Moody’s: More signs of decline for upstate NY

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The closing of Bausch & Lomb’s headquarters in Rochester is “credit negative” for upstate New York and another sign of jobs moving from the Northeast to the Southeast, Moody’s Investment Services said in a report today.

On Monday, B & L new owner, Valeant Pharmaceuticals, said it would move its corporate headquarters out of Rochester after being founded in the city in the mid-1800s. The move may lead to more than 500 job cuts in Rochester, state and local officials said.

Moody’s said the announcement is in stark contract to recent announcements in other parts of the country of major job growth. Earlier this week, Amazon.com Inc. said it would add 7,000 jobs to warehouses in more than 10 cities, mainly in the South.

“The announcements reflect a credit negative trend of job losses in the historical industrial employment centers of upstate New York, and gravitation of many new jobs to the Southeast, which is credit positive for local governments in that region,” the report said.

The Moody’s report pointed to Rochester’s population and employment loss as being similar to the other two large upstate cities, Buffalo and Syracuse. Rochester’s population fell from 295,011 in 1970 to 210,565 in 2010, a 29 percent drop. Since 2000, the Rochester area’s employment fell 16 percent, or by 18,185 workers, mainly because of cuts at two of the city’s larger employers, Eastman Kodak Co. and Xerox Corp.

Moody’s said that upstate is in the same boat as Michigan and Ohio, once major manufacturing-based economies where employment has contracted and jobs moved to the Southeast and Sun Belt.

“The persistent job losses in these areas will continue to be a credit-negative for many cities that once relied on manufacturing to support their tax bases,” Moody’s said. “Meanwhile, local economies in states such as Colorado (Aa1 stable) and Texas (Aaa stable) will continue to benefit from the net importation of jobs.”

Moody’s said that New York continues to lose out on jobs in the aircraft industry. Northrop Grumman, the aerospace and defense technology giant, announced in March it would move 850 jobs from Long Island to Florida and California. The Bethpage site once employed more than 25,000 people; now it about 550.

Last year, Sikorsky Aircraft Corp. closed its military facility in Big Flats, Chemung County, and cut 570 jobs.

Meanwhile, Boeing announced plans last spring to invest $1 billion and add at least 2,000 jobs at its manufacturing plant in North Charleston, SC.

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  1. Shale gas development is one solutions, a big solution, to the hemorrhaging of jobs in upstate and all of NY. Gas development will bring jobs, economic activity and lower utility bills for all. Additional property tax revenue will grace those communities where it occurs through the ad valorum tax.

    Do not believe the anti-frackers. Their tales of woe have long been discounted. It’s time for NY to allow gas development.

  2. HABIBHASAN-An American Storyteller on

    . . . Look! How what ” One of The Most Influential Man in The World of Foreigner Owned Time Magazine” did to New York!. . .

    After all ( those Companies ) that are exit NY are very wise! I just can’t stop laughing; thinking about the day when in the already barren Upstate NY ( with exception of the Pocketing US Dollars Blocks where Clothing Worn in Mars ( LOL!,) is in vogue. . . where almost all NYS Attorney Generals go to attend Unknown Weddings before getting elected The State Governor. . .
    What, I am laughing about is not the ” uniform clothing” but the Selected Cronies ( I.e. those elected at County or Town Levels ) who at the Town Halls lag behind in getting Budgets on time, but when they do, they impose additional taxes and a month later add a few % to their Salary + abuse the Town Halls surrounded by the Town Department Heads.

    What’s si Special is that the ” People ” hardly attend meeting . Yes! There are a few. But, the majority is those who work in the town and are employees too.

    And, I am laughing thinking, after the Companies exit, and jobs evaporated. . . The Counties, its Executives, the Legislature, The Town Supervisors and Their Councilmenmay soon be left alone as People starting leaving Upstate NY too.

    And, they will be left running the Town Halls and Paying the ” sky rocketing taxes themselves! LOL.

    It may happen! Its possible.

    LOL.