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Posts Tagged ‘Jim Roche’

Manufacturing Industry in NH to Get $19.9 Million Shot-in-the-Arm

Tuesday, September 27th, 2011

The Community College System of New Hampshire (CCSNH) has been awarded $19.9 million, the largest grant in the System’s history, to develop training programs that will support NH’s advanced manufacturing industry.

The funds will enable the state’s seven community colleges, located in every region of New Hampshire, to develop programs that prepare individuals for skilled employment to meet current and emerging workforce needs in advanced manufacturing in New Hampshire. The programs will focus on displaced workers and other job-seekers by providing training opportunities at multiple professional levels in skills linked to regional employment. 

The CCSNH grant proposal was titled the Regional Advanced Manufacturing Partnership:  Elevating NH’s Workforce to Meet the High-Tech Skill Demands Of NH’s Rapidly Advancing Manufacturing Sector, or “Ramp-Up.”   “This program is all about bringing high-quality jobs to New Hampshire, ensuring that we have the workforce to fill those jobs, enable business located here to grow, attract new companies, and increase economic activity,” said J. Bonnie Newman, Chancellor of the Community College System.

“Manufacturing is a critical driver of economic growth and employment in our state,” said U.S. Senator Jeanne Shaheen.  “However, as businesses replace traditional manufacturing methods with advanced technology, many job-seekers have been unable to keep up because they lack the specialized skills required.  By arming workers with the tools needed to excel in advanced manufacturing, this award will help New Hampshire workers secure high-paying jobs and help New Hampshire companies hire high-quality employees.”

“With manufacturing as such an important part of New Hampshire’s economy, a key part of our successful economic strategy has been training our workers in advanced skills so they can keep up with changing technology, and our businesses can continue to compete globally. This grant is exciting news for our state, our workers and our businesses. This is a tremendous amount of funding that will allow us to expand our worker training efforts, which will help more companies grow and compete,” Gov. Lynch said. “This is great news for New Hampshire’s economy.”

CCSNH’s efforts will target advanced manufacturing sub-sectors inculding automation and robotics, precision manufacturing, advanced machine tool technology, mechatronics, advanced materials technologies and composites, precision welding, automation and process control, and energy systems for precision manufacturing. 

“This funding comes at a very important time, since students and the college population in New Hampshire have been disadvantaged by state budget cuts and decreased access to education and training opportunities,” said Newman.  “While this grant will not replace state funds that were cut, it will make possible focused efforts in partnership with NH businesses to create educational and career ladders for advanced manufacturing jobs, a key industry here in New Hampshire and in the nation.”

“New Hampshire’s community colleges are uniquely situated to provide these opportunities and work in partnership with employers,” Newman said.  “We have campuses in every region of the state. NH companies already look to the community colleges to train a local workforce in high-need skills like health care and technology.  The community colleges are adept at providing access to students of all ages, backgrounds, and aspirations, and we have already developed strong partnerships that enable students to continue their education to the baccalaureate level and beyond.”  

The CCSNH proposal was developed in close collaboration with over a dozen NH manufacturing companies from across the state. The industry partners provided data on current and future workforce needs, skills gaps of the current workforce and job applicant pool, industry trends, and specific equipment and types of training key to their ability to thrive and compete globally.   Other partners in the application included the Business and Industry Association of New Hampshire, the NH High Tech Council, the Advanced Manufacturing Education Advisory Council, the NH Department of Resources and Economic Development, the NH Department of Labor, NH Employment Security, and the NH Department of Education.

Jim Roche, president of the Business and Industry Association of NH, said, “If we expect to retain and grow companies in New Hampshire’s leading economic sector – advanced manufacturing – we need to ensure alignment between training provided through our educational institutions and the needs of manufacturers and high technology employers. This grant represents a great opportunity to further that goal.”

George Bald, Commissioner of the NH Department of Resources and Economic Development, said,  “This grant will have a tremendous impact on the NH workforce, on the quality of jobs that come to the state, and on the strength of the manufacturing industry in New Hampshire.  The close collaboration between the community colleges and our NH employers to identify skill areas and training needs reflects the excellent working relationship that exists in New Hampshire to strengthen our workforce.”

CCSNH applied for the grant through the U.S. Department of Labor’s Trade Adjustment Act-Community College Career and Training Grant program.

Manufacturing/High Tech Driving State’s Economy

Thursday, March 24th, 2011

The smart manufacturing/high technology (SMHT) sector is New Hampshire’s economic engine, bringing more wealth into New Hampshire than any other sector-including tourism and retail-according to a recent New Hampshire Center for Public Policy Studies report sponsored by the Business and Industry Association of New Hampshire (BIA), in collaboration with the New Hampshire High Technology Council (NHHTC) and several BIA members. Results of the study also show that New Hampshire’s business costs are high relative to other states and countries with which the state competes for SMHT companies and employment. 

According to the center’s study, in 2009 the SMHT sector, which includes 3,700 companies in New Hampshire employing almost 80,000 people, paid out $6.4 billion in wages and benefits, making it the largest single sector of New Hampshire’s economy (19 percent). The next largest sector is government and government enterprises (15 percent), followed by healthcare and social assistance (14 percent). 

manufacturing-study“As important as other sectors are, there is no question that the smart manufacturing/high technology sector drives New Hampshire’s economy and is absolutely critical to the state’s long-term economic prosperity,” said BIA President Jim Roche. “SMHT companies generate more wealth for New Hampshire, pay more in compensation to employees, export more and pay more in state taxes than any other sector.” 

Economic Impact

SMHT is defined as manufacturers engaged in the transformation of materials into new products using advanced technology and skilled labor, as well as high technology companies engaged in software publishing, computer systems design and scientific research. 

Paying an average wage of $1,200 per week, which is 40 percent higher than the average weekly wage for all private sector employees working in New Hampshire, SMHT companies account for 9 percent of New Hampshire’s private sector employers, but they employ more than 15 percent of New Hampshire’s private sector workers. 

According to the report’s author, Dennis Delay, an economist with the center, SMHT employers are an important source of high-wage jobs for New Hampshire workers. “The average compensation per SMHT employee has exceeded average wages and benefits paid in every other industry sector, including construction, healthcare, education, retail trade and even financial services. This is important to note because it demonstrates that New Hampshire’s affluence, high standard of living and quality of life are in large part attributable to the state’s SMHT sector.” 

Exports Generate Wealth

Manufacturing is New Hampshire’s most important export industry. Exports from the state’s manufacturers directly support more than 77,000 jobs, compared to about 52,000 jobs in travel and tourism. New Hampshire imports four times as much wealth from in-state manufacturing facilities as from tourism – manufacturing supports $18.5 billion in GSP while tourism supports $4.2 billion. Notably, in FY2008 manufacturing companies represented 8 percent of the companies paying business profits and business enterprise taxes; however, those same companies accounted for 23 percent of total business tax revenue. 

The Value of an SMHT Job

Economic modeling shows that for every 100 new manufacturing jobs, the state would see an additional 138 indirect and induced jobs, which would generate $11 million in earnings, $18 million in gross domestic product, and $1.2 million in state and local tax revenue. Compare this to healthcare (55 indirect and induced jobs per 100 new jobs) and tourism (32 indirect and induced per 100 new jobs) and one can see the value of investing in New Hampshire’s SMHT sector. 

New Hampshire High Technology Council President Fred Kocher agrees. “One of the most important findings in our study is that SMHT employers are the largest source of high-wage jobs for New Hampshire. That one fact has implications for the public policies we enact, the workforce development we undertake, the education we promote and the collaborations we forge on job-related issues facing the SMHT sector. The state’s economic health depends on it.” 

Competitiveness and the Future of SMHT in New Hampshire

The center’s study also compared New Hampshire’s cost of doing business relative to top competitor states and countries, including Virginia, North Carolina, South Carolina, Texas, Mexico, India, China and Malaysia. Among the findings:

Wages in New Hampshire are slightly higher than in competitor states and dramatically higher than in competitor countries

Healthcare costs are higher in New Hampshire than in most states and 10 times higher than in the nearest competitor country

Electric rates in New Hampshire are almost twice as high as in competitor states and about even with Mexico and China

New Hampshire’s corporate income tax rate is highest among the state’s competitors and highest compared to competitor countries when the U.S. corporate tax rate is included

BIA and NHHTC Recommendations for Promoting SMHT in New Hampshire

As a companion to the study, the BIA and NHHTC released a set of recommendations to policy makers to promote smart manufacturing/high technology growth in New Hampshire. Roche of the BIA and Kocher of the NHHTC feel that the future of New Hampshire’s SMHT sector depends upon policy makers’ willingness to embrace policies and initiatives that will spur growth and innovation in this economic sector. 

Among BIA and NHHTC recommendations are:

Work to lower healthcare costs by opposing new or expanded healthcare benefit mandates and supporting adequate Medicaid reimbursements to healthcare providers

Lower the business profits and business enterprise taxes, increase the R&D tax credit, improve net operating loss and BET credit carry-forward provisions, and adopt single sales factor BPT apportionment

Improve New Hampshire’s labor and environmental regulatory environment

Work to lower energy costs by supporting policies that promote energy efficiency, preserve dedicated funds for business energy needs, leverage regional strengths and help ratepayers access competitive supply options

Support policies and initiatives aimed at developing and maintaining an educated, skilled workforce in New Hampshire and that ensure businesses have access to talent and resources 

“We realize these recommendations will not be embraced or implemented by lawmakers overnight, especially given the state’s dire fiscal condition,” said Roche. “Nonetheless, we believe these are attainable goals-goals we will be working toward for the next several years.”

The complete SMHT study may be viewed on the New Hampshire Center for Public Policy Studies’ Web site at http://www.nhpolicy.org/reports/smrtmfgfinal.pdf. The recommendations to legislators for promoting SMHT growth in New Hampshire may be viewed on the BIA’s Web site at http://bianhassoc.weblinkconnect.com/cwt/external/wcpages/newsroom/SMHT_Report.aspx.