MACNY CEO talks manufacturing in Central New York
By Deborah Jeanne Post
Randy Wolken, president & CEO of the Manufacturers Association of Central New York, recently spoke with us about the reshoring of American manufacturing in Central New York.
Q: Is manufacturing reshoring in the U.S.?
A: It is true. There are strategically important industries. Micron investments are the most evident and all the opportunities that surround the semiconductor manufacturing sector. It’s a direct correlation to this being a strategic investment and the U.S. having them made here. It’s an example of what’s going to continue here. These individuals are deciding where to make investments. It’s also in national defense. PTM Solar added 1,000 jobs in CNY and built a brand-new facility. We’re seeing in existing companies. Deloitte is also expanding. We have a lot of companies deciding where to expand. It’s a real phenomenon. It will only continue to increase as companies are looking at how to build an ecosystem.
Q: Why are we seeing reshoring?
A: There are some fundamental reasons. For many, it’s the realization during COVID-19 that supply chains are becoming big risk factors. You want to produce things close to where you’ll sell it and not have to ship it. Supply chains were a part of manufacturing because you could produce components in Asia. It’s a dangerous strategy — an economic risk. The next generation of manufacturing technology generates both national and economic security. You can’t have a bulk of our chips made in China or Taiwan. It’s not only in technology. It’s also true of biologics, expensing, energy and defense. You want your supply chain and production close to home if you want to win industrial competition. For years, the U.S. didn’t have an economic policy, not just the lowest cost. It has more to do with wage differentials decreasing. And supply chains becoming risky. It really forced this country to build supply chains.
Q: How about in CNY?
A: I think it does position us well. New York state has always been a manufacturing state with the Erie Canal and all those companies. It’s the Empire State. We have a ton of resources like water. We have a significant electrical grid -cleanest in the country. On top of that, you have the availability of land and putting this all together, it’s strategically important. It took a significant amount of effort to land Micron. Semiconductor technology is an enabling technology. If you want to use products with semiconductor chips, you want to have it near. We should have one-quarter of all the nation’s chips made in CNY. All the supply chain pieces like Novelis in Oswego. They reinvested and grew the facility after the tragic fires. That showed commitment to Oswego and NYS. A primary metal production facility that could go somewhere else. Copper is a big part of the green revolution and manufacturing. And steel. These are basic materials. All of these together are an ecosystem.
Q: How does manufacturing and technology affect the reshoring of agriculture in the U.S. and in CNY?
A: With dairy, Chobani growing. And Fairlife in Webster. We have a big dairy and ag sector. That spells growth. All kinds of farming, whether corn, soy or dairy, the whole food ecosystem, people want it local. New York state has a huge advantage. More and more people want their food locally sourced. People want to know where their lettuce comes from. The ag sector couldn’t be more tech–driven. My grandfather raised a family on 80 acres. My cousin farms 1,800 and two of them do it. The tech is out of this world. They can track every cow and every seed of corn planted. They can track its production. With AI and all the other tech, it can only get better. The countries who have the skill sets will win in this competition and I think New York is well-positioned. The whole ag sector is; you’re seeing cold weather growing. Especially U.S.– sourced. They didn’t know where the water sources were coming from that contaminated the lettuce. You have to understand your sources of risk. Our food systems have become very sophisticated. U.S. growing will go up. Fewer people will trust products from far away. The US is still the most innovative country in the world. You will see it shift to the US for critical tech. AI will change every job. More upscaling will be part of that demand. We will see job growth. Manufacturers have been using tech forever. The job market itself and the way we’ll use tech will only advance reshoring.
