by Michael Stamm
It seems like most of us in Ithaca and Tompkins County don't miss many opportunities to point out how different - and better - our community is compared to the rest of New York State. Sometimes our claim to fame is supported by irrefutable facts. And sometimes it just appears to be so obvious it is beyond dispute. After all, what other communities in New York State, particularly our size, have a major research university, a large private college, a Finger Lake, a great farmers market? The list goes on and on. We have a lot to be thankful for, and a lot we need to preserve.
But Borg Warner's recent announcement of a major investment in Ithaca has surprised a lot of people, not just here in Tompkins County, but around the state. And with good reason.
From 1996 to 2006, in just ten short years, the manufacturing sector in New York State has declined by almost 30%. That equates to 228,000 jobs, usually very high paying jobs that can support a family and offer some hope of a secure retirement. Large traditional manufacturers have been fleeing high cost locations like New York for years, chased out by high taxes and energy costs as well as by an oppressive regulatory environment. Some have gone to the southern Untied States, and others have gone a lot further.
So why did Borg Warner decide to invest over $40 million in Tompkins County, an investment that will create an estimated 174 great new jobs over the next few years? They pay the same New York State taxes and comply with the same New York State regulations as every company. And, ironically, they are located in what is a relatively expensive part of New York State. For example, the lack of a wide range of affordable housing in Tompkins County has touched Borg Warner's employees just like the rest of us.
We do know that much of Borg Warner's recent success in a very competitive market place can be traced to their commitment to innovation in both product design and product manufacturing. They no longer make and ship thousands of simple individual parts; they haven't for a long time. Instead, they design and manufacture very complex components, successfully meeting the needs of very demanding and equally innovative customers such as Audi and BMW.
But in the end, we believe their success ultimately comes down to people. For the design aspect of their operation, Borg Warner must be able to attract to Tompkins County top flight engineers and then do everything they can to keep them here. That is where one of our claims to fame comes in. Our unique quality of life and all it has to offer to professionals, especially those with families, is an enormous competitive advantage.
And then there is the Borg Warner work force on the so-called "factory floor." They too must be able to innovate, to quickly respond to new manufacturing processes using new tools and newly learned skills. It is less clear we have an advantage with this part of the labor force. Many local employers looks to the regional labor market for the skilled workers they need. The gap between what they find and what they need is increasing. It seems that fewer and fewer young people, and their parents, view a career in a skilled trade as very appealing.
So, if it's all about the people, is Tompkins County competitive? For Borg Warner today, for their current expansion, the answer must be "yes." Their decision to make such a significant investment must have taken into consideration all of the complex workforce issues.
But what about in the not so distant future? How vulnerable is Borg Warner, other local manufacturers and our community to the same factors that have decimated the economies of other communities? While we can offer advantages others cannot, are these enough to offset the disadvantages?
If the advantage is the people, the workforce, can that be sustained? Or are we already at a point where demand exceeds supply and local companies will be forced to consider other locations, other communities to make investments.
Our good fortune, for the most part hard earned, cannot be taken for granted. Tompkins County is not isolated from external forces nor are its employers. While feeling pretty happy about recent good news, we must recognize our greatest challenges lie ahead.
Michael Stamm
President
TCAD
11/9/07
Originally appeared in the Ithaca Journal
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County's Manufacturing Jobs at Risk
Tompkins County Area Development
200 East Buffalo Street, Suite 102A Ithaca, New York 14850 ( 607 ) 273 - 0005 |