Manufacturing: A Key Player In New York State’s Economy (Still!)

1. Manufacturing: A Key Player In New York State’s Economy (Still!) Robert B. Ward The Public Policy Institute of New York State

2. A ‘post-industrial’ economy – not! • Yes, we’ve lost manufacturing jobs • Some 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

3. Job Trends: New York Is Much Closer to the Nation

4. We’re more competitive now • We 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

5. 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%

6. And let’s not forget downstate • New York City: 220,000 jobs • Long Island: 103,000 • Key sectors, such as pharmaceuticals, are growing in the Empire State • Statewide, 2.4 million jobs depend on manufacturing (800,000 plus 2 additional jobs for every direct one)

7. 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

8. The outlook • Overall 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