Recently, some federal and state elected officials, along with a few pundits, have questioned whether the job losses in manufacturing really are a threat to our economy. The sentiment has been that we should just “let certain industries go” since, after all, Americans simply no longer want to do that type of work. We are told that high-tech and knowledged-based industries are the future, and that we must look for new enterprises to propel our economy forward.

These statements represent an incomplete view of American industry. After all, anyone who doubts that a textile mill in South Carolina in 2003 is high-tech simply has not been in one. Reality is that South Carolina has a sound, albeit threatened, manufacturing base. Its continued health is essential not only to our economy but also to our security and our way of life.

Consider the impact of manufacturing on the S.C. economy. Just two years ago, manufacturers employed nearly 350,000 South Carolinians, contributing more than 25 percent of the state’s payroll. Despite the claims of labor unions and competing states to the contrary, these jobs are likely to provide a South Carolina worker with as good as, if not better, wages than his counterpart in the “Rust Belt” states. Moreover, the annual wages of that worker will surpass the average of those employees in traditional service sector industries.

Manufacturers pay their fair share of the tax burden in South Carolina and provide the foundation for nearly every community to support schools, protective services, roads, health care and other social services. For 2001, manufacturers paid about $390 million in property taxes, 14 percent higher than the next-closest sector.

Government is not the only beneficiary of manufacturing activity. Manufacturing stimulates economic activity at a greater rate than any other sector. For example, for every manufacturing job created, there are an estimated three to four additional jobs created in the local economy.

If you doubt the impact even a smaller manufacturing facility can have on a community, just ask the pharmacists, hardware store owners, school board members and restaurateurs who have seen their businesses suffer or close, or their tax revenues decline, because the clientele upon which they depended had lost their jobs when a manufacturing facility closed.

Cities such as Georgetown, Lancaster, Fort Mill, Pickens, Union and Marion know all too well the impact of a shutdown or layoff. Even Greenville, with its large and diverse industrial base, reels at the loss of more than 600 well-paying jobs from Kemet and General Electric. We simply will not replace the economic power of jobs that pay $30,000 to $60,000 annually with lower-paying service sector jobs.

As these and other communities can attest, the storm clouds are no longer just on the horizon. The manufacturing crisis is real and growing. Our state’s manufacturers face unfair competition from other nations, a hostile tort system, continued threats to the positive labor climate, a heavy tax burden and a growing difficulty in finding enough skilled workers to operate. Each of these challenges requires a response from the companies themselves, but our policy-makers must also take action.

On the national level, the Bush administration must recognize that American manufacturing is under siege from China. The Chinese have pegged their currency, meaning that they will not allow it to float on international markets, thereby providing them with an estimated 15 percent to 40 percent price advantage in their products before any other factors are considered.

Additionally, the Chinese government has cornered raw materials markets, flooded finished goods markets with cheap Chinese products, subsidized their industries and ignored basic human rights, safety, intellectual property and environmental standards.

On the state level, Gov. Mark Sanford and the General Assembly can help too. We need meaningful tort reform, reasonable regulation of the workplace and the environment, a balanced tax system that is not unduly burdensome on manufacturers and adequate funding and other support for the nation’s best workforce training institutions — South Carolina’s technical colleges.

Recently, we have seen Commerce Secretary Bob Faith indicate an understanding of the need to strengthen the S.C. manufacturing sector. Gov. Sanford’s emphasis on improving the standard of living of South Carolinians demonstrates that he has identified the root of our state’s problems. We hope that emphasis is supported by an appreciation for what will truly result in the improvements he hopes to see — more manufacturing jobs.

The case for manufacturing is not an either/or choice, as we applaud the state’s efforts and successes in attracting service industries such as call centers to South Carolina. We would, however, remind Gov. Sanford and our other policy-makers that a company that is willing to invest hundreds of millions of dollars in a plant, machinery and employee training has made a commitment to this state and to a community, and cannot easily move those operations overnight. It is that kind of investment and commitment that South Carolina must attract.

Mr. Gossett is president and chief executive officer for the South Carolina Manufacturers Alliance.