less than uninch thick and ultra responsive. what we find is that we love the smart phones, turn on, pops right up, and in our laptops that we have it's about a 30-second boot time. when i say ultra responsive, when you open these up, there's a 7-second start up, and you're working with your applications and your programs. it's a highly responsive. that's the second thing. there's also new security built into this that is brought to you by hardware -- software and hardware based on intel with your protection with banking and e-commerce, and overall with your identity protection. there's just a new security features built into the ultrabooks. it's a lot of things baked into one. >> i've seen a couple manufacturers here for the ultrabooks. do you work with all manufacturers across the board? >> our customers are excited about this so we have 75 designs

coming out this year alone. we introduced it in the last quarter of last year, but really this year is the year of innovation around ultrabooks. it's a new category, ushering in a new era of computing, and, in fact, what you see as we get towards the latter part of the year, no specific designs here, but you'll see the ultrabooks that are convertible. they'll have the traditional aspect of the keyboard and the performance, but you'll also have touch screens, and you'll have screens that flip around or turnover, it's a laptop in the form of ultrabook and as well as a tablet. you get two devices in one really. >> something else that's come out that intel is introducing is a new smart phone. >> that's right. we just announced that yesterday, and this is just a sample design; right? this is not the actual new smart phone, but what we have announced is that we have the

comips that go -- chips that go inside and the technology that go in it. we anowdgessed yesterday a deal with the multiyear, multiunit deal with motorola. you'll see more and more phones coming a based on intel inside. >> what is special about this phone here? >> so, i guess a couple things. first of all, based on -- get it started here. there we are. there we are. i think there's a couped of special things about it. one, it's based on the intel processer. there's a great level of performance and low power. you can really be sort of working on this all day, and it doesn't get hot even if you're doing intense applications. there's a -- it supports full hdmi jut put, run video from this 23 -- if you want. there's 3-d video imaging and a

number of different new things. >> what about security features. >> there's a whole new mobile security sweep. people are really understanding the notion of security with their ultrabooks and laptops, and they maybe think about it for smart phones, but they have not done anything about it. with mcavee, you can down load an app to get security and confidence on your smart phone. >> brand manager, what's that mean? >> i think it means that people focus on the fun things and protective things to do with the devices, but they want to make sure it's secure and smart and what they are doing online, the footprints they leave and transactions they make are secure. intel's working with our new partner and new company, mcavee to provide security at the software and hardware level

trying to protect you on a couple different levels. >> how pornt -- you have -- how important, quite the display here, a lot of people down here, how important is ces? >> well, ces starts our year every year, and like i said it's more of a consumer-focused industry show, but we create the products that go into and really help bring to life the other phones and laptops and other devices you see around the show, smart tvs, things like this, but really one of the building blocks that goes inside and really help the industry find innovation and new intelligence. >> how's the fiscal health of intel given what the country's gone through in the last couple years? >> best year ever last year. earnings come out next week, but we had a really strong year, and i think what we find is that there's a couple things we noticed. one, people want to have more and more devices, not less devices. everybody has a laptop or tablet

or ultrabook, but you. your phone as well as different designs within it and factors within a family. i think people are one by multidevices, and, two, in the emerging market, as well as in an established markets, we're seeing a nice run up. we're welcome countercyclical to what happens in the economy because i think of the innovation and new products we bring to market. >> bryan deaner, brand manager at the intel corporation, here at the consumer electronics show in las vegas. >> we have been showing you our coverage from the consumer electronics show in las vegas. the show happened in january of this year. if you'd like to watch the previous programs or any communicators programs, go to c-span.org.

>> translator: this occasion is concurrent with the first anniversary of prophet mobile m. may peace be upon him. i have to congratulate this to the great nation of iran and also the human community. and the world of the prophets and the prophet of islam that has been the pinnacle of all prophets and has stood in the

highest point and has come to help humanity reach the point of perfection, and this universe has been created for the sake of humans. there are two major objectives for the missions of the prophets. the first on thive is human perfection and spiritual perfection. the prophets have come to guide humans and to promote humanity bringing humans to the point of god's successor, and the second mission of the prophets is to guide humans for having a pure life and a happy life in this

world, and these submissions bring about prosperity and the year after. the materialization of peace to our basic objectives is based upon two several factors. the first factor is one of these and worshiping god, the prophets initially had invited humans to mop tore these because all beauties and devine and human values and as all the blessings can be attained through

monotheism and worshiping god almighty. worship and freedom are two sides of the same coin so that as long as human don't have to reach the phase, the humans will not be able to experience freedom, and when humans get rid of selfishness, tyranny, and also the domination by the powers and the hegemony powers, and in this way, humans as they get rid of these things that get closer to god and as humans take steps towards monotheism, they'll get rid of such dominations so as long as a person does not realize monotheism, you'll not get free. the prophets have come, and have

come for humans to worship god, only worship god, and the secret behind happiness and freedom is monotheism and worshiping god. the second factor is justice. justice is the pillar for humans moving towards the pinnacles of perfection and creating a prosperous and happy society without justice. the reality of humans will not prosper without justice, a prosperous life will not emerge and all devine prophets have

been passed with ministering justice. the prophets have come with the bilk and justice and the criteria for justice in order to prepare grounds in societyings so that humans will take steps for the administration of justice, the prophet of islam, and all devine prophets have been tasked with the implementation of justice. the third factor is knowledge. without knowledge, it is as if you're moving in darkness, and all profits have invited humans to acquire knowledge and have opened the -- they have opened the gateways to knowledge and the fourth factor is kindness

and affection. without affection, humans will not be able to atape perfection and perfection and happiness. in fact, humans, rather prophets, are manifestation of kindness and affection and the prophet of islam is a manifestation of affection and blessings. justice, perfection, monotheism are all based on the grounds of affection and kindness. justice, mop no theism, worshiping god, knowledge, and affection are universal values.

in congruity of the devine nature of humanity when you speak to any person anywhere in the world, he or she's family or with these values, and all of these values emissions -- immanate from religious and religious values in the world of prophets have come in order to delainuate the values and the religion of god. god has sent only one religion, and prophets in proportion with

human capacities based on single religion and the perfection of religion and the ultimate point of religion and has been delineated by the last messager of god's prophet, blessings of god upon him. the great islamic evolution of iran became victorious and to shape with such ideas and objectives, the revolution of iran has the same nature of the movement of the prophet of islam that is monotheism and justice, knowledge, affection, and prosper my for all.

the islamic's revolution has never sought to create an empire to dominate others. the revolution is not aimed at seeking super reality over others. it is aimed at monotheism, justice, affection, compliance, knowledge, and happiness. it belongs to all humans and nations. this is the speered of the revolution, and this is the idea on the basis of which the revolution has taken shape and also the real and genuine ideals of this revolution requires maintaining this spirit and objectives and ideals, preserving this revolution requires virtue, divine virtue

and also continued resistance on the steadfastness. the islamic revolution of iran like all the movements led by divine prophets prepares the grounds an paves the way for the last movement for the revolution that has to emerge and fill the world with justice, and the revolution must think about this mission, also make planning for its materialization and take action in line with this sublime goal. i am now here that this is a summary of the message by the iranian nation, the late emaum

and also the message by the leader of the islamic revolution, and this and that the iranian nation will not be diverted even an inch from this path. the nation will not be diverted an inch from this right path. in the past 33 years, we have had considerable achievements, achievements that can be prevented to humanity and history. the unique independence and also the unique unity, integrity, the universal approach and dignity, self-reliance and courage are just some of the achievements of the iranian nation, the progress

of the iranian nation and different arenas that have been mir rack cue -- miraclous leading others to praise the iranian nation in the past 33 years, the heart and difficult -- hard and difficult times and the side pressures exerted by the enemies we have managed to attain considerable achievement, particularly in recent years that we have experienced greater pressures by the enemies and we have witnessed the increasing hostilityies. you see that the achievements of the iranian nations have can considerably increase. i want to mention some of these achievements. in the scientific field, we are

witnessing prosperity and considerable scientific progress. speaking of the number of universities, the number of students, research centers, and also sign tifng achievement -- scientific achievements, i'm going to mention a couple figures prior to the revolution. we had maximum 300 scientific articles over the year. during the fourth, the third development plan. during five years, this figure reached 12,000 articles, and under the fourth plan, here in five years, the number of scientific articles registered in international circles exceeded the figure of 34,800 articles. today, in advanced sciences, we have a lot to say, in

nanotechnology. six years ago, we stood in the 37th pos, and today, we stand in the 12th position, and in the reason we sit in the 6th place with the grace of god and effort of the scientists, we stand in the first place, and in biotechnology, -- [cheers and applause] >> translator: we stand in the 33rd position, and we have -- right now, we stand in the 14th position, and also today, we stand in the first place in the region. many sophisticated talks of medicines are manufactured in

iron, and a portion of it is exported overseas, and in the next three or four years, scientific position and in these sectors will reach the 5th or 6th position in the world. [cheers and applause] >> translator: in the past few years, 48 medical faculties have been established, and rather than dispatches overseas, a great number of patients refer to ryan, traveled to iran for treatment, in the aerospace field, in the four sections, iran is proceeding on making progress directly with the help

of iranian scientists, and we have manufacturer satellited, and also we have satellite carriers, manufacturing them domestically, and also the launching pad has been comessicly manufactured and also the equipment and land controlled stations have been domestically manufactured. two or three years ago, the satellite was launched, and then there was a research satellite, and recently, there's a surveying satellite that's been manufactured by university students as the first transparent images from important places in the world, and we have these images that are our disposal right now. [cheers and applause] >> translator: with the grace of god, in the next few years,

and in the near future, the satellite, meaning the satellite of the iranian nation will be putting the thousand kilometers in orbit. it will be put into orbit. [cheers and applause] >> translator: the nuclear domain, we have -- the whole world witnessed that the hegemony powers have tried to put pressure on us. they have exerted different types of pressure in order to prevent the iranian nation from acquiring the nuclear knowledge, but today you see that the iranian nation has become nuclear, and can supply many of its -- meet many demands and hopefully the new future with the grace of god, all the iranian nation's demands will be

met by iranian scientists, and god willing, in the next few days, the whole world will witness the inauguration of several major achievements in the nuclear domain. [cheers and applause] >> translator: many other major accomplishments have been made including the implementation of article 44 of the constitution that has been a major development in the iranian economy, and also handing over the shares of the 140 # million iranians and also 5 million that are understudy and planning, and also other accomplishment was the implementation of the targeted subsidy plan, and that

has, in fact, directed the iranian nation towards prosperity, progress, and justice, that -- let me just present to you a couple of figures in this regard. you're unaware that during a year, only in the petrol consumption, more than 15 billion dollars, saved more than 15 billion dollars, and the iranian nation will benefit from this in order to just contribute to the country's prosperity. and, also, reducing the economic social distances to economic social distances reduced, and we have an index, economic index that indicates the economic

distance between the stratus of society and as we move towards zero, this means the society has gotten closer to an economic balance and moved towards justice. if it moves towards number one, that is absolute discrimination, and this means very wide economic gaps in the different social classes, and the implementation of this plan, this has the move of the point up dex 37, and so this has been a major accomplishment during a year. until last year, we had to import petrol, but today, i'm announcing proudly 245 today we are amongst the major exporters

of petrol and diesel engine feel in the world. [cheers and applause] as far as economic activity, but also production in the country and also the country's moving towards progress that there has been a miracle occurring prior to the revolution, half a billion dollars of this every year. in 1383 iranian calendar, the figure reached $7.5 billion, and i'm announcing proudly today that this year, our non-oil exports during ten months have exceeded the figure of $35 billion until the end of the year, god willing, it will exceeds the figure of $43 billion.

[cheers and applause] >> translator: and imports have come under control and during ten months, the country's imports had the experience of 5% reduction, and today, the most active and successful exchange that indicates economic prosperity is this stark exchange of the islamic republic of iran. [cheers and applause] >> translator: in minimizing the size of the government during these years, the whole government has experienced 10% min myization of its size, but in the past, the government, the size of the government was expanding, for ministries, we

have, in fact, reduced the number of ministries, and we have tried to actually attach more significance to the public purse and even though it may be some cases of extravagance, but i'm proudly announcing that the government of islamic republic of iran is purest and the most clean government throughout the world. [cheers and applause] ..

and our colleague took them to a major project and they will have 7,000 housing units were 8,000 housing units. they just visited the project and saw 140,000 housing units being constructed by the contractors.

in the recent years, 1,400,000 housing units have been renovated and it's more than the projects involve similar periods in the past and also feature projects and the water projects have been more than 25,000 over their generation have been added to the capacities and the electricity generation and announcing today that we are one of the major exporters in the region. also industrial investment that

made the calendar on the 688 billion industrial investments made and the 21 trillion from the more than 100 trillion of the investments have been made in the sector and the processing of the product of the achievements have been made. also speaking of the government have contributed to further unity national solidarity and unity and the government decisions have been directed towards people in the administration of justice and prosperity in the whole country. the capability of the government

to focus. two other accomplishments what is the establishment of the national development fund in the past 50 years every year the revenues have been spent and in some years there was a need for borrowing money in order to make up for the government cost since the fund has been established in the country with the help of the parliament. it's the national development fund. 20% of the old revenue was deposited since the second year there will be a 3% increase to this figure.

i want to tell you that for the first time in the country's history the government has deposited more than $30 billion in this fund since the employment opportunity of creating jobs and for the development of the country. in his run the affairs of the country without using this money. in the global arena the nation has been inspiring and the inflow influential presence and also adopting an approach based on justice and power for the global peace and security to

change the discourse of hegemony in the world the selfishness and just a fun here against the nation has managed to change the discourse and justice and when you go to any part of the world today and speak with the people of different parts of the world you see they demand the freedom eda the accomplishment was the breaking and crushing of the new modern libel, the powers, those whose of slavery in order to dominate the world and created the new idol called the zionist regime and it was historical

holocaust, the nation with its insight and courage crushed its idle and paved the way for the freedom of the western nations these are part of the achievements made by the nation of iran and the start and played in order to obtain ideas we should have defied virtue and foster unity and make efforts i want to allocate the part of my

remarks to the ongoing situation in the rule also the ongoing situation in the region 1 of all i have to announce that undeniable principal the nation speaking of freedom, justice, progress, and also national sovereignty and dignity of the nation considers these as the rights of all nations and insists on such a divine right of the nation and the right to live freely to have dignity to justice and also to make progress and prosper into welfare, and of course obtaining this right must be accompanied

within sight and hard work. on the address in the nation and you should all be vigilant to be the freedom and democracy cannot be obtained to the departments and qualifiers by the makers. cannot bring freedom to both nations if they are spending a dollar they expect hundreds of dollars. they want to plunder hundreds of dollars prior to any event in the country they should in fact

plunder the mind of the resources and the oil resources should note the massacres will bring about nothing but animosity and hatred in the person who falls down that will lead to hatred. the regional governments must be aware that the enemy is after creating winthrop want to save the regime and they are after creating the government and the nation, and also among the different religious schools of thought f. they want to

eliminate others and those people as well. why should it be some government that has not. the lexicons and even the country's it hasn't been held and the help of the u.s. freedom and elections for others and on the other hand its the most ridiculous joke that one has heard in the course of history.

the reformist turning to the nation that means respecting the right of the nation's otherwise the government's supporting some european countries for saving the regime and they are of actually putting pressure on the resistance and they should know that tomorrow will be their turn with there's the resistance front the americans pay attention to the resistance its harm to the government will be blown away. they just think about their own interest they are not loyal friends and they will sacrifice

using you have to return to your nations and to your values and return to the profit of islam mohammed called upon. all the politicians must be aware that our major developments are unfolding so the honesty of the groups and personalities must be surveyed. what is the criteria, the criteria for surveying. what is the criterion for that? the criteria next to the faith in god and purity, the criterion will be and is an open opposition to the domineering

midwest in the region and also the occupation of the palestinians and also the existence of the fate of the zionist regime because all problems due to the u.s. domination to the regime. if someone came and said i'm a supporter of nations, a supporter of freedom and democracy but it's this jury personal group given to the domination of the u.s. regime and didn't opposed to such domination and is a big liar.

[applause] all of our problems are due to the u.s. domination in the zionist regime and all of the dictatorships that exist in the region and the world have received the support of the u.s. and the zionist regime. today they have mobilized against iran, the nation, and they are adopting the tone and i want to advise them to correct the method to study history, to study geography, to better

understand the nation to realize the nation culture, capacity and plight. they should know that they are facing a glorious and historical nation. that is quite obvious the world has realized this that you oppose the progress also they are using the pretext. they say they want to negotiate. we are always prepared to negotiate with the justice and respect the awful you are choosing different excuses him. i'm explicitly announcing this.

if they used this town, the iranian nation will never surrender. the only option left is to comply with the iranian nation and also i think to negotiation table are making look cooperation and any other option will lead to your failure, will lead to the defeat. i advise them to stop interfering in the region to stop supporting they are like the dilapidated, they have no use for you.

they are just causing the cost for you why are you just supporting the occupied a regime that is and even accepted by the people that let palestine work in the nations of the palestinian nation he would have to be friends of the trend of nations and probably by following these methods you survive the next two or three years you have some achievements but i am telling you honestly there is the great awakening and there is a storm coming, the

storm of the global weakening is on its way, and if you don't join that nation they will eradicate the rules to tyranny. if >> this is to the benefits to join the nation and the last word concluding is that until this day the history has been filled with tyranny and oppression and also we have marxism and capitalism that

engaged in the oppressive measures and a larger scale that isn't to other junctures oppression is tyranny and plundering other nations if they have tried to bring furies and make different theories. i want to tell you that with the grace of god such an era has come to end. with the sound of the crushing of the capitalism and you can hear the sound of the crushing of the bones of capitalism in the world. [chanting] >> the world is in need of new order, in order based on welfare

security, justice and dignity. based on such an order to play on the global management and this requires a new sovereignty and government. humans are in need of the universal management and universal governments that belongs to all nations regardless of their color, race and language and so on and at the same time respects all people to the humans are in need of government based on justice, norwich and affection.

and at the same time recognizes the dignity of all humans and nations, so who should create such an order and governor? the ones who have nothing to do with kindness and nothing to do with justice and kindness can they bring such values to the world? in your view can the u.s. and canada set up the state or the heads of the state or the zionist who are operating behind the scenes, can they bring justice to the world? the answer is clear. a justice requires just rulers.

on behalf of the freedom seeking nations of the world, i want to announce that the alternative to the unjust order and the human order of this world is nothing but the perfect society. >> [chanting] >> the rule by the time, he will come accompanied by jesus it all the justice seekers. he will come and fill the world with justice and affection. it's a manifestation of justice, a perfect human being.

and in a fallible human being that is a manifestation of kindness to humanity. we will come and this is a historical idea. this is a common point among humans and the solution to all problems and historical hardships. and also, bringing the humanity to perfection and life. this reality is the pivotal place, the pivotal role for unity for all justice seekers and throughout the world we should press our hands and

insist on the justice and affection and anticipate the object of ideas. allow me to commemorate the late imam and the marchers who led this movement, and i wish to thank all the people for their massive turnout across the country, also in tehran. it's time to call to prayer to pray to god and god help us in order to bring the iraqi invasion and promote the nation and eliminated the impediments faced by the nation and saved

all of the oppressed nations and also agreed us your blessings and to grant your blessings to the nation of iran in alternations

general electric ceo is urging congress and the white house to adopt a budget plan similar to the some symbols to deficit proposal. he spoke at a conference on manufacturing and competitiveness hosted by eg to read this portion of the event is an hour and 15 minutes. >> good morning and grab a seat. we are kicking off what i think is going to be an interesting week on american competitiveness with a focus on what's working, sharing best practices and describing ideas and really talking about ways to create jobs and i think it's going to be a great weekend a lot to be shared. if you would have read it last month's business review roughly

75% of the people surveyed think that america's competitiveness is going to the point over the next three years and i would have to say that is in contrast to what i see. and i would go beyond that to say i think on the relevant basis american competitiveness is as strong today as i have seen in generations. soboleva going to go through this morning is bring some of the things that are working and that we have a series of workshops and panels over the next few days to discuss the best practices and what is working. if you look at the next slide, please, if you look at just the major headlines and the things that we think are important, i think it's about confidence, and like i said, if you look inside a lot of the big american companies like boeing and caterpillar, gee, people have more confidence in the ability

to compete and win on a global basis. there is a lot of this practice is. i would say that many and most of american business came through the crisis in better shape. a lot of the growth is outside of the united states, so you've got to have the confidence to take your game to every corner of the world and then i think another thing that you'll see as you go through this week is the fact that business works together, that small business and big business works together and various companies work together in one would call and extended enterprise and so these are some of the hallmarks of some of the things the we will talk about as the weeks go by. if you go to the next slide, the day is split or the week is split into segments. today we are going to talk about american content of news and tomorrow is the discussion on innovation, the next day is on the global competitiveness and we will talk a lot about what are the regions around the world

and what do you have to do in order to export and that we will put the but the work force veterans that we service and what it takes to create jobs and ordered the big statements of job creation of a global basis. i'm going to talk about ten ied is on things we have seen work and things we've learned out how to drive competitiveness inside our economy to read the first three are what i would call business strategy, about innovation, american manufacturing and focus on exports. the next things i think are about systems of competitiveness, the importance of energy and making every company competitive on a global basis. the next two or how to work with customers large and small and how to focus on the mid-market compared to the customers and value of taking some of the tools that have come from the social media and the ve and

analytics and helping the customer is be more productive and did last talk about the skills, talk about in powering the work forces and the public-private partnership has ways to try competitiveness and each are just our ideas and you are going to hear a lot more as the week goes on we had the opportunity to learn from each other and share best practices, so take that with that spirit. first, on innovation technology, this is what the u.s. has always stood for this technology and innovation. i would say most companies to say to be cut today are spending more on the research development in the previous generations in the u.s.. they are spending this technique of between two to 3%. we think that needs to go up. various research groups have said that investments in

technology innovation have about a 30% return comes of the case for technology and the case for innovation is without dispute one of the questions i asked when i travel all around the world is how many graduate in the country each year this is the biggest symbol of the long-term competitiveness of those countries more than just about anything else you can study and tracked. so science and technology is an absolutely critical. over the last decade we've gone from 2% of the industrial revenue to 6% of our industrial revenue into the r&d. in 2012 we will launch more new products than in the year in history roughly twice our historical average. and so, regardless of the company, regardless of the region, we think for the resurgence and focus on science,

technology, innovation has got to be the cornerstone of any successful company and the cornerstone of job creation and something that we think winning the companies and countries will do. second coming in the factoring. there is a lot written today about manufacturing. i worked for ge in 1982 for roughly 20 years if you look at the global cost the materials for an expensive and the largest piece in the structure tended to be labor. we lived in a deflationary time period and now we are in more of an inflationary cost period where they are the largest on anybody's income statement. so as a result i think it makes manufacturing, opening your own supply chain different today and that's the way strategically we look at our business. she has always been good at

manufacturing and we have made a strong focus to control the supply chain. we have seen good growth in the monthly jobs numbers and manufacturing. and g. e. we have created 11,000 factory jobs since 2009. we have 16 sites that are new or are being refurbished so we have a strong focus on american manufacturing. i thought i would tell even yet and that we have some of the local guys the will be here this week but you're basically moving or appliance manufacturing from mexico and china back to louisville, and when we look at it on the cost basis the labor is still higher but it's closer than it spent in the past with both materials and distributions are less than in the united states than in port. so we see the opportunity to

bring jobs come certain jobs, not every job back and we think this will take place in areas like software as well. so there is a good case to be made for the competitiveness of american manufacturing versus the previous decades and we think some of this will go on in the future. the next slide experts are key. if you are in the infrastructure business the way that we are, our markets are going to be predominantly elsewhere, the and we see the need to focus on the global markets. there will be a billion consumers in the middle class in the emerging markets alone. so there's no country that's off limits fundamentally in terms of the opportunities for growth and we look forward in the futures the exports are the key. we will make 140 -- this is the staple product 140 gas turbines this year mainly in greenville south carolina, thousands of

employees. we have roughly 50 present market share globally. less than five in the united states. if we are not selling in every corner of the world you're going to fall behind. incite gb exports really drive 30,000 jobs. there is a five to six multiplier on a free export so this creates more than 100,000 jobs in the supply chain. if you are going to be an exporter you also have to create jobs in other countries and on just the united states, so we are doing that as well, you we are building very strong customer relationships. if you look for the factories in the united states, they know the global airlines and utilities so exporting and competing means winning in every corner of the world and it's harder. it's infinitely harder in turkey and it is in chicago but that's

the transition american companies have made to be more competitive to compete more in line with any other country anywhere in the world. so switch gears. those are the strategies. i think that there's to places where every business faces the same challenges when it comes to the long-term competitiveness and yet one is health care and one is energy to the of health care even though it's extremely important for the employees and retirees to have great access, high quality health care and an affordable cost and this is something we all have to work on together, our health care costs have come down over the last few years. our cost per employee is lower than it was in 2008 and it's driven by an employee he directed health care plan and a

very focused wellness program. ge has different sites in the united states. we treat health care the same way that we treat safety, the same way that we treat the program over the last decades so we are extremely focused on the 20 parameters of health care inside those sites and that helps drive how we make the decisions in the long-term competitiveness, so we've really manage this very intensely to make sure that employees get great health care and affordable costs. and when you learn is that there is no such thing as national health care. every city in this country is different and there's 15 cities that matter the most because they are the biggest concentrations of ge employees and retirees. so in 2009 we work with local employers in cincinnati because that is where a lot of our employees and retirees live, and we work with the providers, we work for p&g and kroger to focus

on driving the common information standards of care and creating 100 plus what is called patient centered medical homes and the results are pretty remarkable in terms of the visits, fewer of missions, if you are avoidable conditions, and we think that this company should of having a smarter and we when it comes to health care, plus working in the consortiums around individual city with other manufacturers and providers in town our goal is to keep this growth in line with inflation so for the past 25 years basically health care cost for companies have grown two to three times the cpi. we think by doing these we can keep the growth of the cost incited cpi and that is with the goal is but we can't do it as an individual company.

this takes a consortium of companies in order to do it and going city by city driving best practices and informations of health care costs, and this helps the small businesses and big businesses alike so this is extremely important the private sector get actively involved driving and lowering health care costs and improving wellness, quality and access at the same time. similarly in energy i think that this approach -- and people say it more and more being on the energy is extremely important for the u.s. today. when i think about energy, i think about a resources endowment. if you have natural resources at your disposal and a creative endowment you have intellectual capability that can drive energy innovation, and i think that to a large extent the u.s. has both. we have a resource endowment

does measured by a boomer in the natural gas with shale gas and other times the u.s. has an incredible abundance if you look to the corridor in the west we have the best when to do power generation of anyplace in the world and we have some of the cleanest coal and access to oil and a restart as with other countries look at as a natural resource powerhouse and add the technical innovation that surrounds energy efficiencies and some of the innovations around renewables, some of the cleaned and environmentally friendly systems around the gas, advanced technologies and things like nuclear reactors, batteries, gas turbines systems, efficient engines and jet engines and automotive engines

and in the great university in alaska that we've got, we can actually put this together as a country and achieve multiple goals over the next decade. i never think that complete energy self-sufficiency is necessarily a good thing because you want to be a part of the global network but i think between now and the end of the decade this country can have great control over its energy and can do it in an environmentally friendly way and create jobs and competitiveness the challenges we have are twofold. one is we have a very old agreed, so we get the week howard infrastructure, weak energy infrastructure and believe it or not on the a relative basis the u.s. market is relatively small. so we have lots of global competition and lots of demand outside of the united states. but if we can find a way to solve a couple of the problems,

have a more expansive view of energy, i think this is a place where the u.s. over the next decade can really prosper. so to go through so far, technology, manufacturing exports, those are things i think are working in the united states. and then if you look at affordable health care, access to energy, these are the two pillars of every productive society when i travel around the world, so those are the things i think so far we need to be working on. next just think about what is our responsibility working with our customers, and i think that all of us in the business cycle, we have to be focused externally to work with customers and how to work with suppliers and i break into groups. with customers in the capitol we have a big focus on what we call the middle market and the middle market or companies between

$10 million to a billion dollars of revenue and it turns of this is a huge segment and the two identified themselves as middle-market customers. there's too wondered thousand companies 80% expected growth. it is one-third of the u.s. workers and this is a segment of the economy that fares pretty well during the downturn and we do downside the company is take down any barriers between she and this group of companies in what we call access ge so if you are one of our middle-market customers and what say you are running a steel plant and you want to learn how to do the manufacturing we have found ways over the internet and in person to about customers access to ge team with it comes to how to do the manufacturing and if you to know how to do employee training we open the doors to ge to this group of customers to say how do

you do training? acquisition integration, same way and we think burying the qtr and down the company's hopes the entire enterprise work more effectively and this is one of the things we can do in this segment which is a real system of growth and i think one of the things that maybe sometimes we draw an artificial delineation between the companies, big companies and small companies when the reality really is the extended enterprise works altogether, suppliers, companies and customers. so this is another pillar of competitiveness and the things that work. i thank the other aspect and this seems to offer promise in the way the big companies work together with other big companies is the role that analytics and the internet is

going to play on how our assets move. if you look at the revolution over the last ten years and for the media as the whole aspect of man to machine or machine to machine technology over the coming decade it's going to be one of the big trends. we the but to moderate 50,000 units in the base of the jet engines, gas turbines, scanners and we take these through sensor technologies may be ten terabytes of the data and we have the ability to monitor the usage data with our customers the has the chance to drive significant productivity and performance for the customers and we are focused on doing that. one point of the firm is worth 5 billion of profitability to the airline industry, one extra mile of velocity for the locomotive customers is the

billions of profit. if we can get ct scanners to have 100% of time and that is the capacity in the radiology and every hospital around the country. focus on using technology to drive the productivity is important for customers. so these things in terms of what works are ways the company's need to focus on the customers to help their customers become more productive, yet we think this again is a big pillar of opportunity in terms of what's working in the united states today. if you than a shift gears and talk about people, because i think again human-resources are key if we want to try it progress in the future and what i call high skills training this is one of the first place is that the jobs council looks in terms of ways to try to employment and ways to drive long-term productivity in the

country it is a fact that maybe the most grateful way to create jobs is to fill the jobs that are open today. i think sometimes we want to have grandiose programs and grandiose ideas it's somewhere between the two and 3 million open jobs today and the reason a lot of the jobs go unfilled as people don't have the right skills. if you look at the left-hand side this is a program called right skills now and this is the brainchild of darlene miller who runs a small business in minnesota, she was a member of the jobs council and this is a focus on that fence and manufacturing jobs using community colleges as ways to get people trained in six weeks up and going to have great skills, advanced skills. it's got a tremendous small business focus, and it's literally hundreds of different ideas on how to leverage community colleges can drive

jobs. i travel the world and spend a lot of time outside of the united states and friday of the world has an implant issue. very few people just work nowhere near their open jobs are and know how to get people trained for those jobs. so, the left-hand side i think championed by the small business, embraced by big companies focused on the community colleges as the way to get people with the right skills now in place and in the job area from paul of intel the idea is how to get 10,000 more engineers graduating in this country. so the drug debate about 135,000 engineers to the united states every year. china and india together graduate a million every year. so, we have a large opportunity, and if you look by 2020 what most economists would forecast is there will be to

million-dollar job deficit in engineering in the united states. so we have got eight years to get a tremendous increase and the issue is there's a 75% dropout rate for people who go to study engineering as freshmen, 75% of them don't make it to graduate and that is mainly because of her subjects are easier. let's face it. it's hard to graduate with an engineering degree. so paul's idea is to work with a bunch of universities, big engineering schools to make them better at what is called retention and having financial awards for students to study engineering and make sure the private sector of the source internships so that if you are a senior in high school and you decide to be an engineer you basically do it with the point of view that you are going to get a summer job ahead of your colleagues that are not working quite as hard and so we have

doubled as a company and we have 60 other countries retired 2500 engineers every summer and internship programs we are going to basically double that this year as our many other companies in the united states. so, human-resources or key to read these are just to ideas from the standpoint of what is possible going forward in the future. the reason why people are important and skills are important is because increasingly, we want people to run the show and so in many of the facilities we now have stuffed the cause of directed teams to the durham north carolina is where we assemble a lot of the engines you probably flew on your last flight or that he will fly on your next flight, and this site has just over 400 people with one manager, and basically the work force, the

work teams decide the schedule, put in place metrics and training and hiring and we have well-trained and well-educated highly productive, high-quality teams. so this is not some kind of theoretical exercise to i think we company's work today is the people closest to the action on the floor or the people who are dictating the knowledge and driving schedules and driving quality and we think this is the way the productive assets work. so think about it again, strategy come innovation from a manufacturing exports, two pillars of competitiveness and health care and energy, focus on customers seeking customers more productive, both small and big,

dedication to training both engineering and advanced manufacturing, putting training people in teams where they can try faction and pace we think these are the ideas that are working and these are the ideas we can share and you are going to see these across a number of successful companies to read the last thing i will talk about is the importance of public-private partnerships. the private sector drives jobs in the united states and the will always be true with the government can provide a catalyst and it can happen in a couple of different ways. one of the values in the united states is 50 different experiments that have been in 50 different states and the governors can be entrepreneurial and helped create the right environment and we think that's been very effective, a place for ge is invested in the last couple of years and haley barbour will be here today as

mississippi one of the great things that the governor did this focus on the work force training and not just creating a training fund to get people and going but also linking the company's to the universities and colleges and some state of mississippi of which we capitalize on that and as a result, we have the high-tech aviation plants going in the mississippi, one is already completed and together will be finished this year and these manufacturing plants will do high technical materials and go into the jet engines and we've linked up with the mississippi state, some of the big engineering schools in the state, and this and let's say five years the point would be roughly a thousand jobs in mississippi so very effective and entrepreneurial, quick, productive, good jobs created in the state. the president set for the goal of doubling exports in five years which we think is

achievable but the trade agencies are extremely important. people like xm are important partners as companies like ge around the world. i was just in africa for a week last week. the chinese government is everywhere in africa and we need to level the playing field in order to allow our companies to compete. we don't need the same advantages quite honestly. but i think it is -- it does give a sense when people like xm and other organization are in that we are kind all in as a country and we are trying to compete and trying to win and i think it just a little bit of support and focus on small businesses and big businesses alike it goes a long way. and so we think with the state level and at the federal level agencies like xm it's extremely important and both of these

create jobs which is what the end result is and that is what creates the win win. so, business and government working together helps create competitiveness and so again to recap the ideas we would have, technology, manufacturing, exports. we do business in more than 120 countries, every country thinks about health care and energy as being the two pillars of competitiveness, so those are extremely important. help your customers to make them more productive. train people, educate people and then unleash the power of every brain inside the factories and make people more competitiveness and increase the sense that while the private sector creates jobs, the government can create important catalyst in the right environment in which people want to compete and want to create jobs. the last thing i would say for the week is competition creates

-- requires confidence as a free year executive i can tell you that i am probably more confident today than any other time i can remember in in the ability of factories and businesses in this country to be competitive. there are many good things happening in american business today. i think companies are competitive. they want to win. there is a strong desire to want to drive not just competitiveness of their own companies but more broadly that in order to measure success we have to win in every corner of the world. 60 present of the revenue outside of the united states and 70% of the backlog in the united states. we have to sell e and chia elaina monreal the ehud in nigeria and in poland, we have to sell in peru and brazil,

we've got to sell in mexico, we've got to sell everywhere and we've got to be hungry and the altar of reporting for the companies. i think in general business works together. there's an extended enterprise. there is a supply chain. there's a customer chain. there's teamwork in the companies that are very powerful and i think it is this notion of enterprise and team work is essential to american business that helps us compete so that's the way i want to frame. you have discussions on various items throughout this week to be we have made a few announcements this morning including the hiring of the 5,000 veterans over the next five years, roughly a thousand a year to get some investments in the aviation business, ways to take the health care program for extensively, ways to use i would say things like the idea shops for people in the towns to be

able to access manufacturing and learn from each other and participate for a certain extent in the enterprise comes some various announcements this week. ..

because i want to pick up on we are in washington about some of the government questions, public/private partnership questions. but let me start with the broader economy. we were talking backstage about what you see, what we all see over the next six months in a political context but just for americans who are going through such a time of slow growth and high joblessness. jim, why don't i start with you and ask you, what you're seeing out there and how it looks? >> i see a normal recovery except for real estate and construction. which is, often times two or three points on unemployment. point and a half on gdp growth. but i see pretty moderately strong global demand with the exception of europe, particularly asia and the

middle east. u.s. recover. so finish where i started. pretty normal recovery, except for construction, real estate which for a variety of reasons you understand just hasn't bottomed out yet and may not for a while. >> we talk about economic growth even more important indicator than jobs, and drew. how dizzy it impact what you're seeing? >> now is the time to get us the confidence we all need to keep it going in the right direction. 8.3, 8%, maybe lower than that what jeff was talking about. i heard of some of what you were saying, jeff. it is jobless recovery but we have jobs out there. it is skills discussion i'm sure we'll get to. a really tough europe what i see. we think europe will be fine at the end of the day. i was making a point with jeff europe has been around a long time.

they have resiliency if nothing else. this will definitely be a testing time for europe. emerging world, normal issues. inflation. but emerging world is doing very well. >> jeff, you've been spending the last several minutes going through the macroeconomic picture. one of the things we talk about a lot in washington, fiscal imbalance and leadership vacuums and what that ultimately does to chill business in america the can you provide more than just shorthand on that? as you look at a budget outline president today not likely to be acted on, huge budget deficit and leadership deficit continues here because they're so polarized. what does it mean to you and the job you're doing around here? >> it just adds to uncertainty because everybody knows somebody has to happen. over the holidays, i read it before and i read it again the deficit commission. i think that is the framework of what has to happen. i don't love everything and none of the three of us are going to love everything but you look at both who was on

the commission. their recommendations are sensible. that is the outline of what ultimately has to happen. i just think the sooner we can see that take place it just, i think what makes businesses effective that we can adjust more easily than other institutions, right? and so we'll adjust. >> you just want to know, something will happen. what is going to happen that will affect your business? >> exactly, david. i think, you can go through, you know, entitlement reform. a tax, a business tax that is no loopholes. rate mid 20s, high 20s, wherever goes. you go down the deficit commission recommendations and you say look, in some way shape or form. in the back of my mind all of us are planning for that eventuality. let's do it. none of us can tell you when it will happen. we can tell you what it will look like. >> let's talk more

specifically about manufacturing. the president during his state of the union address said the following i want to speak how we move forward and lay out a blueprint for economy built to last and economy built on american manufacturing, american energy skills for american workers and renewal of american values. the blueprint begins with american manufacturing. that speaks to, andrew, a public, private partnership where government is a player here. first what is the outlook for manufacturing and what is the role of government postively and negatively? >> i'm very hopeful that we've actually now got the national conversation getting down to specifics. i would say a few years ago there wasn't even a national conversation. today we do have one. jeff in his presentation talked about our cost structures coming down for the right reasons, not least being competitive energy in the country finally. competitive labor costs et cetera. so i think the prospect from here is has to be a public/private partnership model along the line of the simpson-bowles. i think we need government and business to work together on the possible

future of the country laid-back to specifics. on what? regulatory reform. tax reform. these are partnership models that the brt and other parts of the business community is working on. we've got specific ideas but we don't see much action. what i worry about is the political animal takes over. the next six to nine months next to nothing is going to happen. so we'll have to wait for another year or two. >> let me break that down a little bit. let's talk more specifics the president says in the state of the union begins with american manufacture suggesting that the government plays a role. as a manufacturer what can government do for you? >> first of all it is the right focus. manufacturing has a multiflick tiff effect. jeff, you point the that out in your talk. three quarters of the technology in this country emanates services and then, use it in providing services in the full life cycle of

products. you get to the next innovation quickly after you've gone down a learning curve making something so it's the right focus to start with. i'm a little bit more of a on the partnership side i'm a little bit more on the regulate us properly and get out of the way kind of guy, okay? i think we know how to design and build things if there's not too much getting in the way of us doing that. and i think right now there's a little bit of tension that is not productive on the regulatory side. whether it is energy and andrew can talk a lot about it and so can jeff, or on the labor side where i have a big speech. and fda, there is another speech. and don't see the same kind of regulatory partnership that is all about protecting the population from what we do, but letting us do what we do within a known framework. >> let me pick up on that. there is number of issues there we could get into.

>> yeah. >> back to you, jeff, part of this discussion and part of the state of the union was saying to business, you've got some responsibilities. we want to incentivize but we also want to hold your feet to the fire. use some sticks against you as well. what role, what responsibility do american manufacturers have to bring jobs back home, to try to get involved in a weir all in it together conversation with government? >> you know, look, david, i could give you a classic laissez-faire capitalist answer it say on one hand i could say, we follow the laws, leave us alone. >> right. >> i don't think that word fits today. it doesn't fit the zeitgeist of the age. it doesn't fit overall. first and foremost what we owe everybody to compete and win in every corner of the world. first and foremost invest in technology, invest in people. take our products. gain market share. fight hard against, you know all of our global

competitors and probably all three of us, i don't really have american competitors anymore. all my competitors are german, japanese, chinese. we're kind of like after 100 years the last man standing in the world we're in. so, you know, i'm kind of love us or hate us, i'm your guy, you know. and that's, you know, so win, number one. but i think look, i just think there's got to be a cagney sans how important jobs are. all three of us, none of us were born in our job. we all worked our way up, you know, through our various companies and the pride people have when they have a job, the respect they have for each other when they have a job and the notion that jobs are precious. and it is not that every ge job will go in the u.s. but i think to a certain extent at points in time there is too much callousness around

it and i just think we have to know that -- >> is that a way of saying insourcing, initiative where there would be greater demands on businesses and the government does play a role. andrew is that appropriate is that something you can live with? you he except the idea that old laissez-faire arguments have to be put aside. >> i think like jeff, i'm sure jim will agree i think the context of the question is really wrong. i have open border competition and this is the most open border out there and ideals of free trade jim can speak a lot about have to stand. why are you making markets based on false intervention. i'm competing like jeff said, people subsidized around the world. companies are competing like companies. they're creating incentives. thailand, mexico all the emerging companies want when we have but germany do it too. my open country of australia does it too. look at r&d tax credits. it is not a level playing

field. if you like, ge is unique in america. dow is unique in america. boeing is unique in america. we need to compete globally. we don't need a government one answer that bring us back to the country. everywhere we create in the world we create jobs back here is another myth. jobs back here is what we all should be striving for without impairing american competitiveness of creating structural intervention of wrong kind. we need partnership model of right kind. health care energy, how which implement regulation. we need emquality of people regulating our management policies. i switch over to jim and i really think this insourcing discussion as single pillar makes no sense. >> it wasn't me who raised. it was the president of the united states raised insourcing discussion. before i get to regulatory reform i want to ask a basic question as a layperson which is, jeff, you and i

talked about this in the past where is the demand coming from whether for an airplane? i get on airplanes seems like they're all bankrupt. are they buying new aircraft or only dubai they're buying aircraft? what about nuclear reactors. >> 95%, sorry about jumping in, 95% of the world's consumers live outside the united states and 70% of the gdp is outside the united states so that's, used to be, when jeff and i grew up if you won in the nights you would win globally. today it's the opposite. you need to win globally and then because you're facing the same global competitors in the united states. it is a different deal. >> jimmy, the last decade, david, the last decade from boeing and fe, we sell a lot of engines to boeing. without emirates, all the chinese airlines, all the latin american airlines, you know our companies would be a fraction of the size.

i think to andrew's point, i just don't feel un-american when i'm selling ge engines around the world, i'm sorry. and, you know what i try to explain to people, it's like, selling a product globally is only like 1,000 times harder than the u.s., right? you're facing subsidized competition. your brand doesn't mean as much. and frequently it is the guy's first experience with a product, right? it's the chinese airlines, basically was their first experience buying aircraft. so i don't it is just one of those when i think you talk to guys like us, we just don't apologize for having a to globalize our companies. i understand the complexity and i understand what about the high unemployment, jimmy is the most, biggest exporter by far. >> but i would say that i think we, lemming-like over the last 15 years extended our supply chains a little too far globally in the name

of low cost. we lost control in some cases over quality and service when we did that. we underestimated in some cases the value of our workers back here in so doing that. so i think there's a recalibration because, even though you've got to be globally competitive there is a jump ball 10 to 15% of your jobs, where, and i think you're going to see more come back to the u.s. in part for business reasons and in part because we want to be good citizens. >> look, when people like me, we scrutinize the president of the united states, part of it does have to do not just with policy, it has to do with messaging. leadership through communication. how much of the work has to be done by business leaders to yourself to say to american audiences as you did jeff when you spoke to that other network recently in a profile that you know, you should want me to win, if i win america wins? how do you do what, you know, clint eastwood did in that

ad which is to say it is half-time in america. chrysler is doing better and we should all be cheering for that whether we're selling cars in detroit or selling them in sri lanka? >> look, i agree with the nuanced points that jim and andrew made. i think beyond that is globalization is a, it's a 20-minute discussion in a world that wants one sentence answers, right? so i think the trick to globalization, look, we have to be vocal and we have to defend ourselves and our companies and say where we've been right and where we've been wrong. there are places on both. it is a nuanced discussion on, you know, ge's a net exporter to china. so in other words we export more to china than we import from china but that is a nuanced discussions where you're creating jobs in both places as you do that that i think we have to keep chipping away at it. >> i state the obvious i'm no clint eastwood, right?

however we -- [laughter] >> you dough have a griz i willed appeal to you. >> you like made in america the way he did? >> that was the point you wanted to get to, we at dow decided to put a book out there making it in america with australian accent. brand and perception, the four words or the one sentence, our articulation of the value proposition here in washington but out there, our workers who actually can have a labels on their products saying made in america. that is an american thing to do. we have to change the conversation. >> i want to get back to regulation. go through some individual elements what makes manufacturing better, how the economy gets better in this area. again the shorthand in washington for all of us who cover the issues and when we talk to business leaders we need common sense regulation. 21st century regulation for the business community. what exactly does that mean and what's not happening in

that regard now? >> my view is that the financial crisis, 2008, promulgated a political backlash that produced a lot of regulation in the financial services area. the discussion broaded from there and splattered over every regulatory agency in d.c. tone from the legislative branches and from the top was combative and was confrontational and so i think the first thing you've got to do get over, get through the financial services discussion which is a separate issue. a lot of risk came into our economy needs to be addressed. and then like the president's doing focus on manufacturing which i think is a little bit of a different animal. and i think the fact it is looked at separately now gives us a chance to get into a more constructive dialogue because the dialogue with our regulators now tenz to be -- tends to

be more confrontational than it should be and more confrontational than it was designed to be. the nlrb case against us in south carolina was a sham, okay? it was a sham. and it was something that an unconfirmed person in that agency promulgated on his own and it was something that eventually they with drew which was the right thing to do but it had a chilling effect. i mean we can afford to spend a billion dollars in south carolina and get told we can't do it, okay? we didn't stop investing for a second however. other companies the small, medium-sized companies that the administration wants to encourage, they can't afford to take that kind of a chance if there is example after example of that kind of heavy-handed as opposed to cooperative. i think regulatory model in this country is meant to be cooperative. let's find a way. let's keep growing our

economy. let's keep driving jobs but let's contain what we do so we don't inadvertently harm other constituencies. we're not there in my view. >> something like shell shale gas. if the studies are true, right? i think there would be people could articulate better than i could, we have a let bode of gas. we have a bunch. that could dramatically change the future of the country. we actually could be a energy exporter in our lifetime yet everybody is waiting for world war 3 to erupt between the epa on one side and somebody else on another versus saying look, this is the standard we have to meet. we have to reclaim all the water, 100% of the water. we have to do it environmentally friendly way. there is no sense there will be overarching strategy versus yard by yard of fight and warfare. it is just not the way, you know, other countries

necessarily approach stuff like this. >> that's a great example of what other countries do. they say i have this amazing new entrepreneural to discovery. it could be a new chip. here i have discovery of the energy kind. now how do i approach it as a nation, okay? what do i worry about? what should i, who should i consult with on regulatory side? who knows anything about hydrofracking actually? it took a long time before they came to the chemical companies where they said what is going on in there, which has been going on 30 or 40 years. there is consultative process. working on regulatory side to get responsible production so citizens benefit holistically. society doesn't see a negative. society sees a positive. all the energy add, because of shale gas, become a net ex-ever exporter only second to aerospace. companies like mine were

having to leave the united states because of energy costs. we're coming back. i'm putting $5 billion in texas and louisiana based on these discoveries and value adding them. that should be viewed as country value add. how do we put responsible regulation to get the jobs in the america at the same time protecting our citizens? >> then a related question i think what has become a more mainstream example. jobs, president obama discussion, why don't you make the iphones in america? well there is not enough engineers here. i have need to go to china. you need to have doctors but you have to have a certain level of advanced education to have enough engineers who are overseeing the work and i can only do that in china. i can't do that in the u.s. jim, for all of your industries or your particular areas of the economy, you know, how do you make more, make more product in the united states, employ more people in the united states? what has to happen from your point of view? >> well, i think the, you touched on the educational issue, the s.t.e.m., science,

technology, engineering and math. we're falling behind in this country. when you get to the root cause it is k-12. kids don't turn on. they don't get excited. quality of teaching is not there. there is whole emphasis there. the president actually is focused on this area. he should do more. but that that is a long-term, frustrating answer because that sorts it out 15 years from now. i think there is, there's a lot of investments, there's a lot of cash that big companies like ours have available to invest and it's, i think we need some degree of certainty on tax incentives, regulatory. i think once we, as i totally agree with jeff. let's take simpson-bowles, let's sit down, figure it out and everybody gives a little, we move on. even if the answer is half bad we'll understand the environment you're in. you will see a lot of investment happen. >> do you fear a whipsaw

because of political leadership? in other words you fear there is enough distinction between the parties that if, you know, mitt romney becomes the president that you could have such change that you want to keep some of that cash rather than invest it? >> no. well, i don't fear a whipsaw. i think that there will be, in all likelihood something after the election, it is ridiculous we have to wait that long, but after the election, they, president obama, republican controlled house and senate. i think at that point some reasonable solutions will be promulgated. that's my hope and my belief. and it just takes that time. and it's too bad with the gerrymandered districts fox news, cnn, no one stays in wash on the weekend and talks about anything. you're penalized if you compromise. you lose in your home district. that dynamic is just killing us right now as a country. we've got to have a cathartic experience that gets us to the other side.

>> what does it take, i'm asking for more of a political leadership question, both of you, what does it take for leaders to lead and actually use that leverage, that leadership leverage on the country to move washington a little bit more? you're taubing to leaders not only here but around the world. what are you not seeing out of this president or congressional leaders with whom you're doing business? >> jim and andrew we've been all active on the brt. business kind of sad, let's take the deficit on. let's solve it. we've spoken more with one voice on this more than anything else. >> you're showing a a lot more initiative and courage than leadership in congress, rank-and-file in congress or even the president who said repeatedly through aides and so forth, we don't want to put something up on the hill that will be designed to fail. >> in the end the world function best if my job is to go sell gas turbines and engines. there are certain things.

we should make our companies competitive. business kind of spoken, reducing the deficit is really probably job one. none of us are going to like everything as we come through it. it has got to happen sooner than later. i would add in the arithmetic point, david, roughly 65% of the u.s. economy has been consumer driven. it has grown dramatically over last 25 or 30 years basically because of credit. this economy needs to be powered by investment. that's got to be, that's why certainty is in some ways more important today because that has got to be the engine that helps power this economy back to three, 3 1/2% gdp growth. >> i think the two, four, six year election cycles speak against certainty. if you're living in volatile world, how do you answer the question you asked? you answer by saying okay, i believe in a system. you've got to believe in the american system. that's why we're all here. so you've got to say we can sustain ourselves on the big ideas. they may take some time to

get there. let's take the baby steps that the jobs council recommended. there was first tranche of ideas, specifically proposals out of jeff's report. the advanced manufacturing partnership which i'm co-chairing has specific proposals in and around job reskilling and retraining and worker outreach and communication you asked about. the president's export council that jim and co-chaired, specific out comes on trade. not the least of them being signing of korean free trade and colombian and panama one. so there are good baby steps that suggest that the american democracy still has a vitality around business but there's a big gap that exists on the specific big steps, okay, the ones that jim talked about. how do i get to a bigger goal? i always think it comes down to what we do. we face up to the short-term issues of credibility. we have to do the tough stuff, we do the tough stuff. out there we give a picture of the future. as we do the tough stuff we'll be a better company in

our case. we have it easier as a company very as you country. that is sort of gap that exists today. >> for any and all of you, people think of technology's impact on the economy and see it in their lives and based on the devices they're using and how it makes their individual lives and less complicated and more dependent on the technology but we know technology's impact on our economy structurally and, and jobs is huge. so what role does technology play in making our manufacturing more competitive around the world? >> well, i mean, is it depend on the industry. depend on the company. i would use the dreamliner, 787 as an example. a huge job creator. i mean it's going to, it is an innovative product with innovative engines. >> very innovative. >> very innovative engines but what drags, the long-term investment is

probably 10,000 jobs to build the infrastructure in seattle and in south carolina. the ongoing employment is somewhere in the neighborhood of 8,000 people. the ongoing investment in r&d as we go down the learning curve of production and try to find the next set of composites that will keep us competitive is probably another two or 3000 people. then the service, as i pointed out earlier, life cycle service of this product over the next 20 or 30 years will probably be in our company and in jeff's, because the engine is the disproportionate service intensity is probably another 6 or 6,000 people. this innovation produces huge employment and produces profits for our company. allows us to reinvest and i was at a breakfast where i was listening to alan greenspan the other morning and he said i've analyzed the investment in this country and our companies are doing everything except making long-term investments with

fundamental innovation. and that is the chilling effect of not knowing what the playing field is going to look like taxwise, regulatory. you have to fight, what battle are we going to fight if we announce some big investment? and it's, but it's, therein is where the jobs are. therein where the success for the company is. that is the thing for success. we have a lot of ideas. >> can i deviate from that slightly? >> sure. >> teach us about operating in a different country where the playing feegd is -- field is, level is -- you can identify it. >> jeff gave the best speech on that one. >> you feel like you know what the future is. you can invest in more long-term way. the regulatory environment is more welcoming and allows you to do things in a way you like to do it in a little more -- >> david, look at a place like germany.

has got well-established investment rules. they modernized labor systems a past couple years. there is reason why germany was one of the few countries in the world that came out of the recession better than it went in. that is -- the u.s. isn't going to be china. there are lots of differences but germany is not a bad, just not a bad place to think about, you know. i think it's not a long list. i think it's, well-trained people. it's investment tax certainty. and then i would say the third piece is, you know, some form of export. you know, everything today gets cast as like corporate welfare and stuff like that. right? but if you're, you know, if you're trying to sell a boeing 738 -- 737 max with ge engines in africa, you've got fully subsidized european super structure

around chinese bank financing you know, and us. so i think, things like xm are away that we can level of the playing field. we will never have a better package than those two entities have but it's not really, it's not really corporate welfare to put us on the same playing field that our global competitors are on. and that's, i would say, labor, investment tax, and some form of export. >> support. >> in my world, energy. so energy policy which we all talked about and the absence of it here is really a killer in my world. energy intensive industries go to the germanies. they have a energy policy. you may not like aspects of it. you know what the prices versus alternative. views on nuclear in this case. they changed it obviously. clearly there is certainty i get on major imports whether

labor or capital. they have tax credits on tax side. germany is great example. there are democracies and opaque systems you don't want to compare yourself to but compete against them. germany addressed three times ago, that is the human talent. they celebrate engineers. they celebrate apprentices. they have these training programs, vocational tripping programs. they pay a lot of attention to the tall lant pipeline at the factory level, for not smokestack industry but stacks of chips. in other words, understanding that it is advanced manufacturing they're geared to. i think that is probably the sine qua non of examples. countries with know natural resources but their people. they're investing in the people pipeline. it gets back to the education question and shortage of skills we have in this country. >> is part of what we're dealing with here in the political debates and in the

debate about competition that we're in the middle of american decline? do you believe that? >> no. >> no. >> not at all. >> not in the -- we're going through a phase where our government and and industry are uneasy with each other. each think they're doing the right thing. knot connecting. we need to figure it out. both sides have their arguments and they frame it politically. we frame it economically. we think but absolutely not. do i feel that ge or dow or boeing are more or less competitive now than we were 10 years ago? i think without question we're more competitive than we were 10 years ago because we have kept the investment. could we be making more progress if the partnership was characterized by some of

the things we talked about as opposed to the way we find isn't i think so but you know. i mean the dreamliner it had its own developmental issues but one of them was labor issues and slowdowns and investment in south carolina because of the government, you know, keystone. eric cantor, and there is plenty of blame on both sides, decide within a month, i'm not going to decide within a month on keystone. that is the president's response. so the whole thing was politicized as opposed what is the right thing for our country and let the regulatory process work. >> but you don't think it is in decline? >> no. i also think you have got to get away from this one sentence answer we're all victim too whether headline. solyndra does not define the solar industry. we're launching powerhouse solar shingles as we speak from invention commercialization, three years, going on roofs in colorado, nevada and california.

shingle invented in america, made in america, by american ingenuity. solar of the future. not solar panels commodity style you subsidize in china. that is great industry and maybe an industry we should have had. we're working on next generation electrical storage device materials. batteries, cathodes. coming out of american labs. innovation is alive and well here. we have to get the pieces together again. >> you're okay with government funding a role in that innovation? that is one of the recommendations. >> we're have spectacular failures and spectacular successes. it took a while to get the dreamliner. >> yeah. like a fine wine. >> like a fine wine. we have lots of fine wine in this country. >> takes a while. >> david, i wouldn't listen to us. i talk to people who work in our factories and such. they feel like they can

compete and win with anybody in the world. i actually see as a guy that travels the world our relative competitive position has improved in the last decade. it hasn't gone down, number one. number two, when you think about something like the dreamliner, turns out this country is still good at doing hard things. and that is a competitive advantage over the, over the long term that is a, that is a competitive advantage. >> can you remember a time, you know, i'm fairly familiar with ge. and you know, some of the messages some of the market, we bring good things to life. more recently, hey, we don't get budweiser if not for you guys? does that speak to the fact that we're in a new era where political climate, a level of pop youism in the country has reached a level where you need to make a point like that? is that, how much does that hurt? >> you know, companies don't, we don't stand on our own.

you know. again, i think jim said it. andrew said it. none of us feel like we're above it all. we are part of this system. you know, we really are. i think we've got to reflect era at time. our slogan is imagination at work. guess what, nobody gives a dam about imagination right now. they only care about work. now we talk about ge works. that is, david, it is just it is just, today people want solutions. they want basics. they want resiliency. they want, you know, and i think basically people kind of say, if i have to read another op-ed piece i'm going to kill myself [laughing] i want to see somebody do something about something. and i think companies have to be a part of that ecosystem. and, we want to be. so we. >> so we just got a few minutes left and take a minute and talk to a washington audience here about what you're looking for on the whole playing field as you think about the

future of manufacturing and american competitiveness. what do you want to see in the next six months to a year, what you are looking out for in the next six months to a year? >> i would say exports, focusing on manufacturing. there is a whole series of things relating to free-trade agreements. export control law reform. sensible immigration. visa. there is a whole list and administration is being responsive there. so we've got to keep pushing that. i would think, get to a tax policy that is competitive globally right now. we're not competitive globally. a strong statement on education. then i think there is industrial base issue. you look at where there is a lot of innovation in this country came from. not only defense industrial base but other industrial bases have produced as by-products everything from gps to microprocessors to the internet. sorry, al, the internet.

and so there's an industrial base issue which is about some tax incentives on innovation and r&d. it is not a new list but get focused on it and use the president's tone from the top on manufacturing to actually get some of these things done. >> i'm very similar. advanced manufacturer agenda that adds value to our new energy base. we can build a specific plan around energy like we could have never done five years ago. address to infrastructure. a national infrastructure plan. we need series of bites on that. i think the jobs council got that. short-term stuff on tourism done. there is whole lot of jobs reskilling, training programs in place. great practices out there. leverage them. put them into legislative work. get them out there in terms of best practices. one-stop shop to investment. the president started on that with the department of commerce reorganization,

those subsume good things like u.s. bank which is powerful, powerful agency for u.s. job creation. look at one-stop in terms of regulatory approvals. 60 federal agencies approving investment in some state and then have state approval. really streamline things. work on efficiency side if you can't get big picture stuff taken care of. >> david, i would say three things. i would recommend everybody go back and reread the deficit commission. i'm hard-pressed to see a better group of people with more common sense solutions. there in does lie one of the answers. number two, education. this country is just not going to win having math and science ranked 25th or 26th in the world. we all can do better as citizens there. and the third thing is, i think if the world really thought that the u.s. was going to bring its a game, every place around the world to compete and win business in every corner of the world, by having great companies

small and large, by having, you know, xm or other trade, you know agreements, we would shock people in terms of how well i think we could do. those three things. >> thank you all very much. >> david, thank you. >> thank you. [applause] >> thanks, david, well-done. well-done. >> the ge conference on manufacturing and competitiveness included a panel with ohio senator robb portman and colorado governor john hickenlooper. they looked at government regulation and energy policy for about 50 minutes. >> it is my pleasure to introduce our panel moderator, bruce katz. bruce is vice president at the brookings institution

and founding director of brookings metropolitan policy program which provide decisionmakers with policy ideas for improving the health and prosperity of cities and metropolitan areas. bruce regular laly advises, federal, state, regional and municipal leaders that advance policy reforms that advance the competitiveness of their communities. please welcome me in welcoming bruce and the panel. [applause] ♪ . >> good morning, everyone. so let's get started. i want to introduce the panel but i just wanted to do this little preface. i think everything we talked about this morning whether it is technology, whether it is trade, whether it is taxes, whether it is regulation, skilled workers, all the elements that are

critical to recharging american manufacturing is a federalist act. so the it federal government, critical, obviously. we had senator portman here. states, remember we're a union of states, broad powers over market-shaping areas. cities and metros are where it all comes together. and business. networks and manufacturing firms are the ecosystem that supports them. we've got a great panel here to have one of the few federalist conversations we actually have in washington. senator portman, senator from ohio, but as critical to this panel, former u.s. trade representative. former head of omb. and coming from a state that is a major global manufacturing presence. governor john hickenlooper, governor of colorado. former mayor of denver. also former founder of a small manufacturing firm.

okay, now it was a micro brew but over the weekend i actually looked at the north american industrial classification system. and microbrews are there as part of food production. so, -- greg fisher, mayor of louisville. the 16th largest city in the united states. obviously large manufacturing presence. and mayor fischer also was the owner of a small manufacturing firm earlier in his career. both of these folks lived this and can talk from that experience as well as from their governmental experience. last but not least, jay timmons, national association of manufacturers. this is really the critical constituency group representing manufacturers large and small in the united states on a wide range of issues. so i'm going to start and, go with the hierarchy of the

system here. i usually start from the bottom up with the mayors but i will start with senator portman. >> that would be the bottom. [laughter] and ohio obviously, when you think about the united states, and our manufacturing platform, it's a very substantial platform, not generally recognized. 11% of the gdp. 9% of all jobs. ohio's more manufacturing. 16% of your gdp. 12 percent of your jobs. since coming to the senate you've been a major advocate of manufacturing. both with regard to some of the comprehensive job efforts put forward by the senate republicans. you joined up with jeanne shaheen on a very interesting energy efficiency and industrial competitiveness act also your budgets and services, energy and natural resources, you basically oversee many

of the issues at the federal level that have enormous effect on manufacturing competitiveness? as you think about a national manufacturing policy what do you think are essential elements and what is the national government do to move the ball forward? >> thanks for having this conference today and it is great to be joined here with colleagues. at the state and local level and also wit jay who has a global perspective on this. . .

i'm sure you hear about a lot on the tax side of course we have both an individual tax system that is uncertain at the end of the year you may see a huge increase in taxes and on the corporate side of course we are dealing with antiquated tax code we haven't touched in the last two decades. each competitor has reformed there is making it more competitive so we are at the top and in terms of the rate and the complexities of the top which makes it less competitive in the global marketplace is so that

issue and then the regulatory side depending on the business terms almost always a regulation of the federal level people talk about and this is why i introduced legislation that's bipartisan that forces the regulators to look across benefit analysis and the impact on jobs and how to use the last bird and some opportunity. health care cost, so it's with the federal government can do to create the environment for job creation that on here constantly. and look, we have little increased debt right now in our employment in ohio in the first years that's good news. we have a structural problem keeping up with the thrust of the world. that's why we need to redo all the systems and i mentioned trade taxes and regulation, healthcare and energy.

a worker training is another i hear about constantly yet we need to be more aggressive. some say that washington can do less. i think washington should do more. it doesn't create jobs but in terms of creating that climate force this requires in my view a much more aggressive and bold reform effort. >> that is a helpful introduction. we are going to come back to three or five or six as you mentioned. i want to move down here. colorado is not as manufacturing intensive at the starting play is ohio about 7% of gdp, 6% of the jobs but it's moving up and it's moving up rapidly in many sectors. i thought what was interesting about your approach to the industry and advanced manufacturing is how it's started with the bottom-up. you've been around the state to all the counties. there is a colorado innovation network that is emerging and the

disconnecting the dots between advanced are devotee, technology, prototype and production and i thought it would be interesting if you could talk about that network that is emerging and how you think the state policy plays under the federal system. what are the key areas you need to work on for the leveraged potential? >> certainly when i came into office about a year ago we recognized there was a vacuum. the needed to do something about jobs so they did the economic process we went to all 64 counties and said what you want in the next 20 years, 30 years and how do we get there? of course less regulation, less taxes, we also heard that we want the state to be more pro-business and an environment that's more pro-business and access to capital, we want to have stronger innovation technology and make sure we have

training for the work force and in the 64 counties people want to brand colorado as pro-business. colorado obviously i would argue is the most beautiful state in america. my friends and neighbors that means we have to hold ourselves to the highest standards of environmental protection a we have a huge amount of natural gas if we want to be pro-business we've reduced the time for the drilling permits and a sure if somebody's bills the ground water or pond we increase and make sure that doesn't happen. the bottom-up planning is what helps create a network which is taking all of the research in the departments of the various universities, the school of mines and colorado state university and university of denver and then blending them with the 24 federal laboratories and usually the work in the purposes of the innovation that

were putting them together with the business schools and then the big infusion of the business community to make sure we take the ideas and to the entrepreneurship. innovation is a great. they sit on the shelf. jim has written a book about this that talks about how the innovation collaboration is critical but in the and you need that entrepreneurship to create the jobs and that is part of what they will focus on is getting the idea is to have the business schools connected with all of the resources labs and tied into the support with internships etc., and the idea accelerate job creation. >> if the governor is an orchestrator of all the t's disparate systems and institutions -- >> i get is good for each one of our states is free to compete and try to become the most

pro-business state but that will begin to transform the whole country to get to the six states that are sufficiently pro-business and recognize they will start seeing success. you will solve the transportation or education without a strong business community, so as they do better other states will follow and that helps the whole country. >> let's go down to the place things actually happened. [laughter] >> ouch. >> federal government, state government, the world exists in the places to cities in the areas particularly in the united states. the colleges and devotee as research institutions and importantly the firm's, large, small, so forth, you've been the major for a short period of time coming out of the business sector but one of the first things you did this start a collaboration with a sister city, lexington about how long the by in our?

an hour away. but a place that you had been highly competitive with in the past, and you have a whole new initiative with lexington that is primarily of build making this part of northern kentucky that goes into ohio, the platform for the advanced manufacturing. what are you doing, what are you thinking about? this is a very interesting kind of multi city collaboration not generally something that happens in the united states. so is the impetus and where do you think it is heading? >> i've been in a year for gistel looker ury like most cities we need jobs and the obvious question is how are we going to get these jobs. the strategy or less was to recognize jobs were in the cities. kentucky is 55% of our cities in the metropolitan areas so most people think of kentucky as a more rural state but we are a natural state. the mayor of lexington kentucky if a low entrepreneur they just

happen to be fierce. if there's a problem with work together it makes sense. they say there's not enough of that going on in the political world, so we've had our competitive edge and edge compared to the rest of the country appears to be advanced manufacturing. we have the ford motor company plants, ge appliance, toyota, north american headquarters is in this cluster in the blue cross economic movement. so we are in the process of identifying what our weaknesses are. how do we along in the business strategy with a government strategy of education, foundation and nonprofits, and develop that type of alignment so that we can drive excellence and advanced manufacturing. lots of support in the interest you can imagine from the private sector kind of feels, which i am a part of, kind of feels like

you are hanging out there and despite the government help or despite the well intentioned alignment, so learning a lot of things in the project has been under way especially when it comes to the work force preparation there has been a lot of talk but not enough action. >> we are going to come back and start working through the issues raised. the trade national organization advocating on behalf of the american manufacturers. i learned over the weekend at your manufacturing renaissance planned there were critical goals. the best place of the world, the manufacturer and attract the foreign direct investment. you must expand access to the global markets to reach the 95% of consumers outside of the united states. we have a work force that's the 21st century and we are the world's leading innovators. what is your sense of the federalist conversation?

we are in washington in everyone is obsessed with washington, very self referential. how do you think about the federal, state local engagement and the circuitry? >> you took mine in tire set away because you talked about the manufacturing renaissance really focus on those four goals. they are based on the fact that its 20 present more expensive to manufacture in the united states than among the major trading partners around the world and that is when you take into account several factors before leading factors are indicators of the tax policy, senator portman is a great leader on trying to resolve the problem. april 1st we will have the highest corporate tax rate in the world. it's also based on our energy policy. it's based on our regulatory policy and the tort policy and it doesn't take into account the differences in the labor cost. so the 20% is really a number that we have imposed on

ourselves in this country and we have an obligation we think to fix. the partnership between the federal government and state government and local government is critical to be worked for governor in the 1990's and virginia and at that time we have been -- its not that long ago. states have the luxury of competing against each other. every governor has more in their state than existing and before they became governor but today as we have heard several times today we are a worldwide competition for jobs, so the federal government has to be a partner and one of the ways the federal government can be a partner is reduced structural cost disadvantage that we are experiencing or reduced by 20% to allow us to be able to compete and succeed with our international competitors. >> let me go through and take

each of these issues because i think with this panel is to begin with the prior payable is doing is describing what the pillars for the new manufacturing renaissance there's a host of issues. there is no one committee that basically deals with all this stuff, it is a very fragmented by the committee and agency in this town of comer legislature only of the city level. >> i run a metropolitan period of brookings. >> when your on the simpson bowles let's take this issue first, what has to happen in the tax system with rate and structure so they are beginning to provide that platform from the of its manufacturing. >> i was not honest and symbols. i was running the campaign when that was going on but i was on the super committee. the successor to some symbols of the less