Shaping and Strengthening Pennsylvania’s Manufacturing Industry
Recently, I met with several manufacturing leaders, including U.S. Steel CEO Mario Longhi to discuss ways to help rebuild and strengthen Pennsylvania’s strong manufacturing base.

 
Pictured with me are Mario Longhi, CEO, U.S. Steel;
and David Taylor, president,
Pennsylvania Manufacturers Association.
The conversation covered many of the areas critical to helping the manufacturing sector grow. The need to improve on workforce development, our tax climate, and permitting and regulatory reform were all discussed at length.

According to the U.S. Bureau of Labor and Statistics, manufacturing in Pennsylvania contributes $80 billion to the economy and directly employs over 567,100 people who earn average salaries of $70,414.

Significant progress has been achieved to improve our economic competitiveness over the past several years, namely significant lawsuit abuse reforms, including the Fair Share Act. We have improved our business tax structure by moving to a single sales factor, increasing Net Operating Loss deductions, and fully eliminating the Capital Stock and Franchise Tax.

Despite the efforts of some, we have harnessed the opportunities that natural gas development has opened up for Pennsylvania. We will see these benefits realized at Shell’s Beaver County petrochemical facility, made possible in part by the Resource Manufacturing Tax Credit, as well as at Sunoco Logistics’ Delaware County natural gas liquids processing facility. These two projects alone represent billions of dollars in capital investment, along with thousands of good-paying local jobs. What’s more, projects like these create additional downstream manufacturing opportunities.

There is still more work to do and we are working to develop the next phase of our manufacturing agenda, which prioritizes private-sector job creating and economic growth. Meetings such as these with business and community leaders help define priorities.

More information on these efforts will be released in the near future.