News

Jeffrey Kelly is optimistic about future business opportunities for his machinery firm as long as the economy remains strong, but he said the manufacturing sector still faces problems.

"The biggest concern down the road is the availability of a skilled work force," said Kelly, whose Hamill Manufacturing Inc. is located in Penn Township, Westmoreland County. The precision manufacturer, with about 110 workers, has a difficult time finding skilled machinists, in part because students are not being steered toward that skill, Kelly said.

Many Western Pennsylvania manufacturers like Hamill hold some optimism about future revenue and job growth, according to a survey of 66 companies conducted by Alpern Rosenthal, a Downtown accounting firm.

"Manufacturers have gone through some difficult times recently, but our survey results indicate that many have plans for employment and revenue growth, as well as expansion," Joel Rosenthal, director of Alpern Rosenthal's manufacturing services group, said Monday.

Fifty-two percent of the companies said they intend to expand operations in the state within the next three years, while 31 percent intend to expand outside Pennsylvania, according to the survey, which covered 13 counties, including Allegheny, Armstrong, Butler, Beaver, Fayette, Greene, Indiana, Washington and Westmoreland.

"Manufacturers that are doing well, they are doing well in a declining market," said David Frengel, director of governmental relations for Penn United Technology Inc., a high-precision manufacturer with about 650 workers in Cabot, Butler County.

"We're having a great year, but the story hasn't changed for us. We're picking up work from other companies that have gone out of business."

Sixty percent of the companies rated Pennsylvania as a fair place to do business, and 19 percent described it as a "poor location." Only 3 percent believed the state was a very good location. That was worse than in 2004, when 69 percent gave Pennsylvania a "fair" rating.

The state needs to cut business taxes, workers' compensation insurance and unemployment insurance, said David Taylor, a spokesman for the Pennsylvania Manufacturers Association.

"Pennsylvania public policy needs to be benchmarked to what the neighboring states and competitor states are doing. We have to get the overhead costs of creating a job something close to the national average," Taylor said.

The manufacturers association is supporting a package of bills, the Keystone Manufacturing Initiative, to lower business taxes, workers' compensation insurance, unemployment compensation and provide relief from regulations and lawsuit abuse.

State Rep. Mike Turzai, R-Bradford Woods, one of the sponsors of the 16-bill package, anticipates some bills will be voted upon by the end of the month, while other legislation may be voted on next year.

"Private sector employers, particularly manufacturers, are often ignored in the state," Turzai said. "We want to make definitive changes."

• Most Read
• Most E-mailed
• Latest News