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Manufacturing: A Key Player In New York State’s Economy
(Still!)
Robert B. WardThe Public Policy Institute
of New York State
A ‘post-industrial’ economy – not!
Yes, we’ve lost manufacturing jobsSome even say industrial companies
are ‘the employers of yesteryear’BUT – manufacturing employment
trends in New York, relative to other states, are much improved
And it remains especially vital Upstate
Job Trends: New York Is Much Closer to the Nation
-20%
-15%
-10%
-5%
0%
5%
1987-92 1992-97 1997-02 2001-02
Pe
rce
nta
ge
Jo
b L
os
s/G
ain
New York
U.S. avg.
We’re more competitive nowWe started coming closer to other
states’ manufacturing performance after we cut taxes, changed regulatory practices, and cut workers’ comp and energy costs
IBM, Sematech, other projects will create manufacturing jobs of the future
Upstate, manufacturing is especially important
Proportion of all jobs based on manufacturing:
Buffalo/Niagara Falls: 44%Binghamton: 50%Rochester: 55%Syracuse: 37%Upstate average: 50%
And let’s not forget downstateNew York City: 220,000 jobsLong Island: 103,000Key sectors, such as pharmaceuticals,
are growing in the Empire StateStatewide, 2.4 million jobs depend on
manufacturing (800,000 plus 2 additional jobs for every direct one)
Where are the spin-off jobs?Company suppliers/contractors – e.g.,
Kodak has 24,000 of its own employees in Rochester, plus 6,000 others who provide services
Health care, government jobs funded by company benefits/employee taxes
Retail, service jobs that depend on employees spending their paychecks
The outlookOverall economy and value of the dollar
will continue to affect U.S. and New York manufacturers
Property taxes are a growing competitive problem in New York
Costs of other taxes, energy, workers comp and other benefits also are key