Editorial: Putting Our Money On Manufacturing
The August employment report for Massachusetts was finally headed in the right direction after some significant slippage in 2013. Employers added 7,500 jobs in August as the jobless rate remained flat at 7.2 percent for the second straight month. But what may have been the most impressive part of that gain was the addition of 1,100 jobs in the manufacturing sector. The sector lost 1,500 jobs over the previous year, so the August gain provided a nice turnaround and reason for optimism.
That gain in manufacturing jobs comes amid other reports that this critical sector of the U.S. economy has surged this year, helped in part by rising labor costs abroad, as well as new technology that's helping boost productivity.
Here in our backyard, Clinton-based Nypro is looking for a place to expand in Central Massachusetts and add 100 jobs, a sign of strength in the industry and a show of commitment by the company's new owner, Jabil Circuit.
So, as the manufacturing industry celebrates its second annual National Manufacturing Day later this week, it does so with hope of sustained growth, which can help lift the rest of the economic ecosystem. According to Barry Bluestone, a professor at Northeastern University and director of the Michael and Kitty Dukakis Center for Urban and Regional Policy, and a co-author of the state's 2012 “report card” on manufacturing, Staying Power II, it's the manufacturing industry that will help spur growth in the Bay State over the next several years. In an address before MetroWest business and government leaders earlier this month, Bluestone said the state is surviving its current economic dip because of the "tremendous" productivity gains among its manufacturers. For instance, he said that between 1997 and 2007, right before the start of the Great Recession, output per manufacturing worker outpaced the rest of the state by 5 to 1. And, 65 percent of manufacturers said they expect to increase production over the next five years, while 70 percent expect to add jobs.
In that same address, Bluestone urged the region's cities and towns to create their own economic “destiny” by attracting new businesses. They can do that, he said, by – among other things - making it easier for businesses to set up shop through expediting permitting and by effectively marketing their communities.
They already have available support from the commonwealth, which has strengthened its commitment to the industry by boosting support for training programs in community colleges to help fill future job roles.
Central Massachusetts communities need to consider such an approach, and filling vacant manufacturing facilities and open lots in industrial parks can boost a town, as well as surrounding communities.
“Manufacturing in Massachusetts still has real staying power and already is showing signs of a rebound
from the devastating recession. The employment data are looking up and manufacturers themselves are reporting better times ahead,” reads a line from Staying Power II.
We hope that statement will hold true well into the future. For that to happen, officials in Central Massachusetts communities must embrace the approach that while any business growth is good, growth in manufacturing is an even better proposition.
WBJ Web Partners
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