Buffalo News, August 18, 2010, Wednesday

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Buffalo News (New York)

August 18, 2010, Wednesday

Stumping for rejuvenation; Gillibrand meets local business, labor leaders in appeal for ideas to regenerate the economy

BYLINE: By Matt Glynn - NEWS BUSINESS REPORTER

Sen. Kirsten Gillibrand appealed for ideas to rejuvenate the economy, and the manufacturing sector in particular, during a visit with business and labor leaders on Tuesday.

Gillibrand toured General Motors' Town of Tonawanda engine plant, then met with 16 guests from companies, un-ions, government and economic development agencies.

Those participating in a round-table discussion cited access to capital, brownfields cleanup and renewable energy technology as avenues to job growth.

The meeting's host has fared better than many manufacturers lately. The Tonawanda engine plant this year was awarded two new engine lines, projects that represent a combined investment of $825 million.

"This plant is a shining example of what can be done, of what the future looks like and how to continually remake your products so you can be at the cutting edge and be the best in the industry," Gillibrand said.

But manufacturing as a whole has faced tough times. About 30 percent of the U.S. jobs lost since December 2007 were in that sector, the Democratic senator said.

In the Buffalo Niagara region, manufacturing employment has declined from an annual average of 92,600 in 1990 to just 50,300 last year, according to the state Department of Labor. Through June this year, the average was 47,300 manufacturing jobs.

Arthur Wheaton, an automotive expert at the Cornell University School of Industrial and Labor Relations in Buffalo, told Gillibrand that more manufacturers would be successful if they emulated the labor-management cooperation at the GM Tonawanda plant.

"They're not just leaders in Western New York, they're leaders globally," he said.

Bill Robbins, president of RubberForm Recycled Products, a start-up in Lockport, said access to capital remains a pressing issue for small businesses such as his. Federal dollars for research and development also would provide a boost, by paving the way for new products, he said.
Gillibrand agreed that access to capital remains difficult and said she is backing a community bank lending bill that would encourage more lending.

"If we're not getting lending, we're not stimulating growth," she said.

Gillibrand said there are numerous programs that provide federal grants to support "green" projects, and she called for more applicants from New York State.

"It's in our hands," she said. "We just have to ask for it, because we have such compelling work here."

Anthony Caruana, the Town of Tonawanda supervisor, said brownfields hold potential for future growth. Using federal money to create infrastructure on cleaned-up sites would help attract businesses to those properties.

Christopher Knospe of Greatbatch, which has about 700 area employees, called for making the re-search-and-development tax credit permanent, rather than subjecting it to constant renewals. "We invest about 10 per-cent of our gross revenue in R&D," he said.

Gillibrand agreed with Knospe, adding that creating that type of predictability for the tax credit would give inves-tors more confidence in areas like renewable energy.

The senator also said it is vital for domestic manufacturers to be the innovators in renewable energy technology, so that other countries don't get a leg up. "We have to keep the manufacturing here, or we will never compete in these new markets," she said.
e-mail: mglynn@buffnews.com

GRAPHIC: Mark Mulville/Buffalo News Sen. Kirsten Gillibrand, D-N.Y., participates in a round-table discussion with 16 area business and labor leaders at GM's engine plant in the Town of Tonawanda.

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