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