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Letter: Give manufacturer time to meet IDA’s job goals

Give manufacturer time to meet IDA’s job goals

A manufacturing enterprise buys materials that must be transported; hires skilled, full-time, well-paid people to add value to the materials; employs a staff to sell its product; and ships its product, usually out of state or overseas. Jobs and taxable income follow all along the line. A manufacturer brings outside money into our area.

Our industrial development agencies should encourage manufacturing companies. North Carolina provides not only a free plant, but also at least three years of free education in the skills necessary to manufacture a product. New York State has lost more good jobs to right-to-work states than to Mexico or China.

The IDAs claim that the property taxes paid within a certain number of years will exceed any subsidized amount. The cost of services to a residential development exceed any taxes received. How many enterprises have taken the tax breaks and then moved away?

Our IDAs have been subsidizing hotels, lawyers, call centers, offices and residential and retail enterprises. They do not deserve to be subsidized, because their market is local. Other than initial construction, they do not buy a significant amount of material from U.S. companies. They do not add value, ship a product or bring in outside money. They should be subject to “claw back” for money that they never should have received in the first place.

The Derrick Corp. is another story. Its departure would be a big loss to Western New York. I hope that the Erie County IDA and Vice Chairman Richard Lipsitz will consider the above factors when presenting the options to Derrick. If the company is treated unfairly, it will affect it negatively and the outcome might affect other industries in their decision to stay or leave here.

Robert J. Collins

Snyder