 NA NA 88

Job Creation Remains Voters Top Priority For Government Action I m going to list some things Congress and the President could work on this year. After each, please tell me whether you think that particular issue is one of the most important things for [them] to work on, very important, somewhat important or not too important at all. Rank 2012 % Most important + very important (ranked by % Very + most) Creating jobs in the U.S. 46% 94% 1 creating manufacturing jobs in the U.S. 27% 87% 2 strengthening manufacturing in this country 25% 83% 3 reducing the federal deficit 29% 78% 4 cutting government spending 31% 75% 5 developing domestic energy supplies 19% 75% NA investing in rebuilding and repairing infrastructure such as roads and bridges 18% 67% 6 investing in new, clean sources of energy 12% 58% 8 reforming our immigration laws 16% 55% 7 *Italics indicate split-sample 0% 80% 100% 99

Two Thirds An Increasing Majority Prioritize Job Creation Over Deficit Reduction 80% 70% 50% 30% 10% Which would you rather have Congress and the President focus on: reducing the federal budget deficit or creating (manufacturing*) jobs? 0% 36% 2012 2014 Deficit 31% 2012 2014 Jobs 65% *Split-sample create jobs vs. create manufacturing jobs Deficit Jobs Democrat ID 16% 81% Independent ID 33% 64% Republican ID 48% 47% Male 36% 61% Female 28% 69% Under 50 30% 67% 50+ 32% 63% High School or Less 31% 64% Some College 33% 63% College Grad+ 31% 66% Northeast 29% 68% Midwest 31% 65% South 33% 64% West 31% 64% White 35% 61% Black 15% 81% Hispanic 24% 73% Union Household 30% 66% Non-Union Household 32% 64% Manufacturing hhold 28% 68% Non-Manuf hhold 32% 64% 10

Yet Voters See Their Leaders As More Of An Obstacle Than A Help 11

U.S. Policies Are Perceived As The Main Impediment To Creating U.S. Manufacturing Jobs Which of the following is the single biggest obstacle to creating manufacturing jobs in America today? It s too expensive to manufacture in America 30% Our trade policies encourage outsourcing 25% 45% 15% A shortage of skilled workers 13% Other/Don t know/not Sure 8% 9% Our country doesn t have a real plan to compete against Germany or China Manufacturing is more automated, so we need fewer workers 12

Obama s Favorability Ratings Have Fallen And He Is Net Negative Among Independents Manufacturing Households Are Particularly Unfavorable 80% Barack Obama Favorability Year Mean Ratio 2014 2.40 1.02 2012 2.54 1.14 2011 2.59 1.32 2010 2.56 1.31 54% 54% 50% 49% 48% 42% 41% 44% Fav Unfav Democrat ID 87% 11% Independent ID 45% 49% Republican ID 10% 89% Male 43% 54% Female 55% 42% Under 50 53% 45% 50+ 46% 50% Upper/Upper Middle Class 41% 58% Middle Class/College Ed 51% 46% Middle Class/Non-College 48% 50% Working/Lower Class 53% 42% Northeast 52% 46% Midwest 49% 48% South 44% 52% West 54% 43% White 39% 58% Black 93% 6% Hispanic 67% 26% Union Household 58% 39% Non-Union household 47% 49% Mfg household 39% 57% Non-mfg household 51% 46% 13

Congress Is In An Even Worse Position, With Just A Quarter Holding A Favorable View Independents And Those Over 50 Are Particularly Unfavorable 100% 80% 0% U.S. Congress Favorability Mean Ratio 1.86 0.32 71% 23% 6% Very 42% Very Favorable Unfavorable Fav Unfav Democrat ID 27% 66% Independent ID 18% 76% Republican ID 25% 71% Male 21% 73% Female 25% 69% Under 50 27% 67% 50+ 74% Upper/Upper Middle Class 22% 77% Middle Class/College Ed 74% Middle Class/Non-College 29% 63% Working/Lower Class 23% 71% Northeast 22% 72% Midwest 23% 73% South 25% 69% West 21% 71% White 21% 75% Black 31% 58% Hispanic 33% 51% Union Household 29% 65% Non-Union household 22% 72% Mfg household 24% 71% Non-mfg household 23% 71% 14

Voters Believe Neither The President Nor Congress Are Doing Anything To Help Create Jobs Or Enforce Fair Trade All Parties Have Seen A Drop In Their Evaluation 80% Do you think is/are doing a great deal to help create American manufacturing jobs, some, not too much, or nothing at all? 80% Do you think is/are doing a great deal to enforce fair trade with our trading partners, some, not too much, or nothing at all? Percent helping great deal + some Percent helping great deal + some 57% 45% 52% 35% 33% 42% Pres. Obama Dems in Congress GOP in Congress 56% 46% 39% 47% 28% 52% 42% 36% 50% 41% 31% 52% 47% 37% 44% 38% 34% 15

Politicians Talk About Manufacturing Is Seen As Just Lip Service [Politicians] haven t done anything concrete to address [manufacturing]. It might be something that is just shuffled into the middle of their speech to appeal to somebody but it is never the forefront of anything that you talk about. KY 18-29 Most people care about things that directly affect them or have affected them in the past. Most of our politicians have not been brought up in environments that involve manufacturing. Some have and there are some that do care but the majority, no. KY 18-29 It does seem like around election time they like to have at least one shot of being in some sort of manufacturing plant, talking to someone with a hard hat on. KY 30+ When election time comes, yeah you hear it all over the place, especially in the 2012 election between Romney and Obama. It was like one-fourth of the conversation was about the economy and outsourcing. IA Non-Manuf. The majority of them don t have any experience or credibility or knowledge of manufacturing. OR Manuf. 16

Obama s Promise To Create One Million Manufacturing Jobs Received Mixed Reviews Positive Sure it is [achievable]. Don t send the jobs away. It s simple; a four year old could understand it. OR Manuf. A million new jobs in four years? That s only 250,000 a year. That sounds doable. KY 30+ If we could get everybody turned around I think it could be done. You have to get everybody in the right mindset. IA Manuf. It is definitely achievable; it is just a matter of whether he wants to. KY 18-29 I don t think so much that Obama wants to do it; I think it is if he can convince congress to do it. I think he s in a good place with what he wants to do but his hands are tied when he does a lot of the stuff. A lot of people don t realize that. KY 18-29 Negative Yeah, how is he, what is he going to do? Is he going to expand infrastructure? Just saying a million jobs, there s nothing behind it. It doesn t mean much. IA Non-Manuf. I remember hearing [about the million jobs promise]. But you don t need to make new jobs; you need to keep the bloody ones at home. Bring them back home. OR Manuf. It s hard to measure. If you lose 600,000, 20-dollar-an-hour jobs, and you replace it with one million eightdollar-an-hour jobs, it s not really getting anywhere. IA Non-Manuf. 17

Manufacturing Is Seen As The Most Critical Component Of Our Economy 18

Voters Believe Manufacturing Is Our Most Important Industry Which of the following industries is most important to the overall strength of the American economy? Manufacturing High Tech & Knowledge Industries Health Care Ranked by % Most important 2012 2011 2010 32% 30% 32% 37% 12% 24% 26% 19% 18% 19% 21% Agriculture 11% n/a n/a n/a Housing & Construction Finance and Banking Services & Retail Media Other/DK 8% 6% 4% 1% 7% 10% 5% 5% 8% 10% 12% 4% 2% 2% 1% 1% 1% 6% 5% 5% 0% 19

Voters Reject The Idea That Other Sectors Like High Tech Or Services Can Replace Manufacturing The strength of the American economy is innovation and competition and if manufacturing leaves, we will move into new areas like high-tech or services which will take its place in the future. Manufacturing is the single most important part of the American economy and we need a manufacturing base here if this country and our children are to thrive in the future. 80% 70% 66% 62% 62% 50% 30% 31% 34% 30% 10% 0% *Questions split-sampled 2011 2012 2014 2011 2012 2014 20

Voters Overwhelmingly See Manufacturing As Key To The American Economy 80% 70% 50% 30% 10% 0% The strength of the American economy is innovation and competition and if manufacturing leaves, we will move into new areas like high-tech or services which will take its place in the future. Manufacturing is the single most important part of the American economy and we need a manufacturing base here if this country and our children are to thrive in the future. 30% 31% 34% 66% 62% 62% 2011 2012 2014 2011 2012 2014 New Areas Replace Need Manufact g Democrat ID 32% 64% Independent ID 36% 57% Republican ID 32% 65% Male 33% 63% Female 35% 61% Under 50 39% 58% 50+ 29% 65% High School or Less 16% 80% Some College 31% 66% College Grad+ 41% 54% Northeast 35% 63% Midwest 32% 64% South 31% 63% West 38% 58% White 34% 62% Black 30% 66% Hispanic 34% 66% Union Household 33% 64% Non-Union household 34% 62% Manufacturing hhold 19% 76% Non-Manuf hhold 36% 59% 21

Manufacturing Means Jobs And That s Why It Is Central Now I am going to read some reasons people have said it is important to have manufacturing in the US. After each, please tell me whether you think it is one of the most important reasons to have manufacturing in the US, very important, somewhat important, not too important, or not important at all as a reason to have manufacturing in the US. Most + Very Important (Ranked By Most Important) Mean American manufacturing means American jobs 43% 88% 4.30 a strong manufacturing sector is important to our military security 25% 70% 3.89 manufacturing is a path to the middle class for Americans who don t go to college 23% 68% 3.80 we will lose our high-tech edge unless we make things here 23% 67% 3.77 new manufacturing jobs pay 38% better than other new private sector jobs 17% 54% 3.70 0% 80% 100% 22

Support For American Manufacturing And Manufacturers Is Nearly Universal 23

American Manufacturing Companies And Goods Continue To Receive Exceptional Ratings American Manufacturing Companies Favorability Manufactured Goods Made In America Favorability 100% 100% 80% 90% 91% 86% 80% 92% 97% 97% 95% 68% favorable unfavorable 22% 5% 4% 6% 7% 2% 2% 3% 0% 0% 24

Manufacturing And Factory Workers Are Held In Equally High Esteem American Manufacturing Workers Favorability American Factory Workers Favorability 100% 86% 100% 84% 80% 80% 4% 6% 0% *Questions split-sampled 62% Very Favorable Unfavorable 0% 56% Very Favorable Unfavorable 25

Voters View Manufacturing Employees As Hard Workers, And Many Regarded Them As Either Blue Collar Or Middle Class Some Noted The Variation In Job Roles In The Manufacturing Industry Most people that hold those jobs [manufacturing] are middle class to lower middle class. With a sprinkling of high. KY 30+ I feel like [manufacturing workers] are at a medium-wage scale, middle-class, and hardworking people. IA Non-Manuf. Usually that [manufacturing] implies lowskilled education, very blue-collar jobs. IA Non-Manuf. Middle class people work in factories and manufacturing. My dad s been in the Styrofoam factory for years. He s never made it big but he s never been poor IA Manuf. Some people are working with really high-tech robots, and other people are working in really dangerous conditions where they get paid a lot because it s dangerous. Then some people are, you know, like the assembly line thing where it really is, even in America, pretty tedious and demanding but not very stimulating. OR Non-Manuf. I think manufacturing employees are probably some of the hardest working people we have in Iowa, next to farmers. IA Non-Manuf. [People who work in manufacturing are] People who have people to support KY 18-29 26

Changing From Goods To Products Made In America Has Little Impact On Favorability Manufactured Goods Made In America Favorability 95% Products Made In America Favorability 96% 100% 100% 80% 80% 0% *Questions split-sampled 76% Very Favorable 3% Unfavorable 0% 74% Very Favorable 3% Unfavorable 27

However, Goods Made In America Are Considered Hard To Find It s difficult to find actually consumer goods that are produced in America right now. OR Manuf. It s difficult [to find goods made in America], especially with clothes. It s very hard to find, with clothes in particular, it s very difficult. KY 30+ All you have to do is go in a store and go down the aisles it s just Made in China, Made in China. Sometimes it s Made in Taiwan, sometimes it s made in the republic of whatever. But it s a real rarity to find something that s made in America You wind up not wanting to buy it because it s not made in America, but I also find the quality then is all over the map. OR Non-Manuf. Except with certain things like electronics, you don t have a choice. It s like choosing the lesser of two evils. There is no American electronics sold. IA Non-Manuf. Do we actually have big stores and so on that you can purchase American goods? OR Manuf. Last year they had a feature on Good Morning America where they were trying to expose all the locations of all the manufacturing, and it was really amazing how much you could not get anything made in America. After that, I started paying attention to it. KY 30+ 28

Advanced Manufacturing Is Regarded Less Favorably Because Fewer Know What It Means 100% American Manufacturing Companies Favorability 86% 100% American Advanced Manufacturing Companies Favorability Don t Know 80% 80% 65% Fav Unfav High School or Less 83% 8% Some College 88% 4% College Grad+ 86% 6% Union 81% 14% Non-Union 87% 5% Fav Unfav High School or Less 64% 4% Some College 68% 5% College Grad+ 64% 7% Union 73% 10% Non-Union 64% 5% 6% 6% 0% *Questions split-sampled 50% Very Favorable Unfavorable 0% 39% Very Favorable Unfavorable 29

80% 70% 50% 30% 10% 0% Most Don t Want To Hear About Advanced Manufacturing Government officials are considering what policies might be appropriate to support advanced manufacturing in the U.S. Which of the following statements comes closest to your view? that s a good thing, advanced manufacturing is the key to our economy s future that s troubling as it probably means that they are going to abandon basic manufacturing all manufacturing is advanced, they need to stop trying to come up with new language and focus on strengthening all of manufacturing 37% 9% 44% Good Troubling All Advanced Good Troubling All Advanced Democrat ID 41% 7% 43% Independent ID 35% 11% 42% Republican ID 36% 10% 47% Male 37% 8% 46% Female 38% 10% 42% Under 50 36% 11% 44% 50+ 39% 7% 44% High School or Less 39% 7% 45% Some College 35% 11% 43% College Grad+ 38% 9% 44% Northeast 36% 12% 41% South 34% 7% 48% Midwest 9% 41% West 38% 9% 46% White 37% 9% 45% Black 45% 12% 37% Hispanic 45% 6% 44% Union Household 38% 5% 50% Non-Union hhold 37% 10% 43% Manuf hhold 31% 9% 50% Non-Manuf hhold 39% 9% 43% 30

China Is A Serious Problem That Needs To Be Addressed, Not Ignored 31

Products And Manufactured Goods Made In China, Are Viewed Quite Unfavorably Manufactured Goods Made In China Favorability Products Made In China Favorability 100% 100% 80% 73% 72% Unfavorable 67% 69% 80% 72% 50% 49% Very Unfavorable 21% 39% 23% 26% 24% Favorable 23% 0% *Questions split-sampled 0% 2% Very 41% Very Favorable Unfavorable 32

Majorities Across All Demographics Want To See The U.S. Get Tough With China And Japan To Stop Unfair Trade Which comes closer to your point of view? We need to get tough with China and Japan and use every possible legal means to stop their unfair trade practices, including currency manipulation which will keep undermining our economy and taking away our jobs unless we get tough now. We don t want to start a trade war with China and Japan. Tariffs and trade wars led to the Great Depression and China and Japan are huge markets for American goods with three times more consumers than we have in America. 80% 70% 50% 30% 10% 0% Get tough 30% Be Careful Get Tough Tread lightly Democrat ID 58% 33% Independent ID 58% 31% Republican ID 64% 26% Male 62% 29% Female 58% 31% Under 50 56% 36% 50+ 63% 26% High School or Less 66% 23% Some College 58% 30% College Grad+ 58% 33% Northeast 66% 25% Midwest 55% 33% South 63% 29% West 55% 34% White 61% 29% Black 59% 33% Hispanic 58% 31% Union Household 30% Non-Union Household 30% Manufacturing hhold 70% 21% Non-Manuf hhold 58% 32% 33

Outsourcing Is The Most Important Cause Of Lost Manufacturing Jobs 34

Outsourcing Rather Than Skill Shortages Are Seen As The Primary Reason We Lack New Manufacturing Jobs Which of the following statements comes closer to your point of view? 100% 80% 0% The main reason that few jobs have been created in manufacturing recently is that there are few skilled workers who could fill those positions. The main reason that few jobs have been created in manufacturing recently is that too many of those jobs have been shipped overseas. 28% 21% Strongly Too few workers 65% 53% Strongly Shipped overseas Favor Oppose Democrat ID 25% 70% Independent ID 32% 61% Republican ID 27% 65% Male 34% 58% Female 22% 71% Under 50 29% 65% 50+ 27% 66% High School or Less 31% 65% Some College 26% 68% College Grad+ 28% 64% Northeast 24% 73% Midwest 30% 63% South 31% 65% West 25% 61% White 28% 65% Black 29% 68% Hispanic 28% 66% Union Household 27% 68% Non-Union Household 28% 64% Manufacturing hhold 30% 66% Non-Manuf hhold 28% 65% 35

Similarly, Most In The Groups Agreed Outsourcing Is The Main Problem I mean, does it matter if they are trained or not if you are going to be getting them overseas because they are cheaper? KY 18-29 I don t think has to do with really skilled workers. There are skilled workers over in China. They are just people like us. They just work cheaper. KY 30+ It s an employer s market in everything. They re whining about not being able to find skilled workers but they re not willing to take on people that don t have five years of experience. What do you do? Portland Group 1 I would say the economy is not strong enough because too many of these have been shipped overseas rather than the other way around. IA Manuf. Is the reason we re not training people because we have those jobs, they are outsourced? One has to come before the other. We may not be training people because those jobs are overseas. If we brought them back we would have to train people. KY 18-29 36

Half Of Voters Believe More Manufacturing Jobs Are Leaving The U.S. Than Returning Generally speaking, these days would you say more manufacturing jobs are: coming back to the U.S. leaving the U.S. for overseas or are about the same number coming back to and leaving the U.S.? 13% more coming back 50% more leaving 27% equal 37

A Majority Believes Our Country Continues To Lose Jobs This Is True Across Subgroups 80% 70% 50% 30% 10% Generally speaking, these days would you say more manufacturing jobs are: coming back to the U.S. OR leaving the U.S. for overseas OR are about the same number coming back to and leaving the U.S.? 0% 13% 8% Strong 50% 27% 19% Strong 8% Strong 19% Coming back Leaving Equal Coming Leaving Equal Democrat ID 17% 48% 24% Independent ID 12% 50% 28% Republican ID 10% 54% 28% Male 16% 49% 26% Female 11% 51% 28% Under 50 10% 56% 26% 50+ 16% 46% 27% High School or Less 13% 53% 24% Some College 14% 53% 24% College Grad+ 13% 48% 30% Northeast 13% 47% 30% Midwest 17% 47% 25% South 13% 51% 26% West 10% 54% 27% White 13% 50% 26% Black 17% 47% 26% Hispanic 14% 56% 22% Union Household 12% 55% 24% Non-Union hhold 14% 49% 28% Manuf hhold 14% 52% 26% Non-Manuf hhold 13% 50% 27% 38

Participants In The Groups Were Generally Unaware Of Manufacturing Insourcing Have you heard of any companies coming back to the U.S.? No unfortunately I hear about too many leaving. I heard some isolated stories, but I think the overall story is they continue to go. OR Non-Manuf. Just last week there was an article, news flash, or something about it. I can t for the life of me think what it was. They were shutting down everything in Mexico and coming back north IA Manuf. There probably are [manufacturing jobs coming back]. I can t think of any. KY 18-29 [Manufacturing jobs are] pretty quick to leave and slower to come back. KY 30+ There are more temporary [manufacturing] jobs available than there are full-time jobs and full-time jobs that pay well. There is work out there but it s not like it used to be. IA Manuf. I would say that manufacturing has virtually disappeared in this country. It may be on the way back someday, but I can t think of anything that s manufactured now except for cars. All the electronics are gone. The shoe industry is gone. The textile industry is gone. KY 30+ 39

Tax Dollars Spent On Infrastructure Should Stay Here 40

Voters Strongly Support Buy American Policies On Both The State And Federal Levels Would you favor or oppose adopting a Buy American policy that would require federal tax dollars be used to buy products made in America whenever possible? 100% 79% Federal Tax Dollars 100% Would you favor or oppose your state adopting a Buy American policy that would require state tax dollars be used to buy products made in America whenever possible? State Tax Dollars 80% 80% 80% 16% 15% 0% 67% Strong Favor *Questions split-sampled 9% Strong Oppose 0% 67% Strong Favor 9% Strong Oppose 41

Participants Were Supportive Of Keeping Tax Dollars In Their State/Country I think 99 percent of it should, sure. The money that they re paying out is money being received from us in taxes. Let s recycle the money back into our own economy. OR Manuf. I think the trickledown effect of when you invest in the people that would be employed by the steel making factory, if they lived in America they would have to pay taxes. But they would be spending that money in the United States most likely. I think the government spending can be a much bigger benefit to the economy than if you took that even if it cost you twice as much I m not sure that in the end that the outcome is that much better because you outsourced and paid half. KY 18-29 What are you going to with those situations? And in general most of that military stuff breeds other technologies that cross over into the civilian life. I think it s important that that stays in the U.S. IA Non-Manuf. And [they should] stay in the state. Like he was saying with his company, if we have a company that can do it, keep it here. Don t outsource it to another state because that s jobs within the state for those people who don t have a job. KY 18-29 I ve taken H-beams that are Chinese made metal, right on the side, it s stamped Made in China, and I can snap that. But now, I can run US made steel and the steel is 100 times better. So why shouldn t we be the best in structural steel, my kind of manufacturing, because hell, our buildings will stand? You throw in something that they ve reengineered and then they think we can do it a lot cheaper. It s cheaper because it s cheaply made. OR Manuf. Aren t they doing that already? Every police car you see is a Dodge or some sort of American car. KY 18-29 42

Even After Arguments For And Against Buy American Policies, Voters Overwhelmingly Demand Them Which comes closer to your point of view? Large infrastructure projects that are paid for with taxpayer money, like the San Francisco Bay Bridge, should be built in America, by American workers, using American steel and other products, so that we know it is structurally sound and so we can create more American jobs instead of having our tax money create jobs in foreign countries. With state and local governments facing huge deficits, with taxes too high, and with education and public safety already being cut, large infrastructure projects, like the San Francisco Bay Bridge, should be built by the lowest bidder, regardless of where the low bidder is getting their products from, so we can make the most efficient use of our tax dollars. With Underlined Language Without Underlined Language 100% 80% 100% 83% 80% 80% 0% *Questions split-sampled 71% Strongly Make in US 16% 10% Strongly Lowest bidder 0% 72% Strongly Make in US 11% 6% Strongly Lowest bidder 43

Voters Support A Manufacturing Agenda, Including: - Worker Training Programs - Tougher Trade Policies - Keeping Tax Dollars Here - Incentivizing Moving Jobs Back To The US 44

Buy American Policies, Cutting Government Spending, Incentivizing Bringing Jobs Back, And Training Are All Top Ways To Create Jobs And Improve The Economy ensure tax dollars for construction/defense spending go to products and materials made in US by US workers cut government spending give tax incentives to cos. bringing jobs home & penalties for shipping jobs abroad train young people and the long-term unemployed for new jobs in mfg *Italics indicate split-sample do more to support American manufacturers require tax-funded construction/mfg to use US made goods whenever possible crack down on foreign countries that violate their trade agreements with us invest in research and development for products that will be made in America invest in our infrastructure like fixing roads and bridges that need to be repaired train the long-term unemployed for new jobs in manufacturing cut taxes for middle class families invest in repairing roads, bridges and basic infrastructure reduce environmental regulations on businesses cut taxes on businesses cut taxes for corporations enact more free trade agreements reduce health and safety regulations on businesses Ranked by one of the most % One of the most effective ways to create jobs/improve economy 11% 10% 10% 8% 6% 32% 32% 31% 28% 27% 27% 26% 25% 23% 22% 22% 21% Mean (1-5 scale) 4.03 3.81 3.93 3.94 4.00 3.87 3.79 3.89 3.70 3.77 3.65 3.72 2.83 3.10 2.74 2.94 2.49 0% 10% 30% 50% 45

A National Manufacturing Strategy Is Supported By Very Large Majorities Across Subgroups Some have proposed a national manufacturing strategy to make sure that economic, tax, education and trade policies in this country work together to help support manufacturing in the United States. Would you favor or oppose such a proposal? 100% 90% 80% 70% 50% 30% 10% 0% 86% 78% Favor 89% 84% 11% 6% Oppose 6% 2010 2011 2012 2014 2010 2011 2012 2014 7% Favor Oppose Democrat ID 87% 5% Independent ID 82% 8% Republican ID 82% 9% Male 84% 9% Female 84% 6% Under 50 84% 8% 50+ 83% 7% High School or Less 83% 9% Some College 86% 7% College Grad+ 83% 7% Northeast 85% 8% Midwest 82% 9% South 86% 6% West 82% 7% White 84% 7% Black 88% 5% Hispanic 83% 11% Union Household 86% 7% Non-Union Household 84% 7% Manufacturing hhold 89% 6% Non-Manuf hhold 83% 8% 46

Our Groups Were Supportive Of A National Manufacturing Strategy As Well You can use economic tools, market tools to protect. You can create an environment or create again a level playing field. Just the same tools I m not advocating big government. I m just saying there are tools to protect our market, especially around people dumping. OR Manuf. I think [government intervention] would stop the gap from widening between the poor and the wealthy. It would bring more of a middle class. KY 18-29 I just think it would help build the economy, even though it s up and down, maybe it would just help things along. IA Non-Manuf. Show people that the government is actually trying to do something instead of letting everything go away. KY 18-29 Our government encouraged in the past manufacturing to be offshore to go off shore. I think that we ve done some things that have instead of just being neutral have actively encouraged manufacturing to go away. I think to right that balance I think that we need to do, for a time some things need to be done actively to bring manufacturing back to undo what was done. KY 18-29 You mean subsidies and stuff like that? I think if it s done in the correct fashion it can help, but it can t be on the backs of the middle class and the lower class anymore. That s what s been happening, especially here in Kentucky. We offer so many subsidies and tax allowances, free rent, for years and years. The only reason we kept forward is because of giving free rent. KY 30+ Government doesn t do enough to protect our market. OR Manuf. 47

All Policy Proposals Received Majority Support, With Retraining/Education And Trade Policy Toping The List Oppose Favor Net Favor increase state & federal investment in retraining & education programs to ensure workers gain the tools they need to compete in the modern, high-tech factories of today & tomorrow enforce international trade agreements to ensure a level playing field for our workers and manufacturers 8% 8% 66% Strongly 62% Manufacturing Policy Proposals Ranked by net favor 90% 87% 82% 79% promote more American exports and crack down on unfair and subsidized imports 9% 62% 88% 79% offer tax incentives to all companies that invest in new equipment and plants for manufacturing 9% 54% 87% 77% enact strong buy American provisions for our federal and state governments, to require that tax dollars are used to buy products made in the U.S. 10% 64% 87% 77% offer companies a tax break for every job they bring from overseas to the U.S. 12% 59% 85% 73% *Italics Indicate Split Sample *Ranked By % Favor -100% -80% - - - 0% 80% 100% 48

Trade Policies And Offering Incentives To Companies That Return To The US Were The Most Frequently Cited Suggestions In The Groups The way most of the trade agreements with the other countries are, we re not playing with a level playing field. They are getting a better deal than we are under almost every circumstance. So that s one of the things that the legislators need to look at. We need to have an even deal. KY 30+ I see more of a carrot to the stick approach. I see more of offering a tax incentive for bringing more jobs and more well-paying jobs into the United States with manufacturing. I also see that if you have a company that starts to outsource a call center or outsource some of their manufacturing, they should lose those tax breaks. KY 18-29 I really believe that exporting jobs should require massive tariffs, 200 percent tariffs or something. Seriously. You don t take jobs and send them elsewhere when your own people don t have work. OR Manuf. Close corporate tax loops, loopholes and stuff. That s where a lot of it goes. That is a big policy change that could really positively impact society and the greater economy. IA Non-Manuf. They were giving huge tax breaks to companies that moved to Texas and it worked, tons of people, tons of companies are moving there. In Oregon companies get tax to death and there are maybe one or two Fortune 500 Companies in Oregon? They all have their corporate headquarters in other places. OR Manuf. 49

Giving American Manufacturers A Bigger Tax Cut Garnered Less Support But Little Opposition Oppose Favor Net Favor make the research and development tax credit permanent and require that the credit only be given to research and development for products that will be made in America 12% 57% Strongly 83% 72% increase government investment to build and repair roads, bridges, high-speed rail, smart electric grid technology and other infrastructure needs penalize nations such as China that manipulate their currency and cheat on their trade agreements 13% 17% 55% 56% Manufacturing Policy Proposals Ranked by total favor 83% 78% 71% 61% impose tariffs on products from China until they stop unfair trade practice including manipulating their currency 18% 55% 75% 57% give American manufacturers a bigger tax cut, and give hightech manufacturers double the tax deduction they get for making their products here 21% 42% 72% 52% give American manufacturers a bigger tax cut 23% 45% 74% 51% *Italics Indicate Split Sample *Ranked By % Favor -100% -80% - - - 0% 80% 100% 50

Support For Top Proposals Spans Party Democrats Are More Likely To Support Infrastructure, While Republicans Are Slightly Less Supportive Of Retraining Top Manufacturing Policy Proposals (Ranked by net favor) increase state & federal investment in retraining & education programs to ensure workers gain the tools they need to compete in the modern, high-tech factories of today & tomorrow Total Dem Ind GOP 82% 91% 82% 72% enforce international trade agreements to ensure a level playing field for our workers and manufacturers 79% 87% 74% 76% promote more American exports and crack down on unfair and subsidized imports 79% 75% 85% 77% offer tax incentives to all companies that invest in new equipment and plants for manufacturing 77% 82% 74% 76% enact strong buy American provisions for our federal and state governments, to require that tax dollars are used to buy products made in the U.S. 77% 81% 75% 75% offer companies a tax break for every job they bring from overseas to the U.S. 73% 74% 72% 74% make the research and development tax credit permanent and require that the credit only be given to research and development for products that will be made in America 72% 74% 72% 70% increase government investment to build and repair roads, bridges, high-speed rail, smart electric grid technology and other infrastructure needs 71% 87% 67% 56% penalize nations such as China that manipulate their currency and cheat on their trade agreements 61% 59% 56% 69% impose tariffs on products from China until they stop unfair trade practice including manipulating their currency 57% 51% 58% 64% give American manufacturers a bigger tax cut, and give high-tech manufacturers double the tax deduction they get for making their products here 52% 47% 49% give American manufacturers a bigger tax cut 51% 41% 51% 63% *Italics indicate split-sample 51

Support For Policies Fluctuate Little Across Union Membership And Manufacturing Dependence Top Manufacturing Policy Proposals (Ranked by net favor) increase state & federal investment in retraining & education programs to ensure workers gain the tools they need to compete in the modern, hightech factories of today & tomorrow Total Union Hshld Non- Union Manuf Hshld Non- Manuf 82% 82% 82% 86% 82% enforce international trade agreements to ensure a level playing field for our workers and manufacturers 79% 80% 79% 78% 79% promote more American exports and crack down on unfair and subsidized imports 79% 82% 78% 77% 79% offer tax incentives to all companies that invest in new equipment and plants for manufacturing 77% 73% 79% 80% 77% enact strong buy American provisions for our federal and state governments, to require that tax dollars are used to buy products made in the U.S. 77% 70% 78% 83% 76% offer companies a tax break for every job they bring from overseas to the U.S. 73% 77% 73% 76% 73% make the research and development tax credit permanent and require that the credit only be given to research and development for products that will be made in America 72% 69% 73% 77% 71% increase government investment to build and repair roads, bridges, highspeed rail, smart electric grid technology and other infrastructure needs 71% 72% 71% 69% 72% penalize nations such as China that manipulate their currency and cheat on their trade agreements 61% 62% 62% 66% 61% impose tariffs on products from China until they stop unfair trade practice including manipulating their currency 57% 57% 58% 65% 56% give American manufacturers a bigger tax cut, and give high-tech manufacturers double the tax deduction they get for making their products here 52% 45% 53% 59% 51% give American manufacturers a bigger tax cut 51% 39% 53% 68% 48% *Italics indicate split-sample 52

Most Support A Career In Manufacturing, But Uncertainty About The Future Is An Impediment 53

Two-Thirds Are At Least Somewhat Likely To Encourage Others To Seek A Job In Manufacturing, But Only A Quarter Are Very Likely Those In Manufacturing Households Are Most Likely How likely would you be to encourage your children or other family members to seek a job in manufacturing? Very likely, somewhat likely, somewhat unlikely or very unlikely? 100% 80% 0% 25% Very Likely 65% 13% Very 30% Unlikely Likely Unlikely Democrat ID 68% 29% Independent ID 63% 30% Republican ID 65% 32% Male 66% 30% Female 65% 30% Under 50 62% 35% 50+ 68% 26% High School or Less 77% 21% Some College 72% 23% College Grad+ 58% 37% Northeast 66% 31% Midwest 66% 32% South 69% 28% West 61% 32% White 64% 32% Black 73% 21% Hispanic 67% 29% Union Household 68% 29% Non-Union Household 65% 31% Manufacturing hhold 76% 24% Non-manuf hhold 64% 32% 54

The Importance Of Manufacturing To The US Economy Is The Top Reason To Encourage A Family Member To Seek A Manufacturing Job (Among those LIKELY to encourage a career in manufacturing) Which of the following best describes why you would encourage your children or other family members to seek a job in manufacturing? Manufacturing is the key to a strong U.S. economy 28% Manufacturing offers better pay and benefits In this economy people should take any job they can get Manufacturing provides opportunity for advancement They like to work with their hands as well as their mind 16% 14% 13% 12% Manufacturing enables people to create cutting-edge materials and products Making something provides a special satisfaction Lots of manufacturing jobs are available right now DK/NS 6% 4% 4% 4% 0% 55

We Heard Similar Responses In The Groups Manufacturing provides the opportunity for advancement (and stability): Well and some of that s rooted in the American dream. Could you start on the manufacturing floor and work your way up over the years to a different position in the company? OR Non-Manuf. You pretty much will always have a job at some manufacturing plants. Those companies have longevity. Think about how long GE and Ford have been companies. - KY 18-29 In this economy, people should take any job they can get: Give it a shot. You ve got to do something, period. OR Manuf. I would encourage them to apply and congratulate them for getting the job. In today s economy if they are looking for a job and they get it, I think it s great. If it were my child or grandchild I would be happy for them. KY 30+ Manufacturing offers better pay and benefits: If you re attached to a union, you could end up with five weeks vacation. KY 30+ You do get good health care. KY 30+ Making something provides a special satisfaction: I think you take pride in what you re doing. OR Manuf. You have the satisfaction of what you put together and built. KY 30+ 56

A Majority Of Those Who Would Not Encourage A Job In Manufacturing Would Rather See Their Family Member Get A Job That Requires A Degree (Among those UNLIKELY to encourage a career in manufacturing) Which of the following best describes why you would not encourage your children or other family members to seek a job in manufacturing? I would want my family to be getting jobs that require 4-year college degrees 52% Manufacturing jobs are going overseas so there is no future for those jobs here 24% Factory work is too repetitive and boring 9% It s dirty, dangerous work 4% DK/NS 11% 0% 57

But In The Groups, The Lack Of Job Security Was The Biggest Reason To Avoid A Manufacturing Job It s changed. It used to be when you got into a manufacturing job you could count on retiring from there for life, and you can t really count on that anymore. There are fewer jobs than there used to be. KY 30+ I think history has shown over the last thirty years that manufacturing is not stable in the sense of job security. It s hard to make a career of that if you can t follow the factory, if you will. It needs to travel. IA Non-Manuf. I would absolutely encourage them to go to college. I mean, what if in the future all of these manufacturing jobs are taken away from humans and they are done by robots. That eventually is going to happen. KY 18-29 There used to be a job for life, but it has changed a lot. KY 30+ My advice would be that you choose a field that it s difficult to outsource. OR Manuf. Just because [manufacturing] is up and down. You can t depend on having one job, one day, and then going to work the next day and be like, Oh, we don t have a job. You can t count on, if you work at a manufacturer like Maytag when they shut down. You can t depend on going to work one day and then showing up the next day and the doors and everything are locked, and be like Oh you don t have a job anymore. IA Non-Manuf. 58

Of Those Unlikely To Push Others To Manufacturing, Over Four In Ten Are More Positive Once They Hear About Better Pay Again, Manufacturing Households Are Most Likely (Among those UNLIKELY to encourage a career in manufacturing) New manufacturing jobs pay 38% more than other new private sector jobs and now take place in modern, high-tech facilities. In addition, many analysts think manufacturing jobs will be coming back to America over the next decade offering millions of new job opportunities. With that in mind, how likely would you be to encourage your children or other family members to seek a job in manufacturing? 100% 80% 0% 12% Very Likely 41% Very 50% Unlikely Likely Unlikely Democrat ID 38% 55% Independent ID 42% 44% Republican ID 41% 53% Male 37% 53% Female 44% 48% Under 50 36% 56% 50+ 45% 45% High School or Less 41% 50% Some College 46% 43% College Grad+ 39% 53% Northeast 38% 58% Midwest 43% 50% South 46% 47% West 34% 49% White 42% 51% Black 39% 46% Hispanic 45% 41% Union household 36% 54% Non-union household 41% 50% Manufacturing hhold 44% 54% Non-manuf hhold 50% 59

Strategic Conclusions If you re talking about manufacturing you are talking about jobs If you aren't talking about manufacturing you are not talking about the irreplaceable source of American economic strength If you aren't focused on jobs you aren't focused on voters top priority and outsourcing is the key cause of job loss If you focus on advanced manufacturing you re missing the boat If you are talking about manufacturing jobs, many people aren't hearing you and others are not hearing you in a credible way Credibility requires specificity and concreteness like: Buy American policies Tough trade enforcement, particularly with China Investment in training and retraining Incentives to keep manufacturers here and bring more back 60

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