FISCAL YEAR 2012 

ANNUAL REPORT TO CONGRESS 

TRADE ADJUSTMENT ASSISTANCE FOR FIRMS 

PROGRAM 

ECONOMIC DEVELOPMENT ADMINISTRATION 

U.S. DEPARTMENT OF COMMERCE 

December 15, 2012 
Page 2 of 54

“Following completion of assistance from EDA’s Trade Adjustment Assistance for Firms 

(TAAF) program, firms reported that, on average, sales increased by 26.8 percent, 

employment increased by 13.2 percent, and productivity increased by 11.9 percent.” 

Executive Summary 

Key Findings 

In September 2012, the U.S. Government Accountability Office (GAO) reported to 

Congress that the effect of participation by import-impacted U.S. firms in the Trade 

Adjustment Assistance for Firms (TAAF) program was an increase in firm sales ranging 

from 5 to 6 percent on average,” and that “the effect of the program on productivity was 

about a 4 percent increase.”1

 GAO also noted in the report that manufacturing firms, 

specifically, associate the TAAF program with increased sales and productivity. 

Meanwhile, this report – EDA’s Annual Report to Congress on the TAAF program – 

finds that, two years after completing the program in FY 2010, participating firms 

experienced an average employment increase of 13.2 percent, an average sales increase 

of 26.8 percent, and an average productivity increase of 11.9 percent. For the sake of 

comparing TAAF-assisted firms to non-assisted similar firms, the Department of Labor’s 

Bureau of Labor Statistics (BLS) reported that, in FY 2012, the manufacturing industry 

as a whole experienced an average employment increase of only 3.5 percent and an 

average productivity increase of 4.1 percent from FY 20102

. 

Therefore, both GAO and EDA find that the TAAF program has a significant positive 

impact in helping import-impacted U.S. firms compete in the global marketplace. 

Additionally, all firms that completed the TAAF program in FY 2010 were in operation 

at the end of FY 2012, indicating strong survival rates for TAAF-assisted firms. 

Furthermore, on May 11, 2012, the Department of Commerce Office of Inspector 

General (OIG) presented EDA with a copy of their letter to the House and Senate 

Committees on Appropriations reporting their findings related to an examination of the 

TAAC administrative costs3

. As part of their review, OIG obtained expenditure data 

from a sample of three TAACs – Western, New England, and New York State – focusing 

on the use of Federal funds provided by EDA. The OIG reported that it “did not 

determine that the level of administrative costs of the three TAACs to be unreasonable.” 

Therefore, not only does the TAAF program produce results – it does so at reasonable 

costs. 

 

1

 U.S. Government Accountability Office (GAO), Trade Adjustment Assistance: Commerce Program Has 

Helped Manufacturing and Services Firms, but Measures, Data, and Funding Formula Could Improve 

(GAO-12-930), September 13, 2012. 2

 BLS does not collect a sales measure comparable to EDA’s measure in this report (i.e. average sales per 

employee). 

3

 The information was requested in the House Committee Report that accompanied the FY 2012 

Commerce, Justice, Science, and Related Agencies Appropriations bill. 
Page 3 of 54

Background

This annual report is submitted in accordance with Section 255A of chapter 3 of title II of 

the Trade Act of 1974, as amended (19 U.S.C. § 2341 et seq.) (commonly referred to as 

the Trade Act). Section 255A of the Trade Act directs the Secretary of Commerce to 

submit an annual report on the Trade Adjustment Assistance for Firms (TAAF) program 

to Congress no later than December 15, 2012 and each year thereafter. The TAAF 

program is authorized by chapters 3 and 5 of title II of the Trade Act. 

Administered by the U.S. 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. Through a 

partnership with a national network of 11 EDA-funded Trade Adjustment Assistance 

Centers (TAACs), the program provides cost-sharing technical assistance to help eligible 

businesses create and implement targeted business recovery plans (referred to as 

“Adjustment Proposals” or “APs”) aimed at boosting global competitiveness, increasing 

sales and retaining and creating jobs. The TAACs, which are either independent or 

university-affiliated entities, provide support to import-impacted firms in a public-private 

collaborative framework. The TAAF program provides a portion of the assistance while 

participating firms contribute a matching share to create and implement their recovery 

plans.

EDA’s partnership with the TAAC network across the country allows firms to receive 

customized assistance from highly qualified experts who are knowledgeable about the 

needs, challenges and opportunities facing the industries in their region. The most 

common types of assistance provided in FY 2012 were marketing/sales improvement and 

production/engineering projects, which comprised over half of all projects supported 

throughout the year. 

In January 2011, as authorization of the Trade Adjustment Assistance (TAA) programs at 

the U.S. Department of Labor (DOL), U.S. Department of Agriculture (USDA) and EDA 

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 

some provisions – such as eligibility for service firms and expanded time periods for 

qualifying firm eligibility – provided under the Trade and Globalization Adjustment 

Assistance Act of 2009 (TGAAA) to expire on February 13, 20114

. The TAAF program 

remained authorized in FY 2011 and continued to operate at FY 2010 spending levels of 

$15.8 million under a full-year continuing resolution, which prevented interruption of 

program operations. 

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

Extension Act of 2011 (Pub. L. No. 112-40). This Act retroactively extended the 

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

 

4

 The TGAAA was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and 

Reinvestment Act of 2009 (ARRA) (Pub. L. No. 111-5, Stat. 115 at 367). 
Page 4 of 54

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 

“look-back periods” to certify firms. In addition, uncertainty regarding the TAAF 

program’s future caused TAACs to focus on existing clients instead of recruiting new 

firms. 

As part of its overall commitment to performance evaluation and continuous 

improvement, EDA assesses the performance of the TAAF program both in terms of 

“inputs” (e.g., types of firms assisted, petition, and AP submissions) and “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 2012. TAACs provided technical assistance to 341 firms in preparing petitions, 

206 firms in preparing APs, and 935 firms in implementing projects within their APs. 

Meanwhile, EDA certified 79 petitions and approved 102 APs. 

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 APs, 

as required in the TGAAA. In FY 2012, the average processing time for petitions was 29 

business days, and the average processing time for APs was 21 business days. 

In order to assess the effectiveness of the TAAF program in terms of outputs, EDA 

assesses the extent to which client firms increased 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 2010, as 

this allows EDA to compare these measures looking back both one and two years from 

the date of this report. 

Firms that completed the TAAF program in FY 2010 report that, at completion, average 

sales were $10.1 million, average employment was 53 and average sales per employee 

(productivity) was $191,328. One year after completing the program (FY 2011), these 

same firms reported that average sales increased by 11.4 percent, average employment 

increased by 13.2 percent, and average productivity decreased by 1.6 percent. For the 

sake of comparison to the universe of U.S. manufacturers, the U.S. Bureau of Labor 

Statistics (BLS) reports that, in FY 2011, the national manufacturing industry in 

aggregate experienced an average employment increase of only 1.9 percent. 

Two years after completing the program (FY 2012), these same firms reported that 

average sales increased by 26.8 percent, average employment increased by 13.2 percent, 

and average productivity increased by 11.9 percent. Meanwhile, BLS reported that the 

manufacturing industry in FY 2012 experienced an average employment increase of 3.5 

percent and average productivity increase of 4.1 percent from FY 2010. Therefore, firms 
Page 5 of 54

assisted by the TAAF program performed more successfully than the manufacturing 

industry as a whole. Additionally, all firms that completed the TAAF program in FY 

2010 were in operation as of the end of FY 2012, indicating strong survival rates for 

TAAF-assisted firms. It should be noted that TAAF clients are operating in the same 

economic environment as other firms, but are also attempting to adjust to import 

pressures that may not impact other firms as severely, making the success of TAAFassisted firms even more notable. 
Page 6 of 54

Table of Contents 

Introduction ............................................................................................................................................. 7 

Program Description ............................................................................................................................... 9 

Results/Findings ..................................................................................................................................... 13 

Data for This Report ............................................................................................................................. 13 

(1) The number of firms that inquired about the program. .................................................................. 13 

(2) The number of petitions filed under section 251. .......................................................................... 14 

(3) The number of petitions certified and denied by the Secretary. .................................................... 14 

(4) The average time for processing petitions after the petitions are filed. ......................................... 14 

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

 United States. ................................................................................................................................. 20 

(6) Of the number of petitions filed, the number of firms that entered the program and received 

 benefits........................................................................................................................................... 24 

(7) The number of firms that received assistance in preparing their petitions. ................................... 25 

(8) The number of firms that received assistance developing business recovery plans. ..................... 25 

(9) The number of business recovery plans approved and denied by the Secretary............................ 27 

(10) Average duration of benefits received under the program nationally and in each region served 

 by an intermediary organization (the TAAC) referred to in section 253(b)(1) of the Trade Act. . 29 

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

 time of certification. ...................................................................................................................... 34 

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

 year for the two-year period following completion. ...................................................................... 36 

(13) The number of firms in operation as of the date of this report and the number of firms that 

 ceased operations after completing the program in each year during the two-year period 

 following completion of the program. ........................................................................................... 36 

(14) The financial assistance received by each firm participating in the program. ............................... 39 

(15) The financial contribution made by each firm participating in the program. ................................ 39 

(16) The types of technical assistance included in the business recovery plans of firms participating 

 in the program. ............................................................................................................................... 40 

(17) The number of firms leaving the program before completing the project or projects in their 

 business recovery plans and the reason the project or projects were not completed. .................... 41 

(18) The total amount expended by all intermediary organizations referred to in Section 253(b)(1) 

 and by each organization to administer the program. .................................................................... 42 

(19) The total amount expended by intermediary organizations to provide technical assistance to 

 firms under the program nationally and in each region served by such an organization ............... 43

Conclusion.............................................................................................................45 

Supplement - TAAF Program Benefits to Manufacturing Firms..........................................47
Page 7 of 54

Introduction 

his report is provided in compliance with Section 255A of chapter 3 of title II of 

the Trade Act. Section 255A of the Trade Act directs the Secretary of Commerce 

to provide an annual report on the Trade Adjustment Assistance for Firms 

(TAAF) program by the 15th of December. Section 255 of the Trade Act states: 

IN GENERAL.—Not later than December 15, 2012, and annually 

thereafter, the Secretary shall prepare a report containing data regarding 

the trade adjustment assistance for firms program under this chapter for 

the preceding fiscal year. The data shall include the following: 

This report will provide findings and results classified by intermediary 

organization5, state, and national totals6, to the extent that the data are available 

on the following 19 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 by the Secretary. 

4. The average time for processing petitions after the petitions are filed. 

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

district of the United States. 

6. Of the number of petitions filed, the number of firms that entered the 

program and received benefits. 

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

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

plans. 

9. The number of business recovery plans approved and denied by the 

Secretary. 

10. The average duration of benefits received under the program nationally and 

in each region served by an intermediary organization referred to in section 

253(b)(1) of the Trade Act. 

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

program at the time of certification. 

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

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

 

5

 “Intermediary Organization” referred to in section 253(b)(1) are the Trade Adjustment Assistance Centers 

(TAACs). 

6

 See chapter 3 of title II of the Trade Act, section 255A (b) Classification of Data. 

T 
Page 8 of 54

13. The number of firms in operation as the date of the report and the number of 

firms that ceased operations after completing the program and in each year 

during the two-year period following completion of the program. 

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

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

16. The types of technical assistance included in the business recovery plans of 

firms participating in the program. 

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

projects in their business recovery plans and the reason the project was not 

completed. 

18. The total amount expended by all intermediary organizations referred to in 

Section 253(b)(1) and by each organization to administer the program. 

19. The total amount expended by intermediary organizations to provide 

technical assistance to firms under the program nationally and in each region 

served by such an organization. 

 
Page 9 of 54

Program Description 

The TAAF program is authorized by chapters 3 and 5 of title II of the Trade Act. The 

responsibility for administering the TAAF program is delegated to EDA by the Secretary 

of Commerce. The TAAF program provides technical assistance to manufacturers and 

service firms affected by import competition in order to help them develop and 

implement projects to regain global competitiveness, increase profitability and create 

jobs. 

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 the TAAF program. The program provides assistance 

to support the development of business recovery plans (commonly referred to as 

“Adjustment Proposals or “APs”), under Section 252 of the Trade Act, and matching 

funds to implement projects outlined in the APs. 

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

university-affiliated 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, Michigan and Ohio 

Mid-America Arkansas, Kansas and Missouri 

Mid-Atlantic 

Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, 

Virginia and West Virginia 

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 Mexico, North Dakota, South Dakota, Utah 

and Wyoming 

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 
Page 10 of 54

The TAAF program is one of four distinct programs authorized under the Trade Act. The 

other TAA programs are TAA for Workers and TAA for Community Colleges, which are 

both administered by DOL, and TAA for Farmers, which is administered by USDA. 

Exhibit 2: TAA Programs 

Program Initiative 

As noted above, the TAAF program provides technical assistance to help firms develop 

and implement business recovery plans, or APs. Projects identified in the AP are 

designed to improve a firm’s competitive position. Specifically, under the TAAF 

program, funds are applied toward helping firms access consultants, engineers, designers 

or industry experts to implement business improvement projects. These projects may 

cover a range of functional areas to improve a firm’s market position and increase its 

overall competitiveness, including engineering, information technology, management, 

market development, marketing, new product development, quality improvement and 

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

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

consultants. 

Exhibit 3: Program Phases 
Page 11 of 54

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

(1) petitioning for certification, (2) recovery planning and (3) AP implementation. 

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. A petition is comprised of Form ED-840P, titled “Petition by a 

Firm for Certification of Eligibility to Apply for 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 petition7

. 

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

determine that the following three conditions are met: 

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

threatened to be totally or partially separated; 

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

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

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

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

absolutely; and 

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

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

the decline in sales and/or production. 

Phase II - Recovery Planning 

Certified firms then work with TAAC staff to develop a customized AP for submission to 

EDA for approval. Once an AP has been submitted, EDA is required to make a final 

determination within 60 days. 

Phase III - AP Implementation 

The firm works with consultants to implement projects in an approved AP. As projects 

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

match to the consultant, and then send a notice to the TAAC stating that they are satisfied 

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

Federal matching share. Firms have up to five years from the date of an AP’s approval to 

implement the approved business recovery strategy contained therein, unless they receive 

approval for an extension. Generally, firms complete the implementation of their 

respective APs over a two-year period. 

 

7 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.
Page 12 of 54

In general, the TAACs provide an array of services to assist import-impacted firms 

throughout this process, including: 

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

any assistance related to the preparation of a petition. 

 Once a petition has been approved, TAACs work closely with a firm’s 

management to identify the firm’s strengths and weaknesses and develop a 

customized business strategy (AP) designed to foster competitiveness. The 

program pays up to 75% of the cost of developing an AP and the firm must pay 

the rest. EDA must approve all APs to ensure they conform to statutory and 

regulatory requirements. 

 After an AP has been approved, company management and TAAC staff jointly 

identify consultants with the specific expertise required to assist the firm in 

implementing their competitiveness strategy. 

 Under the TAAF program, EDA shares the cost of implementing tasks under an 

approved AP to support competitiveness. For an AP in which proposed tasks total 

$30,000 or less, EDA provides up to 75 percent of the cost and the firm is 

responsible for the balance. For an AP in which proposed tasks total over 

$30,000, EDA pays 50 percent of the total cost and the firm pays the remaining 

50 percent. In order to most efficiently and effectively utilize limited program 

funds, EDA limits its share of technical assistance to a certified firm to no more 

than $75,000. After a competitive procurement process, the TAAC and the firm 

generally contract with private consultants to implement the AP. 

 
Page 13 of 54

Results/Findings 

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 APs submitted by the TAACs on behalf 

of firms. Eligibility Reviewers at EDA recorded data from these sources into a central 

database. The data presented in this report has been verified by the TAACs. Results for 

average processing times were derived by EDA. Data in this report reflect data as of the 

end of FY 2012. Therefore, data in this Annual Report may differ from previously 

published data that were based on different periods. 

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

In FY 2012, the TAACs received 1,849 inquiries about the program. 

Exhibit 4: Inquiries about the TAAF program by TAAC 

TAAC

No. of Firms that 

Inquired about the 

TAAF program

Great Lakes 65

Mid-America 140

Mid-Atlantic 79

Midwest 49

New England 34

New York State 79

Northwest 81

Rocky Mountain 263

Southeastern 53

Southwest 390

Western 616

Total 1,849

 
Page 14 of 54

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

(3) The number of petitions certified and denied by the Secretary. 

(4) The average time for processing petitions after the petitions are filed. 

As part of its overall commitment to performance evaluation and continuous 

improvement, EDA assesses the performance of the TAAF program both in terms of 

“inputs” (e.g., types of firms assisted, petition, and AP submissions) and “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 2012. EDA received 85 petitions, of which 83 were filed (accepted for 

investigation) under section 251 of the Trade Act, down by 46 petitions, a 36 percent 

decrease, compared to the number of petitions filed in FY 2011. EDA certified 79 

petitions, down by 70 petitions, a 47 percent decrease compared to the number of 

certifications in FY 20118

. Petitions are certified on a rolling basis throughout the year. 

Petitions certified in FY 2012 may be the result of those received or filed (accepted) in FY 

2011, while petitions received or filed (accepted) in FY 2012 may not result in 

certification in FY 2012. 

EDA met the 40-day processing deadline (to make a final determination for petitions 

accepted for filing) in FY 2012. In fact, the average processing time for petitions was 29 

business days. 

Exhibit 5: Petition Activity: FY 2008 – FY 20129

FY

No. of 

Petitions 

Received

No. of 

Petitions 

Accepted 

for Filing

No. of 

Petitions 

Certified 

No. of 

Petitions 

Denied or 

Withdrawn

Average 

Days 

Between 

Acceptance 

(Filing) and 

Certification

Average 

Days 

Between 

Receipt and 

Certification

2008 186 189 182 0 35 43

2009 276 243 216 1 30 51

2010 311 329 330 0 31 74

2011 128 129 149 22 21 36

2012 85 83 79 3 29 58

% Change 

(2011 to 

2012) (34%) (36%) (47%) (86%) 38% 61%

 

8

 Some TAACs believe that fewer firms were eligible to participate in the program because the economy’s 

improvement from FY 2010 and FY 2011 prevented some firms from demonstrating a decrease in 

employment, sales and production required for eligibility. 

9

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

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

FY 2012. 
Page 15 of 54

Exhibit 6: Petitions Received by TAAC: FY 2008 – FY 2012 

Exhibit 7: Petitions Accepted by TAAC: FY 2008 – FY 2012 

Exhibit 8: Petitions Certified by TAAC: FY 2008 – FY 2012 
Page 16 of 54

Exhibit 9: Petitions Received, Accepted (Filed) and Certified by TAAC: FY 2012 

TAAC 

No. of 

Petitions 

Received

No. of 

Petitions 

Accepted for 

Filing

No. of 

Petitions 

Certified 

Great Lakes 5 5 5

Mid-America 2 2 2

MidAtlantic 11 10 6

Midwest 19 19 20

New England 9 10 10

New York State 7 7 6

Northwest 8 8 6

Rocky Mountain 8 9 10

Southeastern 2 2 1

Southwest 9 9 11

Western 5 2 2

Total 85 83 79

Exhibit 10: Petitions Received, Accepted (Filed) and Certified by TAAC: FY 2012 

 
Page 17 of 54

Exhibit 11: Petitions Filed, Accepted, and Certified by TAAC/State: FY 2012 

TAAC/State

Petitions 

Received

Petitions 

Accepted 

for Filing

Petitions 

Certified

Great Lakes 5 5 5

IN 0 0 0

MI 3 3 3

OH 2 2 2

Mid-America 2 2 2

AR 0 0 0

KS 1 1 1

MO 1 1 1

MidAtlantic 11 10 6

DC 0 0 0

DE 0 0 0

MD 0 0 0

NJ 2 1 0

PA 9 9 6

VA 0 0 0

WV 0 0 0

Midwest 19 19 20

IA 2 2 2

IL 13 13 13

MN 1 1 1

WI 3 3 4

New England 9 10 10

CT 1 1 1

MA 3 4 4

ME 2 2 2

NH 0 0 0

RI 1 1 1

VT 2 2 2

New York State 7 7 6

NY 7 7 6

Northwest 8 8 6

AK 0 0 0

ID 2 2 2

MT 1 1 1

OR 2 2 1

WA 3 3 2
Page 18 of 54

TAAC/State

Petitions 

Received

Petitions 

Accepted 

for Filing

Petitions 

Certified

Rocky Mountain 8 9 10

CO 3 4 4

NE 0 0 1

NM 0 0 0

ND 0 0 0

SD 2 2 2

UT 2 2 2

WY 1 1 1

Southeastern 2 2 1

AL 1 1 1

FL 0 0 0

GA 0 0 0

KY 0 0 0

MS 0 0 0

NC 1 1 0

SC 0 0 0

TN 0 0 0

PR 0 0 0

Southwest 9 9 11

LA 2 2 4

OK 0 0 0

TX 7 7 7

Western 5 2 2

AZ 2 1 1

CA 1 0 0

NV 2 1 1

Total 85 83 79

 
Page 19 of 54

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

manufacturing industry. Firms in technical services, transportation, and wholesale trade 

rounded out the remaining industries10. 

Exhibit 12: Firms Certified for TAAF by Industry: FY 2012 

In FY 2012, 6 percent of firms certified for TAAF were identified by the TAACs as service 

sector firms11. This is an increase over FY 2011, where 2 percent of firms certified were 

identified by the TAACs as service sector firms. As a result the Trade Adjustment 

Assistance Extension Act of 2011 (Pub. L. No. 112-40), which retroactively extended the 

provisions of the TAA programs that were enacted as part of the TGAAA, demand from 

service firms is likely to continue to increase. 

Exhibit 13: Firms Certified for TAAF Service vs. Manufacturing: FY 2012 

FY

Total No. 

of Firms 

Certified

Manufacturing 

Firms

Percentage of 

Manufacturing 

Firms Certified

Service 

Firms

Percentage of 

Service Firms 

Certified

2011 149 146 98% 3 2%

2012 79 74 94% 5 6%

 

 

10 As identified by the firm’s North American Industry Classification System (NAICS) code. 11 Firms in the service sector may also perform dual functions as manufacturing firms and may have been 

categorized by TAACs as manufacturing firm. 
Page 20 of 54

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

the United States. 

Exhibit 14: Petitions Filed (Accepted) and Certified by Congressional District: FY 2012 

TAAC/State 

Congressional 

District

Petitions 

Accepted for 

Filing

Petitions 

Certified

Great Lakes 5 5

IN 0 0

MI 3 3

2 1 1

3 1 1

4 1 1

OH 2 2

6 1 1

11 1 1

Mid-America 2 2

AR 0 0

KS 1 1

4 1 1

MO 1 1

8 1 1

MidAtlantic 10 6

DC 0 0

DE 0 0

MD 0 0

NJ 1 0

7 1 0

PA 9 6

1 1 1

3 1 0

8 1 1

10 1 1

11 1 1

15 1 0

19 3 2

VA 0 0
Page 21 of 54

TAAC/State 

Congressional 

District

Petitions 

Accepted for 

Filing

Petitions 

Certified

WV 0 0

Midwest 19 20

IA 2 2

1 1 1

4 1 1

IL 13 13

1 1 1

5 1 2

6 1 1

7 2 2

8 2 1

10 4 4

14 1 1

16 1 1

MN 1 1

4 1 1

WI 3 4

4 1 1

6 0 1

7 2 2

New England 10 10

CT 1 1

2 1 1

MA 4 4

2 1 1

5 1 1

9 1 1

10 1 1

ME 2 2

1 2 2

NH 0 0

RI 1 1

2 1 1

VT 2 2

1 1 1

5 1 1
Page 22 of 54

TAAC/State 

Congressional 

District

Petitions 

Accepted for 

Filing

Petitions 

Certified

New York State 7 6

NY 7 6

5 1 1

14 1 1

20 1 0

21 1 1

24 1 1

29 2 2

Northwest 8 6

AK 0 0

ID 2 2

1 1 1

2 1 1

MT 1 1

At-Large 1 1

OR 2 1

2 2 1

WA 3 2

2 2 1

3 1 1

Rocky Mountain 9 10

CO 4 4

1 2 2

2 1 1

6 1 1

NE 0 1

2 0 1

NM 0 0

ND 0 0

SD 2 2

At-Large 2 2

UT 2 2

1 1 1

2 1 1

WY 1 1

At-Large 1 1
Page 23 of 54

TAAC/State 

Congressional 

District

Petitions 

Accepted for 

Filing

Petitions 

Certified

Southeastern 2 1

AL 1 1

3 1 1

FL 0 0

GA 0 0

KY 0 0

MS 0 0

NC 1 0

12 1 0

SC 0 0

TN 0 0

PR 0 0

Southwest 9 11

LA 2 4

1 1 2

3 1 2

OK 0 0

TX 7 7

6 1 1

13 2 2

20 1 1

23 1 1

26 1 1

28 1 1

Western 2 2

AZ 1 1

4 1 1

CA 0 0

NV 1 1

2 1 1

Total 83 79 
Page 24 of 54

(6) Of the number of petitions filed, the number of firms that entered the program 

and received benefits12. 

In FY 2012, 83 petitions were accepted (filed) for certification, of which 79 were 

certified. Of the 79 firms certified in FY 2012, 57 firms submitted and were approved 

for an AP in the same fiscal year13. 

Exhibit 15: Petitions Certified and APs Approved: FY 2012 

TAAC

No. of Petitions 

Accepted for 

Filing 

No. of Petitions 

Certified

No. of APs 

Approved for 

Firms Certified 

in FY 2012 

Great Lakes 5 5 5

Mid-America 2 2 1

MidAtlantic 10 6 2

Midwest 19 20 16

New England 10 10 10

New York State 7 6 2

Northwest 8 6 6

Rocky Mountain 9 10 10

Southeastern 2 1 1

Southwest 9 11 4

Western 2 2 0

Total 83 79 57

 

 

12 Benefits are defined as technical assistance provided to TAAF-certified firms in preparing and implementing 

business recovery plans (APs). 

13 Firms have up to two years from the date of TAAF certification to submit a business recovery plan (AP). 

These totals represent the firms certified for TAAF in FY 2012 that also submitted and received an approved 

business recovery plan in the same fiscal year. The total number of APs approved in FY 2012 is reported in 

Exhibits 19, 20 and 21. 
Page 25 of 54

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

In FY 2012, 341 firms received assistance in preparing petitions. Firms may receive 

assistance in all phases of preparing petitions more than once in a single year. Petition 

assistance rendered may not result in the submission of a petition in the fiscal year. 

Exhibit 16: Petition Assistance Activity: FY 2012 

TAAC Petition Assistance

Great Lakes 13

Mid-America 15

MidAtlantic 22

Midwest 117

New England 10

New York State 36

Northwest 18

Rocky Mountain 15

Southeastern 36

Southwest 37

Western 22

Total 341

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

In FY 2012, 206 firms received assistance in developing APs and 935 firms received 

assistance in implementing projects in these plans. Firms may receive assistance in 

developing and implementing APs more than once in a single year. AP assistance rendered 

may not result in the submission or implementation of an AP in the current fiscal year. 

Exhibit 17: AP Development Activity: FY 2012 

TAAC

AP Development 

Assistance

Great Lakes 7

Mid-America 6

MidAtlantic 12

Midwest 61

New England 14

New York State 25

Northwest 11
Page 26 of 54

TAAC

AP Development 

Assistance

Rocky Mountain 11

Southeastern 5

Southwest 48

Western 6

Total 206

Exhibit 18: AP Implementation Activity: FY 2012 

TAAC

AP Implementation 

Assistance

Great Lakes 71

Mid-America 153

MidAtlantic 81

Midwest 142

New England 133

New York State 45

Northwest 80

Rocky Mountain 74

Southeastern 65

Southwest 52

Western 39

Total 935

 
Page 27 of 54

(9) The number of business recovery plans approved and denied by the Secretary. 

In FY 2012, EDA approved 102 APs, down by 81 compared to FY 2011, a 44 percent 

decrease over this period14. EDA successfully met the 60-day processing deadline for 

approval of APs. The average processing time for APs was 21 business days15. 

Exhibit 19: Summary of APs Approved: FY 2008 – FY 2012 

FY

No. of APs 

Approved

Total 

Government 

Share 

Total Firm 

Share 

Total 

Projected 

AP Costs 

Average 

Government 

Assistance 

Per Firm

Average Days 

Between 

Submission 

and Approval

2008 143 $8,202,625 $7,711,375 $15,914,000 $57,361 21

2009 172 $10,393,639 $9,888,201 $20,281,840 $60,428 20

2010 264 $16,448,946 $15,743,946 $32,192,892 $62,307 24

2011 183 $11,075,545 $10,580,545 $21,656,090 $60,522 16

2012 102 $5,437,455 $5,033,455 $10,470,910 $53,308 21

Total 864 $51,558,210 $48,957,522 $100,515,732 $59,674 20

% Change 

(2011 to 2012) (44%) (51%) (52%) (52%) (12%) 31%

Exhibit 20: APs Approved by TAAC: FY 2008 – FY 2012 

 

14 Some TAACs believe that fewer firms were eligible to participate in the program because the economy’s 

improvement from FY 2010 and FY 2011 prevented some firms from demonstrating a decrease in employment, 

sales, and production required for eligibility. Subsequently, fewer APs were submitted. 

15 Firms have two years from the date of certification to submit an AP to EDA. APs approved in FY 2012 may 

represent firms that were certified for TAAF between FY 2010 – FY 2012. 
Page 28 of 54

Exhibit 21: APs Approved by TAAC/State: FY 2012 

TAAC/State

No. of APs 

Approved

Government 

Share of 

Approved 

AP Projects

Firm Share 

of Approved 

AP Projects

Total 

Approved 

AP Projects

Great Lakes 6 $345,000 $315,000 $660,000

MI 3 $172,500 $157,500 $330,000

OH 3 $172,500 $157,500 $330,000

Mid-America 3 $225,000 $225,000 $450,000

KS 2 $150,000 $150,000 $300,000

MO 1 $75,000 $75,000 $150,000

MidAtlantic 10 $519,650 $504,650 $1,024,300

PA 10 $519,650 $504,650 $1,024,300

Midwest 23 $1,177,972 $1,057,972 $2,235,944

IA 1 $22,500 $7,500 $30,000

IL 17 $885,472 $810,472 $1,695,944

MN 1 $75,000 $75,000 $150,000

WI 4 $195,000 $165,000 $360,000

New England 14 $600,000 $510,000 $1,110,000

CT 3 $122,500 $107,500 $230,000

MA 5 $130,000 $70,000 $200,000

ME 2 $150,000 $150,000 $300,000

RI 2 $47,500 $32,500 $80,000

VT 2 $150,000 $150,000 $300,000

New York State 9 $604,000 $590,000 $1,194,000

NY 9 $604,000 $590,000 $1,194,000

Northwest 9 $583,333 $568,333 $1,151,666

ID 3 $172,500 $157,500 $330,000

MT 1 $75,000 $75,000 $150,000

OR 2 $128,000 $128,000 $256,000

WA 3 $207,833 $207,833 $415,666

Rocky Mountain 11 $527,500 $527,500 $1,055,000

CO 4 $160,000 $160,000 $320,000

NE 1 $30,000 $30,000 $60,000

NM 1 $75,000 $75,000 $150,000

SD 2 $82,500 $82,500 $165,000

UT 2 $150,000 $150,000 $300,000

WY 1 $30,000 $30,000 $60,000
Page 29 of 54

TAAC/State

No. of APs 

Approved

Government 

Share of 

Approved 

AP Projects

Firm Share 

of Approved 

AP Projects

Total 

Approved 

AP Projects

Southeastern 5 $217,500 $172,500 $390,000

AL 1 $75,000 $75,000 $150,000

GA 1 $22,500 $7,500 $30,000

NC 2 $97,500 $82,500 $180,000

SC 1 $22,500 $7,500 $30,000

Southwest 10 $592,500 $547,500 $1,140,000

LA 3 $120,000 $90,000 $210,000

OK 2 $150,000 $150,000 $300,000

TX 5 $322,500 $307,500 $630,000

Western 2 $45,000 $15,000 $60,000

CA 2 $45,000 $15,000 $60,000

Total 102 $5,437,455 $5,033,455 $10,470,910

(10) Average duration of benefits received under the program nationally and in each 

region served by an intermediary organization (the TAAC) referred to in section 

253(b)(1) of the Trade Act. 

In FY 2012, 145 firms exited the TAAF program after being approved for an AP. 

Nationally, firms receive on average 57 months16 of benefits under the TAAF program. 

When calculating the average duration of benefits regionally, firms received on average 55 

months of benefits under the TAAF program. 

Exhibit 22: Average Duration of Benefits Received – Firms that Completed Program: 

FY 2012 

Firm Number

No. of Months 

Firms Received 

Benefits Under 

TAAF program

GLTAAC-EXT-001 34

GLTAAC-EXT-002 56

GLTAAC-EXT-003 53

GLTAAC-EXT-004 39

MamTAAC-EXT-001 63

MamTAAC-EXT-002 66

MamTAAC-EXT-003 135

MamTAAC-EXT-004 15

 

16 Prior to 2008, firms were allowed in excess of five years to complete projects, resulting in a longer than 

average duration of benefits. Firms have five years from the date of AP approval to complete their projects. 
Page 30 of 54

Firm Number

No. of Months 

Firms Received 

Benefits Under 

TAAF program

MamTAAC-EXT-005 82

MamTAAC-EXT-006 78

MamTAAC-EXT-007 78

MamTAAC-EXT-008 48

MamTAAC-EXT-009 66

MamTAAC-EXT-010 65

MamTAAC-EXT-011 64

MamTAAC-EXT-012 38

MamTAAC-EXT-013 91

MamTAAC-EXT-014 84

MamTAAC-EXT-015 74

MamTAAC-EXT-016 56

MamTAAC-EXT-017 90

MamTAAC-EXT-018 25

MamTAAC-EXT-019 70

MamTAAC-EXT-020 76

MamTAAC-EXT-021 32

MamTAAC-EXT-022 72

MamTAAC-EXT-023 72

MamTAAC-EXT-024 78

MamTAAC-EXT-025 63

MamTAAC-EXT-026 24

MamTAAC-EXT-027 25

MamTAAC-EXT-028 43

MamTAAC-EXT-029 70

MamTAAC-EXT-030 79

MamTAAC-EXT-031 70

MamTAAC-EXT-032 71

MamTAAC-EXT-033 71

MamTAAC-EXT-034 83

MATAAC-EXT-001 23

MATAAC-EXT-002 53

MATAAC-EXT-003 16

MATAAC-EXT-004 53

MATAAC-EXT-005 59

MATAAC-EXT-006 34

MATAAC-EXT-007 46

MATAAC-EXT-008 35

MATAAC-EXT-009 46
Page 31 of 54

Firm Number

No. of Months 

Firms Received 

Benefits Under 

TAAF program

MATAAC-EXT-010 59

MATAAC-EXT-011 41

MATAAC-EXT-012 32

MATAAC-EXT-013 72

MWTAAC-EXT-001 25

MWTAAC-EXT-002 24

MWTAAC-EXT-003 79

MWTAAC-EXT-004 72

MWTAAC-EXT-005 68

MWTAAC-EXT-006 76

MWTAAC-EXT-007 69

MWTAAC-EXT-008 65

MWTAAC-EXT-009 48

MWTAAC-EXT-010 61

MWTAAC-EXT-011 61

MWTAAC-EXT-012 71

MWTAAC-EXT-013 32

MWTAAC-EXT-014 24

MWTAAC-EXT-015 24

MWTAAC-EXT-016 72

NETAAC-EXT-001 19

NETAAC-EXT-002 64

NETAAC-EXT-003 53

NETAAC-EXT-004 23

NETAAC-EXT-005 18

NETAAC-EXT-006 22

NETAAC-EXT-007 14

NETAAC-EXT-008 42

NETAAC-EXT-009 33

NETAAC-EXT-010 70

NETAAC-EXT-011 53

NETAAC-EXT-012 23

NETAAC-EXT-013 26

NETAAC-EXT-014 25

NETAAC-EXT-015 33

NWTAAC-EXT-001 71

NWTAAC-EXT-002 92

NWTAAC-EXT-003 21

NWTAAC-EXT-004 81
Page 32 of 54

Firm Number

No. of Months 

Firms Received 

Benefits Under 

TAAF program

NWTAAC-EXT-005 80

NWTAAC-EXT-006 82

NWTAAC-EXT-007 20

NWTAAC-EXT-008 13

NWTAAC-EXT-009 63

NWTAAC-EXT-010 20

NWTAAC-EXT-011 20

NWTAAC-EXT-012 40

NYSTAAC-EXT-001 43

NYSTAAC-EXT-002 22

NYSTAAC-EXT-003 64

NYSTAAC-EXT-004 49

RMTAAC-EXT-001 51

RMTAAC-EXT-002 81

RMTAAC-EXT-003 84

RMTAAC-EXT-004 81

RMTAAC-EXT-005 60

RMTAAC-EXT-006 69

RMTAAC-EXT-007 67

RMTAAC-EXT-008 36

RMTAAC-EXT-009 72

RMTAAC-EXT-010 36

RMTAAC-EXT-011 29

RMTAAC-EXT-012 79

RMTAAC-EXT-013 30

RMTAAC-EXT-014 77

RMTAAC-EXT-015 46

RMTAAC-EXT-016 78

RMTAAC-EXT-017 75

RMTAAC-EXT-018 49

SETAAC-EXT-001 36

SETAAC-EXT-002 30

SETAAC-EXT-003 45

SETAAC-EXT-004 36

SETAAC-EXT-005 36

SETAAC-EXT-006 53

SETAAC-EXT-007 80

SETAAC-EXT-008 73

SWTAAC-EXT-001 80
Page 33 of 54

Firm Number

No. of Months 

Firms Received 

Benefits Under 

TAAF program

SWTAAC-EXT-002 26

SWTAAC-EXT-003 26

SWTAAC-EXT-004 68

SWTAAC-EXT-005 68

SWTAAC-EXT-006 69

SWTAAC-EXT-007 66

SWTAAC-EXT-008 80

SWTAAC-EXT-009 74

SWTAAC-EXT-010 24

WTAAC-EXT-001 90

WTAAC-EXT-002 122

WTAAC-EXT-003 81

WTAAC-EXT-004 91

WTAAC-EXT-005 116

WTAAC-EXT-006 87

WTAAC-EXT-007 82

WTAAC-EXT-008 127

WTAAC-EXT-009 114

WTAAC-EXT-010 108

WTAAC-EXT-011 109

Total National Average 57

Exhibit 23: Average Duration of Benefits Received – Firms that Completed Program by 

TAAC (Region): FY 2012 

TAAC

Average No. of Months 

Firms Received Benefits 

Great Lakes 46

Mid-America 65

Mid-Atlantic 44

Midwest 54

New England 35

New York State 45

Northwest 50

Rocky Mountain 61

Southeastern 49
Page 34 of 54

TAAC

Average No. of Months 

Firms Received Benefits 

Southwest 58

Western 102

(11) Sales, employment, and productivity at each firm participating in the TAAF 

program at the time of certification. 

In FY 2012, 889 active firms participated in the TAAF program. A firm that has been 

certified for TAAF, and/or has an approved AP, has not completed all projects in their AP, 

and is still engaged in the TAAF program is considered “active.” 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 

is utilized as a standardized measure for assessing productivity across all firms assisted. 

Exhibit 24: Sales, Employment, and Productivity17 at All Firms Participating in the TAAF 

Program in FY 2012 by TAAC and State: 

TAAC/State

Total No. of 

Active Firms 

in FY 2012

Total Sales at 

Certification

Total 

Employment at 

Certification

Total Average 

Productivity

Great Lakes 73 $1,791,172,281 9,760 $183,522

IN 18 $278,004,201 2,253 $123,393

MI 31 $547,706,669 2,254 $242,993

OH 24 $965,461,411 5,253 $183,792

Mid-America 46 $682,877,581 4,951 $137,927

AR 7 $16,401,481 340 $48,240

KS 15 $149,072,277 1,436 $103,811

MO 24 $517,403,823 3,175 $162,962

MidAtlantic 90 $1,049,770,941 6,548 $160,319

MD 3 $5,500,143 47 $117,024

NJ 4 $22,286,404 195 $114,289

PA 80 $1,008,680,988 6,121 $164,790

VA 3 $13,303,406 185 $71,910

Midwest 137 $2,212,081,842 11,961 $184,941

 

17 The total productivity as presented in across TAACs, States and the summary line of Exhibit 24 represents 

the actual total average productivity in FY 2012. This total, derived by calculating the mean horizontally (not 

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

and States. While this figure is provided in the table, it should be noted that calculating total productivity 

vertically introduces additional degrees of error as it represents the average of averages. 
Page 35 of 54

TAAC/State

Total No. of 

Active Firms 

in FY 2012

Total Sales at 

Certification

Total 

Employment at 

Certification

Total Average 

Productivity

IA 5 $120,097,360 519 $231,401

IL 81 $843,583,273 4,887 $172,618

MN 23 $367,933,664 2,512 $146,470

WI 28 $880,467,545 4,043 $217,776

New England 133 $1,011,453,493 6,479 $156,113

CT 19 $135,382,965 926 $146,202

MA 60 $400,041,096 2,574 $155,416

ME 15 $230,970,276 1,177 $196,236

NH 20 $131,043,944 902 $145,282

RI 16 $77,235,126 619 $124,774

VT 3 $36,780,086 281 $130,890

New York State 61 $1,172,727,977 4,823 $243,153

NY 61 $1,172,727,977 4,823 $243,153

Northwest 85 $913,564,319 5,745 $159,019

AK 4 $22,825,992 110 $207,509

ID 11 $62,150,148 688 $90,335

MT 11 $54,667,266 415 $131,728

OR 20 $419,792,240 2,211 $189,865

WA 39 $354,128,673 2,321 $152,576

Rocky Mountain 67 $2,479,134,862 10,068 $246,239

CO 28 $994,105,459 2,956 $336,301

ND 6 $155,904,843 714 $218,354

NE 5 $32,840,837 243 $135,147

NM 4 $40,663,880 290 $140,220

SD 8 $342,138,076 1,246 $274,589

UT 13 $862,552,034 4,302 $200,500

WY 3 $50,929,733 317 $160,662

Southeastern 67 $998,693,863 10,038 $99,491

AL 4 $28,653,300 346 $82,813

FL 6 $18,996,354 191 $99,457

GA 13 $90,265,046 978 $92,296

KY 3 $91,456,507 488 $187,411

MS 1 $2,496,868 21 $118,898

NC 25 $511,427,054 6,607 $77,407

SC 10 $183,496,458 922 $199,020

TN 5 $71,902,276 485 $148,252

Southwest 90 $421,071,529 3,637 $115,774
Page 36 of 54

TAAC/State

Total No. of 

Active Firms 

in FY 2012

Total Sales at 

Certification

Total 

Employment at 

Certification

Total Average 

Productivity

LA 19 $114,522,181 551 $207,844

OK 30 $156,841,533 1,563 $100,346

TX 41 $149,707,815 1,523 $98,298

Western 40 $773,072,997 3,507 $220,437

AZ 3 $92,655,000 400 $231,638

CA 35 $657,349,131 2,981 $220,513

HI 2 $23,068,866 126 $183,086

Total (Nationwide) 889 $13,505,621,685 77,517 $174,22818

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

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

(13) The number of firms in operation as of the date of this report and the number of 

firms that ceased operations after completing the program in each year during the 

two-year period following completion of the program. 

In order to assess the effectiveness of the TAAF program in terms of outputs, EDA assesses 

the extent to which client firms increased 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 2010, as this allows EDA to compare 

these measures looking back both one and two years from the date of this report. 

Firms that completed the TAAF program in FY 2010 reported that, at completion, average 

sales were $10.1 million, average employment was 53 and average sales per employee 

(productivity) was $191,328. One year after completing the program (FY 2011), these same 

firms reported that average sales increased by 11.4 percent, average employment increased 

by 13.2 percent, and average productivity decreased by 1.6 percent. For the sake of 

comparison to the universe of U.S. manufacturers, BLS reported that, in FY 2011, the 

national manufacturing industry in aggregate experienced an average employment increase of 

only 1.9 percent. 

 

18 The total productivity as presented in across TAACs, States and the summary line of Exhibit 24 represents 

the actual total average productivity in FY 2012. This total, derived by calculating the mean horizontally (not 

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

and States. While this figure is provided in the table, it should be noted that calculating total productivity 

vertically introduces additional degrees of error as it represents the average of averages 
Page 37 of 54

Two years after completing the program (FY 2012), these same firms reported that average 

sales increased by 26.8 percent, average employment increased by 13.2 percent, and average 

productivity19 increased by 11.9 percent. Meanwhile, BLS reported that the manufacturing 

industry in FY 2012 experienced an average employment increase of 3.5 percent and an 

average productivity increase of 4.1 percent from FY 2010. Therefore, firms assisted by the 

TAAF program performed more successfully than the manufacturing industry as a whole. 

Additionally, all firms that completed the TAAF program in FY 2010 were in operation as of 

the end of FY 2012, indicating strong “survival rates” for TAAF-assisted firms. It should be 

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

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

making the success of TAAF-assisted firms even more notable. 

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. 

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

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

Completion 

(FY 2010)

1st Year 

Following 

Completion 

(FY 2011)

2nd Year 

Following 

Completion 

(FY 2012)

% Change 

1st Year 

% Change 

2nd Year

Average 

Sales $10,140,385 $11,300,792 $12,855,193 11.4% 26.8%

Average 

Employment 53 60 60 13.2% 13.2%

Average 

Productivity $191,328 $188,347 $214,253 (1.6%) 11.9%

 

 

19 BLS’ productivity measures relate output to the labor hours used in the production of that output. 
Page 38 of 54

Exhibit 26: Sales, Employment, and Productivity at Each Firm upon Completion of the 

Program and two-year Period Following Completion. 

Firm ID 

Average 

Sales at 

Completion 

(FY 2010) 

Average 

Sales 

1st Yr. 

Following 

Completion 

(FY 2011) 

Average 

Sales 

2nd Yr. 

Following 

Completion 

(FY 2012) 

Average 

Employment 

at 

Completion 

(FY 2010) 

Average 

Employment 

1st Yr. 

Following 

Completion 

(FY 2011) 

Average 

Employment 

2nd Yr. 

Following 

Completion 

(FY 2012) 

Average 

Productivity 

at 

Completion 

(FY 2010) 

Average 

Productivity

1st Yr. 

Following 

Completion 

(FY 2011) 

Average 

Productivity 

2nd Yr. 

Following 

Completion 

(FY 2012) 

GLTAACCMP-001 $23,000,000 $40,200,000 $70,000,000 108 103 125 $212,963 $390,291 $560,000 

GLTAACCMP-002 $33,291,000 $35,000,000 $46,200,000 118 115 120 $282,127 $304,348 $385,000 

GLTAACCMP-003 $33,000,000 $38,000,000 $36,000,000 185 330 370 $178,378 $115,152 $97,297 

MamTAAC

-CMP-002 $30,421,806 $35,697,560 $28,980,224 145 161 139 $209,806 $221,724 $208,491 

MamTAAC

-CMP-006 $9,969,765 $8,969,168 $6,632,938 64 69 58 $155,778 $129,988 $114,361 

MamTAAC

-CMP-007 $5,849,007 $4,778,810 $5,394,320 28 18 15 $208,893 $265,489 $359,621 

MamTAAC

-CMP-010 $1,900,000 $2,533,745 $3,500,000 18 22 26 $105,556 $115,170 $134,615 

MamTAAC

-CMP-013 $1,261,088 $2,084,480 $2,875,000 14 17 17 $90,078 $122,616 $169,118 

MamTAAC

-CMP-014 $2,202,559 $2,635,713 $2,635,713 19 21 21 $115,924 $125,510 $125,510 

MamTAAC

-CMP-016 $10,613,000 $10,980,000 $8,825,000 38 43 43 $279,289 $255,349 $205,233 

MamTAAC

-CMP-018 $7,570,000 $8,456,000 $9,000,000 30 33 33 $252,333 $256,242 $272,727 

MamTAAC

-CMP-021 $4,412,568 $6,984,385 $939,327 19 32 20 $232,240 $218,262 $46,966 

MamTAAC

-CMP-023 $6,414,455 $5,697,336 $5,027,557 89 69 59 $72,073 $82,570 $85,213 

MamTAAC

-CMP-025 $8,694,000 $5,630,530 $6,331,934 45 40 45 $193,200 $140,763 $140,710 

MWTAAC

-CMP-001 $14,603,721 $14,600,000 $17,800,000 124 125 130 $117,772 $116,800 $136,923 

MWTAAC

-CMP-006 $18,585,466 $21,900,000 $21,900,000 80 90 90 $232,318 $243,333 $243,333 

NWTAACCMP-001 $2,100,000 $3,085,000 $3,000,000 22 15 14 $95,455 $205,667 $214,286 

NWTAACCMP-002 $13,000 $6,000 $10,000 1 1 1 $13,000 $6,000 $10,000 

NWTAACCMP-003 $55,571,000 $64,167,000 $66,000,000 163 188 180 $340,926 $341,314 $366,667 

NWTAACCMP-004 $3,500,000 $2,680,000 $8,000,000 28 18 22 $125,000 $148,889 $363,636 

NWTAACCMP-005 $680,000 $440,000 $450,000 12 10 10 $56,667 $44,000 $45,000 

NWTAACCMP-006 $8,000,000 $13,000,000 $15,000,000 65 125 100 $123,077 $104,000 $150,000 

NWTAACCMP-007 $14,000,000 $10,000,000 $25,000,000 45 55 65 $311,111 $181,818 $384,615 

NWTAACCMP-008 $1,730,000 $1,975,000 $2,400,000 35 30 28 $49,429 $65,833 $85,714 

NWTAACCMP-010 $1,900,000 $2,100,000 $2,200,000 5 7 12 $380,000 $300,000 $183,333 

NYSTAAC

-CMP-001 $4,000,000 $4,100,000 $4,400,000 30 25 25 $133,333 $164,000 $176,000 

NYSTAAC

-CMP-002 $2,100,000 $2,100,000 $2,500,000 25 25 27 $84,000 $84,000 $92,593 

NYSTAAC

-CMP-003 $990,000 $950,000 $900,000 2 2 2 $495,000 $475,000 $450,000 

NYSTAAC

-CMP-004 $12,100,000 $12,200,000 $13,200,000 79 78 80 $153,165 $156,410 $165,000 
Page 39 of 54

Firm ID 

Average 

Sales at 

Completion 

(FY 2010) 

Average 

Sales 

1st Yr. 

Following 

Completion 

(FY 2011) 

Average 

Sales 

2nd Yr. 

Following 

Completion 

(FY 2012) 

Average 

Employment 

at 

Completion 

(FY 2010) 

Average 

Employment 

1st Yr. 

Following 

Completion 

(FY 2011) 

Average 

Employment 

2nd Yr. 

Following 

Completion 

(FY 2012) 

Average 

Productivity 

at 

Completion 

(FY 2010) 

Average 

Productivity

1st Yr. 

Following 

Completion 

(FY 2011) 

Average 

Productivity 

2nd Yr. 

Following 

Completion 

(FY 2012) 

NYSTAAC

-CMP-005 $535,000 $500,000 $490,000 4 4 4 $133,750 $125,000 $122,500 

NYSTAAC

-CMP-006 $4,900,000 $5,600,000 $5,700,000 31 34 34 $158,065 $164,706 $167,647 

NYSTAAC

-CMP-007 $3,100,000 $3,600,000 $3,750,000 21 25 25 $147,619 $144,000 $150,000 

NYSTAAC

-CMP-008 $7,800,000 $7,700,000 $7,900,000 65 64 65 $120,000 $120,313 $121,538 

NYSTAAC

-CMP-009 $36,000,000 $34,000,000 $36,500,000 151 157 160 $238,411 $216,561 $228,125 

RMTAACCMP-001 $123,000 $138,000 $130,000 2 6 5 $61,500 $23,000 $26,000 

RMTAACCMP-002 $1,547,913 $2,500,722 $2,718,122 19 23 21 $81,469 $108,727 $129,434 

RMTAACCMP-003 $2,715,885 $3,139,869 $3,352,000 42 42 37 $64,664 $74,759 $90,595 

Total 

Average $10,140,385 $11,300,792 $12,855,193 53 60 60 $191,328 $188,347 $214,253 

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

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

In FY 2012, firms received $9.8 million in technical assistance provided by the TAACs to 

prepare petitions and to develop and implement APs (often through business consultants and 

other experts). Firms participating in the program contributed $6.3 million towards the 

development and implementation of APs. Funds are not provided directly to firms; instead, 

EDA funds the TAACs and TAACs pay a proportion of the cost to secure specialized 

business consultants. 

Exhibit 27: Summary of TAAF program Financial Assistance to Firms by TAAC: 

FY 2012 

TAAC

Total TAAC 

Assistance to 

Firms20

Financial 

Contribution by 

the Firms

Great Lakes $758,929 $419,220

Mid-America $716,771 $485,977

MidAtlantic $814,574 $965,378

Midwest $1,145,974 $827,579

New England $1,346,314 $1,199,216

New York State $576,326 $418,940

Northwest $1,017,666 $329,151

Rocky Mountain $1,155,771 $599,855

 

20 This does not include the amount expended by the TAACs for outreach to potential new firms. 
Page 40 of 54

TAAC

Total TAAC 

Assistance to 

Firms20

Financial 

Contribution by 

the Firms

Southeastern $668,721 $363,352

Southwest $814,909 $527,712

Western $750,420 $190,648

Total $9,766,375 $6,327,028

(16) The types of technical assistance included in the business recovery plans of firms 

participating in the program. 

In FY 2012, firms proposed various types of projects in their APs. 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 APs. Sample projects are listed below in Exhibit 28. 

Exhibit 28: Characteristics of Technical Assistance in APs: FY 2012 

Project 

Classification Sample Types of Projects

Number of 

AP Projects21

AP Project 

Costs

Financial

 Accounting systems upgrade

 Cost control tracking system

 Automatic Data Processing 

development 10 $216,000

Management

 Strategic business planning

 Succession management

 Management development 30 $549,166

Marketing/Sales

 Sales process training

 Market expansion and feasibility

 Web site design and upgrade 103 $3,984,800

Production

 Lean manufacturing and certification

 New product development

 Production and warehouse 

automation 93 $3,490,944

Support Systems

 Enterprise Resource Planning

 Management Information Systems 

upgrades

 Computer Aided Design software

 Supply chain management software 65 $2,230,000

 

21 A firm may have up to five projects in an approval AP. 
Page 41 of 54

Exhibit 29: APs by Project Classification: FY 2012 

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

projects in their business recovery plans and the reason the project or projects 

were not completed. 

In FY 2012, of the 145 firms that left the TAAF program, 84 completed the program, 34 did 

not complete approved projects in the time allotted, and the remaining 27 firms left for the 

reasons listed below in Exhibit 30. 

Exhibit 30: Summary of Firms Leaving the TAAF program: FY 2012 

Reason for Leaving Program Number of Firms

Bankruptcy Filing 1

Completed TAAF Program 84

Expired without completing all projects within 5 

year limit 34

Firm failed to submit AP within 2 years of TAAF 

certification 12

Firm opted out of program 2

Merger/Acquisition 4

Out of business 3

Owner deceased 2

Sold Company 3

Total 145
Page 42 of 54

(18) The total amount expended by all intermediary organizations referred to in 

Section 253(b)(1) and by each organization to administer the program. 

On May 11, 2012, the Department of Commerce Office of Inspector General (OIG) 

presented EDA with a copy of their letter to the House and Senate Committees on 

Appropriations reporting their findings related to an examination of the TAAC administrative 

costs22. As part of their review, OIG obtained expenditure data from a sample of three 

TAACs – Western, New England, and New York State – focusing on the use of Federal 

funds provided by EDA. The OIG reported that it “did not determine that the level of 

administrative costs of the three TAACs to be unreasonable.”

Indirect Costs, referred to as facilities and administrative (F&A) costs, include space rent and 

utilities, telephone, postage, printing, and other administrative costs. University-affiliated 

TAACs have indirect cost rate (ICR) agreements that cannot exceed the current rate 

negotiated with their cognizant Federal agency (non EDA/DOC). These costs are captured 

on the indirect cost line item on the Application for Federal Assistance, SF-424 (Form SF424). Non-profit TAACs do not have ICR agreements; instead, they categorize similar 

expenditures in their “Other” line item of their Form SF-424. 

 

 

22 The information was requested in the House Committee Report that accompanied the FY 2012 Commerce, 

Justice, Science, and Related Agencies Appropriations bill. 
Page 43 of 54

Exhibit 31: Summary of Expenditures by TAAC Across Budget Categories: FY 2012 

TAAC

Personnel 

(including 

Fringe 

Benefits)

Contracts 

(Federal 

Share) Travel

Equipment 

and 

Supplies Other

Indirect 

Costs

Total TAAC 

Expenditures

Great Lakes $494,254 $446,104 $13,917 $8,930 $23,443 $290,016 $1,276,664 

Mid-America $392,136 $675,089 $12,185 $3,633 $59,348 $182,691 $1,325,082 

MidAtlantic $447,535 $954,290 $15,159 $13,974 $165,296 $0 $1,596,254 

Midwest $670,495 $922,242 $15,324 $11,881 $136,206 $0 $1,756,148 

New England $306,895 $1,240,469 $8,549 $5,751 $68,204 $0 $1,629,868 

New York State $362,200 $498,078 $5,273 $5,801 $38,799 $89,208 $999,359 

Northwest $505,667 $461,216 $10,093 $4,225 $171,308 $0 $1,152,509 

Rocky Mountain $613,983 $636,074 $9,451 $12,451 $87,149 $167,761 $1,526,869 

Southeastern $404,191 $408,435 $9,163 $18,078 $0 $273,047 $1,112,914 

Southwest $625,264 $547,003 $54,541 $9,474 $14,211 $142,657 $1,393,150 

Western $489,782 $210,213 $15,826 $2,483 $24,388 $297,758 $1,040,450 

Total $5,312,402 $6,999,213 $169,481 $96,681 $788,352 $1,443,138 $14,809,267 

(19) The total amount expended by intermediary organizations to provide technical 

assistance to firms under the program nationally and in each region served by 

such an organization 

In FY 2012, TAACs expended $10.7 million in technical assistance provided to the firms in 

outreach to firms, to prepare petitions, and to develop and implement APs (often through 

business consultants and other experts). 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 32: Summary of Expenditures - Technical Assistance to Firms by TAAC: FY 2012 

TAAC

TAAC 

Expenditure - 

Outreach

TAAC 

Expenditures - 

Petitions

TAAC 

Expenditures - 

APs

Total TAAC 

Expenditures

Great Lakes $253,229 $316,479 $442,450 $1,012,158

Mid-America $14,464 $53,341 $663,430 $731,235

MidAtlantic $66,708 $224,330 $590,244 $881,282

Midwest $121,482 $223,733 $922,242 $1,267,457

New England $5,673 $93,970 $1,252,344 $1,351,987

New York State $25,943 $148,602 $427,724 $602,269
Page 44 of 54

TAAC

TAAC 

Expenditure - 

Outreach

TAAC 

Expenditures - 

Petitions

TAAC 

Expenditures - 

APs

Total TAAC 

Expenditures

Northwest $73,144 $556,450 $461,216 $1,090,810

Rocky Mountain $64,425 $519,697 $636,074 $1,220,196

Southeastern $103,687 $269,145 $399,576 $772,408

Southwest $57,672 $268,580 $546,329 $872,581

Western $152,638 $354,559 $395,861 $903,058

Total $939,065 $3,028,886 $6,737,490 $10,705,441

 
Page 45 of 54

Conclusion 

Through TAAF program, EDA effectively assisted many small and medium-sized firms in 

becoming more competitive and successful in the global economy. EDA considers the most 

significant finding in this report to be that following completion of assistance from EDA’s 

TAAF program, firms reported that, on average, sales increased by 26.8 percent, employment 

increased by 13.2 percent, and productivity increased by 11.9 percent. 

The TAAF program effectively assisted small and medium-sized firms in FY 2012. TAACs 

provided technical assistance to 341 firms in preparing petitions, 206 firms in preparing APs, 

and 935 firms in implementing projects for an approved AP. Meanwhile, EDA certified 79 

petitions and approved 102 APs. As of the end of FY 2012 (September 30, 2012), there are 

889 active23 firms participating in the TAAF program. 

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 APs, as 

required in the TGAAA. In FY 2012, the average processing time for petitions was 29 

business days, and the average processing time for APs was 21 business days. 

Firms that completed the TAAF program in FY 2010 report that average sales were $10.1 

million, average employment was 53, and average sales per employee (productivity) was 

$191,328. One year after completing the program (FY 2011), these same firms reported that 

average sales increased by 11.4 percent, average employment increased by 13.2 percent, and 

average productivity decreased by 1.6 percent. For the sake of comparison to the universe of 

U.S. manufacturers, the U.S. Bureau of Labor Statistics (BLS) reported that, in FY 2011, the 

national manufacturing industry in aggregate experienced an average employment increase of 

only 1.9 percent meaning that firms who complete the program are more successful than 

firms generally. 

Two years after completing the program (FY 2012), these same firms reported that average 

sales increased by 26.8 percent, average employment increased by 13.2 percent, and average 

productivity increased by 11.9 percent. Meanwhile, BLS reported that the manufacturing 

industry in FY 2012 experienced an average employment increase of 3.5 percent and average 

productivity increase of 4.1 percent from FY 2010. Therefore, firms assisted by the TAAF 

program performed more successfully than the manufacturing industry as a whole. 

Additionally, all firms that completed the TAAF program in FY 2010 were in operation as of 

the end of FY 2012, indicating strong “survival rates” for TAAF-assisted firms. It should be 

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

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

making the success of TAAF-assisted firms even more notable. 

On May 11, 2012, the Department of Commerce Office of Inspector General (OIG) 

presented EDA with a copy of their letter to the House and Senate Committees on 

 

23 A firm that has been certified for TAAF, and/or has an approved Adjustment Proposal, has not completed all 

projects in their AP, and is still engaged in the TAAF program is considered “active.” 
Page 46 of 54

Appropriations reporting their findings related to an examination of the TAAC administrative 

costs24. As part of their review, OIG obtained expenditure data from a sample of three 

TAACs – Western, New England, and New York State – focusing on the use of Federal 

funds provided by EDA. The OIG reported that it “did not determine that the level of 

administrative costs of the three TAACs to be unreasonable.”

On September 13, 2012, the U.S. Government Accountability Office (GAO) published the 

report, Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and 

Services Firms, but Measures, Data, and Funding Formula Could Improve (GAO-12-930). 

The GAO report documented the results of their independent analysis, which included strong 

evidence demonstrating the effectiveness of the TAAF program. GAO’s key finding was 

that for firms receiving assistance between FY 2008 and FY 2011, “the effect of participation 

in the program was an increase in firm sales ranging from 5 to 6 percent on average,” and 

that “the effect of the program on productivity was about a 4 percent increase.” As part of 

this study, GAO contacted 163 firms who had been involved with the TAAF program, and 

received responses from 117. As noted in the report, nearly all of the responding firms 

reported they were generally or very satisfied with the program. Manufacturing firms, 

specifically, reported that the program was associated with increased sales and productivity. 

Notably, an impressive 73 percent of the firms reported the program helped them with 

profitability, 71 percent said it helped them retain employees, and 57 percent reported that 

the program helped them hire new employees. 

EDA is currently implementing a performance measurement improvement process for all its 

programs, including TAAF, which began in late 2011 and consists of two phases: planning 

and development, and implementation. The one-year planning and development stage is 

expected to be completed in FY 2013. The first phase includes the following activities: 

researching and identifying improved metrics and indicators, testing the metrics and 

indicators across the full portfolio of EDA investments, and developing a work plan for 

implementing measures that are adopted. To assist with this effort, EDA has partnered with 

the University of North Carolina and George Washington University to develop draft 

performance measures utilizing state-of-the-art performance measurement and program 

evaluation techniques. 

The subsequent implementation phase of the performance measurement improvement 

process will include the following activities: obtaining Office of Management and Budget 

approval of data collection forms, developing a database to store collected data, updating 

programmatic guidance and regulations, and examining the allocation formula used to 

distribute program funds to the TAACs in collaboration with both TAACs and Congressional 

stakeholders. The entire process is expected to be completed by the end of 2014. 

The performance measurement improvement process will help EDA be even a stronger 

partner to its clients and grantees. Through more effective program management and 

performance assessment, EDA will be in a better position to achieve the desired results for 

each of its programs. 

 

24 The information was requested in the House Committee Report that accompanied the FY 2012 Commerce, 

Justice, Science, and Related Agencies Appropriations bill. 
Page 47 of 54

Supplement 

TAAF Program Benefits to Manufacturing Firms 

On September 13, 2012, the U.S. Government Accountability Office (GAO) published the 

report, Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and 

Services Firms, but Measures, Data, and Funding Formula Could Improve (GAO-12-930). 

The GAO report documented the results of their independent analysis, which included strong 

evidence demonstrating the effectiveness of the TAAF program. GAO’s key finding was 

that for firms receiving assistance between FY 2008 and FY 2011, “the effect of participation 

in the program was an increase in firm sales ranging from 5 to 6 percent on average,” and 

that “the effect of the program on productivity was about a 4 percent increase.” As part of 

this study, GAO contacted 163 firms who had been involved with the TAAF program, and 

received responses from 117. As noted in the report, nearly all of the responding firms 

reported they were generally or very satisfied with the program. Manufacturing firms, 

specifically, reported that the program was associated with increased sales and productivity. 

Notably, an impressive 73 percent of the firms reported the program helped them with 

profitability, 71 percent said it helped them retain employees, and 57 percent reported that 

the program helped them hire new employees. 

Examples of TAAF Assistance: 

Great Lakes Trade Adjustment Assistance Center (GLTAAC) 

This Michigan firm manufactures self-adhesive strip and sheet products for the automotive 

industry. The firm lost 38 percent of its sales in 2009 as demand disappeared and customers 

frantically switched to low cost foreign suppliers. It entered the TAAF program in 2010. 

The firm needed to improve its productivity and streamline its business processes. To 

accomplish this, replacing the firm’s antiquated Enterprise Resource Planning (ERP) system 

was paramount. After much research, the firm licensed a new system and used TAAF 

assistance to train the workforce in its use. The new ERP went live in January 2011, and the 

impact was immediate. Not only has it cut hardware costs and annual fees by 50 percent, it 

has also greatly reduced data input and handling time. The firm has been able to go virtually 

paperless, as documents are seamlessly handled and hardcopies are rarely required. Further, 

the new system is connected to its automotive forecasting service so that high-level sales 

forecasts are made automatically as customers release their model plans. Results of this ERP 

implementation have been truly transformative for the firm, resulting in “fabulous” 

performance, according to the firm’s CFO. As a result of this project and much hard work by 

the firm, it has been able to rehire many of the workers that were laid off in 2009. Though 

not yet fully recovered, the firm has now increased employment by 40 percent since entering 

the TAAF program. The firm currently employs about 90 workers and generates over $20 

million in sales. The firm just started another worker training project via the program. 

 
Page 48 of 54

An Ohio packaging firm was hit hard by rising import competition from China and other East 

Asian countries. Its customers were increasingly looking to cut costs by sourcing their 

packaging from abroad. This forced serious production cuts at the firm, which ultimately 

necessitated employee layoffs. The firm entered the TAAF program in early 2008. Its 

Adjustment Plan was approved in June of that year and included a wide range of needed 

improvements. The firm’s first projects included a detailed evaluation and restructuring of its 

sales team, as well as the development of much needed marketing materials. Improvements to 

its costing and quoting system were next, followed by a revamping of its website. The firm’s 

most recent TAAF project, completed in June 2012, was part of a major lean manufacturing 

initiative. Following classroom training financed in part by the State of Ohio, the TAAF 

program helped provide on-site employee training and hands-on coaching to jumpstart the 

firm’s productivity improvement efforts. This “last mile” project – the customized on-site lean 

training – had a huge impact on the overall success of the effort. The firm has made great 

progress to date – sales have rebounded significantly (up 50 percent from their low), and 

productivity is much improved. However, considerable work remains to be done. The firm is 

about to begin a project that will dramatically strengthen its finance function. By the time this 

firm completes the program, it will be positioned to thrive, not just survive. 

Mid-America Trade Adjustment Assistance Center (MamTAAC) 

A Missouri fabric-based products manufacturer has been receiving technical assistance 

funded by the TAAF program since December 2010. The first project included a 

comprehensive review of their pay scale compared with market salaries and wages. The 

intent of this project included addressing personnel issues and forming a strong cohesive 

team to bring the business out of the recession. The next project involved employee training 

in the use of their Computer Aided Design software, which supported high investment 

equipment that enabled them to keep work in-house and support additional employees to be 

added. A portion of the TAAF assistance enabled the firm to implement an International 

Organization for Standardization (ISO) compliant quality system and to subsequently 

become certified to ISO 9001:2008. The ISO certification has enabled the firm to increase 

sales to a major defense contractor by over 50 percent. This sales increase and business from 

new market segments have necessitated increasing employees by 15 percent. With the help 

of MamTAAC and TAAF-funded technical assistance, the firm has been able to build a 

manufacturing organization that can continue to effectively compete and grow. 

A Missouri wood products manufacturer has been enrolled in the program since 2004. In 

2004, the firm had 16 employees and average revenue of $3 million and faced fierce 

competition with Chinese imports. TAAF funding allowed the firm to upgrade its 

management information systems, upgrade their ERP system, and purchase a production 

module to help with manufacturing data capture and tracking. Later, with technical 

assistance from MamTAAC, the firm leveraged TAAF program funds to provide human 

resources, employee, and executive training, which in addition to educating the firm’s 

leadership on sound business practices, allowed the owner to take actual business problems 

that were especially related to growth to a group of business owner peers for feedback. 

Today the firm has 36 employees with 6 more slated to be added in 2012, and revenues are 

projected to be above $8 million. The firm expects that by 2015, revenue will increase to 

$14 million and employment to 60. 
Page 49 of 54

MidAtlantic Trade Adjustment Assistance Center (MATAAC) 

A Pennsylvania maker of pressure control devices for the fluid power and chemical 

industries was in its third year of declining sales, profits, and employment when awarded 

TAAF-funded technical assistance in 2008. Sales had fallen by 37 percent, profits had 

declined 67 percent and 8 percent of the employees were laid off as a direct result of imports. 

The company implemented projects in strategic planning, lean manufacturing, marketing 

communications, and six sigma. Since program entry, sales have improved by more than 20 

percent, jobs have grown by 12 percent, earnings have increased 42 percent, productivity has 

increased 7.5 percent, and return on human capital has grown 26.9 percent. As a direct 

consequence of this success, a world leader in the American fluid power industry acquired 

the firm in October 2012. 

A Pennsylvania manufacturer of industrial wear products for the construction and material 

handling industries had suffered a 25 percent drop in sales, an 83 percent reduction in 

earnings, an 81 percent decline in productivity and 13 percent of its employees had been 

separated – all over a 24-month period. A flood of imports impacted virtually all of the 

company’s products. Management recognized that its product line had been commoditized 

and that it could no longer compete on price alone. With projects addressing new product 

development, e-commerce and systems technology, the firm began to add value through 

superior design, cost mastery, and marketing. The firm was awarded TAAF-funded technical 

assistance in 2011. Since program entry, sales have grown by more than 50 percent, earnings 

have improved five-fold, productivity has increased more than 12 percent, jobs have grown 

36 percent, and the return on the firm’s human capital has more than tripled. 

Midwest Trade Adjustment Assistance Center (MWTAAC) 

A Wisconsin manufacturer of custom solenoids was experiencing tough competition from 

Asian importers in the automotive, recreational vehicle, motorcycle, and industrial 

application markets. Several key customers moved their purchases to overseas providers 

with cheaper prices, resulting in a 21 percent decline in sales, forcing the firm to lay off 

workers. The firm was certified for TAAF in June 2010. The firm was able to enhance 

marketing tools with two projects in late 2010 that helped attract new domestic and 

international customers. In addition, the firm was able to cost-share export development 

assistance early in 2012, including research and marketing material translation. As a result of 

assistance from MWTAAC and TAAF-funded technical assistance, the manufacturer’s 

exports have grown dramatically and both sales and employment have increased over 90 

percent in less than two years. 

A Minnesota manufacturer of commercial and residential air filtration systems received 

TAAF-funded technical assistance between 2008 and 2011 for export-related quality 

certifications, testing and marketing material translation. In addition, TAAF program 

technical assistance provided Management Information System (MIS) enhancement and 

training which has allowed the company to manage the expansion and control costs. In the 

most recent year, the manufacturer has identified $77,659 of new export sales directly 

attributable solely to TAAF assistance. 
Page 50 of 54

New England Trade Adjustment Assistance Center (NETAAC) 

A Connecticut metal finishing firm, the largest full-service metal finisher in the Northeast, 

experienced a significant decline in sales due to increased foreign competition and a 

shrinking domestic market. In 2010, the firm was certified for TAAF and with the assistance 

of NETAAC, prepared an AP to fund projects such as leadership training, a new website, 

upgraded marketing materials, establish lean manufacturing, and NADCAP, a critical 

certification that could potentially open many new markets for the firm. After merging with 

another local Connecticut firm, they are now able to service a much larger market providing 

full-service metal finishing services. As a result of TAAF-funded technical assistance, the 

firm has become stronger and more competitive, increasing sales by 20 percent and adding 

20 more jobs. 

A Rhode Island full-service contract manufacturer serving a diverse group of customers 

including electronic manufacturers of medical instrumentation, military electronics, 

oceanographic instruments, and commercial products was adversely affected by a 

combination of growing foreign market competition and the global recession. In 2010, the 

firm was certified for TAAF and, with the assistance of NETAAC, prepared a business 

recovery plan (AP) to fund projects such as development of a strategic business plan, 

marketing and sales plan, MIS upgrades, and process improvement program. Within one 

year of TAAF-funded technical assistance, the firm has realized a 10 percent increase in 

employment and a 15 percent increase in sales. After successful realization of Lean 

Manufacturing and sales and marketing projects, the firm was able to capture new orders, 

increased the need for continuous improvement, and was able to lower cost of production by 

further streamlining their processes. The firm is now focusing on re-shoring efforts and 

committed to bringing jobs back to America. 

New York State Trade Adjustment Assistance Center (NYSTAAC) 

A New York manufacturer of precision optical fabrication machines and systems was 

suffering from the adverse effects of foreign competition from Germany. The combination 

of the foreign competition, coupled with the recent downturn in the economy, significantly 

reduced the firm’s sales revenues. The firm needed to react to the continual loss of market 

share to foreign competition and did not have a formal strategic-based sales and marketing 

plan in place nor did it have the internal expertise to develop one. In order to effectively 

recover from the adverse effects of foreign competition, the firm sought technical assistance 

from NYSTAAC. At the time of TAAF certification, the firm had 35 full-time employees 

and annual sales of approximately $6 million. In order to stop the decline in sales and 

employment levels, the firm with assistance from NYSTAAC and TAAF-funded technical 

assistance, developed a business recovery plan (AP) that included a formal sales and 

marketing plan. In following the plan, the firm was able to achieve 85 percent growth in 

sales revenue to an annual rate of $12 million. This in turn has resulted in the firm adding 17 

new employees since the implementation of the plan. An additional major outcome of the 

planning process was the recent expansion of the firm's manufacturing facility to 

accommodate new business. 

A New York manufacturer of clipboards sought technical assistance from NYSTAAC to 

develop a business recovery plan (AP) to address inefficiencies with an outdated 
Page 51 of 54

Management Information System (MIS) and production software, which when improved, 

would reduce deficits and increase productivity, resulting in higher output and increased 

sales. Since the firm was certified for TAAF in 2008, their sales have increased 

approximately $3.4 million and they have been able to maintain the same employment level. 

Northwest Trade Adjustment Assistance Center (NWTAAC) 

A Montana manufacturer of high performance laser diode and fiber optic control, test and 

measurement products used in research laboratories, telecommunication, and photonic 

production facilities received TAAF certification in 2005 based on a 74 percent increase in 

imports of these devices from China and Japan. Implementation of TAAF-funded projects 

such as extensive CE product testing, lean manufacturing and training, and sales market 

analysis and development over a 5 year period have resulted in firm product expansion into 

European markets, and increased penetration into China, Japan, and Korea. As a result of 

NWTAAC assistance and TAAF-funded technical assistance, as of the end of 2011, 

employment has stabilized and sales have increased 48 percent since certification, with 

export sales now comprising 50 percent of total sales, a 22 percent increase since entering the 

program. 

An Idaho light duty manufacturer of sheet metal and plastic ventilation and roofing 

components was certified for TAAF in 2010 based on a 20 percent decline in sales resulting 

from increased imports from China, Canada, and Mexico. TAAF-funded technical assistance 

projects thus far have included website redesign and a two‐phased search engine optimization 

project. As a result of these projects the firm has gone from zero exports and internet orders 

to over 300 new orders per month to customers all over the U.S. and Canada with about 75 

percent of the orders coming from repeat customers. This increase in sales of $400,000 from 

two years ago provides better profit margins with 10-to‐15 percent of the sales going to 

Canada. The firm has also increased employment by about 2.5 full time employees and is 

about to add another just for parcel packaging for the internet orders. As an added benefit, 

this new nationwide customer base gives this firm a better idea of what people want, and 

these sales are much more profitable than their wholesale business. 

Rocky Mountain Trade Adjustment Assistance Center (RMTAAC) 

Faced with intense foreign competition and an increasingly competitive market, a Utah 

manufacturer of plastic folding tables and chairs contacted RMTAAC in 2010 for assistance 

to improve the firm’s competitive position. RMTAAC conducted a thorough business 

assessment and competitive analysis to identify strategic areas for improvement to build a 

more solid foundation for future growth. The firm was awarded technical assistance through 

the TAAF program to target cost reductions in its manufacturing processes. The firm has 

been able to utilize TAAF-funded technical assistance to shift its efforts to a firm-wide lean 

manufacturing initiative. The firm implemented lean manufacturing to reduce wasteful or 

non-value added activities in the manufacturing process. The firm has seen a 25 percent 

reduction in inventory carrying costs since applying lean manufacturing principles. In 

addition, the firm’s sales are up 27 percent since entering the TAAF program two years ago. 

A South Dakota manufacturer of industrial cleaning machinery had noted increased 

competition from foreign countries. Over the last decade, consolidation has been a 
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significant trend in the industrial machinery industry. As larger multi-national conglomerates 

have gained scale in their operations through acquisitions, the competitive challenges 

continue to mount for smaller manufacturers in the industry. The firm contacted RMTAAC 

in 2010 for assistance with TAAF certification. Upon certification, RMTAAC worked with 

the firm to develop a customized business recovery plan (AP) focused on implementing 

strategic improvements to strengthen the firm's competitiveness in the global marketplace. 

Between July 2011 and December 2011, the firm developed a customized sales and 

marketing program. To date, the firm’s sales have increased 18.8 percent from the previous 

year, and the quote-to-order conversion rate has increased 7 percent. As a result of TAAFfunded technical assistance, the firm’s sales are at a 72-year high. 

Southeastern Trade Adjustment Assistance Center (SETAAC) 

After losing sales to a major customer in 2000, a Georgia manufacturing firm ended an era of 

selling a complete textile machine to a U.S. customer. The impact of low-cost textile imports 

from China and Mexico was devastating the firm’s domestic customers. In 2006, as sales 

and employment continued to decline, the firm turned to the TAAF program for help. The 

SETAAC team developed a customized business recovery plan (AP) which focused on 

planning and implementing strategic improvements to strengthen the firm’s competitiveness 

in the global marketplace. With TAAF-funded technical assistance, the firm received 

certification from the Historically Underutilized Business Zone (HUBZone) program, which 

helps small businesses in urban and rural communities gain access to Federal procurement 

opportunities. The firm also redesigned its website and other marketing materials in order to 

appeal to a broader client base. The work paid off, as the firm now provides an ammunition 

testing system for the Air Force. As a result of TAAF-funded technical assistance, the firm 

has increased employment by 37 percent and revenue by 10 percent. At the end of the first 

quarter of 2012, the firm was on track for a 25 percent increase in revenue over 2011. 

Based in South Carolina, a producer of screens for rotary screen textile printing experienced 

a 22 percent loss in sales from 2008 to 2009 as a result of Chinese competitors. To address 

the issue of foreign competition, the firm applied for and was certified for TAAF in 2009. 

The SETAAC team outlined key projects to help the firm increase its competitive edge. 

With consultants from the South Carolina Manufacturing Extension Partnership (SCMEP), 

the firm was able to transition from textile-based screen engraving to digital printing of 

designs directly to fabric by using a new brand. Projects performed by the SCMEP included 

website redesign, organic search engine optimization, lead generation and pay-per-click 

advertising. This outreach lead the firm to an opportunity with a large promotional and 

graphic communications firm with over 750 member locations in the U.S. and Canada. Since 

the initiation of this project, annual sales have steadily increased by over $220,000. May 

2012 saw a 50 percent sales increase, and June 2012 as the highest sales month in four years. 

In addition to increasing sales, the firm has also added three additional employees. 

 
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Southwest Trade Adjustment Assistance Center (SWTAAC) 

A Texas manufacturer of uniforms, industrial safety, and rehabilitation equipment was 

certified for TAAF in 2008. The firm had experienced a 21 percent decline in sales and 31 

percent decline in employment since the previous year. The foreign impact was traced to 

imports from China, Bangladesh, Indonesia, Mexico and the Caribbean basin countries. The 

firm received EDA approval of an AP focusing on technical assistance in the areas of 

strategic marketing, Enterprise Resource Planning (ERP) implementation, and lean 

manufacturing techniques. To date, the firm has worked on four marketing projects, which 

included photography of their products, a complete redesign of their marketing materials 

such as catalogs, brochures, and press packages, along with product imaging improvements 

and a branding strategy. Management information systems projects integrated the firm’s 

MAS 200 SAGE accounting software to interface with their website projects to streamline 

and improve the functionality of accounting, inventory control, on-line customer ordering 

accessible year round (24 hours a day) with the capability to track orders by oilrig 

number/employee, and create automated customized reports. The firm has completed 99 

percent of their projects and seen a dramatic increase in sales. They recorded sales of $20.9 

million in 2011 and an employment of 30, an increase of 345 percent and 25 percent 

respectively since the date of certification. 

A Louisiana manufacturer of Creole pralines and a variety of other pecan-based confections 

was adversely impacted by imports from Canada, Mexico, and Thailand. The firm was 

certified for TAAF in May 2009. At the time of certification, annualized sales were 

approximately $2.7 million, down from $3.3 million the previous year. The firm AP project 

plans included a support system upgrade required to make significant Management 

Information System (MIS) upgrades. Although they had an MIS system, it did not have the 

capacity to allow the firm to manage their increasingly diversifying business. Although 

implementation of the projects outlined in their business recovery plan is ongoing, the firm 

has fared better than many other firms that are recovering from the aftermath of not only 

Hurricane Katrina, but also the generalized impact of the recession during this period. 

Annual sales two years from the date of certification grew to $3.6 million – an annualized 

growth rate of roughly 15 percent. 

Western Trade Adjustment Assistance Center (WTAAC) 

A California custom packaging manufacturer serving customers in the medical, food, and 

electronics industries suffered injury from import competition from Asia from 2004 through 

2006. Its customers increased the purchase of packaging solutions made in the Pacific Rim. 

A severe downturn in the static packaging industry resulted in the Pacific Rim producing the 

bulk share of electronic components. The firm was certified for TAAF in December of 2006. 

WTAAC and the firm’s management developed a strategy to change the way the customers 

think about flexible barrier packaging and to provide new ideas to industry to use this 

packaging. Specifically, the goal was to develop innovative ways of using barrier packaging 

to enter the advertising niche, a market segment that has not previously used flexible 

packaging. The firm completed the implementation phase of the TAAF program in January 

2010. While active in the program, the firm implemented its marketing project and two 

information technology projects. Since TAAF certification, sales increased 34 percent, 
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employment increased 28 percent, profitability increased 68 percent, and productivity 

increased 4 percent. 

A second-generation California bonding wedge manufacturer, specializing in the design and 

manufacture of bonding wedges for the microelectronics industry was suffering from 

continued shrinking market share due to increasing competition from low price Pacific Rim 

manufacturers from 2000 to 2002. As a result, 2002 annual sales decreased 44 percent and 

employment decreased 34 percent. The firm was certified for TAAF in October of 2002. 

WTAAC and the firm’s management developed a strategy for the firm to specialize in the 

manufacture of high quality bonding wedges for the microelectronic industry while 

expanding its brand sales and diversifying its customer base. The firm successfully 

completed the implementation phase of the TAAF program in February 2009. While active 

in the program, the firm implemented two quality management system projects, three 

production engineering projects, four marketing and promotion projects, and one information 

technology project. These projects focused on significantly expanding international sales 

while improving manufacturing efficiency, reducing production cost and shortening cycle 

times. Since TAAF certification, the firm regained profitability, with sales increasing 45 

percent, and productivity improving 45 percent.