New York Inc. Addressing the Council's Government Affairs Council, Stephen Kagann said it is wrong to assume that some decline in manufacturers' job share upstate means that manufacturing is losing importance upstate. Upstate manufacturers' jobs have declined in recent years, which is the result of productivity gains and the contracting out of services, both of which have been going on for decades, not only upstate but nationwide, he added. But to measure the importance of manufacturing, economists and policy makers must consider not only manufacturers' jobs themselves, but also jobs created by their suppliers, distributors, and other companies that depend directly on manufacturers, as well as the spending of employees of all of these companies in the local consumer economy, Kagann said. He said, when considered this way, manufacturing still accounts for about half of the upstate economy, including about two-thirds of the economy of Rochester and about 53 percent of the economy in Buffalo, he said.
Manufacturing still matters.
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