By BRENT MARTIN
St. Joseph Post
Missouri Chamber of Commerce officials say Missouri must become more competitive to expand its manufacturing industry.
Chair of the state chamber, Stet Schanze, president of Gray Manufacturing in St. Joseph, says while manufacturing makes up 30% of the local workforce, it is only 10% of the state workforce.
“In my mind, it is absolutely the cornerstone of a healthy economy is the manufacturing that you have in the city, the region, or the state that you’re talking about,” Schanze tells KFEQ/St. Joseph Post. “And as a state, we’ve just got to do better.”
The Missouri Chamber Foundation says research by Economic Leadership LLC ranks Missouri 28th in overall manufacturing competitiveness. The neighboring states of Nebraska, Kentucky, and Tennessee rank in the top 15. Kansas ranks close to Missouri.
Schanze says the COVID-19 pandemic exposed a flaw in the strategy of United States manufacturers. Many had their supply chains disrupted, because they had moved them overseas. Schanze says Gray Manufacturing kept its suppliers close and took market share, because production in St. Joseph could continue.
Schanze says a changing geo-political climate should encourage the country to consider ways to bolster the manufacturing sector.
“We’re basically in a hot economic war with China right now,” according to Schanze. “I think it makes a lot of sense to get supply chains back. So, thus, we’re going through this time, and I think it’s a good time to bring manufacturing back to the United States, and in that environment, I think Missouri has to make itself more competitive.”
The Chamber has some suggestions.
First, the state needs to expand the workforce, in particular skilled workers, such as welders, so in demand by manufacturers. Incentives and technical assistance need to be provided to increase capital investment. The state, according to the Chamber, should invest in the infrastructure needed by modern factories, such as transportation, energy, and broadband. Other recommendations made by the Chamber include supporting the recruitment of new manufacturers and expansion of existing operations, increasing exports, strengthening the state legal climate, and address public safety.
Schanze says the state needs to consider its current ranking unacceptable.
“I just think the state’s got to do a much better job,” Schanze says. “We shouldn’t be happy with 28th. That’s not even in the top 50% there and particularly with the threat of those close by states that are always nipping at us and in many cases right now ranking higher than us. We’ve just got to improve there.”
Manufacturing contributes $50 billion a year to the Missouri gross domestic product, employing 287,000 workers.
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