Supporting the State's Economic Development Team; A Wise Investment

A recent New Hampshire Center for Public Policy Studies report sponsored by the Business & Industry Association of New Hampshire and the New Hampshire High Tech Council noted that Smart Manufacturing/High Technology (SMHT) is the single largest sector of NH's economy (19 percent). In 2009 alone, the SMHT sector encompassed 3,700 NH companies employing almost 80,000 people and paying out $6.4 billion in wages and benefits. Exports from the state's manufacturers directly support more than 77,000 jobs, compared to about 52,000 jobs in travel and tourism.

Behind these statistics is an economic development system that nurtures this vital sector and a state team that is consistently at the forefront of ensuring the development of well-paying jobs and world class companies. Comprised of the Business Resource Center and the International Trade Resource Center, the NH Division of Economic Development is  business 4-1-1, providing local companies with the assistance and resources they need in order to grow and business 9-1-1, lending a helping hand when firms are facing difficult times.

In the past year alone, the state's economic development team has provided assistance ranging from financing and permitting to energy audits and broadband counsel to more than 3,700 companies, helped to secure more than $255 million in federal contracts for local firms and worked with more than 2,000 businesses to export their products and services to about 165 countries.

This is why as members of the NH Economic Development Advisory Council and the International Trade Advisory Committee, two Governor appointed boards that are tasked with promoting business development, we strongly support the full restoration of the Division of Economic Development's budget, which was slashed by 33 percent as part of HB2.

If the proposed House cuts are kept intact by the Senate, businesses will be the ones who ultimately bear the cost. At a time when exports by NH firms represented an all-time high of $4.4 billion, the International Trade team will be reduced to one person and export training seminars that served 600 local companies in 2010 will be eliminated. At a time economic development leadership and attracting and retaining businesses in the state is critical to revenue generation, the Division of Economic Development losing the State Economic development director position and funds aimed at supporting new business recruitment and retention. In 2010, these critical functions assisted 24 companies resulting in the creation of over 755 new jobs and over $14 million in new payroll.

As private businesspeople, we understand the difficult decisions being faced by our state lawmakers. However, we also understand the value of making a sound investment. While so much discussion at the State House has centered around cuts, very little has been said about revenue generationand make no mistake, the New Hampshire Division of Economic Development is creating the types of jobs that ensure the economic vitality of our state.

It's one thing to support the reasonable cuts that ensure that the government lives within its means, but entirely another, while in an attempt to be evenhanded, virtually to eliminate the ability of the State economic development team to continue its proven record of making the most of its limited assets and resources to grow NH jobs and revenues consistently year after year. By making an investment in economic development, we are investing in our business community. With a strong business community, we are taking a great step towards maintaining our state's position as one of the most desirable places to do business in the United States.