2011-1583. Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report

AGENCY:

Economic Development Administration, Commerce.

ACTION:

Notice.

SUMMARY:

This annual report is submitted in accordance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to submit to Congress an annual report on the Trade Adjustment Assistance for Firms (TAAF) Program by the 15th of December each year. The TAAF Program is one of four Trade Adjustment Assistance (TAA) Programs authorized by the Trade Act of 1974 (19 U.S.C. 2341 et seq.) (Trade Act).

Administered by the Department of Commerce's Economic Development Administration (EDA), the goal of the TAAF Program is to help economically distressed U.S. businesses develop strategies to compete in the global economy. In general, the program provides cost-sharing technical assistance to eligible businesses to create and implement targeted business recovery plans, called Adjustment Proposals under the program. Firms contribute a matching share to create and implement their plan.

Technical assistance is provided through a nationwide network of eleven EDA-funded Trade Adjustment Assistance Centers (TAACs), which are either non-profits or university-affiliated. The TAACs provide assistance to firms petitioning EDA for certification of eligibility under the program and in the development and implementation of business recovery plans.

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent.

Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days.

ADDRESSES:

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

FOR FURTHER INFORMATION CONTACT:

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

SUPPLEMENTARY INFORMATION:

Table of Contents

Introduction

Program Description

Program Initiative

Results/Findings

Data for This Report

(1) The Number of Firms That Inquired About the Program

(2) The Number of Petitions Filed Under Section 251

(3) The Number of Petitions Certified and Denied

(4) The Average Time for Processing Petitions

(5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States

(6) The Number of Firms That Received Assistance in Preparing Their Petitions

(7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals)

(8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce

(9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification

(10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-Year Period Following Completion

(11) The Financial Assistance Received by Each Firm Participating in the Program

(12) The Financial Contribution Made by Each Firm Participating in the Program

(13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program

(14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed

Conclusion

Introduction

This report is provided in compliance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to provide an annual report on the Trade Adjustment Assistance for Firms (TAAF) program by the 15th of December each year. Section 1866 of the TGAAA states:

IN GENERAL.—Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year.

This report will provide findings and results to the extent that the data is available on the following 14 measures:

1. The number of firms that inquired about the program.

2. The number of petitions filed under section 251.

3. The number of petitions certified and denied.

4. The average time for processing petitions.

5. The number of petitions filed and firms certified for each congressional district of the United States.

6. The number of firms that received assistance in preparing their petitions.

7. The number of firms that received assistance developing business recovery plans (Adjustment Proposals).

8. The number of Adjustment Proposals approved and denied by the Secretary of Commerce.

9. Sales, employment, and productivity at each firm participating in the program at the time of certification.

10. Sales, employment, and productivity at each firm upon completion of the program and each year for the two-year period following completion.

11. The financial assistance received by each firm participating in the program.

12. The financial contribution made by each firm participating in the program.

13. The types of technical assistance included in the Adjustment Proposals of firms participating in the program.

14. The number of firms leaving the program before completing the project or projects in their Adjustment Proposals and the reason the project was not completed.

Program Description

The TAAF program is one of four Trade Adjustment Assistance (TAA) programs authorized under the Trade Act of 1974 (19 U.S.C. 2341 et seq.) (Trade Act). The responsibility for administering the TAAF program is delegated by the Secretary of Commerce to the Economic Development Administration (EDA). TAAF program provides technical assistance to manufacturers and service firms affected by import competition to help the firms develop and implement projects to regain global competitiveness.

The mission of the TAAF Program is to help U.S. firms regain competitiveness in the global economy. Import-impacted U.S. manufacturing, production, and service firms can receive matching funds for projects that expand markets, strengthen operations, and sharpen competitiveness through TAAF. The program provides assistance in the development of business recovery plans, which are known as Adjustment Proposals under Section 252 of the Trade Act, and matching funds to implement projects outlined in the Adjustment Proposals.

The TAAF Program supports a national network of 11 non-profit or university-affiliated Trade Adjustment Assistance Centers (TAACs) to help U.S. manufacturing, production, and service firms in all fifty states, the District of Columbia, and the Commonwealth of Puerto Rico. Firms work with the TAACs to apply for certification for TAAF assistance, and prepare and implement strategies to guide their economic recovery.

The other TAA programs are TAA for Workers, Farmers, and Communities, which are administered by the Departments of Labor, Agriculture, and Commerce through EDA, respectively.

Exhibit 1: TAA Programs

Program Initiative

As noted above, the TAAF Program provides technical assistance in the development and implementation of Adjustment Proposals. Projects are aimed at improving a firm's competitive position. Specifically, funds are applied toward the cost of consultants, engineers, designers, or industry experts for improvement projects in targeted areas that can better a firm's position, such as engineering, information technology, management, market development, marketing, new product development, quality improvement, and sales. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants.

To certify a firm as eligible to apply for adjustment assistance, the Secretary must determine that three conditions are met:

1. A significant number or proportion of the workers in the firm have been or are threatened to be totally or partially separated;

2. Sales and/or production of the firm have decreased absolutely, or sales and/or production of an article or service that accounted for at least 25 percent of total production or sales of the firm during the 12, 24, or 36 months preceding the most recent 12, 24, or 36-month period for which data are available have decreased absolutely; and

3. Increased imports of articles like or directly competitive with articles produced or services provided by the firm have “contributed importantly” to both the layoffs and the decline in sales and/or production.

Exhibit 2: TAACs and Their Respective Service Areas

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

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

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

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

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

Exhibit 7: Petitions Accepted by TAAC: FY 2008-FY 2010

Exhibit 8: Petitions Certified by TAAC: FY 2008-FY 2010

Exhibit 9: Petitions Filed, Accepted and Certified by TAAC: FY 2010 ²

 

TAAC	Number of petitions filed 2	Number of petitions accepted for filing 2	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

Exhibit 11: Firms Certified for TAAF by Industry: FY 2010

The majority of petitions certified for TAAF were submitted by firms in the manufacturing industry. Firms in wholesale trade and technical services rounded out the top three industries. Approximately 7 percent of firms certified in FY 2010 were service sector firms. Demand from service firms in FY 2011 is likely to increase at the same rate as FY 2010.

(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

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

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

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

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

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

Exhibit 18: Adjustment Proposals Approved by TAAC: FY 2010

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

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

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

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

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

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

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

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

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

(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

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

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.

Footnotes

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.

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.