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March 10, 2004 HARRISBURG: The Team Pennsylvania Foundation, in conjunction with the state's seven Industrial Resource Centers (IRCs) and the Pennsylvania Department of Community and Economic Development (DCED), today announced the results of a major study that documents the role of manufacturing in Pennsylvania and analyzes the forces shaping the future of the industry. Described as an excellent opportunity to outline the strengths and weaknesses of Pennsylvania's largest industry sector, the report entitled "Manufacturing Pennsylvania's Future: Regional Strategies that Build from Current Strengths and Address Competitive Challenges" was commissioned in the fall of 2003 by the state's IRC network and DCED, sponsored by the TEAM PA Foundation and conducted by Deloitte, an international consulting firm. The complete report can be viewed at http://www.catalystconnection.org/bkh/report.htm .
"Through the detailed analysis offered by this study, we can begin to closely examine Pennsylvania's manufacturing industry by sector and by region," said Yablonsky. "This report will assist us in developing smart and effective strategies that can be applied at the local level to provide support for Pennsylvania's largest legacy business sector."

Tighe King, President and CEO of Tighe Industries in York, and co-chair of Team Pennsylvania Foundation, said "Team PA Foundation believes that public private partnerships are critical to developing the resources and innovations required to move Pennsylvania's economy forward successfully. The synergy produced by this alliance makes the Commonwealth a formidable competitor in the global marketplace. We look forward to the continued dialog that will focus on this vital sector of the state's economic base."

With contributions of nearly $64 billion annually to the gross state product (GSP), manufacturing remains the largest of all industry sectors in Pennsylvania, ranking among one of the largest in the nation, and remaining the state's primary economic driver. Yet despite the high rankings, manufacturing employment in the state has dipped having lost 133,000 manufacturing jobs since 1998. The study cited recessionary issues, foreign competition, offshore sourcing and improvements in productivity as major factors for the job reductions. Small and medium-sized manufacturing firms were identified in the report as providing the broad foundation for manufacturing in Pennsylvania. The report also said that increasing competition nationally and internationally will present significant challenges for the state's entire manufacturing sector in the coming years. The report suggested that companies that respond to the challenge by becoming faster, better and more cost-effective will best position themselves to compete. To succeed, the study pointed to the need for Pennsylvania manufacturers to pay special attention to increasing sales through process and product innovation.

"Bringing innovation along with business strategy capabilities to the small and medium-sized manufacturing firms should be a critical new emphasis of the IRCs and other economic development providers," explains Leigh Digel, the lead project partner and a member of Deloitte's Manufacturing Industry practice. Governor Rendell will hold a Manufacturing Summit on March 23 for select Pennsylvania manufacturers and economic development providers to further discuss the findings of the Deloitte report and gather input to help develop a comprehensive plan to assist the industry. ###

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