Gov. Butch Otter of Idaho, a Republican, did not discuss the manufacturing sector generally but he cited the success of individual manufacturers and other companies in his State of the State address last week, a speech in which he called for major tax reform to support economic growth and fairness.

For businesses, economic and financial uncertainty caused in large part by misguided federal programs and policies are undermining confidence in the marketplace. Employers have no idea what it will cost them to comply with new health care mandates.

I understand their hesitation. But that’s stifling employment growth.

But there are plenty of examples out there of courageous and forward-looking business investments in Idaho’s future – examples that we should celebrate. For instance….

In Payette, Teton Manufacturing has more than enough work to hire at least four new machinists.
In Moscow, Biketronics is looking at sales increases that should enable it to expand and hire staff for a planned business incubator.
In Caldwell, Kit Manufacturing could be in a position to double its workforce in the coming year.
Fry Foods in Weiser is continuing to hire for its growing food processing business.

Otter criticized the federal health care laws in more detail than other governors whose state of the state addresses we’ve read.

Earlier posts on State of State addresses.

In his first State of the State address since leaving the U.S. Senate for the Capitol in Topeka, Gov. Sam Brownback of Kansas declared economic growth to be his administration’s priority.

Kansas will emerge stronger economically through hard work, practical ingenuity and removing government impediments to both rural and urban private-sector growth. In the coming days, I will be proposing an integrated, strategic plan to spur the Kansas economy. This plan will create the framework for more private sector – not government – jobs; put more earnings in the pockets of average Kansans; and help to raise out of poverty many of our families and children who now despair.

The Republican specified two taxation proposals:

• Enhanced Expensing: Allowing Kansas business to immediately deduct a higher percentage of the cost of an investment.
• Rural Opportunity Zones, or ROZes, will provide a state income tax waiver for any individual relocating from out-of-state into any participating county that has experienced double digit percentage population decline the last ten years.

Five counties last year reported population losses higher than 19 percent. And there’s new, cheerful report by Reuters, “Kansas county at U.S. geographical center is dying.” (Nothing that a ban on farm machinery and paved roads wouldn’t fix.)

Gov. Brownback did not use the word “manufacturing” in his address, but he did speak directly to specific industries. (continue reading…)

Colorado’s new governor, John Hickenlooper, did not use the terms “manufacturing” or “industry” in his first State of the State address on Thursday, Jan. 13, but he started the speech by recalling how he and other investors overcame difficulties to create a successful Colorado Springs brewery. In other words, Gov. Hickenlooper began his speech by talking about using his experience in business and manufacturing to make larger points about Colorado, its economy, and the state’s challenges.

Almost 20 years ago to the day, a person who knew that I loved old buildings coaxed me down 70 miles south of here to look at the only registered historical landmark in downtown Colorado Springs. It was scheduled for demolition. I bought that building from the bank, but despite previous successes in Denver and Fort Collins, I could not attract investors to save the old Cheyenne Hotel.

After almost two years of work, when the bank was on the verge of repossessing the building, our general contractor, the man – the legend – Chuck Murphy, saw another approach. He called a meeting of all the subcontractors who had bid on the project – the electrician, the plumber, the sprinkler guy, all of the others – to come listen to the same pitch I’d been giving to wealthy investors.

Despite my skepticism that small businesspeople would accept such risk, they put their money down. We raised the last $150,000 from the subcontractors. They become my partners. From that point on, everything was different. I’ll never forget when the electrician came and was concerned about lighting in the bar. He suggested that we replace the deluxe fan system in our plans with an equally durable fan that also featured lights. I asked what the extra cost was going to be, and he said I’m your partner, “Why would I add an extra cost?”

That’s how we built the Phantom Canyon Brewing Co.

Two other simple statements merit appreciative note:

• Our top priority must be jobs.
• Sustainable jobs are created by the private sector.

And the Democratic governor tied these principles into a call for regulatory reform, or at least regulatory reporting:

In the days ahead, I would like to see if we could look at adding a regulatory impact statement or something like a regulatory impact statement to new legislation. Just as we require a fiscal note for every new bill that estimates the costs to state government, we could also include an estimation of the cost to businesses of additional regulations.

Georgia Gov. Nathan Deal, a Republican, delivered his first State of the State address on Thursday. Like other governors who have already delivered their speeches to legislatures, Deal made no specific reference to “manufacturing” or “industry.” The budget crises affecting many states have pushed manufacturing qua manufacturing off the agenda.

Still, Deal made comments of keen interest to manufacturers, most directly in his discussion of infrastructure investment as necessary for economic growth.

There is no more important public works project for the competitiveness of our entire region than the Savannah harbor deepening project. When the enlarged Panama Canal comes online in 2014, we will be ready to receive the Post-Panamax ships heading north. These larger ships improve cargo rates for shippers and receiving these ships in Savannah will have a ripple effect throughout the state.

Also, as we prepare to deepen the Savannah Harbor, we must work to ensure that we have last mile connectivity with the Port and statewide East-West connectivity to guarantee the efficient movement of people and goods throughout our state.

Infrastructure is key to economic competitiveness and Georgia’s transportation network has always been our strength. Georgia is already home to the most capable airport in the world, an extensive network of regional airports, the fastest growing ports in the nation and two Class One rail lines. 99 percent of Georgians live within 20 miles of a four-lane road.

Deal, a former Congressman, also discussed the regional and commuter needs in the context of infrastructure.

We must think innovatively to find alternative funding sources. In particular, because Georgia is an attractive destination for investment with a strong balance sheet and good demographics, public-private partnerships hold incredible potential.

A governor who spends a good part of his early Administration’s most important speech discussing a major port, the Panama Canal, and public-private partnership is definitely attentive to conditions that encourage investment in industry, even if he doesn’t mention the word “manufacturing.”

More coverage of governors’ State of the State speeches here.

West Virginia’s new governor, Gov. Earl Ray Tomblin, delivered his first State of the State address on Wednesday (text). In our search for references to manufacturing in governors’ agenda-setting speeches, the Democrat takes first prize so far — not just for his specificity, but also for putting industry in the context of energy development.

Tomblin, who succeeded Gov. Joe Manchin after Manchin won the U.S. Senate election, declared, “Our top priority must be to continue to improve our business climate to attract, retain, and create good paying private sector jobs.” He naturally discussed coal, persuasively and proudly so. Less expectedly, Tomblin also hailed the potential of Marcellus Shale natural gas.

West Virginia’s economic future lies not only in its continued use of coal as a resource. Lying just a mile below the surface of much of our State is a rock formation called the Marcellus Shale. This formation is rich in natural gas and new technology and techniques have made access possible for the oil and gas industry.

The development of the Marcellus Shale formation for natural gas production is an economic development opportunity for the State, and we need to embrace it! [applause] Billions of dollars of private capital have already been invested in this activity and with it has come many jobs.

For example, today Dominion announced its intention to build a natural gas processing facility in Natrium, West Virginia. This project will allow for significant development opportunities in West Virginia. And it is not only about the production of natural gas. The development of the Marcellus Shale has the potential to restart the manufacturing industry in West Virginia. It is an opportunity that we simply cannot let go by. [applause]

Are you paying attention, New York?

The governor also emphasized the importance of education and more efficient, responsive government.

Gov. Mitch Daniels delivers a State of the State address that doesn’t mention “manufacturing?” That makes no reference of “industry?”

How can that be? Daniels is governor of the most manufacturing-intensive state in the nation, a governor who made efficient and responsive government, fiscal responsibility and economic growth the hallmarks of his Administration. The Republican handily won re-election in 2008 because of the successes in implementing that vision, including major new manufacturing investments in the state.

Those successes — and the relative short length of the speech — probably explain the omission of the word “manufacturing.” Hoosiers know his goals and know his record. Rather than rehash or tweak, now is the time to redouble the efforts in areas that still needs work: local government and education. The educational portion of Daniels’ speech should be of intense interest to manufacturers and could easily apply to any state. From the text:

Let’s start by affirming once again that our call for major change in our system of education, like that of President Obama, his education secretary and so many others, is rooted in a love for our schools, those who run them and those who teach in them. But it is rooted most deeply in a love for the children whose very lives and futures depend on the quality of the learning they either do or do not acquire while in our schools. Nothing matters more than that. Nothing compares to that. (continue reading…)

Virginia Gov. Bob McDonnell did not use the word “manufacturing” in his State of the State address delivered Wednesday, but he did discuss the state’s business climate, government economic development incentives, and workforce issues, the building blocks of a growth and jobs agenda backed by Virginia’s manufacturers. From the text:

In mid-December we announced our “Opportunity at Work” budget and legislative proposals calling for $54 million in new state funding to help us better compete with Maryland and North Carolina; India and China.

Among the proposals are $25 million for a Virginia Research and Technology Innovation Program; $5 million in funding for Virginia Small Business Financing Authority, to help small businesses gain access to capital; additional funding for Virginia’s growing tourism, wine and film industries, investments in successful workforce development programs, and improvements to industrial sites and enterprise zones….

Government can’t create jobs, but it can create the conditions and incentives that unleash the genius of the entrepreneur. Your approval of this money and legislation will keep us on the winning path.

The “Opportunity at Work” budget announced on Dec. 15 seeks to support the efforts of the newly established Economic Development and Jobs Creation Commission. Among McDonnell’s proposals are:

• Virginia Research and Technology Innovation Fund (VRTIF) – $25 million
• Clean Energy Manufacturing Incentive Grant (CEMIG)
• Virginia Port Tax Incentive – $5 million
• Refundable Research and Development Tax Credit – $5 million

The December news release included a statement from Brett Vassey, President & CEO of Virginia Manufacturers Association: “Virginia manufactured goods make up over 80% of the Commonwealth’s exports and increasing domestic exports is important to Virginia’s economic recovery.  The Virginia Port Tax Credit incentive proposed by Governor McDonnell will improve the competitiveness of the Port of Virginia and incentivize manufacturers to ship more products through Virginia.”

In our continuing coverage of State of the State addresses today, we noted these comments from governors of two very different states, New Jersey and Mississippi.

New Jersey Gov. Chris Christie: “If we cannot shed regulations, reduce spending, and hold the line on taxes, we cannot attract and create the jobs our citizens so desperately need.”

Mississippi Gov. Haley Barbour: “[Our] goal has to be to grow our economy faster than the nation as a whole, and we can do it. We have to focus on our advantages: low taxes, a friendly business climate, rational regulation, abundant natural resources and especially a first rate, affordable work force.”

Now comes Illinois, where lame-duck lawmakers approved Gov. Pat Quinn’s plan to balance the state budget and raised the personal income tax by 67 percent! The state’s business tax will go up by 46 percent! The Huffington Post reports that, according to the The Tax Foundationthe hike would force Illinois businesses to pay the highest combined national-local corporate tax rate in the industrialized world.

From The Chicago Tribune, “Quinn congratulates Democrats on income tax increase“:

A triumphant Gov. Pat Quinn congratulated fellow Democrats early today after the Illinois Senate and House sent him a major income tax increase without a single Republican vote in favor.

Quinn smiled and shook hands on the floor of the Senate around 1:30 a.m. after the Senate voted 30-29 for the bill, which would raise the personal income tax-rate by 67 percent and the business income tax rate by 46 percent.

If it’s a triumph, it’s of the Phyrric sort. Gov. Mitch Daniels of Indiana made two telling observations in interviews as reported in The Herald-Review, “Indiana governor says Illinois tax hike would be good news for his state“:

• “We already had an edge on Illinois in terms of the cost of doing business, and this is going to make it significantly wider.”
• “Folks in Illinois will eventually have to decide: Is this working well enough for us or do we want some-thing different? Point one of our anti-recession strategy here is to avoid doing what they’ve now decided to do.”

Given the state of Mississippi’s record in creating an economic climate that attracts manufacturers and encourages their expansion, it comes as no surprise that Gov. Haley Barbour paid great attention to manufacturing in his final State of the State address delivered Tuesday.

The Republican governor also did an excellent job in linking economic growth to education and workforce development, highlighting the state’s new Department of Employment Security, the establishment of the Workforce Investment Board and the Workforce Enhancement Training or WET Fund. From the text:

Now, every year, the WET fund puts about $20 million into workforce development and skills training at our 15 community colleges, which do a great job. A study of graduates of WET-fund financed programs show they make $4,300 more per year than before that training, and our improved, skilled workforce as been a reason companies like Toyota, GE Aviation, PACCAR, Severstal and a long list of very hightech energy companies have come to Mississippi.

Coupled with workforce quality, the State has focused on attracting advanced manufacturing with advanced materials. We’ve targeted aerospace, automotive and energy, as well as service sectors. We’ve also beefed up our efforts to help existing businesses.

The results include a 27 percent increase in personal per capita income despite the recession. This is the 15th highest increase in the country over this six-year period.

The Governor pointed to specific examples of investment and hiring created by manufacturers taking advantage of Mississippi’s pro-business climate.
(continue reading…)

Gov. Chris Christie did not mention manufacturing or industry in his State of the State address Tuesday. His speech, entitled “For New Jersey: It’s time to do the big things,” instead concentrated on fiscal issues and highlighted Gov. Christie’s efforts to turn the state and state government around, making it more responsive and competitive.

But you don’t have to cite the specific words — manufacturing, industry — to be relevant to manufacturers. The emphasis on competitiveness should indeed strike a chord with business, industry and the citizens of New Jersey. Christie, a Republican, said:

For New Jersey: it’s time to do the big things. For this year, the biggest things fall in three categories:

One: We must stick to the course of fiscal discipline.
Two: We must fix our pension and health benefit systems in order to save them.
And three: We must reform our schools to make them the best in the nation.

On these three, what is at stake is no less than the future of New Jersey.

You see, we are in a global competition, and we are in a competition among states.

If we cannot shed regulations, reduce spending, and hold the line on taxes, we cannot attract and create the jobs our citizens so desperately need.

If we cannot make the promises of our pension system more realistic, there will be no pensions.

And if we cannot repair our schools, our people will not be ready for the jobs of the future.

The National Association of Manufacturers has long emphasized the need for the United States and U.S. government to create an economic and business climate that is more globally competitive. (See our 2010 policy guide and call to action, “Manufacturing Strategy for Jobs and a Competitive America.”) Gov. Christie’s remarks fit well with that vision of competitiveness.