Vermont Tiger
March 08, 2011
Vermont: Myths and Realities I
by Art Woolf
This is the first of an occasional series of postings on, well, what the title says.
We've often heard politicians and others lament the decline in manufacturing in Vermont. And with that comes the observation that one
of the reasons Vermont has a revenue problem, a weak economy, a small tax base, and a host of other ills is because the state's
manufacturing base is much smaller than the nation's.
Let's examine both of those claims.
The alleged decline in manufacturing is said to be evidenced by the number of manufacturing jobs in Vermont.
In 1997, there were 44,000 Vermonters worked in manufacturing. In 2009 there were only about 31,000, more than a 25% decline in manufacturing jobs, according to the
Vermont Department of Labor. So it is certainly true that the number of manufacturing jobs has been falling in Vermont. But that's not the end of the story.
The U.S. Bureau of Economic Analysis reports that in 1997 Vermont's manufacturing sector produced $1.69 billion worth of output. In 2009 the manufacturing sector
produced $2.9 billion worth of output (both in inflation-adjusted dollars).
That's a 70% increase in output in a little over a decade. In 1997, each manufacturing worker produced $38,000 worth of output. By 2009 that had risen to $92,000. Each
worker produced nearly 2.5 times as much in 2009 compared to 1997. That's a sign of success and health, not a sign of decline.
What about Vermont's manufactuing compared to the nation? Bureau of Labor Statistics data show that manufacturing employed 10.5% of Vermont's total employment
base in 2009 compared to 9.1% nationwide. And BEA data show that Vermont's manufacturing sector produced 12.5% of the state's total output (GDP) compared to 11.5%
for all 50 states combined.
Vermont's manufacturing sector is as important, and large, in this state as it is nationally, It's not true that Vermont's manufacturing sector is smaller than in most states
nor is it true that manufacturing is shrinking, at least in terms of output. That the number of workers it takes to produce that larger amount of output is falling is primarily
due to productivity, not to firms shipping their production offshore. Rising productivity in manufacturing or anywhere else in the economy is a sign of health, not of
decline.Vermont Tiger
March 08, 2011
Vermont: Myths and Realities I
by Art Woolf
This is the first of an occasional series of postings on, well, what the title says.
We've often heard politicians and others lament the decline in manufacturing in Vermont. And with that comes the observation that one
of the reasons Vermont has a revenue problem, a weak economy, a small tax base, and a host of other ills is because the state's
manufacturing base is much smaller than the nation's.
Let's examine both of those claims.
The alleged decline in manufacturing is said to be evidenced by the number of manufacturing jobs in Vermont.
In 1997, there were 44,000 Vermonters worked in manufacturing. In 2009 there were only about 31,000, more than a 25% decline in manufacturing jobs, according to the
Vermont Department of Labor. So it is certainly true that the number of manufacturing jobs has been falling in Vermont. But that's not the end of the story.
The U.S. Bureau of Economic Analysis reports that in 1997 Vermont's manufacturing sector produced $1.69 billion worth of output. In 2009 the manufacturing sector
produced $2.9 billion worth of output (both in inflation-adjusted dollars).
That's a 70% increase in output in a little over a decade. In 1997, each manufacturing worker produced $38,000 worth of output. By 2009 that had risen to $92,000. Each
worker produced nearly 2.5 times as much in 2009 compared to 1997. That's a sign of success and health, not a sign of decline.
What about Vermont's manufactuing compared to the nation? Bureau of Labor Statistics data show that manufacturing employed 10.5% of Vermont's total employment
base in 2009 compared to 9.1% nationwide. And BEA data show that Vermont's manufacturing sector produced 12.5% of the state's total output (GDP) compared to 11.5%
for all 50 states combined.
Vermont's manufacturing sector is as important, and large, in this state as it is nationally, It's not true that Vermont's manufacturing sector is smaller than in most states
nor is it true that manufacturing is shrinking, at least in terms of output. That the number of workers it takes to produce that larger amount of output is falling is primarily
due to productivity, not to firms shipping their production offshore. Rising productivity in manufacturing or anywhere else in the economy is a sign of health, not of
decline.