City & State
There’s no silver bullet to save the upstate economy.
When their hometown comes up in conversation, Buffalonians love to proudly rattle off a list of manufacturing firms that are no longer there and things that made the city important a century ago. Did you know that the modern windshield wiper was invented by Trico Products Corp. in Buffalo? That Larkin Soap Co. was once, while located in Buffalo, the world’s largest soap company? That in 1901 Buffalo hosted the Pan-American Exposition – and it’s where instant coffee was served for the first time and where then-President William McKinley was assassinated? Even those who believe Buffalo is on the upswing tend to lead with its past.
In a more general sense, however, economic policy wonks say company-specific subsidies are less efficient than broader development of public goods that are attractive to companies, like high-quality education, workforce training, infrastructure or cultural amenities. (Erie County Executive Mark Poloncarz’s newly unveiled proposal to spend $20 million on high-speed internet in underserved areas could be considered an example of that approach, although it’s more about equity than economic development.) In the manufacturing sector, it’s usually more cost-efficient to build capacity for the whole sector to grow than to assist companies individually. For example, Buffalo Manufacturing Works, a local nonprofit assisted by the Buffalo Billion, provides services, such as consulting on engineering in product development, to small and midsized local manufacturers.
“Unfortunately, the biggest projects aren’t through programs, they’re attempts at reviving a region through a silver bullet,” said David Friedfel, director of state studies at the Citizens Budget Commission. One such failed silver bullet is the film hub in Syracuse, a $14 million facility the state constructed in a suburban office park, which Cuomo claimed would create 350 high-tech jobs but has produced no permanent positions.
Even when such efforts aren’t obvious failures, it’s hard to measure success. “The state does not do a good job of documenting what happens after the award is made,” Friedfel said. “In some cases, it’s awarded and the money doesn’t go out the door because the company changes plans. Data isn’t collected in a systematic way that’s easily accessible.”