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Industry leaders, legislators discuss manufacturing issues

CRANBERRY TWP — Local business leaders discussed pressing issues revolving mainly around employment and inflation with elected representatives Thursday morning.

At a roundtable hosted by the Manufacturer & Business Association, five state representatives heard of the ongoing difficulties in the industry and talked about whether those issues could be addressed by state government.

“I may only represent a portion of Butler County, but there’s a lot of growth in this county, as you can see driving down here from various parts of the state, from wherever you came from,” said state Rep. Marci Mustello, R-11th, in introductory comments. “This is really a hub of growth down here, and we have to think regionally.”

Mustello was joined by another elected official from Butler County, state Rep. Abby Major, R-60th, as well as Reps. Carrie Lewis DelRosso, R-33rd, Parke Wentling, R-17th, and Donna Oberlander, R-63rd. Oberlander serves as the state House majority whip, and all five are members of the House Manufacturing Caucus.

Finding qualified employees

Business leaders talked about two main issues: Finding qualified employees and making a profit — or just breaking even — with the highest inflation in 40 years.

Andrew Renkey, president of Harmony Castings in Jackson Township, said the business had roughly 67 employees prior to the COVID-19 pandemic; during the pandemic, that number dropped to about 47. Now, he could use around 100 employees, Renkey said, but there is a dearth of qualified applicants.

Jim O’Donnell, of Cygnus Manufacturing Co. in Clinton Township, said a large issue with finding qualified employees is that few people are interested in entering the industry.

“Labor is a big thing, making that entertaining for someone that wants to get into manufacturing,” O’Donnell said. “I’m an instructor, so I promote that big-time, but you want to create those jobs that (make) people want to get into manufacturing.”

O’Donnell added entry-level pay in the manufacturing sector typically won’t attract as many candidates as would pay in another industry, but noted quality workers are typically promoted and make a better living.

“The wages don’t quite line up with somebody that can go to McDonald’s or something, or Starbucks, make as much, but they don’t look at the future,” he said.

DelRosso said this is something that could be addressed at the state level, especially with the ongoing appropriations hearings.

“We’re not teaching our kids to do this,” DelRosso said. “That’s the bigger problem.”

The legislators discussed efforts to help the shrinking number of students learning about the trades in public schools, including the quality of Butler County Area Vocational-Technical School. Mustello cited the school as an example of “preparing these kids for the future.”

Focus on inflation

Patti Ann Ketterman, of Associated Ceramics in Winfield Township, said while introducing manufacturing jobs in public schools as a viable career option is a good long-term plan, a more immediate and pressing focus should be on inflation.

“I am now paying, just from North Carolina to Pennsylvania, more than 75% more than I did in 2019,” Ketterman said of truck transit. “I’m paying twice as much to move stuff from Montana to here.”

Ketterman said she has concerns over the rising price of electricity — she said she’s paying 15% more for electricity now — in addition to the other inflationary pressures on businesses.

“Education is great. Let’s get all these kids and let’s get them in,” she said. “But in the meantime, our business is going to go out of business because we can’t pay for these things.”

Renkey echoed Ketterman’s concerns, asking whether Harmony Castings — or any business — will be able to survive the current inflationary pressures.

“If you’re making a product today, you’re selling it a month from now and the cost pressures change completely,” Renkey said. “You could be looking at a good margin (when the product is manufactured) and sell it at a loss.”

The legislators said inflation is on their radar. Even as an issue controlled primarily by the federal government, Mustello said, the state can still take action to mitigate the harms of rising costs. Mustello said, however, that “leadership at the top” prevents such mitigations.

“We understand it. We hear it every day from employers, manufacturers, everybody,” she said. “But it’s leadership at the very, very top. We’ve tried, we’ve passed some great bills, but (they) get vetoed.”

DelRosso blamed the increase in truck transportation costs on stricter regulations on commercial drivers’ licenses — such as a higher minimum age and longer off-time requirements — and noted the state legislators could speak with congressional representatives about how each “little drop is filling the bucket” for local businesses.

Jezree Friend, senior director of public affairs for the Manufacturer & Business Association, also brought up the issue of high health insurance premiums, and encouraged the business leaders and legislators to continue meeting and discussing the issues they face.

“This is how these things happen,” Friend said. “We have to continue these conversations.”

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