March 12, 2004: “Spotlight
on Our Economy” Monthly Column for The
Palladium-Times
By L. Michael Treadwell, CEcD, Executive Director of Operation
Oswego County
The Multiplier Effect of New Manufacturing
in Oswego County
According to U.S. Department of Labor statistics
for February, national manufacturing job loss has tapered off and
spending and exports are on the rise. Evidence of this trend on
a local level has become apparent in the last few months as Oswego
County has experienced a significant resurgence in its manufacturing
sector with the reutilization of the former Nestle and Sonoco plants
in Fulton, and most recently with the advent of a new agricultural
manufacturing business in the town of Oswego. 
Last week, Empire Fresh-Cuts (EFC) opened
its new 27,000 square-foot plant where owners Jim and Sam Zappala
will produce and market a line of fresh processed whole peeled,
sliced and diced onion products for the food service industry. By
the end of their first year in business, they plan to enhance their
retail business with the development of consumer-sized packages
of processed onion products.
The $3.6 million project received financial
assistance from the County of Oswego Industrial Development Agency
(IDA) and from a Small Business Administration (SBA) 504 loan through
OOC. Other partners who helped finance the new manufacturer include
Empire State Development Corporation, Central New York Enterprise
Development Corporation, M&T Bank, Pathfinder Bank, an Economic
Development Initiative Fund grant from the Oswego County Legislature
and a wired building grant from Niagara Mohawk.
Whether it’s onions or chocolate, the
importance of the manufacturing sector to our overall economy remains
vital, and the economic impact associated with manufacturing operations
carry with it significant multiplier effects. A multiplier effect
occurs when job opportunities and work for local suppliers and services
are created as a result of the needs of the new business. Local
businesses may benefit financially, allowing them to expand both
their range of services and size which would in turn enhance the
quality of life in the area and attract new industry to the county.
At EFC’s grand opening celebration,
Nathan Rudgers, commissioner of the New York State Department of
Agriculture and Markets, said that “manufacturing associated
with agriculture has one of the highest multiplying effects of any
industry in the state,” and 30 jobs will be created at EFC
“which may create another 50 to 60 jobs within the community.”
For example, because EFC has technology that
will allow them to process a wide variety of onion sizes, they will
be able to draw a significant portion of their supply from local
growers who often produce slightly smaller onions than onions produced
in competing areas in the country, therefore supporting the local
economy. The company will also require transportation services to
distribute its product as well as construction services, packaging,
uniforms and sanitation products to name a few.
Manufacturing will remain as one of Operation
Oswego County’s primary targets in 2004. Efforts will focus
on helping to make our existing firms more competitive, helping
to facilitate expansions, investment and job creation/retention
of our manufacturing base, and continuing to promote and develop
strategic initiatives to compete for and attract new manufacturing
employers to the county.
Other recent economic development projects
around Oswego County include:
- Jake’s Automotive is a new
automotive repair business in Oswego. The project will receive
financial assistance from an SBA 504 loan through OOC, City of
Oswego Community Development Office and Pathfinder Bank. The new
business will create four new jobs; and
- Northern Oswego County Health Services,
Inc. will expand its Pulaski Health Center facility to improve
the quality and accessibility of primary care, specialty services
and dental services. NOCHSI currently employs 80 and served over
11,000 patients for a total of 37,000 annual visits last year.
Funding for the project will be assisted by the IDA and the U.S.
Department of Agriculture.
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