U.S.
Senator Sherrod Brown
Creating
a Clear Path to the Middle Class by Strengthening Ohio Manufacturing
In
Ohio, we know manufacturing can create a path to the middle class.
But during the Great Recession, that path became turbulent as plants
across the country shuttered their doors and devastated local
communities that depended on their jobs.
But
today, due to smart investments and a renewed effort in
manufacturing, we are adding jobs in that sector for the first time
since the 1990s. Since December 2009, the manufacturing sector has
added more than 300,000 jobs to the economy. This is particularly
important for Ohio, which is the third largest manufacturing state in
the country.
However,
there is still work to be done as too many manufacturing communities
are struggling with the effects of those shuttered plants and
devastating job loss. We need to do everything we can to help get
these communities working again; to get businesses moving back in and
creating jobs.
The
good news is that we know what works. We don’t have to reinvent the
wheel, just target our efforts and make smart investments. One
example of this is the New Markets Tax Credit (NMTC) Program. The
program was created in 2000 to provide a tax incentive to investors
for projects in low-income communities. And the program is incredibly
successful. Between 2003 and 2012, the NMTC was used to generate $60
billion in private investment, and created more than 550,000 jobs
across the country and 30,000 jobs in Ohio. For every tax credit
dollar, these projects leveraged more than $2.50 in private sector
investment.
A few
years ago, I attended a ribbon cutting at Alcoa in Barberton for a
new piece of energy savings technology. The new equipment allowed the
company to install new technology to produce billet from remelted
scrap aluminum.
This
billet is then used to make new wheels, increasing the efficiency and
sustainability of Alcoa’s manufacturing process. The NMTC was one
tool that the community used to help Alcoa make the investment in
Barberton, instead of at one of its facilities outside of the United
States. We can build on this success with the Manufacturing
Communities Investment Act.
My
legislation would reauthorize the New Markets Tax Credit and create a
new Manufacturing Communities Tax Credit. Communities that have
experienced significant job loss would now be eligible for the credit
to create new manufacturing jobs. The new credit would attract new
private investment to places like Wilmington, where they lost 7,000
DHL jobs; or Warren, where RG Steel cut 1,000 jobs.
This
legislation is a first of its kind effort that specifically targets
manufacturing communities hit hard by the changing economy. It
provides private investors with a significant incentive to invest in
manufacturing communities and companies that will create high skill,
high pay, and secure jobs in the manufacturing sector. And it is a
great example of how government can work with the private sector to
revitalize hard-hit communities.
Sincerely,
Sherrod
Brown
U.S.
Senator
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