Opinion: Oregon must capitalize on historic manufacturing opportunities, investments - oregonlive.com

Angela Wilhelms and Duncan Wyse

Wilhelms is the president and CEO of Oregon Business & Industry. Wyse is the president of the Oregon Business Council.

Never before have Oregonians so strongly felt the impact of our domestic manufacturing sector – from the development and manufacturing of vaccines earlier this year to the current supply shortages we face. At the same time, the manufacturing industry is facing a unique opportunity as federal policy and investment has refocused on prioritizing domestic manufacturing.

Here in Oregon, we are lucky to have experienced strong growth in our manufacturing industry over the last few decades, but a recent report conducted by ECONorthwest on behalf of Oregon Business & Industry and the Oregon Business Council highlights the fragility of that growth, particularly in this historic moment.

Oregon’s manufacturing sector contributes $33 billion to the state’s GDP and employs 214,000 Oregonians, including a higher share of Black, Indigenous and people of color than other sectors. The report found that median earnings of full-time, full-year manufacturing workers are 17% higher than median earnings of full-time workers in other industries. These are good jobs that can help us emerge from the pandemic with more shared prosperity for Oregon.

The opportunities created by growth are significant: the report found that a mere 10% increase in manufacturing output would support an additional 66,000 jobs across the economy and generate a whopping $800 million in annual state and local government revenue.

And the opportunities for growth are here. The recent passage of the federal Infrastructure Investment and Jobs Act is expected to create a boom in jobs, a fair portion of which would land in Oregon’s manufacturing sector. The Build Back Better Act’s proposed investments in clean energy would provide a surge of demand for products made in Oregon’s vibrant clean tech cluster. Ongoing pandemic-induced disruptions to global supply chains are accelerating efforts to bring manufacturing back to the United States. And the Senate’s passage of $52 billion in incentives for domestic semiconductor production could create a surge of semiconductor investment across Oregon.

However, if Oregon wants to capitalize on the opportunities in front of us for job creation, it must confront a number of obstacles.

Oregon’s growing tax burden has made it overwhelmingly more challenging for manufacturers to operate in a global marketplace where cost matters. State tax revenue collected from businesses is expected to go from $4.2 billion in 2019 to nearly $6 billion in 2022 – a 41% increase – due to new taxes imposed on businesses. The increased burden makes it more difficult for our home-grown companies to compete, threatening to send jobs and revenue out of state.

Our lack of buildable industrial land, our clogged transportation systems and a constantly changing regulatory environment makes for an unpredictable business environment, creating barriers to the growth of these good jobs. And we need to not only be bold in educating the workforce—current and future—about the myriad benefits that come with entering the manufacturing sector, but our workforce development pipeline needs to be modernized to ensure that Oregonians from all communities have access to education and skills training to access these jobs.

As representatives of Oregon’s statewide general business organizations advocating for the strength and sustainability of Oregon’s economy, we urge policymakers to consider these challenges and rise to meet them. Other states are creating ecosystems that foster and reward the innovative nature of today’s manufacturers. Meanwhile, Oregon operates with a hodgepodge of antiquated policies and stifling regulations.

The potential here is enormous, but the opportunity will not last forever. We look forward to working with policymakers, thought leaders, industry partners and our fellow Oregonians to capitalize on these opportunities and invest in a brighter, stronger Oregon.

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