Manufacturing is a vital part of our regional economy.

Throughout Northeast Pennsylvania, manufacturing accounts for more than 34,000 jobs — or nearly 11 percent of total regional employment. That makes manufacturing the region’s third largest private employment sector, surpassed only by health care and retail.

In terms of average wage, area manufacturers provide the second highest of any industry. Locally, the average manufacturing worker earns about $11,500 more per year than his nonmanufacturing counterpart.

In total, Northeast Pennsylvania manufacturers support $1.69 billion of direct salaries each year. No other industry, with the exception of health care, provides a higher level of total annual compensation to its employees. The third-position industry — retail — provides $688 million less in total annual wages, despite employing nearly 9,000 more people.

Across Pennsylvania’s Northern Tier, manufacturing is even more dominant. Manufacturing companies within Bradford, Tioga, Susquehanna and Wyoming counties employ 15.5 percent of the region’s workforce. Only health care employs more people — and only 120 more at that.

The industry provides the region’s highest average annual salary, which is more than $7,000 greater than the second-place industry — banking/finance. Northern Tier manufacturers provide $457 million in payroll annually, or 19.4 percent of total area payrolls. That level is $80 million per year higher than the health care industry and more than the retail, food service, logistics and finance/banking industries combined.

So, how are our regional manufacturers continuing to grow and remain the premier providers of high-paying jobs amidst challenging times?

To maintain their position as our area’s economic powerhouse, manufacturers are using several regional resources to capitalize on emerging technologies and adopt industry best practices.

Additives

Many regional manufacturers are exploring additive manufacturing and evaluating how this new technology can be integrated into their businesses. Several are already using 3D printers to create custom products, develop customer prototypes, design custom molds and test new designs. Additive manufacturing equipment is resident within Johnson College, ESU, Marywood and several other local colleges and universities. The new Keystone College 3D Facility, a collaborative of the college, Northeastern Pennsylvania Industrial Resource Center and Ben Franklin Technology Partners, will enable manufacturers and entrepreneurs to more fully understand how additive manufacturing can benefit their businesses.

CEO networks

Manufacturing CEOs are networking with their peers to discuss business opportunities, learn industry best practices and develop collaborative solutions to shared challenges. CEOs routinely cite these networks as the source of innovative approaches that enabled them to solve long-standing problems. NEPIRC offers two regional Manufacturing CEO Networks, both of which are free of charge. NEPIRC’s partners — the Tioga County Development Corp., the Scranton Small Business Development Center and the Central Bradford Progress Authority — also offer no-cost networks for manufacturing start-ups and companies within the Marcellus Shale supply chain.

Supply chains

As transportation costs continue to rise and quick supplier response time becomes more of a necessity, more intrastate supply chains are being forged. NEPIRC recently announced the launch of a new website — Reshore2pa.com — to facilitate the reshoring of manufacturer supply chain inputs currently purchased overseas. The organization will soon announce a sister site — Nearshore2pa — designed solely to create PA-based supply chains among manufacturers. NEPIRC also offers no-cost supplier scouting and buyer-supplier matchmaking services to facilitate new supplier relationships that keep more products made in Pennsylvania.

Exporting

While manufacturers are keeping their supply chains local, they’re greatly expanding the market for their finished products. Regional companies are aggressively pursuing export strategies to capitalize on emerging economies in India, South Asia, Australia, Brazil and other countries. In 2013, Pennsylvania ranked 10th in the nation in terms of total state exports. Free and low-cost services available through the NEPA Alliance and Northern Tier Regional Planning & Development Commission are helping regional manufacturers accelerate their entry into new, fast-growing markets.

Process excellence

Lastly, regional manufacturers are investing in process excellence initiatives that enable them to eliminate waste, reduce product lead times and improve product quality — resulting in higher margins across all levels of production.

Manufacturers in Northeast Pennsylvania and the Northern Tier are positioned for continued growth in the years ahead. As the country’s economy continues to improve, we can rely upon those manufacturers to lead us out of the recession, create even more jobs and further strengthen our communities. Initiatives such as those mentioned above, and the organizations that give manufacturers access to the knowledge and services they need to implement them, will continue to be integral to the sustainable growth of our regional manufacturing base for years into the future.

ERIC JOSEPH ESODA is executive director of the Northeastern Pennsylvania Industrial Resource Center.