Thursday, June 05, 2008

Same Sickening Story -- Same Old Response

More bad news for the local economy, Con-Med will shut down two plants, laying off 150 workers.
Finished goods are now stored locally, but those operations will be moved to Atlanta, Ga., and shipped from there. Atlanta is a transportation hub, and freight costs are lower, officials said.

" . . . when we looked at the production of some of these products, it was the only way to stay competitive . . .”
Last week Gloversville received similar news when Callaway announced it was closing its golf ball factory by July 31.
. . . more than half of the company's customers live outside the United States, making it more cost efficient for the company to move its manufacturing operations outside the country. . . .

"[Callaway] does have a responsibility to its employees and shareholders to maintain its competitiveness in the industry . . . "
"Competitiveness" : That's it in a nutshell . . . Companies leave New York State to stay competitive. New York State is Not Competitive.

The responses in both cases are similar . . . Look at bright spots . . . Look forward to the future. We'll just keep (spending lots of money) trying to sell our respective areas to other prospects.

But do we EVER hear any of our elected leaders and industrial development types use their respective bully pulpits to lobby for changes that will actually FIX what is driving businesses away?

NONE of our local legislators has lifted a finger to dismantle the Thruway Authority and rid our main commerce artery of tolls. NONE of our mayors, county executives, industrial development heads have even suggested it. NO ONE suggests ways to spend less on our schools (which are the biggest drain on the taxpayers). Does anyone really believe that we need to spend $18,000+/ student in NYS to educate them? Does anyone really believe that Utica needs $187 million in new school construction - - - or Syracuse needs $900 million?

Money spent on "economic development" is money wasted because we're promoting a defective product. "Wins" cannot last in a state that has no control over its spending, and nickels-and-dimes its people to death.

Wake up, people! Time to say enough is enough.

4 comments:

Greens and Beans said...

Our elected officials have all been “sleeping behind the wheel” in terms of not demanding that the New York State Government lower thruway tolls, utility costs, property taxes, and highway truck fees for product transportation costs in our area. The Utica/Rome areas are landlocked in terms of having to pay additional costs to move manufactured products in and out of our area. Central New York has simply overpriced itself out of competition by no longer being profitable in terms of transportation and warehousing divisions of corporate operations. The incremental increasing thruway tolls, transportation permit taxes, utility costs, property taxes (mostly from unrestrained school district and government spending), in conjunction with the perpetual increasing fuel prices, all contribute to confound any corporate warehouse profitability. Almost nothing can be trucked in, or shipped out of this area, without having to pay for these millstones. By cleverly locating warehouse operations to States that are centrally located along toll-free interstate highways, corporations can equalize their shipping costs to both East and West coast customers. In return, the additional price of having to ship products to our area will ultimately cost the shippers more. The added shipping costs will in due course be passed along to us. The end result will assuredly further retard any hope for growth in our micro economy of scale.

Our elected Officials need wake-up and unite in a bipartisan front to halt this hemorrhaging of our economy before other corporate warehousing and distribution centers follow suit to move their transportation divisions – with more jobs – out of Central New York.

Kim said...

I moved to NC 11 years ago, fully intending to move back to CNY. When my son was born in December 2001, I just knew that we'd be back in CNY before he started Kindergarten. Well, his last day of Kindergarten in next week and guess what? There is not a chance (unless we win the lottery) that we're moving back anytime soon. We just can't afford it. The pay cut would be incredible and combined with the higher taxes it'd kill us.

I wish it were different. CNY is a beautiful place and I hate to see the area and the people screwed over as they are.

Mrs. Mecomber said...

This is what New Yorkers get for demanding that politicians "create jobs" for us. The only jobs politicians can create are more political jobs. This is why you see the explosive growth of government and government control here.

I do wish voters would get it into their heads that politicians are not our saviors. New York needs people who will not manage our affairs-- we need people who will defend, uphold, and protect the Constitution and then get out of the way and let us live our lives.

Mary said...

Competitve? How about moving to other countries to get the cheapest labor they can, screw the quality and screw the residents of NY. I've lived here for almost 64 years and remember well the 50s and 60s. Of course, it wasn't just this area.....it was everywhere. However, This area went downhill fast. I still blame politicians. As far as I'm concerned, they're all in the game to line their own pockets and no one will ever convince me that I'm wrong.