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South Central Pennsylvania stands to lose up to 864 jobs among small and mid-sized manufacturers if a state budget proposal pending in Harrisburg becomes law, according to MANTEC, a private nonprofit economic development group based in York.

In the midst of a contentious state budget battle, the House and Senate are considering  proposals to cut funding for Pennsylvania’s Industrial Resource Centers (IRC’s) by anywhere from 44-62 percent.  These IRC’s are funded by the state’s Department of Community and Economic Development and help small- and medium-sized manufacturing enterprises respond to changing markets, new technology and the competitive pressures of the global economy. 

Such a decrease in funding would result in deep program cuts which will directly impact companies like these throughout the state, and likely result in a loss of up to 864 jobs in small manufacturing businesses in this region.  This forecast is based on an analysis of MANTEC clients and other manufacturing companies in the nine-county region of South Central Pennsylvania.

 “Manufacturing is the sector of the economy which creates wealth and can lead us out of the current economic crisis.  Manufacturers are not asking for a government bailout or stimulus check.  They do however need support to guide them through these turbulent times.  Further cuts to the IRC program will have a harsh impact on this battered industry,” said John W. Lloyd, President and CEO of MANTEC.
MANTEC is the IRC Network office in South Central Pennsylvania. 

Earlier this year, the governor submitted a budget calling for a 24 percent reduction in funding for the state’s IRC’s.  The governor subsequently increased that cut to 34 percent, prompting the IRC’s to reduce costs and staff levels as the new fiscal year began. Any further cuts would require the IRC’s to cut programs and services to the state’s manufacturing sector at a time when many of these companies are struggling with the effects of a global recession.

In the past year alone, MANTEC reported that its work resulted in 663 jobs created or retained.  Those jobs could now be lost in the budget now under consideration.

“South Central Pennsylvania has a proud heritage of manufacturing with a diverse array of over 3000 companies.  Many of them are now struggling for survival.  We bring them strategies to compete globally by identifying new markets and new products and by improving their processes.  Without state resources, MANTEC will lose its ability to provide these essential services,” added Lloyd.

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