"When a major manufacturing plant closes, we often see vicious downward economic spirals in those communities," Gene Sperling, director of the National Economic Council, told reporters Wednesday before Obama's remarks.
Sperling said Obama's budget would include $6 billion in tax credits to help communities such as Asheville attract new manufacturing companies when previous ones move or close.
Those towns and cities would apply for the tax credits financed by the federal government, which could provide financial incentive for companies to move into shuttered factories. The fund did not exist when Linamar made its choice to move here.
He said Obama would also seek $113 million to create manufacturing community partnerships - essentially a clearinghouse in the Department of Commerce where economically suffering communities could more easily find out what federal policies are available to help them attract manufacturing businesses, as well as companies that may be interested in relocating.
"What's happening here is happening all around the country," Obama said, adding that the costs of doing business abroad are rising to the point where some companies are finding it cheaper to open plants in the United States.
But Obama warned that "not every job" lost overseas will be returning, and that the economy is increasingly reliant on technology.
He said better job training is essential, at local community colleges and at the three new manufacturing institutes he announced Tuesday that bring together private and public-sector agencies. He called on Congress to approve money to build a dozen more.
"I believe in manufacturing," Obama told the audience. "It makes American stronger."