Report on manufacturing in upstate New York misses the mark

Wednesday, September 25, 2002

Manufacturing remains an essential foundation of New York's upstate economy, according to a new report. It argues that New York needs more state-level policy changes to keep manufacturing competitive.

The report is right in its basic message: manufacturing is not dead. People who think it is ignore basic facts.

Commentators spend too much time focusing on the decline in manufacturing jobs, and they fail to understand the remarkable increase in manufacturing productivity over the past two decades. That means that each manufacturing job is generating far more income (for both workers and owners). The real key to understanding manufacturing is focusing on productivity (value added per employee).

The report also misses a big opportunity to focus on the importance of developing manufacturing skills among high school students. One of the biggest challenges facing upstate New York (and elsewhere) is the lack of skilled manufacturing workers. This report only mentions the problem in passing.

Take the case of Corning. In the "go-go" 90's, when telecomm companies were building fiber optic networks out the wazoo, the company expanded outside its base in upstate New York. Why? Labor shortages. Addressing this problem takes time, and it is far harder than telling state legislators to keep taxes low. But some manufacturers are making progress. (See, for example, how manufacturers in Kentucky have developed manufacturing skill standards for high school students. Go)

Read a summary of the New York report. Go Download a copy. Go

posted by Ed Morrison |

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