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President's Letter - March 07

Workers Compensation Reform – Now is the Time!

It has been over 10 years since we have seen comprehensive workers compensation reform. Now is the time to significantly reduce the costs to manufacturers and employers while increasing benefits for workers. In my conversations with Governor Spitzer and members of his administration, I have noticed a decided willingness to pass reform and to ensure real savings are achieved. I am convinced that 2007 is the year we must accomplish this task. MACNY is committed to lobbying for real reform and we will need the help of you, our members, to ensure it is comprehensive, fair, and results in real and significant savings.

Tax Relief for Manufacturers Proposed by NYS Senate

Important budget legislation has been advanced by the New York Senate that would take a bold step in creating a dramatically more inviting business climate in New York State. Senator Bruno and the Senate have passed legislation that eliminates the corporate income tax on manufacturers. This idea would significantly improve New York's economic competitiveness. And, more importantly, this proposal would be attractive to both manufacturing companies considering relocating to New York and those already struggling to compete here.

The Senate Legislation (S.1456) has the following important components:

• Eliminating the income tax and corporate franchise tax on manufacturers, providing $550 million in tax relief;
• Reducing the corporate franchise tax for all other businesses from 7.5 percent to 6.85 percent, saving business $150 million;
• Enacting other reforms of the corporate franchise tax, providing $20 million in relief;
• Expanding incentives to encourage emerging technology companies that do research and development in New York to also manufacture their products in New York;
• Reducing red tape and bureaucracy by simplifying and reducing paperwork, eliminating unnecessary or overly burdensome fees and permits, and creating a one-stop shopping information center to help entrepreneurs start or expand small businesses in New York.

Now is the time for New York to make our business climate attractive to high tech manufacturing companies both here and out of state. If you agree, please contact Governor Spitzer, Senator Bruno, and your state representatives to show your support for this critical budget proposal.

Manufacturers Report Continued Improvement

The Empire State Manufacturing Survey indicates that conditions for New York manufacturers improved at an accelerated pace in February. The general business conditions index rebounded from January. The new orders and shipments indexes also increased significantly. The unfilled orders index rose out of negative territory. The prices paid and prices received indexes eased, while employment indexes moved up. Future indexes also improved, with a noteworthy upsurge in the future unfilled orders index.

In a series of supplementary questions identical to those posed in the February 2006 survey, manufacturers were asked to assess foreign sales and exchange rates. In the current survey, nearly 55 percent of firms reported that, over the past year, the dollar had weakened against the currencies that mattered most for their business, while just 8 percent reported that it had strengthened. Asked which currencies had the largest effect on their overall sales, respondents ranked the Chinese Yuan highest, followed closely by the Canadian dollar and the Euro. Respondents indicated that recent movements in the dollar have had a positive effect on foreign sales but a negative effect on most other aspects of their business, including their profits. As in last year’s survey, more than a third of manufacturers said they planned to devote increased resources to marketing abroad in 2007. These firms indicated, however, that they would focus their efforts more on Europe than on Asia, the market most widely cited in the February 2006 survey.

May 9th – Accelerate 2007 and MACNY’s Annual Dinner

It is time to sign-up for our 94th Annual Dinner. This year we are collaborating with four other organizations to bring you a day long event for manufacturers and the community. The day will be capped by our Annual Dinner. Accelerate 2007, held on May 9th at the OnCenter, is presented by the CASE Center at Syracuse University, Central New York Technology Development Organization, F.O.C.U.S. Greater Syracuse, the Syracuse Center of Excellence, and MACNY, representing over 300 employers and 75,000 citizens from 19 counties across Upstate New York.

Accelerate 2007’s audience will be comprised of business leaders, venture capitalists, academics, students, elected officials, and community residents interested in learning about such topics as lean manufacturing, biomimicry, green technology, and alternative energy sources. This day-long conference will highlight exciting innovations, strategies, best practices, and products from across the United States representing a new wave of opportunity for business development, jobs, and environmental preservation.

This exciting day culminates with our 94th Annual Dinner and the 7th Annual Wall of Fame Awards. Each year over 650 key business leaders attend our evening event. It is a great time to network and honor those who have been instrumental in advancing manufacturing.

See you at Accelerate 2007 and our Annual Dinner!