Obama takes State of the Union message to N.C.

Aamer Madhani, USA TODAY | USATODAY

President Obama traveled to North Carolina on Wednesday to kick off a three-day, post-State of the Union push for his plan to revitalize the U.S. economy.

Obama chose a Canadian auto-parts manufacturer, The Linamar Corp., in Asheville, N.C., as a backdrop to reinforce his call for Congress to pour money into bolstering America's manufacturing and high-tech sectors.

"I believe in manufacturing," he said. "That is what makes our country strong."

The president also touched briefly on other aspects of the agenda he laid out in his State of the Union speech -- including repeating his calls to hike minimum wage to $9 per hour and establishing universal preschool education--but focused primarily on his call to beef up the American manufacturing industry.

"If you work full time, you shouldn't be in poverty," said Obama, of his call to raise the minimum wage, which currently is $7.25 per hour.

House Speaker John Boehner, R-Ohio, said on Wednesday he opposed the hike, arguing an increase in the minimum wage will translate into a decrease of jobs.

"When you raise the price of employment, guess what happens?" Boehner said. "You get less of it."

The Linamar plant in Asheville offered Obama an ideal setting to make the case that there are still opportunities in the USA to grow manufacturing.

Linamar, which makes engine and transmission components for industrial machinery, set up shop in Asheville in 2011 at the site of a shuttered Volvo plant. The company was lured to the community by state grants and a pool of workers with technical skills to do the job. It employs about 160 workers and has plans to hire 40 more by the end of the year, according to the White House.

While U.S. manufacturing has been in a free-fall for much of the past two decades, Obama administration officials argue that conditions are now right to see boosts in the sector. White House National Economic Council Director Gene Sperling noted that wage increases in China, competitive energy costs and manufacturers growing concerns about stretching their supply chains all benefit the United States.

"We as a country have the wind at our back for the first time [in decades]," Sperling said in a call with reporters ahead of Obama's speech.

Obama said he would use executive powers to launch three manufacturing hubs in communities that have been hurt by globalization and called on Congress to get behind a one-time, $1 billion investment to launch a network of 15 manufacturing innovation institutes across the country.

The hubs would be public-private partnerships, with the Defense and Energy departments partnering with businesses, universities and community colleges to invest in the training and development centers. In August, the Obama administration launched such a pilot project in Youngstown, Ohio, at a 3-D printing lab, with a $45 million funding commitment from five federal agencies.

Obama's budget will also include $113 million to provide targeted financial assistance for about five manufacturing communities and will include a 2-to-1 matching program to promote private investment in state of the art infrastructure projects and research facilities, according to the White House.

He also proposed to lower taxes for manufacturers to 25% from the current level of 35%, make permanent tax credits for research and development and establish a minimum "offshoring" tax.



"I'm doing what I can through administrative action, but I need Congress to do their part," Obama said. "We've come too far and worked too hard to turn back now."

Obama will continue his post State of Union tour to promote his domestic policy agenda on Thursday with a visit to the Atlanta area.

He will travel to his adopted hometown of Chicago on Friday.

Wednesday's trip to the liberal, Blue Ridge Mountain community of Asheville was Obama's fourth. He first visited the city during his first run for the White House and joked that he's become so fond of the city he may end up retiring there.

"I love Asheville," said Obama, who arranged for a barbecue lunch from a local eatery that he and his aides enjoyed on the flight back to Washington. "Michelle and I always talk about how after this whole presidency thing, we're looking for a little spot to play a little golf, do a little hiking, fishing, barbecue."

Contributing: Jon Ostendorff in Asheville