Word of the impending
closure of Whirlpool’s plant in Fort Smith was disappointing news for employees,
the community and local businesses that have developed a strong working
relationship with Whirlpool. As a delegation, Senator Pryor, myself and all the
Arkansas members of the House of Representatives worked closely with the
Governor and local officials over the years to maintain this Fort Smith
facility. We had gone to great lengths to try to meet the requests of the
company and identify how we can continue to make this location a good business decision
for Whirlpool. So certainly, there is immense frustration with the ultimate
outcome. The Whirlpool decision does bring up a larger question: how do we
attract and maintain a thriving manufacturing sector in Fort Smith and other
Arkansas communities? A few weeks back, local Fort Smith journalist Michael
Tilley and his colleague Roby Brock at Talk Business published a very
informative story that examines the decline in manufacturing jobs, in Arkansas
and nationwide. They note at the onset of the story that the number of manufacturing
jobs in Arkansas is at its lowest level since 1968. Despite this alarming news,
a study released earlier in the year by the National Association of
Manufacturers (NAM) and linked in the Talk Business story, points out that the
U.S. is still the world’s largest manufacturing economy, producing 21 percent of
global manufactured products. If taken alone, U.S. manufacturing would be the
ninth largest economy in the world. So, if our manufacturing sector is still the
strongest in the world, why are we losing manufacturing jobs in the Natural State
and across the country? As the NAM report points out, other countries-especially
in Europe and Asia promote tax, regulatory and trade policies that spurs
innovation and investment in the manufacturing sector. Our current tax, regulatory
and trade policy run counter to this international trend. We can jumpstart the
manufacturing sector if we get the federal government out of their way. We need
to simplify the tax code and reduce the corporate tax rate to levels that are comparable
with our trading partners and make our tax policy such that it encourages innovation.
We also need to stop the heavy-handed regulations and give our manufacturers a sense
of certainty in terms of the rules under which they have to operate. Finally,
and perhaps most importantly, we must open more markets for our exporters with
free and fair trade agreements like those recently passed with Panama, South Korea
and Columbia. By taking these steps, we will create more manufacturing jobs and
give a permanent shot in the arm to our entire economy. Despite the decision by
Whirlpool, there are still reasons to remain optimistic. Mitsubishi Power
Systems Americas, Inc. announced in April of 2010 that it selected Fort Smith
to be the home of a wind-turbine manufacturing plant. Our community’s business
leaders spent more than a year competing with more than 60 other U.S. cities to
attract Mitsubishi Power to the community and one of the main reasons this
region was chosen is the workforce. I will continue working with the Congressional
Delegation, local and state leaders to bring new businesses and jobs into the
community. Governor Beebe recently told state chamber of commerce members that the
Arkansas business image has greatly improved in recent years. We can build on
this and attract more business to provide jobs for hardworking Arkansans. There
is no magic bullet for our nation’s struggling manufacturing sector. However,
given a level playing field with everyone else, I truly believe that American
manufacturing can compete  with anyone.
That is the goal we all need to keep in mind as work toward provide opportunities
for our job creators.