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Vermont Chamber: Manufacturing still a key economic engine but jobs are falling, R&D seen as path forward
Summary
The Vermont Chamber told lawmakers manufacturing contributes about $3.3 billion (roughly 7% of state GDP) but employment has declined and is projected to fall; the chamber urged expanding R&D incentives (H.933) and reducing barriers that raise costs and hinder expansion.
The Vermont Chamber of Commerce told a joint legislative hearing on manufacturing that the sector remains a major contributor to the state economy but is shrinking as a share of output and employment.
Amy Spear, president of the Vermont Chamber of Commerce, said manufacturing accounts for roughly $3.3 billion in GDP and about 7% of Vermont’s economy, and warned that manufacturing employment has declined 11.3% since the first quarter of 2020 and is projected to continue falling over the next decade. "Manufacturing brings in new money into Vermont. It exports. It competes globally. It grows the economic pie," Spear said.
Spear pushed lawmakers to prioritize policies that make the state more competitive and that support research and development. She cited an R&D tax-credit expansion that moved in H.933 and described R&D as “underrealized potential” that helps firms scale and increase wages. "Where there's opportunity for our state is in research and development in particular," she said.
Spear also pointed to persistent cost and competitiveness pressures—taxes per capita, workforce availability, housing, regulatory predictability—and urged the committees to focus on lowering barriers to growth, creating predictability for businesses and aligning state programs to support exporting, scaleable industries.
The chamber’s presentation closed by asking lawmakers to treat the range of supports—tax policy, workforce training and regulatory clarity—as a coordinated package to encourage growth, rather than a set of disconnected initiatives.
Lawmakers on the joint committees followed with questions about how career and technical education, Vermont State University and the Office of Workforce Strategy and Development could connect to manufacturers. Spear noted existing programs but said better alignment and outreach were needed so businesses can find the right supports.
