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State should guard its manufacturing, industrialist says
Lewis Gossett says government is the greatest competition to manufacturing today "and it's getting worse," he said.
Gossett is the president and CEO of the South Carolina Manufactures Alliance, an organization representing industries across the state. He was the guest speaker for the industry appreciation dinner held Jan. 28 at Sweetwater Country Club.
"I do believe the economy is turning around but said it hasn't been easy," Gossett said. "We haven't had the leadership we've needed to make things happen."
He cited the squabbling between politicians and then the scandal Gov. Mark Sanford as detrimental to support for business and manufacturing.
"Who is your biggest competition?" he quizzed. "Government - and it's getting worse."
"We need to make sure the policymakers know how manufacturing is run," Gossett said.
He said the loss of over 30,000 jobs in the last year and the plant closures have devastated local tax bases.
He cautioned that much of what the government has done recently is "artificial" and may not be sustainable.
"You have been lucky in this area. You have some of the best economic development people in the state," he said.
Gossett said manufacturing jobs allow workers to "patronize businesses more than what they need to survive."
That disposable income circulates throughout the local economy, providing more jobs.
"If you people aren't people doing business with each other, then you are part of the problem," he said.
Taxes and regulations promoted by environmental groups are huge burdens on manufacturers.
"It's a fight between growth and no-growth," he said.
Manufacturers "are not abdicating responsibility," he said. "We just want to inject reason and balance into the argument."
He said environmentalist want to control the resources.
"If they control the resource, they control the government," he said.
Energy is one of the most important resources for a manufacturer.
"My members have to have an affordable, reliable source of energy. They have to be able to turn the lights on."
He encouraged those present to support nuclear energy as a clean, economical source of energy.
Taxes are the other burden on the economy. "Watch this one and watch it closely."
With plant closures, local governments don't have the money they once did and are looking for other ways to raise the revenue.
"Many are too dependent on sales tax."
As personal budgets get tighter, they spend less and pay less sales tax. In turn, the government gets less.
"We can't take the burden and put it on the private sector."
Besides taxes, Gossett said South Carolina needs to work on infrastructure and education. To remain competitive, "the port in Charleston should be expanded and then we need to look seriously at the port in Jasper County."
He said a trained workforce allows South Carolina to be competitive when companies are looking for sites.
Gossett said support of the state's technical schools and colleges is critical to that effort.
He cited the newly announced Boeing plant coming to Charleston as a time when government, private business and education "came together" to land the deal. "I think this (Boeing) will change that area."
After his speech, Gossett received a souvenir of Barnwell County's technical students - a centerpiece metal Palmetto tree and state image created by students at the Barnwell County Career Center.

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