ALBANY The gap is widening between New York's manufacturing industry and that of other states, and regaining the Empire State's stature as a national — and a global — leader in the sector is critical to economic growth and job creation. The Public Policy Institute, the research arm of The Business Council of New York State, Inc., emphasizes these points in a new study released today.
“We need to do more to attract capital investment in this sector so we can compete with other states,” said Heather Briccetti, acting-president & CEO of The Business Council. “The first step to growing New York's manufacturing sector is lifting burdensome taxes and regulations that hinder the industry, which will make our state more business friendly and create much-needed jobs in New York.”
The study — “Let's Make it Here: Keys to a Manufacturing Resurgence in New York” — takes an in-depth look at how New York has experienced a reduction in manufacturing employment at a steeper rate than that of peer states and the nation as a whole. Manufacturing accounts for roughly 5.4 percent of GDP in New York, compared to 11.3 percent in the U.S. Between 2005 and 2009, upstate New York saw a 16.1 percent decline in average employment in the industry, compared to a 2.8 percent reduction in total private sector employment.
Making New York a frontrunner in this industry is crucial to the economic health of our state. According to the Bureau of Economic Analysis, for each dollar spent on manufacturing another $1.41 is generated in other sectors of the economy. Manufacturing also provides well-paying jobs, especially in upstate New York, where the average manufacturing wage is $54,181. Massive state and local tax burdens, however, coupled with overly-rigorous environmental standards have discouraged growth in the sector.
The report also analyzes results from The Business Council's online survey of its manufacturing members and finds that nearly 75 percent of respondents think property taxes are a significant government-imposed hurdle to the sector. An overwhelming majority — 83 percent — rate New York's overall business climate as either poor or dismal.
Final recommendations from PPI to help attract new investments in manufacturing include: Implementing a 2 percent cap on the growth of property taxes; utilizing state universities to encourage public-private partnerships; and eliminating barriers that inhibit the flow of capital.
The full report is available here.
The Public Policy Institute is a 501(c)3 organization dedicated to formulating and promoting economically beneficial public policies.
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