HARRISBURG – Gov. Edward G. Rendell said a first-of-its-kind report shows the manufacturing sector remains one of Pennsylvania’s most significant industries, currently employing more than 625,000 and generating more than 15 percent of its gross state product.
The report was compiled by the Department of Community and Economic Development’s manufacturing ombudsman.
“Although manufacturing has struggled, this report shows that the industry still has legs and is a huge economic driver in Pennsylvania,” the governor said. “It’s also confirmation that we must continue to invest in our manufacturers, especially now, to make sure the industry remains viable as we work to energize and strengthen our economy.”
DCED Deputy Secretary Rebecca Bagley announced the results of the ombudsman’s report during Thursday’s opening of the How People Make Things exhibit at the Whitaker Center in Harrisburg. The exhibit, sponsored by DCED and MANTEC, an industrial resource center, shows manufacturing’s importance.
Bagley said Pennsylvania manufacturing is expanding into new areas.
“States with economies that were built on traditional manufacturing, like Pennsylvania, are now investing in the growth of high-value manufacturing, and they are retooling and innovating to better compete in the global economy,” Bagley said.
Benchmark states used for comparison include Illinois, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio and West Virginia.
According to the report, Pennsylvania and the benchmark states are responsible for a third of the nation’s manufacturing value-added, which is a method of measuring the productivity of labor and capital that represents the increased value of raw materials after they become finished products.
Pennsylvania ranks fourth for total manufacturing value-added and is fifth in the nation (third among the comparison states) in manufacturing employment, the report found. In addition, two of the top three manufacturing sectors in the state are in high-technology.
Pennsylvania’s pharmaceutical sector accounts for 11 percent of all U.S. value-added and 13 percent of the state’s value-added. Pennsylvania’s food manufacturing sector, meanwhile, accounts for 6 percent nationally in this area and 12.3 percent in Pennsylvania.
“Manufacturing is not disappearing – it’s evolving. It is taking advantage of new processes, new products, new business strategies, and emerging markets.” Rendell said. “No longer is manufacturing a low-skill, low-wage proposition. Manufacturing requires highly skilled labor and, often, post-secondary education.”
To support manufacturing’s evolving business, Pennsylvania has a number of programs and tools available to help manufacturers meet demands by encouraging growth, innovation, education and training.
Pennsylvania’s manufacturing ombudsman, a position created by Rendell in 2004 specifically to serve as an advocate for manufacturers, can help guide companies and coordinate multi-agency programs that support the manufacturing sector, including financing, expert technical assistance, access to international markets, and education and training.
To review the manufacturing state of the industry report for 2008, or to learn more about the manufacturing ombudsman and state programs available to assist manufacturers, visit here.
