The Daily Star, Oneonta, NY - otsego county news, delaware county news, oneonta news, oneonta sports

Guest Column

April 27, 2013

A closer look at our economy - Part II


If the manufacturing concern is locally owned, it is likely it will use other local businesses like farmers, banks, insurance companies, energy providers, local retailers and other services. This helps illustrate how one economic sector depends upon the other sectors.

If a business is deemed “successful” and attracts outside investors, it may go “public” and issue shares of stock that people in our community could buy. If that happens those buyers expect, no demand, “their” company make a profit so that they, the shareholders, get an acceptable return on their investment in the form of dividends, additional shares or an increase in the value of the shares they hold. It is those kinds of stocks that comprise our public retirement systems and 401(k) plans. Our local newspaper is a publically owned company and thus traded on Wall Street.

Because these manufacturers have a tie to the community, they generally are generous in their support of local “causes” or needs. Much of this area’s “old money” resulted from investing in IBM stock when it was just starting up and has been plowed back into the community to support the public sector via endowments and other donations.

Our area has several manufacturing operations. They include large companies like Chobani, Amphinol and MeadWestvaco, and smaller firms including, but not limited to, injection molding of plastics; electronics; sauces, producing lumber and specialty woods from logs, wine making and conversion of vehicles to serve as high-tech mobile health care providers. It is important that we recognize their contribution to our economy and encourage them to remain. In conjunction with that effort, we need to attract new manufacturing businesses. Growing new manufacturing businesses will help stop our current “brain drain” by providing career paths that enable our children to find quality work and will attract new talent to our area.

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