Leadership Dialogue III: Jumpstarting Energy Infrastructure and Manufacturing

On this panel:

• Becky Quick — Co-anchor, Squawk Box, CNBC
• Neil Z. Auerbach — Founder and Managing Partner, Hudson Clean Energy
• Dr. Mary Sue Coleman — President, The University of Michigan
• Hon. Alexander "Andy" Karsner — Member, Board of Directors, Applied Materials, Inc.
• Edward J. McElroy — CEO, ULLICO Inc.

The US is falling behind in manufacturing -- why?

Neil Auerbach: It's very complicated to keep the public's attention on an issue. We need to focus on more efficient technology -- not just the stick of regulation, but also the carrot.

Alexander Karsner: We have maximum reach, but shallow impact. We need to shift from interest-driven to attribute driven. In other words, don't support coal, or solar, or electric -- support sustainable, renewable, clean, national, etc. technology.

Mary Sue Coleman: Faculty and students want to be in fields where there's a sustained policy that grows the field.

Neil Auerbach: It's a competitive environment, but it's a team sport.

Edward McElroy: Think win-win: look for ways we can dialogue so that all interests come out ahead. 

Alexander Karsner: If we don't change our thinking, and get government to recognize priorities beyond their own terms in office, we'll continue our 30-year slide.

Neil Auerbach: Both government investment and private venture capital have a role to play in encouraging energy infrastructure. Why is this an issue that divides the political parties? This is both a threat and an opportunity -- we should be able to come together in a dialogue about this. The spirit is here in America -- we need to bring it to Washington.

Alexander Karsner: We should not be incentivizing environmental degradation.

Mary Sue Coleman: We need to incentivize human behavior so that energy-efficient actions are the economically smart thing to do

Questions from the audience:

How can the government make significant changes? Energy is a policy-driven market, not a consumer-driven market.

Alexander Karsner: New manufacturing facilities and infrastructure doesn't come just from venture, it comes from scaling it up right -- right now there's a disconnect. We need to take a long-term view on things.

Neil Auerbach: It's wholesale versus retail. It doesn't matter who's buying, as long as there is a buyer for it -- government, consumers, and heavy industry all play a role.

Shirley Ann Jackson: How can we make this strategy impact multinational companies?

Mary Sue Coleman: Students have an entreprenurial spirit and want to get involved in innovative industries. Over one thousand students at U of M last year wanted to try their hand at pitching a venture capital firm.

Edward McElroy: We've got to be more competitive in all areas to retain jobs and work domestically.

Question: How can we have bipartisan policies focused on scalability, since scatterground focus won't get us where we need to go?

Alexander Karsner: Bipartisan coalitions in the past have existed on both sides of the energy issue. This time around, we need to unleash people to take more risks.

Neil Auerbach: This is a manufacturing economy, and there are a lot of servicing jobs as well. We need to train workers so that we have a highly-skilled workforce.

On deck: mobilizing that workforce. Plus, Senators Murkowski and Warner over lunch, and Secretary Ray LaHood. And stay tuned this afternoon to see Secretary Steven Chu.

 

— Sarah Spooner

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