STUDY: The Potential Economic Impact of R&D Tax Incentives in Texas
Prepared for Texans for Innovation by TXP, Inc., Austin, TX, Feb. 2013
According to a new study, “The Potential Economic Impact of R&D Tax Incentives in Texas,” if Texas offered a more competitive package of R&D incentives - such as those outlined in HB 800 and SB 859 - Texas could gain:
The loss of the previous R&D credit likely will continue to cost Texas each year at least $1.3 billion in R&D activity (expressed in constant dollars). When the ripple effects are included, the annual impact on the state economy is as follows:
To view the study, download the PDF linked below.
|Texans for Innovation R.D Economic Study FINAL for Web.pdf||707.85 KB|
Governor Perry Proclaims Manufacturers' Day 2013 as the Texas Association of Manufacturers
Announces Legislative Priorities and New R&D Economic Research
Read on to learn more:
2013: THE YEAR OF THE MANUFACTURER IN TEXAS
Manufacturers’ Day: State Leaders Highlight Key Sector’s Role in Economic Growth, Job Creation
Texas Association of Manufacturers Announces Legislative Policy Priorities
“Texas manufacturers today applaud Chairman Ritter and Speaker Straus for placing Texas’ water needs high on the agenda this session. Our entire economy depends on swift and appropriate action to address the state’s water needs. We need to ensure that Texans in all climate regions across our diverse state can count on adequate water resources for the future. House Bills 4 and 11 represent a serious response to a critical need.”
– Tony Bennett, President, Texas Association of Manufacturers
Texas tops the nation for its business climate, time and again. It's far too easy to take the state's strong economy and success in growing jobs for granted.
As the legendary battlefield commander Gen. Hal Moore said, "There is always one more thing you can do to influence any situation in your favor."
As Texas lawmakers look over the landscape of challenges and opportunities before our state, they would be wise to heed Moore and pursue one more thing, then another, to keep Texas on top.
While Texas boasts one of the most business-friendly climates, with low taxes and a predictable regulatory structure, lawmakers cannot rest. Manufacturing constitutes 15 percent of the state's economy, and Texas is the No. 1 exporter of manufactured goods.
We have to protect that standing. Other states and nations are looking for ways to erode Texas' competitive edge, especially in attracting manufacturing investment and the high-quality jobs that go with it.
San Antonio Express-News/Houston Chronicle
Group has three main legislative priorities
By David Hendricks
October 28, 2012
Texas manufacturing shows a lot of momentum and optimism as Tony Bennett takes over as president of the 450-member Texas Association of Manufacturers in Austin.
The oil-and-gas industry is growing the fastest, surging as drilling in South Texas' Eagle Ford Shale and the Permian Basin are helping keep manufacturers of petrochemicals and petroleum products busy.
Bennett was a Texas Association of Manufacturers co-founder in 2005 and served as its first chairman. His 33-year business career includes serving as a former executive at Temple-Inland. As the association's top staff person, Bennett is eyeing the organization's priorities for the 2013 Texas legislative session.
Skills development, taxation, incentives and water top his list.
On skills development: The association would like the Legislature to tweak its mandatory high school math and science curriculum requirements so that manufacturing skills are worked into classes, especially for students who do not plan to attend college, Bennett said.
More flexibility could reduce dropout rates, he said. “There's lots of experimentation (in education and training programs) in and out of Texas,” Bennett said. “The Legislature will hold hearings on this.
“Manufacturing jobs are high-paying and have great benefits,” Bennett said. “For each manufacturing job, 2.5 service-sector jobs are created.”
Bennett is correct.
Tony Bennett: Schools and the Talent Shortage
September 26, 2012
You’d think that in this economy, job openings would barely see the light of day before getting snapped up by eager applicants. That’s not the case in the manufacturing sector, where high-quality, high-paying jobs sit vacant — sometimes for months, sometimes indefinitely — because of a shortage of manufacturing workers.
According to a recent Skills Gap study conducted by the Manufacturing Institute and Deloitte Consulting, two-thirds of business respondents report a moderate to severe shortage of qualified, available workers. Last spring, the San Antonio Manufacturers Association shed local light on this problem, estimating more than 1,500 open jobs in the area remained unfilled due to a lack of skilled workers. Training programs from the Texas Workforce Commission help to bridge the gap, but we need a long-term, comprehensive solution.
Texas isn’t alone, as the skilled-talent shortage is acute nationwide and around the globe. According to the U.S. Bureau of Labor Statistics, for every three skilled workers who retire, only one person steps up to fill the gap. Globally, more jobs for skilled tradespeople go unfilled than any other category of employment, according to a recent survey by ManpowerGroup.
A number of factors may be causing the manufacturing talent shortage in Texas.
First, there’s a persistent misconception about the types of jobs the manufacturing sector has to offer. Historically, manufacturing has been a primary source of middle-class jobs, especially for workers without college degrees. Some parents may think their children need four-year college degrees to get good jobs and mistakenly rule out manufacturing fields as an option. But today, manufacturing has diversified and manufacturers are clamoring for qualified workers with a variety of specialties, from welders to engineers, process managers to pipe fitters, and risk analysts to chemists.
With proper job training, associate's degrees or technical certificates earned after high school, workers can land many high-quality manufacturing jobs. Through Career and Technical Education (CTE) programs, students can begin this training while still in high school. Other manufacturing jobs require bachelor’s, master’s or doctorate degrees. For example, Texas will need to fill 758,000 science, engineering, technology and math (STEM) jobs by 2018. But regardless of specialty or education, manufacturing jobs in Texas command average starting salaries of $70,000 a year.
In addition to addressing misconceptions about manufacturing jobs, Texas needs a flexible educational framework that meets the needs of all students and the wide array of Texas employers hoping to hire them. To groom this diverse workforce, we must create more education options for our high school students.
A flexible education system would recognize different talents and provide varied approaches so students get the education they need. Whatever paths young people wish to take after high school, we must sustain the state’s K-12 emphasis on educating all students so they are ready to succeed after graduation. To achieve this readiness, all students must be exposed to a rigorous, relevant curriculum with coursework that clearly links what they’re learning to jobs in the real world. TAM is optimistic that lawmakers can find solutions that achieve this flexibility without undermining the state’s accountability system.
Taking deliberate action to ensure Texans are educated, well trained and equipped for the complexity of a competitive global economy has to be a priority. Otherwise businesses will be forced to look elsewhere for workers.
TAM and its members are working to shift understanding about the industry and the types of jobs we create today, but for its part, the state must also ensure a solid foundation is laid by our state’s public schools, community colleges and universities.
It’s heartening to see both the Texas House and Senate considering these issues ahead of the next legislative session that begins in January. Solving this issue can be a “win-win-win” for all Texans: for students who will be able to land high-wage jobs, for Texas industry employers who will be able to replace retiring “boomers” with a ready and trained workforce and for Texas taxpayers who deserve a nimble public education system that prepares students to succeed in the modern economy.
Manufacturers’ message to parents, students and job seekers is simple and consistent: For those eyeing technical certificates or associate’s degrees, manufacturing has high-quality, high-paying jobs for you. For those pursuing bachelor’s, master’s or doctorate degrees, manufacturing has high-quality, high-paying jobs for you. If Texas can embrace flexibility for all students, manufacturers can send out the clarion call about these jobs: “Come and get ‘em.”
Tony Bennett is the president of the Texas Association of Manufacturers.
TEXAS ASSOCIATION OF MANUFACTURERS NAMES BENNETT
AS TRADE GROUP’S NEW PRESIDENT
Bennett Brings Unparalleled Depth of Experience,
Vision and Drive to Tackle Industry’s Most Pressing Public Policy Concerns
AUSTIN, TEXAS – A manufacturing industry executive with wide ranging public policy experience, Tony Bennett will take the reins of the Texas Association of Manufacturers as its new president, the group’s board announced today.
“In Tony Bennett, we have found a president who fully appreciates the challenges and opportunities the manufacturing industry faces, including energy, tax, environment, transportation, workforce development and tort issues,” said Bill Oswald, Chairman of TAM. “While the manufacturing sector is on the rise in Texas, the Texas Association of Manufacturers knows the economic recovery is tenuous and fragile at best. Under Tony’s capable watch and leadership, TAM and its members will be positioned for long-term success.”
Bennett’s new position as president of the manufacturing trade association is also a homecoming of sorts. In 2005, Bennett served as the founding chairman of TAM, leading the industry’s efforts to establish a unified voice for the state’s manufacturing industry concerns at the Texas Capitol and in Washington, DC.
“There’s work to be done if we are to maintain Texas’ world-renowned dominance as a job creating powerhouse with one of the best business climates in the world,” said Bennett. “I’m ready to lead TAM forward and provide the necessary voice, vision and action our industry needs to succeed.”
“The manufacturing sector, which employs more than 838,000 Texans who earn on average 34 percent more than the rest of the Texas workforce, can continue to play a key role in our state’s and nation’s recovery,” Bennett added. “But, we need reliable access to affordable energy, a reasonable regulatory framework, a ready workforce, sound tax policy, and critical infrastructure to get the job done.”
In the upcoming Texas Legislative Session, TAM will continue to pursue an aggressive, expansive agenda, ensuring the collective voice of its 450-plus members of large and small companies from every industry sector is heard. Among the association’s key public policy priorities are to:
Bennett’s professional career spans 33 years in key federal, state and local government and public affairs. As a former executive at Temple-Inland, Bennett brings first-hand knowledge of the manufacturing industry’s government affairs and public policy concerns. In addition to being a co-founder of TAM in 2005, Bennett led the creation of the Texas Forest Industries Council in 1995 and has held leadership positions in a number of key manufacturing sector associations.
The Texas Association of Manufacturers (TAM) represents over 450 large and small companies from every manufacturing sector, employing more than 838,000 Texans with an average compensation of $79,000 a year (the highest in the private sector). Texas Association of Manufacturers is online at www.manufacturetexas.org. Join TAM on Facebook.com/TXManufacturers and Twitter (@TxManufacturers).
IMMEDIATE RELEASE: August, 27, 2012
CONTACT: Gretchen Fox, 512-694-4326
San Antonio Express-News
Letter to Editor Bright future
August 13, 2012
RE: “Students rushing to careers in petroleum industry,” Front Page, Aug. 6:
The rush to fill jobs and the student interest in the oil and gas industry careers is good news for Texas.
Manufacturing is a pillar of our economy, and many of the new jobs in the petroleum industry are manufacturing jobs from the Eagle Ford Shale to the Permian Basin. To ensure that bright, positive trend continues, our state leaders should be mindful of the need for a strong economic climate, affordable, reliable energy, and a predictable regulatory framework. All are key components of sustained job creation. We also must recognize that our education system should be flexible and meet the wide range of skills necessary in today's workforce.
Texas manufacturers need fair, stable taxation, a qualified workforce and access to reliable, affordable electricity. Let's encourage the continued job creation associated with a strong domestic energy and manufacturing sector.
Chairman of the Texas Association of Manufacturers
Secretary Hillary Clinton
U.S. Department of State
2201 C Street, NW
Washington, DC 20520
RE: Comments on Presidential Permit Application for Keystone XL
Dear Secretary Clinton:
On behalf of the Texas Association of Manufacturers, I am writing in support of TransCanada’s proposed Keystone XL pipeline. Keystone XL will be critical to improving American energy security and boosting our economy. Therefore, we believe the U.S. Department of State must expeditiously approve the Presidential Permit necessary for this project to move forward.
Keystone XL has undergone one of the most thorough environmental assessments ever conducted. After concluding a three-year National Environmental Policy Act (NEPA) review, the State Department affirmed in its Final Environmental Impact Statement in August 2011 that the project would not pose any significant impact to the environment. Included in its assessment, the agency also noted that TransCanada agreed to an additional 57 safety requirements, which will make this pipeline the safest every constructed and operated in the United States.
As the State Department seeks to reevaluate the environmental impact of the pipeline, I strongly urge the agency to examine only those new issues that are associated with the re-route through Nebraska. The full range of environmental impacts of the pipeline has been thoroughly evaluated previously, and no reason exists to expand the scope of the next NEPA review to include other issues not associated with the Nebraska re-route. If the State Department were to unnecessarily broaden the scope of its second review beyond the Nebraska re-route, the agency will only delay the project and the many benefiys it will bring without cause.
The project will drive incredible economic growth in the United States. The pipeline is expected to create nearly 20,000 manufacturing and construction jobs in the United States, contributing over $585 million in state and local taxes and more than 13,000 jobs in states along the pipeline route in the construction phase alone. Here in Texas, benefits are expected to include $2.3 billion in new spending for the state’s economy, a personal income increase of $1.6 billion, over $48 million in additional state and local tax revenues, and $1.9 billion in increased Gross State Product. Furthermore, all American consumers will benefit from a greater supply of stable, affordable energy.
By supporting domestic production and oil imports from our ally Canada instead of politically unstable countries, we will strengthen both our national security and energy security. Access to affordable, stable supplies of petroleum remains one of the most vital components for a growing economy. However, the uncertainty about long-term supplies is quickly becoming a critical issue that the United States must confront. With global demand steadily rising and political instability spreading throughout oil-exporting nations, the United States must permit Keystone XL as a means to boost our energy security and ensure adequate supplies for American consumers.
In closing, the Texas Association of Manufacturers believes that construction of the Keystone XL pipeline is in the best interest of all Americans. We respectfully request that the Department of State expeditiously review the new route through Nebraska, utilize the existing environmental analysis from the project’s Final EIS, and ultimately grant TransCanada the Presidential Permit necessary to begin building the pipeline.
Interim Executive Director/Director of Operations
Texas Association of Manufacturers
|Sec of State Clinton Keystone XL Pipeline Letter from TX Association of Manufacturers.pdf||43.83 KB|
Letter to the Editor submitted to Dallas Morning News
The ongoing discussion about Texas education raises an important point: many Texas employers are facing a shortage of qualified workers. The situation is especially acute in the manufacturing sector.
In order to fill the manufacturing sector’s shortage of qualified, available workers, we need to ensure Texans are educated, well trained and equipped for the complexity and rigors of today’s economy.
The manufacturing sector, which remains a pillar of our state’s economy, needs workers with a wide array of skills, from welders to engineers and pipe fitters to chemists. And, these manufacturing jobs, regardless of their specialty, provide an average annual salary of more than $70,000.
But, to fill jobs in the manufacturing sector, we need flexibility in our education system that ensures Texas students graduate high school well-equipped for the 21st century workforce.
Whatever paths our young people wish to take after high school, whether to a technical or community college or other post-secondary education, there must be rigor across the board for all students and curriculum that better connects learning with jobs in the real world.
TAM Workforce Committee Chairman