Supporting Export-Led Manufacturing Growth
New Dem Play | Promoting manufacturing exports
Where It's Working | Pennsylvania
Players | State officials
More State Economic Development Plays
|
With the U.S. domestic economy contracting, international markets become more important for businesses and for job security. This is especially crucial in manufacturing, as the slides in the financial services, housing and consumer sectors mean fewer domestic opportunities for businesses like metals, cement, power equipment and other basic manufacturers. But with international trade policy made by the federal government, states often feel unable to influence or shape trade policies.
Gov. Ed Rendell has a different view, and it is paying off. Since his election in 2002, Pennsylvania's manufacturing exports have nearly doubled, rising from $14.7 billion to $27.4 billion. This 83 percent growth rate trails only Washington among America's twelve largest manufacturing exporters.
Pennsylvania's success reflects a policy plan as well as the rising competitiveness of state businesses. Taking office early in 2003 after the loss of a sixth of Pennsylvania's manufacturing jobs during the 2001-2002 recession, and anticipating both greater overseas trade opportunities and fiercer competition in coming years Governor Rendell conducted a comprehensive review of Pennsylvania's competitive strengths, on a region-by-region basis through intensive consultation with businesses and industry clusters. Within months this review brought the launch of the Governor's "Manufacturing Innovation" initiative, which included a comprehensive set of recommendations on competitiveness, worker assistance, business promotion and trade policy.
The creation of the state Office of Trade Policy was a central element of this plan, designed to give Pennsylvania a more systematic approach to trade policy and to ensure that the national government better appreciated Pennsylvania views and priorities. Ever since, the Office has helped businesses compete better internationally, make themselves heard by federal decision-makers, and ensure that foreign governments and businesses looking for contracts are aware of Pennsylvania's strengths. Its services include expert advice on measures the state can take to improve its competitiveness; one-stop help for businesses seeking to understand the effects of existing and proposed trade agreements, export controls, and sanctions rules, and a key role in influencing federal policies. In this last regard, the Office identifies unfair barriers to Pennsylvania goods in foreign markets, ensures that Pennsylvania interests get attention as trade agreements are negotiated and trade-related laws and regulations are administered, and works with affected parties to raise concerns with the U.S. Commerce Department and International Trade Commission or encourage a dispute filing at the World Trade Organization when violations of rules or agreements affect state businesses.
|
"Too much of our federal workforce training money is available to workers only after people lose their jobs ... To counter this, we've launched a $5 million state and federal Manufacturing Incumbent Worker Training Program to help employers upgrade workers' skills and increase their competitiveness in the global economy."
-- Gov. Ed Rendell, Pennsylvania |
With offices in Harrisburg, PA, and Washington, DC, the Office of Trade Policy advises Pennsylvania exporters; coordinates with federal, state, and community groups to ensure that policies support these exporters; and provides advice on encouraging high-quality investment in Pennsylvania by foreign companies to spur growth and create high-wage jobs.
The Trade Office in turn is one in a set of comprehensive recommendations designed to preserve Pennsylvania's historic role as a center of American industry, ranging from support for workers, to access to capital, promotion of smaller manufacturing companies and more. Incumbent workers get further training under a $5 million program. Manufacturers are better connected with venture funds. Small businesses get more funds for innovation and help with pollution planning and energy efficiency opportunities. The governor's office has also appointed a manufacturing ombudsman to help businesses cut through red tape and enhance accountability. The ombudsman also assists businesses with questions regarding business finance, workforce training programs, permits, and other regulatory issues.
These initiatives complement the efforts of the Governor's Action Team, a team of economic-development professionals who report directly to the Governor and serves as a single point of contact for businesses which consider locating or expanding in Pennsylvania. The team works with domestic and international businesses and professional site consultants on projects possessing significant investment and job creation opportunities. The federal Manufacturing Extension Partnership (MEP) is also an important part of Pennsylvania's manufacturing initiatives. Pennsylvania has six "industrial resource centers" under the MEP, which work together with state officials to ensure that new manufacturing initiatives do not duplicate efforts. And the Governor's Trade Assistance and Rapid Response program, finally, assists dislocated manufacturing workers with targeted training and re-employment services.
Improved communications between manufacturing exporters, financiers, and federal policymakers, new competitiveness initiatives, as well as training programs that promote workers' flexibility, have contributed to a powerful surge in Pennsylvania manufacturing exports, which first helped the sector recover from the 2001-2002 recession and are now supporting it during a domestic downturn.
Resources For Action
Pennsylvania's "Economic Stimulus Plan"
www.newpa.com/default.aspx?id=6
Office of Pennsylvania Gov. Ed Rendell
www.governor.state.pa.us/
Additional Reading
Governor Rendell's Manufacturing Strategy: "Manufacturing Innovation": A Strategy to Enhance the Competitiveness of Pennsylvania Manufacturers"
http://www.newpa.com/default.aspx?id=72
Contacts
Paul D.A. Piquado
Executive Director
Commonwealth of Pennsylvania Office of Trade Policy
400 North Capitol St., NW - Suite 390
Washington, DC 20001
(202) 624-5470
ppiquado@state.pa.us
Ed Gresser
Trade and Global Markets Project
Progressive Policy Institute
600 Pennsylvania Avenue, SE, #400
Washington, D.C. 20003
(202) 547-0001
egresser@ppionline.org