Manufacturing dependent on state aid

In 1990, Pennsylvania had nearly a million manufacturing jobs. Twenty years later, it has about half that many.

The loss of millions of U.S. manufacturing jobs over the past three decades to cheap foreign labor, increased efficiency and better technology, along with labor union strife has been chronicled repeatedly.

Jobs in the manufacturing sector are, as a class, the best paying in the country. In Pennsylvania, that amounts to $66,600 per year, according to the National Association of Manufacturers. The rest of the workforce in the commonwealth averages $54,800 annually.

Even with the recent losses, manufacturing jobs represent slightly more than 10 percent of the commonwealth’s non-farm employment.

The newly-minted administration of Republican Gov. Tom Corbett and the Republican-controlled General Assembly were highly critical of former Gov. Ed Rendell’s penchant for doling out taxpayer dollars to troubled or favored private sector businesses around the state.

Now, they are faced with determining if the private sector can grow without tax dollars to shore up its competitiveness.

A recent Wall Street Journal article about a possible turnaround in the nation’s manufacturing sector highlighted new domestic efforts by Caterpillar, Dow Chemical and Whirlpool. However, all were heavily subsidized by tax breaks, low interest loans and free land given away by state governments.

David Taylor, executive director of the Pennsylvania Manufacturers’ Association, believes government has to play a role in the infrastructure needs of businesses, but there has to be a limit.

“Ultimately, there are not enough tax dollars in the commonwealth to prop up all the businesses,” he said.

Mr. Taylor said a new climate has to be created for businesses, including legal reforms, sensible regulatory rules and an educated and available workforce.

The educated workforce is a major sticking point, Mr. Taylor said, because even when manufacturing jobs are available, regional manufacturers say it is very difficult to find reliable, qualified workers for the positions.

On Inauguration Day, AdvancePA, a coalition of 28 community colleges across the state, bought a full page advertisement in the Harrisburg Patriot-News welcoming Mr. Corbett to his new role and informing him of the importance of community colleges.

Faced with a $5 billion shortfall in the upcoming general fund budget, it is virtually certain the state’s biggest single expenditure – education – will see steep cuts from kindergarten through higher education.

The key to the future of manufacturing, a section of AdvancePA’s pitch to Mr. Corbett read, “Today’s employers demand the career training provided by community colleges in fields such as manufacturing, green technology and health care. Recent research suggests that about 53 percent of Pennsylvania’s jobs are in occupations such as nursing, automotive technology and transportation, but only 42 percent of the workers have the appropriate training for these jobs.”

Diane Bosak, executive director of the Pennsylvania Commission for Community Colleges said manufacturing companies are reporting moderate to series skills shortages.

“There are a number of reasons for this, including an aging workforce, but also the increasing technological advances in manufacturing,” said Ms. Bosak. “Community colleges want to be a partner in providing pathways to our students that are aligned to industry standards.”