This testimony was presented to the NH
Legislature in 2008, although it was addressing RGGI the main topic was the
increasing costs of manufacturing in the State.
We ask ourselves how
do we do a better job at bringing manufacturing jobs to NH or our individual
communities and we can all see the uphill battle. As I have red after NAFTA 7
million jobs went oversees because of cheap labor, cheaper costs of utilities
and less government oversight and regulations.
When I look around
our area, like Stratham and Epping, I do not see any plans for manufacturing jobs;
but, a lot of retail jobs. The manufacturing
jobs coming back from overseas seem to be going down South where there is less
government, cheaper labor and lower utility costs. When I was in the Army there was a common denominator
and that was I had a hard time understanding either one.
Sylvania has been a
great neighbor to the State of NH and the communities they are in; but, in
their own way gave us a warning of what may happen in the future if we cannot
change our direction for increasing costs to do business.
When I was a kid
Exeter had about 6-7 or so manufacturing plants, now we have less. So I think we can see some of the problems the
manufacturers are confronted with when we talk about trying to get them to come
to Exeter.
Testimony to the Senate Energy and Economic Development
Committee
on New
Hampshire House Bill 1434
The
Regional Greenhouse Gas Initiative (RGGI)
Cheryl Blackwood
Plant Manager, Global Automotive Lighting
OSRAM SYLVANIA
April 15, 2008
INTRODUCTION AND
AFFILIATION
Mr. Chairman and
members of the committee, my name is Cheryl Blackwood, plant manager for OSRAM
SYLVANIA Global Automotive Lighting in HIllbsoro, Hew Hampshire. OSRAM SYLVANIA
is the North American operation of OSRAM GmbH, one of three large, global lighting
manufacturers. Our company employs nearly 10,000 people, with nearly 2,000 of
that number employed in the state of New
Hampshire.
OSRAM SYLVANIA operates three facilities in New Hampshire, with an annual
state payroll exceeding $116 million. The
plant I manage in Hillsboro is the leading
automotive lighting facility in North America.
Our facility in Exeter makes glass and ceramic
components for lighting and semiconductor products, and our Manchester plant produces high intensity
discharge (HID) light bulbs that are used for street lighting, sports lighting
and retail store displays.
COMMITMENT TO ENVIRONMENTAL
RESPONSIBILITY
OSRAM SYLVANIA is
committed to environmental responsibility in our business. We share with the State of New Hampshire a genuine concern for the
environment and the need to address the causes of climate change.
For decades, our
company’s environmental efforts have received recognition from numerous
respected organizations. Just two weeks ago, the U.S. Environmental Protection
Agency awarded OSRAM SYLVANIA its seventh consecutive Energy Star Award for our
corporate energy efficiency efforts. In 2004, the Hillsboro plant I operate
received the New Hampshire Governor’s Award Honorable Mention, for Pollution
Prevention.
OSRAM SYLVANIA is
taking significant voluntary steps to reduce the amount of resources we use and
greenhouse gas emissions that result. In 2007, we set a corporate goal to cut
energy consumption by 10 percent. I’m proud to say that we not only met that
goal, but exceeded it in New
Hampshire with a 12 percent reduction in our energy
use. Electricity is just one of the resources we are conserving. Last year
alone, our Hillsboro
plant recycled over 26 tons of cardboard and 15 tons of wood.
We continue to
set new goals to make our operations in New
Hampshire more sustainable. Our Hillsboro plant has already initiated the
process of becoming LEED certified by the U.S. Green Building Council.
I share these accomplishments to highlight
the fact that OSRAM SYLVANIA and its 2,000 New Hampshire employees are working hard
every day to sustain our business while we sustain the environment.
THE RISING COST OF ENERGY
However, the high
cost of energy in New Hampshire
has made our effort to balance economic and environmental sustainability an
uphill battle. Despite our aggressive energy efficiency programs, OSRAM
SYLVANIA continues to face escalating energy costs in New Hampshire. We’ve seen our electricity
rates skyrocket 61 percent over the last three years, outpacing increases in
all the other states where we operate. Our electricity rate of 11.3 cents per
KwH is a staggering two to three times higher than the rates we pay in Pennsylvania and Kentucky,
for example.
Extreme energy
costs have a direct impact on our ability to keep high wage manufacturing jobs
here in New Hampshire.
To stay in business, we need to make products that are cost competitive. In our
Exeter plant,
electricity represents a staggering 12 percent of the total cost the quartz glass
components we sell to the semiconductor industry. The plant supplies customers
in more than 20 countries around the world. These global customers are
indifferent to our struggle to overcome high energy costs in New Hampshire. If we can’t produce products
at a competitive price, our customers will simply take their business
elsewhere.
I urge this
committee to consider that every increase in electricity rates puts more New Hampshire jobs at
risk.
About HB 1434
As
a company committed to environmental responsibility,OSRAM SYLVANIA supports the
intent behind RGGI. However, we urge the committee to address deficiencies in
the bill that threaten to handicap OSRAM SYLVANIA and other large New Hampshire employers.
I
ask that you to consider some of the specific approaches proposed by the New
Hampshire Business and Industry Association. Lower thresholds for ratepayer
protection rebates, an expedited rebate process, and provisions to ensure RGGI
revenues are dedicated to energy efficiency investments, are all ways to make
this well-intended better.
I
appreciate the opportunity to present the views of OSRAM SYLVANIA. I look
forward to continued dialogue regarding this important issue.
Respectfully
submitted,
Cheryl
Blackwood
Plant
Manager
OSRAM
SYLVANIA
Enclosure:
OSRAM
SYLVANIA Global Care brochure
