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March 2007 — Vol. 85, No. 2

FROM THE PRESIDENT

Keeping manufacturing competitive here

By John R. Rathgeber

CBIA president and CEO

 

I grew up in New Britain, one of the state’s manufacturing centers, and saw firsthand how important manufacturing was to the whole fabric of the city, especially in terms of jobs. I also learned to appreciate the kinds of risks smaller manufacturers have to take every day to invest in their businesses and maintain their competitiveness.

Although manufacturing’s impact on cities like New Britain and elsewhere in Connecticut has changed since then, manufacturing is still a significant engine driving our economy. And, as the cover article this month points out, the industry still produces many benefits for local communities and the state as a whole. Modern manufacturing provides good jobs and good pay, creates the need for more support jobs than almost any other sector, drives productivity growth and innovation, and brings money into the state’s economy through exporting.

State policy-makers need to understand how critical it is for them to make the state a place where manufacturers can thrive in the face of intense competition on costs, quality and responsiveness to customers.

CBIA is urging legislators to reject any proposals that would increase workers’ comp costs, which hit manufacturing harder than most other sectors. Legislators also need to take positive actions on three priority areas that will help all Connecticut businesses: competitive business costs, workforce skills, and efficient energy and transportation infrastructures. Manufacturers especially need relief from the costs of health care benefits, energy and taxes. The state, for example, should continue to phase out the property tax on manufacturing machinery and equipment. Manufacturers also need highly skilled workers so they can continue to innovate and improve productivity.

Here at CBIA, we are helping manufacturers meet their workforce development needs by getting manufacturers involved with schools; working with schools to improve math, science, engineering and technical programs; and linking manufacturers with effective job training resources.