Manufacturers' panel tries to define goal

Which is more important -- jobs or productivity?

That was the question that confronted a group of manufacturers yesterday as they met for the first time as the state's new Commission on Manufacturing Competitiveness.

The 24-member committee, created by the General Assembly during its last session, is charged with advising the state on how to make Maryland more hospitable to manufacturers.

The issue of jobs vs. productivity was raised by Pradeep Ganguly, associate director of research for the state Department of Economic and Employment Development, in a presentation about the condition of manufacturing in the state.

He said that while manufacturing jobs in the state have dropped by 27.9 percent in the past 22 years -- four times the national average -- productivity went up by 69 percent from 1983 to 1991, higher than the national rate of 52 percent.

"We do not believe employment is one of the measurements of performance," Mr. Ganguly said, noting that increases in productivity often reduce jobs.

"If we tracked just by employment, we could say these companies are doing very poorly, when the opposite is true," he said.

But despite their bottom-line outlook, the business executives had qualms about this approach.

"If we as a group are able to increase productivity and lower jobs, would we be considered successful?"

asked Charles Wheatley, president of Replex Inc. of Millersville. "You have both sides of the streets that have to be done."

Other members agreed, and the group decided to discuss the issue at its next meeting in late January.

The commission, which includes executives from such companies as Bethlehem Steel Corp. and Westinghouse Electric Corp., replaces a 40-member committee created by DEED two years ago.

"This administration has made a significant effort to stand behind manufacturing," said DEED Secretary Mark L. Wasserman.

"We want to see a continuity of commitment."

He did not see a problem with the commission starting less than a month before Gov. William Donald Schaefer leaves office.

"I see this as rising above day-to-day politics," Mr. Wasserman said.