Tax incentives play a vital role in the growth of the manufacturing industry and must be protected
The state of Washington provides several tax incentives for manufacturers . The intent of the incentives is to encourage the development and preservation of jobs by assisting business in growth or relocation efforts . Manufacturers in the state of Washington have taken advantage , to the benefit of the state economy , of several of these tax incentives including the sales and use tax exemption for manufacturing machinery and equipment ( M & E ), the rural county business and occupation ( B & O ) tax , and the business and occupation tax exemption for food processors . These , and other tax incentives provided to manufacturers by the state of Washington have been factors in recruiting new business to the state as well as the expansion of existing business .
The minimum wage issue is a prominent decision factor when expanding manufacturing facilities
Washington ’ s current $ 9.32 per hour minimum wage applies to workers in both agriculture and non-agricultural jobs , although 14- and 15-year-olds may be paid 85 % of the minimum wage ($ 7.92 ). There are efforts across the state to increase the minimum wage to $ 12 - $ 15 per hour . An increase in minimum wage will impact manufacturer ’ s ability to expand production , increase jobs , and provide benefits for employees . A higher minimum wage also makes Washington state manufacturers less competitive in the global marketplace .
The workforce pipeline is not growing at a pace needed to meet industry demand
U . S . manufacturing needs a strong technical workforce . Manufacturers rely on the right workers with the right skills at the right time to drive innovation , increase productivity and remain globally competitive . The manufacturing workforce in Washington state is projected to increase almost 1 percent per year through 2022 adding over 20,000 new jobs in addition to high retirement rates ( Source : Washington State Employment Security Department ). Support for , and collaboration with , the state ’ s higher education system is necessary to produce the demanded workforce needed to grow the manufacturing industry .
MANUFACTURERS CONTRIBUTE
$
2.08 trillion
TO THE U . S . ECONOMY
MANUFACTURING SUPPORTS
17.4 million
JOBS IN THE U . S .
MANUFACTURERS IN THE U . S . PERFORM two-thirds
OF ALL PRIVATE-SECTOR R & D IN THE NATION , DRIVING MORE INNOVATION THAN ANY OTHER SECTOR .
Key Data Points
• 9.6 % of all nonfarm workers in Washington state work in the manufacturing industry .
• Washington state is home to 6,906 , manufacturers .
• In 2013 , manufacturers contributed $ 2.08 trillion to the United States economy .
• Manufacturing supports an estimated 17.4 million jobs in the United States — about one in six private-sector jobs . More than 12 million Americans ( or 9 percent of the workforce ) are employed directly in manufacturing .
• In 2013 , the average manufacturing worker in the United States earned $ 77,506 annually , including pay and benefits .
• Manufacturers in the United States perform two-thirds of all private-sector R & D in the nation , driving more innovation than any other sector .
Key Points from Listening Sessions
• Health care costs have risen for one manufacturing company by 41 % and 81 % for another .
• One Washington state manufacturer has incurred $ 300,000 in regulatory costs on a proposed $ 2 million building .
• Predictability and reliability in government regulation are key to supporting manufacturing growth in Washington state .