Yates, Schuyler top state in manufacturing

May 25, 2016 at 12:09 am by Observer-Review


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Yates, Schuyler top state in manufacturing

YATES, SCHUYLER COUNTIES--During the past 14 years, area counties have been exceeding the state and regional trends in manufacturing jobs. Manufacturing includes the production of merchandise for sale and ranges from machine parts and salt production to winemaking.
According to the Bureau of Economic Analysis, from the time period between 2001 and 2014, Yates County has seen a 3.9 percent increase in manufacturing jobs, amounting to 1,062 jobs in 2014 versus 1,022 in 2001. Schuyler County has seen similar growth, charting a 4.9 percent increase in manufacturing during the same timeframe, amounting to 807 jobs in 2014 versus 769 in 2001.
In contrast, the state of New York's manufacturing jobs have declined 33 percent during the same time period. In 2014, the state had 491,514 manufacturing jobs, falling from 730,439 in 2001.
So what has been the key to maintaining manufacturing jobs in Yates and Schuyler Counties? Steve Griffin, CEO of the Finger Lakes Economic Development Center, noted quantity can often lead to quality, as the more businesses and manufacturers the county can bring in, the better the chances some of them will grow and thrive. He highlighted manufacturers like Coach and Equipment, Abtex, KanPak and Birkett Mills as being some good examples of manufacturing growth in Yates.
"They are all doing really, really well," Griffin said. "I don't think there is any secret potion that makes it go. Labor is important. We are a pretty low cost area to do business."
The wine industry has also had an impact on the manufacturing numbers in the area. Executive Director of the Schuyler County Partnership for Economic Development (SCOPED) said the area's natural resources play a key factor in their manufacturing numbers. Executive Director of the Seneca Lake Wine Trail Paul Thomas said there were 35 member wineries on the trail in 2014, up from 23 in 2001. This amounts to a 52 percent increase.
"Winemaking is manufacturing, so your manufacturing number includes all the winemakers, which is related to our water," Cherry said. "It also includes the manufacturing that happens with our wood products that are being exported. It also happens with the metalworking manufacturing that is happening as well, and certainly you don't want to forget, right in around Watkins are the salt plants, which are manufacturing as well."
Cherry said many people often think of wineries as being in the tourism category, but noted since they are technically in manufacturing they contribute to the job growth in that area.
Griffin also attributed the success to not just the low tax rates, but also the strong management teams at area manufacturers.
"We have job growth across the board," Griffin said. "We need even more employees to come to this area to fill the amount of jobs we have open."
Coach and Equipment recently held an open house of their facility Saturday, May 21. Chris VanHouten has worked there for 28 years, noting some of the struggles and growth of the business in previous years. He highlighted a dip in production around when the recession hit in 2008 and 2010. VanHouten said production around this time fell to about 600 buses a year, which has since grown to approximately 1,000 annually. He added while the company had layoffs in the past, they have since been able to go down the list of all of those who were laid off during that time and offer them their jobs back now that production has increased.
While Griffin said he expects some good growth in the area in coming years, he said the $15 minimum wage will definitely have a negative impact on area businesses.
"One hundred percent it will," Griffin said. "There is no doubt at all that employers are going to have to adapt, which means they are going to automate. That law makes absolutely zero sense at all. It is only going to hurt."
Meanwhile in Schuyler, Cherry said while places will always see rises and falls from year to year, she anticipates the trend to continue upwards in the future.
"I feel very bullish that Schuyler County is on the right trajectory, that we are moving in the right direction," Cherry said. "We will still experience some small bumps here and there, but I think holistically, we are moving in the right direction, and I think the community feels it. I think that's why you are seeing construction and new housing. I think the fact we have these new housing alternates becoming available, I think we are going to see that translating into even more employment opportunities around here."

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