NY's grade for manufacturing health improves in nationwide study

New York State has moved up to a D- grade from an F in a nationwide study of the health of manufacturers, officials said Wednesday.

The ranking, from the Center for Business and Economic Research at Ball State University in Muncie, Indiana, is based on three factors: total income earned by factory workers, the difference between factory wages and those of all workers, and the share of manufacturing jobs in the overall economy, according to center director Michael J. Hicks. 

Other states with D- grades in this year’s Ball State Manufacturing Scorecard are Montana and Virginia.

States that fared worse than New York, receiving F grades this year, are Alaska, Hawaii, Nevada and New Mexico.

The states that received A grades are Indiana, Iowa, Kentucky, Michigan and South Carolina.

Ball State spokesman Marc Ransford said Wednesday the research center doesn’t name the single  best and worst states in its annual scorecard.

Empire State Development, New York's primary business-aid agency, has awarded tax credits and grants to help manufacturers "adapt to the high-tech economy of the 21st century," said agency spokesman Jack Sterne. "New York's economic picture remains bright."

He noted the state's gross domestic product, the sum of all goods and services produced here, is the 11th largest in the world.

Since the scorecard began in 2008, New York has received F grades for six years and D- grades for five years.

New York received its highest marks in the period, a B grade, for diversity of manufacturers. It received C grades for transportation networks, worker skills and the financial strength of state government. However, these grades do not affect New York's grade for manufacturing health, officials said.

In addition to moving up a letter grade in the manufacturers’ health category between 2018 and this year, New York saw improvement in its grades for worker skills, taxes and international trade.

Patrick Boyle, executive director of the local manufacturers' group Ignite Long Island, said, "Our innovative, committed and diverse workforce sets New York, and specifically Long Island, apart from the rest of the country."

There are nearly 3,000 factories in Nassau and Suffolk counties, with pronounced hiring growth in pharmaceuticals, food products and instruments.

Boyle and others said New York's low grade for manufacturing health is due in part to the state's large population and many industries.

New York is "pitted against less populated states with fewer career opportunities other than manufacturing," Boyle said, adding the states should be judged on total production output instead of total employment.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.