NC State to lead Obama's manufacturing innovation institute

posted on WRAL.com, January 15, 2014.

North Carolina State University will lead a group of six universities and 18 private-sector companies in a new manufacturing innovation institute that President Barack Obama will announce during his Wednesday visit to the Triangle.

The "Next Generation Power Electronics Innovation Institute" will help companies and universities invest in manufacturing technology and develop next-generation power electronics. It's the first of three such hubs that Obama called for in his State of the Union address last year.

Obama is scheduled to speak at N.C. State's J.W. Isenhour Tennis Complex at 1 p.m. Complete coverage of the president's visit and his remarks can be seen live on WRAL and WRAL.com.

The University of North Carolina at Chapel Hill, Arizona State University, Florida State University, University of California at Santa Barbara and Virginia Tech will also be a part of the group. Cree, Delta Products, John Deere, Toshiba, Vacon and other companies will also be included. Obama will tour Durham-based Vacon at 11:35 a.m. Wednesday morning prior to his speech at N.C. State.

One specific technology members of the institute will develop is wide bandgap semiconductors, which can make power electronic devices for personal devices, electric vehicles and industrial-scale drive motors more efficient. Wide bandgap semiconductors can operate at higher temperatures and are more durable than silicon semiconductors.

The group of businesses and universities will receive $70 million from the Department of Energy in the next five years, an amount that will be matched in non-federal commitments by the businesses and schools, along with the state of North Carolina.

Obama's visit comes as North Carolina's Republican Gov. Pat McCrory is also emphasizing the manufacturing jobs potential in a state in which about a fifth of the economy comes from making things.

"Creating manufacturing jobs across North Carolina has been a priority within my administration's economic plan," McCrory said last month.

There were promising signs in the past year of manufacturing's place in a rebounding economy.

Computer maker Lenovo Group started manufacturing in the U.S. for the first time, choosing a North Carolina site over low-cost foreign locations like Mexico or China because it meant quicker turnaround and custom products for customers. GE Aviation broke ground on a new factory to produce engine components made of advanced ceramic materials that are ultra-lightweight and can handle extremely high temperatures in jet turbines.

North Carolina Republicans criticized Obama's failure to fix the economy after the government reported just 74,000 new jobs nationwide in December and a dip in unemployment fueled by people giving up their search for work. They credit GOP state lawmakers and McCrory for decisions that led to a 2 percentage-point drop in the state's unemployment rate in 2013. The national jobless rate dropped last year by less than 1 percent.

While North Carolina's November unemployment rate dropped to its lowest rate in more than five years, the data suggest similar worker discouragement. The total number of working-age residents either working or looking for jobs fell by 95,000 in the past year.

Democratic U.S. Sen. Kay Hagan won't visit with the president as a tough re-election race looms ahead of her this year.

Obama plans to meet with college presidents on Thursday to discuss improving workers' skills.