Skip to main content

Sen. Gillibrand announces plan to tackle lost manufacturing jobs

By Howard B. Owens

New York has lost more than 160,000 manufacturing jobs and Sen. Kirsten Gillibrand wants to do something about it.

That's noble, but her four-point plan doesn't address the major issues causing the swift decline of manufacturing jobs.

The main factors leading to closed plants and reduced workforces are trade imbalances, large chains forcing manufactures to reduce costs unreasonably, and New York's burdensome regulatory environment and high taxes.

Gillibrand's calls for manageable health care for small businesses and the self-employed, upgraded rail infrastructure, transition manufacturing to clean engergy production and expand a government program called manufacturing Extension Partnership.

Of course, health care costs are a major obstacle to small business start-ups, and providing adequate transportation to get goods to market is a reasonable role for government, and while clean energy is a noble idea, if the free market rejects it, what right does the government have to force the issue?

Gillibrand can't do much about Albany, but she is in a position to impact trade issues as well as anti-competitive practices of multinational chains such as Wal-Mart and Home Depot.

Full release after the jump:

Washington, D.C. – New York has lost more than 160,000 manufacturing jobs since 2001, or nearly one-quarter of its manufacturing base. To help New York’s manufactures get back on track immediately and to strengthen them for the long term, U.S. Senator Kirsten Gillibrand, a member of the Senate Environment and Public Works Committee, today unveiled her plan to help small and mid-sized businesses afford health care, open and expand new markets, and transition to clean energy production that will power New York and the country for decades to come.

“It's no secret that manufacturing has been struggling in New York and throughout the country,” Senator Gillibrand said. “New York’s manufacturers powered us through the 20th century, but have been among those hardest hit by these difficult economic times. We cannot rebuild our economy without our manufacturers. We need to get New York’s small and mid-sized businesses back on track today, and harness the power of our manufacturing tradition to rebuild and fuel the new economy. My plan will help power our economy through the 21st century – creating thousands of new, good-paying jobs right here in New York.”
 
Every corner of New York State has been crippled by manufacturing job loss. In fact, 52 of New York’s 62 counties show significant loss of manufacturing jobs since 2001, with the rest only showing short-term, unsustainable gains.

According to Senator Gillibrand’s report, every corner of New York has shed manufacturing jobs since the start of the new century.


·        New York City lost 58,507 manufacturing jobs from 2001 to 2008. However, in the past ten years, 2,385 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 
·        Western New York lost 23,627 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,583 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Rochester-Finger Lakes Region lost 26,769 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,329 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        Central New York lost 14,140 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,333 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Southern Tier lost 6,332 manufacturing jobs from 2001 to 2008. However, in the past ten years, 590 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Capital Region lost 7,367 manufacturing jobs from 2001 to 2008. However, in the past ten years, 771 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The North Country lost 3,236 manufacturing jobs from 2001 to 2008. However, in the past ten years, 395 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Hudson Valley lost 6,791 manufacturing jobs from 2001 to 2008. However, in the past ten years, 626 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        Long Island lost 16,841 manufacturing jobs from 2001 to 2008. However, in the past ten years, 867 companies have benefited as a result of the MEP program, including retaining and creating new jobs.


To help New York’s small and medium-sized businesses get back on track now and transition New York’s manufactures to be the clean energy producers that will fuel New York’s economy for the long term, Senator Gillibrand unveiled her plan:

 

1.     Make Health Care Affordable for Small Businesses and the Self-Employed. More than half of America’s uninsured work for small businesses or are self employed. Senator Gillibrand is pushing the Small Business Health Options Program (SHOP) Act. This legislation would make health care affordable by allowing small businesses to buy into an insurance pool with other businesses – reducing costs for all by spreading out risk. The SHOP Act would also offer tax credits for small businesses and the self-employed. Businesses with less than 50 employees would receive a tax credit of $1,000 for each insured employee -- $2,000 per family. For the self employed, the tax credit would be $1,800 for individuals and $3,600 for families.

 
2.      Upgrade Rail Infrastructure to Help Businesses Connect to New Markets, Cut Costs, Move Goods Faster, Easier and Cleaner. New York has over 1,200 miles of short-line railroads – connecting manufacturers and communities to America’s rail system and business hubs. To incentivize upgrades to New York’s short-line railroads so more New York businesses can take advantage of them, Senator Gillibrand is cosponsoring bipartisan legislation that will increase the Short Line Railroad Rehabilitation Tax Credit from $3,500 to $4,500 and extend these tax credits through 2013.

Freight rail helps cut emissions, reduces highway congestion and saves businesses money. In fact, one freight train can take upwards of 300 trucks off New York’s highways. And one gallon of gasoline can move one ton of freight from Buffalo to New York City. They help attract new businesses to New York and help existing manufacturers move their products to larger markets. For every $1 invested by the federal government to maintain short line freight rails, these tax credits would leverage $2 in private investments, which are set to expire at the end of this year. By expanding and extending these tax credits, Senator Gillibrand is incentivizing upgrades to our rail infrastructure so more businesses can use short line railroads to move goods and services to new markets, and compete and succeed in the economy.


3.      Transition New York Manufacturers To Clean Energy Production. Senator Gillibrand is working with Senator Sherrod Brown (D-OH) to introduce the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act this week. The legislation would invest $30 billion for states to establish a Manufacturing Revolving Loan Fund – helping small and medium-sized businesses retool, expand or establish homegrown clean energy manufacturing operation. The loans would help existing manufacturers get the capital they need to transition to clean energy production, and help get new businesses off the ground.

The IMPACT Act  would also invest $1.5 billion over five years for the Manufacturing Extension Partnership (MEP) – helping manufacturers access clean energy markets and transition to new, innovative, clean energy manufacturing technologies. This would increase the federal share of MEP funding from one-third to one-half.

Between 2000 and 2003 in New York, a network of 10 independent non-profit organizations overseen by NYSTAR – the New York State Foundation for Science, Technology and Innovation – led MEP programs that helped New York manufacturers create or save 4,154 jobs, and earn $587 million in new revenue, cost savings and capital investments.

America imports 70 percent of our clean energy systems and components. America cannot afford to keep importing foreign fossil fuels, and cannot afford to let other countries take the lead in the new clean energy economy. The IMPACT Act would help make New York a leader in the industry, and create thousands of new jobs for the state.


4.      Arm MEP With Resources to Make New York Leader in New Energy Economy. The federal Manufacturing Extension Partnership (MEP) Program helps many manufacturers to improve their companies. Senator Gillibrand said the MEP Program has helped 9,881 manufacturing companies in New York over the last ten years and argued that the program is needed now more than ever. Senator Gillibrand is calling for $131.8 million to fully fund the federal MEP program as part of the America COMPETES Act to make sure the program has the resources it needs to transition more New York manufacturers to clean energy production, and attract new clean energy manufactures to New York.

Andrew Erbell

Political speak for; "we aren't really going to do anything at all".

This sounds an awful lot like the 250,000 jobs Hillary Clinton was promising people gullible enough to vote for her during her first US Senate run. Last I knew her promise fell about 249,999 jobs short, she got "hired" but that was about it.

Jul 8, 2009, 1:45pm Permalink
George Richardson

Is Pontillo's back up and operating yet? If everyone in Batavia who ever bought a Pizza from them chipped in ten bucks a month they would be in the black. Ten bucks for a free large pizza card a month, as a sponsor, would be a great deal for everyone who loves Batavia. You know you can't eat just one Pontillos Pizza, they are like potato chips. Plus your neighbors smell it.
The same idea could apply to any small business in Batavia. It just means you promise to do ten bucks worth of business with them every month. Times ten thousand it works.

Jul 8, 2009, 4:51pm Permalink
Gabor Deutsch

I like that idea George but if they accepted foodstamps they would make a killing. I definately agree that what batavia needs right now is another Pizza parlour. You can make crazy money working there and support a family.

Jul 8, 2009, 4:57pm Permalink
George Richardson

Could you buy the Flour, Oil, Cheese, Meat, Lettuce, Tomatoes, Onions, Peppers, Italian Sausage, Pepperoni, Mustard, Catsup, Relish, Pickles, Hot Dogs, Cream Cheese, Sugar, Garlic and and other ingredients that they need with Food Stamps? Hell yeah, Barter is totally legal dude, someone just needs to broker the deal. The "Batavia Cooperative Pizza of the Month Club," or any other business that is struggling. It takes a whole Community to raise the bar.I ripped that off from my girlfriend Hil, now you should run with it.

Jul 8, 2009, 5:16pm Permalink
Gabor Deutsch

I know that there are alot of folks here in Batavia hurting and have to deal with penny pinching. I know alot of folks are laid off and cant afford certain things. I dont think Pontillo's reopening will make a huge impact on Batavia. Besides from my understanding they didnt pay their taxes.

Jul 8, 2009, 5:20pm Permalink
George Richardson

I'm not plugging Pontillo's, just a concept. Wouldn't it be cool to have Neighborhood Pizza Night where ten Families on Food Stamps agreed to compete and amaze each other, one Night a Week on a rotating basis? Ten Pizza minimum, keep them coming. Beef on Weck is cool too, and Italian Sausage. Ice Cream, anybody want to join the Ice Cream Club? After a couple of months you'll have to expand the membership to twenty. Support your Community, and think outside of the box. Of course, it is easier said than done, but it can be done. I Love You and I Hate You Batavia, just like Austin.

Jul 8, 2009, 5:34pm Permalink
william tapp

here we go again Political people lye, don't bereave a thing that say, thy vote the way to party tells them to vote not voting for us at all .

Jul 8, 2009, 6:04pm Permalink
Fred GUNDELL

It's simple. Jobs are lost because we can not compete with our labor cost in countries that do not have the restrictions and benefits we have as Americans. And the total lack of any Tarrif Law protection. Business today is international. Heck, General Motors for example is doing fine ocverseas, but really lousy here. It's a long list of added costs to manufacture here vs there.
I have to go to work now at my minimum wage job so I can eat.

Jul 9, 2009, 9:02am Permalink
David Lazik

Mr. Roach's comments attacking our new US senator as well as Secretary of State Hillary Clinton are no surprise coming from the ultra right wing unashamedly partisan idealogue that he is (trickle down economics anyone?). Senator Clinton's well known efforts & work ethic on behalf of our state are almost universally acknowledged in spite of the fact that our state's economy is in ruins from 12 years of economic mismanagement by George Pataki, not to mention the economic disaster of 8 years under George Bush in Waqshington & the damage he did to not only the US economy but to entire world's. Can a radical right wing extremist like Mr. Roach with a simplistic bankrupt political & economic philosophy really be trusted to OBJECTIVELY head a charter review commission?

Jul 11, 2009, 11:30am Permalink
Karen Miconi

Oh My... Well I say, can anyone be trusted these days? John is a smart, honest, sauvy, objective, businessman, who has the publics interests in mind, not his own, like some I've seen. He has the knowlege to comment, and say things no one else can. I trust him, and know he is not a man, who thinks only of himself. He wont make decisions to suit himself, it will be for the better of the community as a whole.
Just my opinion

Jul 11, 2009, 11:59am Permalink
Daniel Jones

Karen-I think that you may be talking about the other John Roach, this John Roach is a longtime political and community activist, but not a a businessman.

Jul 11, 2009, 12:17pm Permalink
bud prevost

David, perhaps you are not aware, but there are a lot more "ultra right wing unashamedly partisan idealist" in WNY than you are giving credit for. The problem isn't Democrat/Republican, or lib/con, or any one thing specific. No, the problem is EVERYTHING. The overabundance of government entities. The less than forthright characters in Albany and DC who run on the premise of "change" and "hope", only to serve up the same manure. The mindset of people downstate that we are just a nuisance, rather than legitamite taxpayers fed up with our broke dick government. It's time for a change all right. Let's start with a new constitution, simplify the ever present red tape mentality that is pervasive in NY, and eliminate the 2 house system. One legislature composed of far less than we have now.
Oh yeah, our dinky little po dunk city is considering consolidation with it's town. Progressive thinking needs to start somewhere. Might as well be where the real people are, not like all the phonies in Albany and NYC!

Jul 11, 2009, 12:31pm Permalink
John Roach

David,
Too much adult beverages last night? A bit of ever reacting on your part?

Her votes will kill jobs.

I made one comment, not the many you say I did.

I didn’t like Clinton, but I didn’t mention her either.

Had you ever been awake, you would have seen that I did not usually support Bush.

As for Pataki; with the 3 men in a room rule in New York, the Democrats take as much blame as the Republicans on anything passed or not passed.

Of course, for guy who lives in Brooklyn, you sound like a Democrat attack dog.

Jul 11, 2009, 12:48pm Permalink

Authentically Local