ANNUAL REPORT TO CONGMSS onthe

TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

PROGRAM

Fiscal Year 201l Annual Report

ECONOMIC DEVELOPMENT ADMINISTRATION

UoSoDEPARTMENT OF COMMERCE

December 15,2011
Executive Summary

This annual report is submitted in accordance with Section 1866 of the Trade and

Globalization Adjustment Assistance Act of 2009 (TGAAA), which was included as subtitle I

(letter "I") of title I of Division B of the American Recovery and Reinvestment Act of 2009

(Pub. L. No. I I l-5,123 Stat. I 15, at367). Section 1866 of the TGAlrd{ directs the Secretary

of Commerce to submit to Congress an annual report on the Trade Adjustment Assistance for

Firms (TAAF) program by the 15ft of December each year. The TAAF program is

authorized by chapters 3 and 5 of title II of the Trade Act of 1974, as amended (19 U.S.C.

$ 2341 et seq.) (Trade Act).

Administered by the Department of Commerce's Economic Development Administration

(EDA), the goal of the TAAF program is to help economically distressed U.S. businesses

develop strategies to compete in the global economy. In general, the program provides costsharing technical assistance to eligible businesses to create and implement targeted business

recovery plans called Adjustment Proposals. Firms contribute a matching share to create and

implement their respective recovery plan.

Technical assistance is provided through a nationwide network of eleven EDA-funded

Trade Adjustment Assistance Centers (TAACs), which are either non-profits or

university-affiliated. The TAACs provide assistance to firms petitioning EDA for

certification of eligibility under the program and in the development and implementation

of business recovery plans.

In January 201l, as authorization of the Trade Adjustment Assistance (TAA) programs

was about to expire, Congress passed the Omnibus Trade Act of 2010 (Pub. L. No. 111-

344). This act extended the TAAF program through February 12,2012, but allowed

expanded provisions in Pub. L. No. 1 1 I -5 covering eligibility for services firms and other

matters to expire on February 13,2011. The TAAF program remained authorized in FY

201I and continued to operate at FY 2010 spending levels of $15.8 million under a fullyear continuing resolution, so interruption of operations was not expected.l

On October 21,2011, the President signed into law the Trade Adjustment Assistance

Extension Act of 201I (Pub. L. No. ll2-40). This Act retroactively extends the

provisions of the TAA programs that were enacted as part of the TGAAA.

The expiration of the TGAAA provisions did, however, limit the number of firms

entering the program as TAACs were unable to assist service firms or use extended lookback periods to certify firms. In addition, uncertainty regarding the TAA program's

future caused TAACs to focus on existing clients instead of recruiting new firms.

' For more on this policy discussion see, CRS Report RS20210, Trade Adjustment Assistancefor Firms:

Economic, Program, and Policy Issues,by J. F. Hornbeck.
Performance of the TAAF program is measured in terms of both "inputs" (e.g., types of

firms assisted, petition, and Adjustment Proposals submissions) and'ooutputs" (changes

in sales, employment levels, and productivity of client firms).

In terms of inputs, the TAAF program effectively targeted small and medium-sized firms

in FY 201 I . The average sales and productivity of firms certified in the program in FY

201I were higher than that of firms certified in FY 2010. The average employment of

firms certified into the program in FY 201 1 was lower than that of firms certified in FY

20t0.

The most popular types of Adjustment Proposal projects in FY 201 1 were

marketing/sales improvement. over half of all firms proposed to implement a

marketing/sales project or production/engineering project in their Adjustment Proposals.

There was a decrease in the number of new clients serviced in FY 2011, as demonstrated

by the decrease in the number of petitions for certification and Adjustment Proposals

submitted to EDA for approval. In FY 2011, EDA certified 149 petitions, a 55 percent

decrease compared to FY 2010. EDA approved 183 Adjustment Proposals in FY 2011, a

3 I percent decrease compared to FY 2010.

EDA successfully met both the 40-day processing deadline (to make a final determination

for petitions accepted for filing) and the 60-day processing deadline for approval of

Adjustment Proposals, as required in the TGAAA. In fact, in FY 201 1, the average

processing time for petitions was 2l days, which is a 48 percent reduction from FY 2010.

Meanwhile, the average processing time for Adjustment Proposals was l6 days, a 33

percent reduction from FY 2010.

In terms of program outputs, performance measures focus on the extent to which client

firms increase their sales, employment levels, and productivity following the

implementation of TAAF-supported projects (program completion). To measure these

outputs, EDA compares average sales, average employment and average productivity of

all firms completing the program in a particular year (the most recent "base year") to

these same measures for the same firms one and two years following program

completion. The base year used for this report is FY 2009, as this allows EDA to

compare these measures looking back two years from the date of this report.

Firms that completed the TAAF program in FY 2009 report that, at completion, average

sales were $14.4 million, average employment was 54, and average productivity was

$266,536 (sales per employee).

One year'after completing the program (FY 2010), these same firms report that average

sales decreased by 6.7 percent, average employment decreased by 1.9 percent, and

average productivity decreased by 4.9 percent. The U.S. Bureau of Labor Statistics

(BLS) reports that nationwide for the manufacturing industry in FY 2010, average

employment decreased 5.8 percent and average productivity increased by 3.4 percent

from FY 2009.
Two years after completing the program (FY 201 1), these firms report that average sales

decreased by 1.6 percent, average employment decreased by I .9 percent, and average

productivity increased by less than one percent. BLS reported that nationwide for the

manufacturing industry in FY 2011, average employment decreased 4.5 percent and

average productivity increased by l0 percent from FY 2009. It should be noted that

TAAF clients are operating in the same weak economic environment as other firms, but

are also attempting to adjust to import pressures that may not impact other firms as

severely.
Table of Contents

Introduction................ .............. 1

Program Description ...............2

Program Initiative... .................3

Results/Findings ...................... 6

Data for This Report................. .................6

(l) The number of firms that inquired about the program ...............6

(2) The number of petitions filed under section 251. ........... ..........6

(3) The number of petitions cenified and denied. ........6

(4) The average time for processing petitions ...............6

(5) The number of petitions filed and firms certified for each Congressional District in

the United States. ............. 1l

(6) The number of firms that received assistance in preparing their petitions................... 18

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

(Adjustment Proposals). . ...... . ......18

(8) The number of Adjustment Proposals approved and denied by the Secretary of Commerce. ...................... 19

(9) Sales, employment, and productivity at each firm participating in the program at the

time of certification..... .....20

(10) Sales, employment, and productivity at each firm upon completion of the program

and each year for the two-year period following completion .....................25

(1 1) The financial assistance received by each firm participating in the program...............28

(12) The financial contribution made by each firm participating in the program. ...............28

(13) The types of technicalassistance included in the Adjustment Proposals of firms

participating in the program.... ...........29

(la) The number of firms leaving the program before completing the project or projects

in their Adjustment Proposals and the reason the project was not completed..............30

Conclusion ...........31
Introduction

his report is provided in compliance with Section 1866 of the Trade and

Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included

as subtitle I (letter "I") of title I of Division B of the American Recovery and

Reinvestment Act of 2009 (Pub. L. No. I I l-5, 123 Stat. 1 75, at 367). Section

1866 of the TGAAA directs the Secretary of Commerce to provide an annual

report on the Trade Adjustment Assistance for Firms (TAAF) program by the l5th

of December each year. Section 1866 of the TGAAA states:

IN GENERAL.-NoI later than December 15,2009, and each year

thereafter, the Secretary of Commerce shall prepare a report containing

data regarding the trade adjustment assistance for firms program provided

for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et

seq.) for the preceding fiscal year.

This report will provide findings and results to the extent that the data are

available on the following l4 measures:

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

2. The number of petitions filed under section 251 .

3. The number of petitions certified and denied.

4. The average time for processing petitions.

5. The number of petitions filed and firms certified for each Congressional

district in the United States.

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

7 . The number of firms that received assistance developing business recovery

plans (Adjustment Proposals).

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

of Commerce.

9. Sales, employment, and productivity at each firm participating in the TAAF

program at the time of certification.

10. Sales, employment, and productivity at each firm upon completion of the

program and each year for the two-year period following completion.

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

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

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

firms participating in the program.

14. The number of firms leaving the program before completing the project or

projects in their Adjustment Proposals and the reason the project was not

completed.

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Program Description

The TAAF program is authorized under chapters 3 and 5 of title II of the Trade Act of 1974,

as amended (19 U.S.C. $ 2341 et seq.) (Trade Act). The responsibility for administering the

TAAF program is delegated by the Secretary of Commerce to the Economic Development

Administration @DA). The TA.AIT program provides technical assistance to manufacturers

and service firms affected by import competition to help the firms develop and implement

projects to regain global competitiveness.

The mission of the TAAF program is to help U.S. firms regain competitiveness in the

global economy. Import-impacted U.S. manufacturing, production and service firms can

receive matching funds for projects that expand markets, strengthen operations and increase

competitiveness through TAAF. The program provides assistance in the development of

business recovery plans, which are known as Adjustment Proposals under Section 252 of

the Trade Act, and matching funds to implement projects outlined in the Adjustment

Proposals.

The TAAF program supports a national network of 11 non-profit or university-affiliated

Trade Adjustment Assistance Centers (TAACs) to help U.S. manufacturing, production,

and service firms in all 50 States, the District of Columbia and the Commonwealth of

Puerto Rico. Firms work with the TAACs to apply for certification of eligibility for

TAAF assistance, and prepare and implement strategies to guide their economic

recovery.

Exhibit 1: TAACs and their Respective Service Areas

TAAC Service Areas

Great Lakes Indiana, Michiean and Ohio

Mid-America Arkansas, Kansas and Missouri

Mid ̈ Atlantic

Delaware, District of Columbia, Maryland, New Jersey,

Pennsylvania, Virginia and West Virsinia

Midwest Illinois, Iowa, Minnesota and Wisconsin

New England

Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island

and Vermont

New York State New York

Northwest Alaska, Idaho, Montana, Oregon and Washington

Rocky Mountain

Colorado, Nebraska, New

Utah and Wyoming

Mexico, North Dakota, South Dakota,

Southeastern

Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina,

South Carolina, Tennessee and the Commonwealth of Puerto Rico

Southwest Louisiana, Oklahoma and Texas

Western Arizona, California, Hawaii and Nevada

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The other TAA programs are TAA for workers and community colleges, both

administered by the U.S. Department of Labor, and TAA for Farmers, administered by

the U.S. Department of Agriculture.

Exhibit 2: TAA Programs

Legislation

Agencl'

Program Initiative

As noted above, the TAAF program provides technical assistance in the development and

implementation of Adjustment Proposals. Projects are aimed at improving a firm's

competitive position. Specifically, funds are applied toward the cost of consultants,

engineers, designers, or industry experts for improvement projects in targeted areas such

as engineering, information technology, management, market development, marketing,

new product development, quality improvement, and sales, which can better a firm's

position. Funds are not provided directly to firms; instead, EDA funds TAACs and

TAACs pay a cost-shared proportion of the cost to secure specialized business

consultants.

Exhibit 3: Program Phases

l)ctition l'or Ccrti licatiorr

There are three main phases to receiving technical assistance under the program:

(l) petitioning for cenification, (2) recovery planning, and (3) project implementation.

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Phase I - Petitioning for Certification

The first step to receiving assistance is the submission of a petition to EDA to be certified as a

trade-impacted firm. The petition is comprised of Form ED-840P, titled"Petition by a Firm

for Certification of Eligibility to Applyfor Trade Adjustment Assistance," and required

supporting documentation. Generally, certification specialists in the TAACs work with the

firm at no cost to complete and submit a petition to EDA.

Upon receipt of the petition, EDA performs an analysis of the petition and supporting

documents to determine if the petition is complete and may be accepted. EDA is required to

make a final determination on the petition within 40 days of accepting a petition.2

To certify a firm as eligible to apply for adjustment assistance, the Secretary must

determine that the following three conditions are met:

l. A significant number or proportion of the workers in the firm have been or are

threatened to be totally or partially separated;

2. Sales and/or production of the firm have decreased absolutely, or sales and/or

production of an article or service that accounted for at least 25 percent of total

production or sales of the firm during the 12,24, or 36 months preceding the most

recent 12-,24-, or 36-month period for which data are available have decreased

absolutely; and

3. Increased imports of articles like or directly competitive with articles produced or

services provided by the firm have "contributed importantly" to both the layoffs and

the decline in sales and/or production.

Phase II - Recovery Planning

Certified firms then work with TAAC staffto develop a customized Adjustment Proposal for

submission to EDA for approval. Once an Adjustment Proposal has been submitted, EDA is

required to make a finaldetermination within 60 days.

Phase III - Adjustment Proposal Implementation

The firm works with consultants to implement projects in an approved Adjustment Proposal.

As projects are implemented and if the firm is satisfied with the work, the firm will first pay

their match to the consultang and then send a notice to the TAAC stating that they are satisfied

with the work and that they have paid their matching share. The TAAC will then pay the

Federal matching share. Firms have up to five years from the date of an Adjustment

Proposal's approvalto implement it, unless they receive approval for an extension. Generally,

firms complete the implementation of their respective Adjustment Proposals over a two-year

period.

2 As of May 17,2009, the deadline for making a final determination is 40 days. Before May 17, 2009,

EDA had 60 days to make a determination.

4 of32
The main responsibilities of the TAACs include:

o Assisting firms in preparing their petitions for TAAF. Firms are not charged for any

assistance related to preparing a petition.

o Once a petition has been approved, TAACs work closely with firm management to

identify the firm's strengths and weaknesses and develop a customized Adjustment

Proposal designed to stimulate recovery and growth. The program pays up to 75%o of

the cost of developing an Adjustment Proposal and the firm must pay the rest. EDA

must approve all Adjustment Proposals to ensure they conform to statutory and

regulatory requirements.

o After an Adjustment Proposal has been approved, company management and TAAC

staffjointly identify consultants with the specific expertise required to assist the firm.

. Under the TAAF program, EDA shares the cost of Adjustment Proposal task

implementation. For an Adjustment Proposal in which proposed tasks total $30,000

or less, EDA will provide 75 percent of the cost and the firm is responsible for the

balance. For an Adjustment Proposal in which proposed tasks total over $30,000,

EDA and the firm share the implementation costs evenly; EDA pays 50 percent of the

total cost and the firm pays 50 percent. Due to limited program funding, EDA limits

its share of technical assistance to a certified firm to $75,000. After a competitive

procurement process, the TAAC and the firm generally confract with private

consultants to implement the Adjustment Proposal.

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ResultslFindings

Data for This Report

The data used in this report were collected from the TAACs as part of their reporting

requirements, petitions for certification, and the Adjustment Proposals submitted by the

TAACs on behalf of firms. Data from these sources were recorded into a central

database by Eligibility Reviewers at EDA. Results for average processing times and the

number of approved and denied petitions and Adjustment Proposal were derived by

EDA.

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

In FY 201l, the TAACs received 2,170 inquiries about the TAAF program.

Exhibit 4: Inquiries about the TAAF program by TAAC

The number of petitions filed under section 251.

The number of petitions certified and denied.

The average time for processing petitions.

Performance under the TAAF program is measured in terms of both "inputs" (e.g., types

of firms assisted, petition, and Adjustment Proposals submissions) and "outputs"

(changes in sales, employment levels, and productivity of client firms).

6 of32

TAAC

No. of Firms that

Inquired about

the TAAF

nro9ram

Great Lakes

Mid-America 68

Iid―Atlantic 101

Midwest

New Eneland 52

New York State 106

Northwest 2t8

Rocky Mountain 131

Southeastern 25

Southwest 412

Western 929

Total 2.170
In terms of inputs, in FY 2011, 127 petitions were filed under section 25 1 of the Trade

Act, down by 178 petitions, a 58 percent decrease compared to the number of petitions

filed in FY 2010. EDA certified 149 petitions, down by l8l petitions, a 55 percent

decrease compared to the number of certifications in FY 2010. Petitions are certified on a

rolling basis throughout the year. Petitions certified in FY 201 I may be the result of those

filed or accepted in FY 2010; and petitions filed or accepted in FY 20ll may not result in

certification in FY 2011.

EDA successfully met both the 40-day processing deadline (to make a finaldetermination

for petitions accepted for filing). In fact, in FY 2011, the average processing time for

petitions was 2l days, which is a 48 percent reduction from FY 2010.

Exhibit 5: Petition Activity: FY 2008 - FY 201I

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FY

No.of

Petitions

Flled

No. of

Petitions

Accepted

for Filins

No.of

Petitions

Certirled

No. of

Petitions

Denied

Average

Days

Between

Acceptance

and

Certilication

Average

Days

Between

Filing and

Cerfificrfion

2008 189 190 188 0 45 N/A

2009 278 244 216 1 44 89

2010 305 325 330 0 40 74

2011 127 127 149 1 21 36

%Change

(2010 to

2011ヽ (58)°/。 (61)0/0

`55)0/0

N/A

`48ヽ

°/。 (52)0/0
Exhibit 6: Petitions Filed by TAAC: FY 2008 - FY 201I

Exhibit 7: Petitions Accepted by TAAC: FY 2008-FY 2011

Petitions Filed by TAAC

(FY2008‐ FY 20H)

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FY 20“ 21

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22 19 17 33

日IV 20■ 7 , 16 17

Petitions Accepted by TAAC

(FY 2008-FY 2011)

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Petitioms Certifled bv hC

(FY2008 - F'Y 20ll)

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Exhibit 8: Petitions Certified by TAAC: FY 2008 - FY 201I

Exhibit 9: Petitions Filed, Accepted and Cenified by TAAC: FY 2011

3 Petitions are certified on a rolling basis throughout the year, therefore activity in these categories may not

result in certification within the same FY. These totals represent the activity under each category within .FY2011.

9of32

Great Lakes 7 7 7

Mid-America 7 6 9

MidAtlantic 16 17

Midwest 17 20

New Ensland 17 16 19

New York State 9 8 10

Northwest 17 17 19

Rocky Mountain

Southeastern 3 4

Southwest 15 14 15

Western 7 6 8

FY200' 22 12 1‐ 38 1‐ 11 11 15 16 1‐

TAAC

No. of

Petitions

Filed3

No. of

Petitions

Accepted

for Filine

No. of

Petitions

Certified

Total 127 127 149
Exhibit 10: Petitions Filed, Accepted, and Certified by TAAC: FY 2011

Petitions Filed,Accepted and Certi■ ed b、 TAAC

FY 2011

Exhibit 11: Firms Certified for TAAF by Industry: FY 2011

The majority of petitions certified under the TAAF program were submitted by firms in

the manufacturing industry. Firms in agriculture and technical services rounded out the

top three industries. Approximately 2 percent of firms certified in FY 201I were service

sector firms. As a result the Trade Adjustment Assistance Extension Act of 20l l (Pub.

L. No. ll2-40) that retroactively extends the provisions of the TAA programs that were

enacted as part of the TGAAA, demand from service firms in FY 2012 is likely to

increase at the same rate as in FY 201 l.

Firms Certirled fOr TAAF by lndustry

(FY 2011)

Professional,

Scientific, rnd

Technicrl

Sen'ices

10/●

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Forestry,

Fishlng rnd

Hunthg

3r/t

Educational

Senices

Equipment

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10 of32

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1‐ 13 14 6

23 21 1, 10 1, 13 4 15 1 3
(5) The number of petitions filed and firms certified for each Congressional

District in the United States.

Exhibit 12: Petitions Filed by Congressional District: FY 2011

AR 1

2 1

AZ 2

2 1

4 1

CA 5

7 1

19 1

44 1

47 1

48 l

CO 4

l

2 2

5 1

CT

3

GA

7

ID 2

1 1

2 1

IL 14

3 1

5 2

6 1

7 4

8

9 1

14 1

16 1

IN 2

2 1

4 l

KS

1l of32

Congressional

District(s)

No.of

Petitions

Fned
4 1

LA 8

1 4

3 4

MA 10

l

2 1

3 2

1

7 1

9 2

10 1

ME 2

II 1

9 1

IN I

6 1

MO 5

3 1

5 2

7 2

MT 1

At-Larse 1

ND 2

At-Large 2

NE 1

2 1

NH I

2 I

NM I

3 l

NY 9

2 2

1

23 l

24 2

26 l

29 2

OH 4

12 of32

Congressional

District(s)

No. of

Petitions

Filed
Filed

1 1

5 l

1

18 1

OK 3

2 2

3 1

OR 3

2 l

l

4 1

PA 15

1 l

5 3

6 l

7 l

9 3

14 l

15 2

16 1

19 2

RI 2

1

SD 2

l 1

At-Laree 1

TN I

1 1

TX 4

2 1

1

13 l

32 1

UT 3

1 2

3 1

VA I

1 1

VT I

1 1

13 of32

Congressional

District(s)
Exhibit l3: Petitions Certified by Congressional District: FY 2011

AR

2 1

AZ 3

2 1

5 I

6 1

CA 5

7 l

13 1

44 1

47 1

48 1

CO 4

1 1

2 2

1

CT I

3 1

GA 1

7 1

ID 2

1 1

1

14 of32

Congressional

I)istricf(s)

WA

3 3

6

7 3

9 1

WI 2

6 2

Total 127

Congressional

District(s)

No. of

Petitions

Certified
IL 15

1

5 2

6 1

7 4

8

9 1

14 1

16 2

IN 2

2 1

4 1

KS 3

2 1

4 2

LA 6

l

3 2

6 1

MA 10

1

2 1

3

1

7 1

9 2

10 1

IE 3

2 3

II

9 1

MN 3

1

6 l

7 1

MO 5

5 2

7 2

8 1

MT I

15 of32

Congressional

District(s)

No. of

Petitions

Certified
At-Larse l

NC 1

8 1

ND 3

At-Larse 3

NH 1

2 1

NJ 2

8 1

12 l

NIVI 1

3 l

NY 10

2 1

1

22 1

23 1

24

25 1

26 1

29 2

OH 4

1 1

1

13 1

18 1

OK 4

1 1

2

3 l

OR 3

2 1

1

4 1

PA 20

1 1

1

5 4

6 1

7 1

16 of32

Congressional

Districtrsヽ

No.of

Petitions

Certifled
9 4

13 1

14 1

15 2

16 2

19 2

RI 2

1

SC 1

5 1

SD 2

At-Larse 2

TN 1

1 1

TX 5

2 I

1

2

32 1

UT 3

1

3 1

VA

1 1

VT 2

1 2

WA 13

I 1

3

1

6 3

7 3

9 2

WI 4

1 1

5 1

6 1

7 1

17 of32

Congressional

Distriet(s)

No. of

Petitions

Certified

Total 149
(6) The number of firms that received assistance in preparing their petitions.

In FY 2011,348 firms received assistance in preparing petitions. Firms may receive

assistance in preparing petitions more than once in a single year.

Exhibit l4: Petition Assistance Activity: FY 201I

(7) The number of firms that received assistance developing business recovery

plans (Adj ustment Proposals).

In FY 2011,224 firms received assistance in developing Adjustment Proposals. Firms

may receive assistance in developing Adjustment Proposals more than once in a single

year.

Exhibit l5: Adjustment Proposal (AP) Development Activity: FY 2011

18 of32

TAAC Petition Assistance

Great Lakes 14

Mid-America 17

MidAtlantic

Midwest 113

New England 21

New York State 40

Northwest 32

Rocky Mountain 21

Southeastern 10

Southwest 45

Western 24

Total 348

TAAC AP Assistance

Great Lakes 9

Mid-America 12

MidAtlantic 37

Midwest 37

New Ensland 32

New York State 21

Northwest 22

Rocky Mountain 13

Southeastern 10

Southwest 20

Western

Total 224
(8) The number of Adjustment Proposals approved and denied by the Secretary of

Commerce.

In FY 201 1, EDA approved 183 Adjustment Proposals, down by 82 business recovery

plans, a 3l percent decrease as compared to FY 2010. EDA successfully met the 60-day

processing deadline for approval of Adjustment Proposals, as required in the TGAAA. In

fact, the average processing time for Adjustment Proposals was l6 days, a 33 percent

reduction from FY 20rc.4

Exhibit l6: Summary of Adjustment Proposals Approved: FY 2008 - FY 201I

Exhibit 17: Adjustment Proposals Approved by TAAC: FY 2008 - FY 2011

o Firms have two years from the date of certification to submit an Adjustment Proposal to EDA. Adjustment

Proposals approved in FY 20 I I may represent firms that were certified for TAAF between FY 2009 - FY 201 I .

Adj ustment Proposals Approved by TAAC

(FY2008 - FY20il)

60

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19 of32

FY

No. of

Adjustment

Proposals

Annrnved

Total

Government

Share

(millions)

Total Firm

Share

(millions)

Total

Projected

Adjustment

Proposal

Costs

/millinns)

Average

Government

Assistance

Per E'irm

Average

Days

Between

Submission

and

Annrnwql

2008 139 S79 S75 S15.4 S56.835

2009 172 S10.3 S98 S20.2 S59.884 20

2010 265 S16.4 S156 $32.1 $61.958 24

2011 S21.6 Sll.0 S32.6 Sl18.033 16

o/o Change

/2Ol O fo 2Ol 1 )

`31ヽ

0/● 32o/" r29ヽ 0/● 20 9lY" f33ヽ %

FY脚 1` ttt

“

”

“ ” 

”

“ 

”
Exhibit 18: Adjustment Proposals Approved by TAAC: FY 2011

TAAC Approved APs

Great Lakes 9

Mid-America

MidAtlantic 34

Midwest 22

New Eneland

New York State 9

Northwest 17

Rocky Mountain

Southeastern 9

Southwest 21

Western 8

Total 183

(9) Sales, employment, and productivity at each firm participating in the TAAIT

program at the time of certification.

The average sales and productivity of firms certified into the program in FY 201 I was

higher than that of firms certified in FY 2010. The average employment of firm certified

into the program in FY 201I was lower than that of firms certified in FY 2010. For the

purposes of this report, productivity is defined as net sales per employee. Since the

certified firms are in various industries, which have a variety of ways to measure

productivity, sales per employee was chosen as the productivity measure. This measure

is used because it can be generally applied to all certified firms.

Exhibit 19: Comparison of Average Sales, Employment, and Productivity at Firms at the

time of Certification: FY 2008 - FY 201 I

FY Average Sales

Average

Employment

Average

Productivity

2008 $13,081,993 82 S159,537

2009 $10.338,422 79 $130,866

2010 $19,137,139 138 S138,675

2011 $19,549,619 91 S214,831

%Change(2010 to

2011) 2% 64)% 550/c

20 of32
Exhibit 20: Summary Comparison of Average Sales, Employment, and Productivity for

Firms at the time of Certification by TAAC: FY 201I

Great Lakes $74,286,166 219 $339,206

Mid-America $9,937,178 Sl19,725

MidAtlantic $14,725,952 81 S181,802

Midwest $4,169,385 33 $126,345

New Ensland $8,086,898 64 S126,358

New York State $339773898 27 S147,330

Northwest $8,394,982 62 $135,403

Rocky Mountain s37,349,r 8s 146 $2ss,816

Southeastem $40,579,598 200 $202,898

Southwest $s,294,s24 36 $ 147,070

Western $8,244,047 54 S152,668

Exhibit 2l: Summary of Sales, Employment, and Productivity at each Firm Participating

in the Program at the time of Certification: FY 201 I

-2097319639 $26,976,792 110 $245,244

-2095008401 $10.598,050 129 $82,155

...2070695382 S3.075,507 20 $153,775

...2014339212 Sl,712,738 36 $47.576

-2009973782 S65,269,662 145 $450, l 36

1998971565 $2,184,4s7 16 $ 136.s29

-1966869516 $ 148,962,800 728 S204,619

-1854226401 $2.044.340 13 $rs7.2s7

1720150011 $521,311 4 S130.328

-1689080536 S24,209,912 159 $152ぅ 264

-1673644047 $889ぅ 200 30 $29,640

-1651973134 Sl,021,070 90 Sll,345

-1613283323 $541ぅ 676 s2s,794

-1574800631 S6.735.674 37 $ 182,045

5 The total productivity as presented in the summary line of Exhibit 20 represents the actual total average

productivity at all TAACs in FY 201 1. This total, derived by calculating the mean horizontally (not

vertically), is based on raw data and provides the most accurate representation ofproductivity for all

TAACs. Calculating total productivity vertically introduces additional degrees of error as it represents the

average ofaverages.

2l of32

TAAC Averase Sales

Average

Emnlovment

Average

Productivitvs

Total S19.549。

`19

91 S214Q831

Firm Number Sales Emolovment Productivitv
Firm Number Sales Emplovment Productivity

520264717 $11,681,241 54 S216,319

503305288 S7ぅ 154,262 26 S275,164

487107820 S139,644 1 S139,644

475933560 S10,364,018 124 $83,581

453177652 S2,462,496 S79,435

242561781 S7,330,872 79 S92,796

100482512 $3,980,543 29 S137,260

-951495446 $1,148,712 20 $57,436

-928493930 S6,778,740 61 $111,127

-814141636 $5,929,691 68 $87,201

-785414214 $28,679,216 115 $249,384

-758137203 S168,814 5 S33,763

 ̈692909591 $10,654,880 82 $129,938

-665775677 Sl,943.671 S92,556

 ̈503281902 $6,571,601 20 S328,580

-416392454 S2,014,425 $154、 956

353836022 S4,337,441 49 S88,519

-197974509 S21,277,000 146 S145,733

-87132737 $1,791,444 46 S38,944

-83413278 S2.053.895 8 S256,737

-81214429 $7,204,774 70 S102,925

-46022543 $7,905,444 61 $129,597

16098964 Sl,647,644 19 $86,718

101659517 S365,025,000 396 $921,780

236064041 Sll,015,662 70 $157.367

248334009 S4,072,694 23 S177,074

300125959 S12.045.325 68 S177,137

313403683 S756.266 12 $63,022

368494884 $36,007,807 340 S105,905

421685210 S763.254 13 $58,712

446537017 $7,648,000 46 S166,261

516849868 $75,416,399 606 S124,450

549501047 S12,641,957 67 S188,686

688122845 S776,063 S35,276

708396224 Sl,914,356 S91,160

731741529 $2,126,571 19 $111,925

779390104 S41,737,860 271 S154,014

833410153 $1,055,675 1 $1ぅ 055,675

940232113 $418,341 6 $69,724

971334344 S3ぅ 237,502 8 $404,688

976607494 S13,006,122 113 Sl15,098

1192583133 S16,922,503 95 S178,132

1196801537 $377,625 5 $75,525

22 of32
Firm Number Sales Employment Productivity

1280939599 Sll,098,231 1 $11,098,231

1282231627 S38,890,972 341 Sl14,050

1282849581 S628,712 7 S89,816

1283179226 $4,474,315 $99,429

1283196709 $32,453,000 139 S233,475

1283264575 $15,806,057 101 S156,496

1283456392 Sl,925,922 21 $91,711

1283523565 S267,714 S33,464

1284387218 S2,973,000 17 S174,882

1284474177 $9,370,287 30 S312,343

1284568071 $3,265,864 $ 30,635

1284995007 S562,872 5 $ 12.574

1285259336 S23,282,141 184 S 26,533

1285863427 $6,141,919 52 $ 18 114

1285944383 $59,419,138 245 S242,527

1286207221 Sll,967,244 58 S206,332

1286210377 S2,169,893 16 S135,618

1286219292 $6,329,614 49 S129、 176

1286469771 $6,759,011 61 Sl10,803

1286977183 S48,747,704 225 $216.656

1286983525 S21ぅ479,319 119 S180,498

1288012088 Sl,905,184 26 $73,276

1288279511 $6,096,068 S196,647

1288617797 S2,397,133 44 S54,480

1288621336 S270,197,032 665 S406.311

1288706765 $6,333,870 57 $111,121

1288812059 S817,800 11 $74,345

1288987337 $42,996,664 203 S211,806

1289920045 $573,990 4 S143,498

1290195500 $18,193,399 S134,766

129 046584 S4,928,879 30 S164,296

129 398928 Sl,820,545 11 S165,504

129 732174 $15っ 732,617 S169,168

129 739097 Sl,246,894 16 $77ぅ931

129 839882 S16,843,701 14 Sl,203,122

129 904550 S14,030,166 167 $84,013

1292344643 Sl,800,211 22 $81,828

1293468272 S2,054,080 35 S58.688

1294074968 $3,159,565 S243,043

1294089956 $3,786,113 21 S180,291

1294419641 Sl,220,258 $81,351

1294842252 S4,908,000 31 S158,323

1294860194 S3,029,961 18 S168,331

23 of32
Firm Number Sales Emplovment Productivilv

295469929 Sl,044,743 24 S43,531

296571630 S396,909 S36,083

296656768 $6,416,072 85 S75,483

296838118 Sl,162,155 28 S41,506

297184256 $2,335,151 1 $2,335,151

297270365 S12,088,016 48 $251,834

297470191 $5,702,749 33 $172,811

298992904 S2,472,823 S77,276

299165555 S86,965,011 338 S257,293

299169430 Sl,243,912 14 $88ぅ851

300979348 Sl,904,920 32 $59,529

302017905 $2,992,590 l S2,992,590

302708930 $4,474,051 $86,039

303134550 S12,308,076 68 S181,001

303146354 S23,01 936 160 S143,825

303150000 Sl,44 ,226 32 S45,038

303843277 S4,81 ,250 44 S109,347

304187639 $6,32 758 88 S71,838

304951927 $1,844,396 30 $61,480

307035210 $3,534,283 29 $121,872

307988176 S3,294,193 38 $86,689

307990319 S2,469,594 14 S176,400

307994927 S842,025 41 $20,537

308599467 Slぅ 144ぅ439 9 $127,160

308947621 S28,361,599 S246,623

309372039 S342,776 4 $85,694

309441084 $4,130,200 69 S59,858

309532591 $5,886,918 110 S53,517

3 0055466 $108,086 1 S108,086

3 0148367 S12,416,843 S376,268

3 014257 $12,362,392 156 S79,246

3 180080 S387,407 16 $24,213

3 281676 $52,829,665 204 S258,969

3 352507 $1,688,100 S153,464

3 2214671 $662,704 49 $13,525

3 2908126 S13,877,336 19 $730,386

3 3668750 S3,300,823 50 S66,016

334112630 $71,298,792 214 $333,172

406108472 $378,010 7 S54,001

410567473 $7,049,552 55 S128,174

433161482 $1,352,282 27 $50,085

612835880 S10,489,824 $78,871

673153260 $1,062,272 20 $53ぅ 114

24 of32
Firm Number Sales Employment Productivity

685216094 $918,180 S28,693

869353093 S4,658,071 26 S 79.157

965746647 $8,412,115 77 S 09,248

983934012 S8,634,448 57 $ 51,482

2095174521 S3,115,683 $ 48,366

2136491230 S32,410,000 134 $241,866

(10) Sales, employment, and productivity at each firm upon completion of the

program and each year for the two-year period following completion.

Regarding program outputs, performance measures focus on the extent to which client

firms increase their sales, employment, and productivity following the implementation of

TAAF-supported projects (program completion). To measure these outputs, EDA

compares average sales, average employment and average productivity of all firms

completing the program in a particular year (the most recent "base year") to these same

measures for the same firms one and two years following program completion. The base

year used for this report is FY 2009, as this allows EDA to compare these measures

looking back two years from the date of this report.

Firms that completed the TAAF program in FY 2009 report that, at completion, average

sales were $14.4 million, average employment was 54, and average productivity was

$266,536 (sales per employee).

One year after completing the program (FY 2010), these same firms report that average

sales decreased by 6.7 percent, average employment decreased by 1.9 percent, and

average productivity decreased by 4.9 percent. BLS reports that nationwide for the

manufacturing industry in FY 2010, average employment decreased 5.8 percent and

average productivity increased by 3.4 percent from FY 2009.

Two years after completing the program (FY 201 l), these firms report that average sales

decreased by 1.6 percent, average employment decreased by 1.9 percent, and average

productivity increased by less than one percent. BLS reported that nationwide for the

manufacturing industry in FY 2011, average employment decreased 4.5 percent and

average productivity increased by l0 percent from FY 2009. It should be noted that

TAAF clients are operating in the same weak economic environment as other firms, but

are also attempting to adjust to import pressures that may not impact other firms as

severely.

For the purposes of this report, data are reported only for firms where all data were

available. Since the certified firms are in various industries, which have a variety of

ways to measure productivity, sales per employee was chosen as the productivity

measure. This measure is used because it can be generally applied to all certified firms.

However, BLS' productivity measures relate output to the labor hours used in the

production of that output.

25 of32
Exhibit 22: Summary of Average Sales, Employment, and Productivity at Firms upon

Completion of the Program and the One-Year Period Following Completion.

Prosram Completion

Average

Sales

Average

Emolovment

Average

Productivity

Completion(FY 2009) $14,392,937 54 $266,536

lst Year Following

Completion GY 2010) $ 13,429,013 53 $253,378

oh Change l't Year

Followins Completion (6.1)',/" (1.9)% (4.9)0/0

Exhibit 23: Summary of Average Sales, Employment, and Productivity at Firms upon

Completion of the Program and the Two-Year Period Following Completion.

Program Completion

Average

Sales

Average

Employment

Average

Productivity

Completion(FY 2009) $14,392,937 54 9266,536

2ndYear Following

Completion GY 201I 914,159,299 9267,157

oh Change 2oo Year

Followine Comoletion (1.6)0/0 (1.9)°/o 0.20h

Exhibit 24: Sales, Employment, and Productivity at Each Firm upon Completion of the

Program and two-year Period Following Completion.

Firm ID

Average

Sales at

Complction

(FY 2009)

Averagc

Sales, lst Yr

Following

Completion

(FY 2010)

Average

Salcs, 2nd Yr

Following

Completion

(FY 20lr)

Averrge

Employ at

Completion

(FY 2009)

Average

Employ, lst

Yr

Following

Completion

(r'v 2010)

Averagc

Employ,

2nd Yr

Following

Completion

(Fv 20ll)

Average

Productivity

at

Completion

(FY 2009)

Average

Productivity,

lst Yr

Following

Completion

(FY 2010)

Averrgc

Productivity,

2nd Yr

Following

Completion

(FY 20[)

FYll‐ 45 S50.000 S338,000 S15、 000 1 9 1 S50.000 S37.556 S15.000

FYll-62 Sl,405,000 S615,332 S375,000 S43.906 S13.377 Si9.737

FYll‐ 47 S650,000 $490.000 S591,263 7 7 S40,625 S70,000 S84,466

FYl1 84 S816,322 9674,2ss S710,095 ll $74、 211 S67、426 S64.554

FYll‐ 50 $686,000 $s l 0,000 $800,000 1 4 l $171,s00 S127,500 S200.000

FYll-49 $ 1,869,000 SI、091、 000 $9s8,000 l5 $69,222 $83,923 $63,867

FYll-43 $ 1.630.666 $1,923.379 Sl,350,071 S81,533 S106.854 S71,056

FY H-53 Sl.000.000 Sl、200.000 Sl、400、 000 $23.8 l 0 S27.273 s3l.8l8

FYll‐ 41 $ l.420.000 $ I ,570,000 Sl,650,000 S88,750 S98,125 S103,125

26 of32
age

luctivity

Average

Productivity,

lst Yr

FYll‐ 46 Sl.633,000 $ l,770.000 S56.310 S53,636 $s2,273

FYll-60 $2.144,712 S3、260、 000 l S54.993 S95,882 569.294

FYll‐ 35 $2.044.000 $2.044,000 S146.000 $146.000 S137,500

FYll‐ 25 $2,000,000 S1000.000 S95、238 S100.000 S109,091

FY H-85 S3、027.576 S2.292.154 $81.826 S69.459 S74,072

FYll-54 S3.786、 866 S2.543,378 '753.926 l S199.309 S133.862 S211,840

FYll-26 $3,000,000 1 S230,769 S230,769 $230,769

FYll-29 $3,000,000 Sl.300.000 $ 100,000 $81.250 $ I 00,000

FYll-3 S3.080、000 $3.080、 000 1 $l7l,r l I $l7l,l I I $172.222

FYll-67 S2.305.300 $2.741.919 $3,38 $82,332 S94.549 Sl16.662

FYll‐ 27 $4.000.000 7 S235、294 S235、294 S235.294

FYll-30 $4,200,000 $4,200,000 S144、 828 S155、 556 S146.552

FYll-90 S6、 535、 827 S4.675,983 S181.551 $129、 888 $129、 888

FYll-86 S6.101、 363 S4、 593.196 S234、668 S170.l18 S162.248

FYll‐ 42 $4,000,000 Sl17.835 S125、000 S130、000

FYH‐38 $6.271 .000 $4.000.000 S184,441 S133,333 S180,645

FYll-36 $6,000,000 $6,600.000 S120,000 S126,923 S125,000

FYll-31 $7,000,000 S7_500、 000 S104,478 Sl15,385 S104,478

FYll-34 S8.300、000 S8、 300.000 $197,619 $ 197,619 $ l 9s.349

FYll-39 $ l6s,6l 3 $ l 63.265 $ l 67.308

FYll-02 S10、 588,936 S7.100.000 4 S264.723 S165、 116 S158、 312

FYll‐ 01 S9,500,000 $8. r s0.000 1 S148.438 Sl14.789 Sl13、 750

FYll‐ 04 $ I 0,000,000 $ l 0,000,000 S138、 889 S142.857 S153.846

FYll-06 S8、 900、 000 S8.271.230 S109,877 S108,832 S132、922

FYll-32 $10、 500.000 SiO.500.000 S131.250 $ I 3 1,250 $t29,412

FY H‐ 03 $8、 168、 664 S6.559、 000 S12.558 7 $ 129.661 $89,849 $ l 58,962

FYll-07 S14.200、 000 S15,303.521 S14.051 S157、778 S182.185 S165_306

FYll-28 $t 5,125,000 S15.125、 000 5,125 S207,192 S207.192 S207、 192

FYll-37 S18.750、 000 S18.750、 000 S218.023 $2 l 8.023 S218,391

FY11‐ 87 $28,000,000 $ 18,700,000 $ l 9,800,000 S137,255 S127.211 S135、616

FYll-88 S40、 000.000 S22.500.000 S22、 700、000 S533,333 $300,000 $3r9,71 8

27 of32

Firm ID

Average

Sales at

Completion

(FY 200e)

Average

Salcs, lst Yr

Following

Completion

(FY 2010)

Average

Srles,2nd Yr

Following

Completion

(FY 20[)

 ̈ ̈  ̈ ̈

Averagc

Employ, lst

Yr

Following

Completion

(FY 2010)

Averrge

Employ,

2nd Yr

Following

Completion

(FY 2011)

Average

Productivity,

2nd Yr

Following

Completion

(FY 20rl)

Sl_725_000

S2_200_000

S2_400_000

S2666601

S3_000_000

S3_000_000

S4000000

S4250000

S4_675_983

S5.200_000

S6500000

S7000000

S8_400000

S8_700_000

S8_865_462

S10235000
Firm lD

Average

Sales at

Completion

(FY 2009)

Avcrage

Sales, lst Yr

Following

Completion

(FY 2010)

Average

Salcs,2nd Yr

Following

Completion

(FY 2011)

Average

Employ et

Completion

(FY 2009)

Average

Employ, lst

Yr

Following

Completion

(r"Y 2010)

Averagc

Employ,

2nd Yr

Following

Completion

(FY 20ll)

Average

Productivity

et

Completion

(rY 200e)

Average

Productivity,

lst Yr

Following

Completion

(FY 2010)

Averegc

Productivity,

2nd Yr

Following

Completion

(FY 201r)

FYll-05 s22.1s6,774 $11,376,22s $23,335,097 n2 120 $ l 97,828 $94.802 $20 1,1 65

FYll-48 $27,069,000 S27.800.000 $30.100、 000 $190.627 S185.333 S207.586

FY H‐ 55 $300,000,000 $3 l 0,000,000 $3 l 0,000.000 350 350 S857、 143 S885、714 S885、 714

Total S14392.937 S13.429.013 S14、 159.299 S266.536 S253.378 S267.157

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

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

In FY 201l, firms received $12.1 million in technical assistance provided by the TAACs

to prepare petitions, and to develop and implement Adjustment Proposals (often through

business consultants and other experts). Firms participating in the program contributed

$7.9 million towards the development and implementation of Adjustment Proposals.

Funds are not provided directly to firms; instead, EDA funds the TAACs and TAACs pay

a cost-shared proportion of the cost to secure specialized business consultants.

Exhibit 25: Summary of TAAF program Financial Assistance by TAAC: FY 201I

TAAC

TAAC

Assistance to

Firms

Amount Paid to

Consultants by

the TAACs

Total TAAC

Assistance to

Firms (TAACs +

Consultants)

Financial

Contribution

by the Firms

Great Lakes $119,586 $513,741 9633,327 $s04,21 3

Mid-America $160,319 $1,776,004 $1,936,323 $824,147

MidAtlantic $346,017 $1,408,221 $1,754,238 $1,378,732

Midwest $245,093 $716,807 $961,900 $608.569

New Ensland $ 148.261 $1,427,260 $1,575,521 $1,437,236

New York State $67,619 $1,220,357 $1,287,976 $925,663

Northwest $200,3 l7 $720,934 $921,251 $657,006

Rocky Mountain $568,037 $549,047 $ I ,l 17,084 $526,679

Southeastern $ 191,046 $347,260 $538,306 $297,968

Southwest $1740092 $s8l,603 $755,695 $552,485

Western $189,180 $459,876 s649,0s6 $229,938

Total s2,409,567 s9,721,110 $12,130,677 $7.942.636

28 of32
(13) The types of technical assistance included in the Adjustment Proposals of firms

participating in the program.

In FY 20 I I , firms proposed various types of projects in their respective Adj ustment

Proposals. Marketing/sales projects are geared toward increasing revenue, whereas

production/manufacturing projects tend to be geared toward cutting costs. Support system

projects can provide a competitive advantage by either cutting costs or creating new sales

channels. Management and financial projects are designed to improve management's

decision making ability and business control. Over half of all firms proposed to

implement a marketing/sales project or production/engineering project in their Adjustment

Proposals. Sample projects are listed below in Exhibit 26.

Exhibit 26: Characteristics of Technical Assistance in Adjustment Proposals: FY 2011

Financial

Accounting systems upgrade

Cost control tracking system

Automatic Data Processing

development 19 $388,000

Management

Strategic business planning

Succession management

Management development

0

47 $ I ,187,500

Marketine/Sales

o Sales process training

o Market expansion and feasibility

analysis

o Web site design and upqrade 171 $8,199,000

Production

o Lean manufacturing and certification

o New product development

o Production and warehouse automation 134 $s,787,900

Support

Systems

o Enterprise Resource Planning

o Management Information Systems

upgrades

o Computer Aided Design software

. Supply chain manaqement software 129 $60043っ 690

29 of32

Project

Chssifie*finn Sample Types of Proiects

Number of

Adjustment

Proposal

Proiects

Adjustment

Proposal

Project

Cosfs
Exhibit 27: Adjustment Proposals by Project Classification: FY 2011

-{r[iustment Proposals b1' Project CIrssificrtion T1-pe

(F\'20rr)

lFuraucral

rIrlallag€ruart

u Ilarlieturg, Sales

r Pl'oductiol (I\[aurdactru'urg]

r Sttppott Slsterrs

(14) The number of firms leaving the program before completing the project or

projects in their Adjustment Proposals and the reason the project was not

completed.

In FY 201 I , of the 108 firms that left the TAAF program, 44 completed the program and

the remaining 64 firms left for the reasons listed below in Exhibit 28.

Exhibit 28: Summary of Firms Leaving the TAAF program: FY 201I

Expired without completing all projects within 5 year limit

Did not proceed after certification

Company was bought by another company

Management Change - Main contact left the firm

Firm had inadequate funds for project cost sharing

30 of32

Reason for Leavins Prosram

Number of

Firms

Completed Program 44

37

8

6

Out of Business 4

Bankruptcy Filing 2

Completed Some Projects 1

1

Total 108
Conclusion

Performance of the TAAF program is measured in terms of both "inputs" (e.g., types of

firms assisted, petition, and Adjustment Proposals submissions) and o'outputs" (changes

in sales, employment levels, and productivity of client firms).

In terms of inputs, the TAAF program effectively targeted small and medium-sized firms

in FY 201 I . The average sales and productivity of firms certified in the program in FY

201 I were higher than that of firms certified in FY 2010. The average employment of

firms certified into the program in FY 201 I was lower than that of firms cenified in FY

2010.

The most popular types of Adjustment Proposal projects in FY 2011 were

marketing/sales improvement. Over half of all firms proposed to implement a

marketing/sales project or production/engineering project in their Adjustment Proposals.

There was a decrease in the number of new clients serviced in FY 201 1, as demonstrated

by the decrease in the number of petitions for certification and Adjustment Proposals

submitted to EDA for approval. In FY 2011, EDA certified 149 petitions, a 55 percent

decrease compared to FY 2010. EDA approved 183 Adjustment Proposals in FY 2011, a

3l percent decrease compared to FY 2010.

EDA successfully met both the 40-day processing deadline (to make a final determination

for petitions accepted for filing) and the 60-day processing deadline for approval of

Adjustment Proposals, as required in the TGAAA. In fact, in FY 2011, the average

processing time for petitions was 2l days, which is a 48 percent reduction from FY 2010.

Meanwhile, the average processing time for Adjustment Proposals was l6 days, a 33

percent reduction from FY 201 0.

In terms of program outputs, performance measures focus on the extent to which client

firms increase their sales, employment levels, and productivity following the

implementation of TAAF-supported projects (program completion). To measure these

outputs, EDA compares average sales, average employment and average productivity of

all firms completing the program in a particular year (the most recent "base year") to

these same measures for the same firms one and two years following program

completion. The base year used for this report is FY 2009, as this allows EDA to

compare these measures looking back two years from the date of this report.

Firms that completed the TAAF program in FY 2009 report that, at completion, average

sales were $14.4 million, average employment was 54, and average productivity was

$266,536 (sales per employee).

One year after completing the program (FY 2010), these same firms report that average

sales decreased by 6.7 percent, average employment decreased by 1.9 percent, and

average productivity decreased by 4.9 percent. The U.S. Bureau of Labor Statistics

(BLS) reports that nationwide for the manufacturing industry in FY 2010, average

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employment decreased 5.8 percent and average productivity increased by 3.4 percent

from FY 2009.

Two years after completing the program (FY 201l), these firms report that average sales

decreased by 1.6 percent, average employment decreased by 1.9 percent, and average

productivity increased by less than one percent. BLS reported that nationwide for the

manufacturing industry in FY 2011, average employment decreased 4.5 percent and

average productivity increased by l0 percent from FY 2009. It should be noted that

TAAF clients are operating in the same weak economic environment as other firms, but

are also attempting to adjust to import pressures that may not impact other firms as

severely.

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