Introduces the

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Introduces the Keep Pennsylvania Producing
campaign.
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America is the largest economy in the
world. The Economist, 2007
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Pennsylvanias economy now exceeds 510
billion. National Association of Manufacturers,
2008
If it was a country, its economy would rank 17th
in the world, ahead of Switzerland and Hong
Kong! The Economist, 2007
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• Pennsylvania manufacturing
• Is ranked fourth in the nation.
• Makes up 15 of Pennsylvanias Gross State
  Product, contributing nearly 75 billion.
• Deloitte report for Team Pennsylvania,
  Pennsylvania Department of Community and
  Economic Development, and the Industry Resource
  Council, 2004
• NAM, 2008

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PA manufacturing companies employ more than
655,300 people with an average annual wage of
52,000. National Association of Manufacturers,
2007 Pennsylvania Department of Labor, 2007
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Manufacturing is the engine that drives
technological development and innovation within
our state and country.
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However
There are three major challenges facing
manufacturing and business that threaten both
Pennsylvanias and the United States future.
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Skills Gap
First, students are not adequately educated to
meet the demands of an increasingly complex and
technical world.
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Structural Cost
Second, the cost to produce in Pennsylvania is
reaching the point where manufacturers cannot
compete in the global market.
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Unfair Global Trade
Third, trade partners are engaged in unfair
trade practices that inflict serious harm to
American manufacturers.
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This simultaneous convergence has resulted in
the largest mass exodus of

• Wealth
• Technology
• Innovation
• Jobs

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We begin with the Skills Gap
Only 82 of Pennsylvania students will graduate
high school. National Center for Education
Statistics, 2006
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Skills Gap
During the 2005-2006 school year, 319 students
dropped out of high school in Erie County, making
the nine-year total 3,656 drop-outs. Pennsylvan
ia Department of Education, 2007
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Skills Gap
When 11th graders were tested for math skills,
only 52 of Pennsylvania students, and 56 of
Erie County students scored at a proficient or
advanced level. Pennsylvania Department of
Education, 2006
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Skills Gap
If current trends are not addressedthe
Pennsylvanian work force will be less educated in
2020 than it is today. Economic Development
America, 2005
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The Second Challenge isStructural Cost.
Costs imposed by federal, state and local
governments are damaging manufacturing more than
any foreign competitor.
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Structural Cost
It costs 32 more to manufacture in the United
States than in the countries of nine major
trade partners. National Association of
Manufacturers, 2006
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Structural Cost
Non-production structural costs for American
manufacturers total more than 6.00 per work
hour.

• Corporate Tax 1.97
• Employee Benefits Cost ...1.75
• Regulatory Mandates.1.31
• Tort Litigation Costs...0.92
• Natural Gas Prices.0.17
• National Association of Manufacturers, 2006

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Structural Cost
Many U.S. trading partners have lower corporate
tax rates than we do
Germany 38 Canada 36
France 33 United Kingdom 30
Mexico 29 China 15 South Korea
13 United States 40 National
Association of Manufacturers, 2006
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Structural Cost
Pennsylvanias corporate state income tax
is higher than every other state, except for
one. Federation of Tax Administrators, 2007
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Structural Cost
The United States, by far, has the most
expensive health-care system in the world.
National Association of Manufacturers, 2006

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Structural Cost
The price tag for unnecessary and avoidable
health-care costs in Pennsylvania is 7.6 billion
annually. Commonwealth of Pennsylvania,
Governors Budget Office, 2007
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Structural Cost
From 2000 2006, growth in Pennsylvania family
health insurance premium costs rose 75.6 four
times the rate of inflation. Commonwealth of
Pennsylvania, Governors Budget Office, 2007
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Structural Cost
Annually, U.S. tort litigation costs are
significantly higher than in other countries.

• Canada 9 billion
• Germany 31 billion
• United States 275 billion
• National Association of Manufacturers, 2006

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Structural Cost
The regulatory burden on American manufacturers
is estimated at 162 billion annually. Nationa
l Association of Manufacturers, 2006
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Structural Cost
High energy costs are helping drive manufacturing
out of Pennsylvania. Thirty-six other states have
cheaper electricity rates. Pollina Corporate
Real Estate, 2006
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Structural Cost
Pennsylvania is one of only twelve states to have
lost more jobs than it gained between 2002 and
2004, and one of only five states to receive a
grade F on an employment index
rating. Pollina Corporate Real Estate, 2006
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Structural Cost
The U.S. government is now the largest, fastest
growing employer with more than 22 million
employees who earn an average of 44,250
annually. Bureau of Labor and Statistics, 2007
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Structural Cost

• Five out of the top ten employers (50) in Erie
  County are funded by the taxpayers
• City of Erie School District
• PA State Government
• Federal Government
• Erie County Government
• Millcreek Township School District
• Center for Workforce Information and Analysis,
  2007

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Unfair Global Trade
Complex domestic trade rules hinder American
manufacturers ability to export.
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Unfair Global Trade
America now imports 41 percent moregoods and
servicesthan it exports. Bureau of Economic
Analysis, February, 2008
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Unfair Global Trade
The 2007 U.S. international trade
deficit is
738.6 BILLION!!
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If the skills gap, unfair trade and structural
cost issues are not addressed immediately,
experts predict that
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Approximately 8,500 manufacturing plants will
close each year in the United States due to
offshoring. Ronald R. Pollina, Ph.D., Real
Estate Economist, 2006
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Within 10 years
China will be the world leader in manufacturing.
India will be the world leader in
technology. Ronald R. Pollina, Ph.D., Real
Estate Economist, 2006
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Within 10 years
A further loss of 6 million more American
manufacturing jobs and 14 million white
collar jobs are at risk. Ronald R. Pollina,
Ph.D., Real Estate Economist, 2006
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Is it too late?
Not yet!
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As individual Americans, we
must take action now by
advocating the following reforms at the state
and national levels
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Education Reform

• Meet or exceed international standards in math,
  science, reading and writing skills.
• Change technical degree requirements to eliminate
  unneeded courses at the college level.

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Tax Reform
Property tax
Utilities tax
Phone tax
Reduce the tax burden on individuals.
Liquor tax
Sales tax
Income tax
Phone tax
Alternative Fuels tax
Cable tax
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Tax Reform
Initiate tax reform for business.

• Make the research and development tax credit
  permanent.
• Lower tax rates on corporate capital gains.
• Repeal the corporate alternative minimum tax.

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Health-Care Reform

• Continue to have quality and cost information
  immediately available to patients.
• Provide tax relief to individuals who purchase
  health insurance.

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Health-Care Reform

• Enact small group reform that permits employers
  to offer and structure a variety of health plans
  for employees to select.
• Enact medical liability reform that eliminates
  frivolous and abusive lawsuits.

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Legal Reform

• Discourage frivolous and abusive product
  liability suits by imposing a federal time limit.
• Eliminate joint and several liability.
• Discourage frivolous, abusive lawsuits by
  allowing companies and individuals to recover
  legal costs.

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Regulatory Reform
Reduce regulatory costs through sound scientific
and economic analysis.
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Energy Reform

• Increase power generation through clean coal,
  nuclear and renewable sources.
• Expand the domestic supply of reliable, low-cost
  oil and natural gas through exploration and new
  production methods.

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Energy Reform
Promote the expansion and development of
alternative fuels.
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Unfair Global Trade Reform
Change U.S. export controls to promote both
national security and economic competitiveness.
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Unfair Global Trade Reform

• Require all trading partners to
  implement or maintain market- based currency
  policies.

• Enforce trade and compliance rules.

Impose sanctions against violators.
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Take Action Now!
A new non-profit, non-partisan, grassroots
organization has been formed to educate the
general public on these critical issues and to
advocate crucial reforms.
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Introduces the Keep Pennsylvania Producing
campaign.
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Mission of ACSE
The American Council for a Strong Economy is
dedicated to strengthening our national economy
and the prosperity of all Americans by
encouraging and supporting policies that reduce
and limit government intrusion in the private
market, reform education, control non-production
costs for domestic companies and advocate fair
trade policies.
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Keep Pennsylvania Producing

• The Keep Pennsylvania Producing campaign will
  educate people about the issues businesses face
  to stay profitable and competitive in
  Pennsylvania.
• However, the primary goal of the campaign is to
  motivate people to get involved by visiting
  www.keepproducing.org and following the easy
  steps to take part in this grassroots effort.

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Go to www.KeepProducing.org
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Go to www.KeepProducing.org
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Go to www.KeepProducing.org
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FIGHT BACK
LEARN HOW
LOG ON
www.KeepProducing.org
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A great civilization is not conquered from
without until it has destroyed itself from
within. Ariel Durant
www.KeepProducing.org