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State must put stronger emphasis on attracting manufacturing jobs

If there is a solution to the loss of manufacturing jobs in Pennsylvania - the state lost at least 12,500 such jobs in 2004 through November, 1.8 percent of all such jobs - it obviously has eluded those with the ability to reverse the situation.

Despite the Keystone State's having been on track to finish 2004 with an overall gain in jobs - after three consecutive years of job losses - manufacturing's continuing doldrums must remain a matter of deep concern.

However, such concern hardly seems on the top rung of state issues; to the average Pennsylvanian, the issues surrounding slot-machine gambling appeared to have been accorded much more focus by state leaders during the year just completed.

Although state leaders haven't brainstormed successful strategies to halt the elimination and exodus of manufacturing jobs, others outside of government with business-analysis expertise have been willing to express their viewpoints about what direction Pennsylvania's emphasis should take, while acknowledging some of the roadblocks.

There's Peter Cappelli, a management professor at the University of Pennsylvania's Wharton School, who has pointed out that this state's lackluster status in terms of having research facilities within its borders has hindered the commonwealth's ability to attract or fuel small entrepreneurial manufacturing operations. Massachusetts, California and New York are among the states not experiencing such a problem.

Pennsylvania also is at a disadvantage in competition with southern states such as North Carolina in terms of cost of living and the influence of unions.

However, unions apparently have been a positive factor for those in the manufacturing workforce who have been fortunate enough to have retained their jobs. The manufacturing sector is viewed as providing better-than-average wages and benefits.

The loss of manufacturing jobs last year wasn't as extensive as what occurred in 2001 (8.3 percent loss), 2002 (5 percent) and 2003 (4.5 percent), and Pennsylvania still has a higher percentage of jobs in manufacturing than does the nation as a whole (12.2 percent vs. 11 percent), but the continuing negative trend here must generate more attention than the situation has apparently been getting.

Scott Meckley, an industry and business analyst for the state Department of Labor and Industry, probably is right in observing that if manufacturing is going to turn around in Pennsylvania, the growth will have to come from new factories, not from new jobs at existing ones.

To accomplish that will require rethinking on a number of fronts, particularly in the realm of financial incentives such as tax benefits, and making a stronger effort at advertising the availability of former manufacturing facilities, as well as new shell buildings, that can be customized to a company's needs.

Pennsylvania must reaffirm that it is committed to manufacturing. The numbers over the past four years justify skepticism about whether the Keystone State is really doing all that it can to strengthen its manufacturing sector.

- J.R.K.

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