LEWIS GOSSETT In many ways, Lewis Gossett works on behalf of a shrinking sector of the economy.

In the past 11 years alone, for instance, roughly a third of the people who relied on manufacturing work in South Carolina to put food on the table have lost their jobs.

“Some people say that’s because of modernization,” said Gossett, who serves as president and chief executive officer of the South Carolina Manufacturers Alliance.

While that may be true in a limited number of cases, Gossett said workers at South Carolina’s manufacturing companies, and the companies themselves, face far greater uncertainty about the future because of factors under the complete control of regulators and government, such as South Carolina’s tax structure, trade imbalances and the education of the next generation of workers needed for an industry that relies more and more on advanced technology.

Gossett, who represents manufacturers on issues before state government, visited Gaffney on Tuesday to speak to members of the Gaffney Rotary Club. During his address, he argued South Carolina can ill afford to lose any more manufacturers and needs to adopt reforms that help companies thrive. The domino effect from a plant closure, he argued, can be wide-ranging and doesn’t just impact the workers.

In most counties in South Carolina, he contends, the most highly taxed properties often belong to manufacturers. That means a closure can cost local governments one of their biggest taxpayers.

Job gains in manufacturing, he said, have good ripple effects.

One manufacturing company Gossett works with is planning to add 100 jobs before Christmas, he said. The prospect means good news for surrounding businesses, like a fast food restaurant next door.

“The owner of (that restaurant) was excited because 100 more people would be passing by every day,” Gossett said.

And manufacturing jobs are often among the best-paying in South Carolina, providing workers with more disposable income to spend in other areas of the economy.

While the association Gossett represents aims to lobby government for pro-business legislation and reforms, Gossett said its efforts have been hampered of late.

Columbia was so mired in debate over Gov. Mark Sanford’s refusal to accept Economic Stimulus money and the budget crisis that no reforms were enacted during the past session, Gossett said.

And the recession continues to weigh heavily on manufacturers and the foreseeable future.

If some recently announced government measures go through, such as a proposed hike to South Carolina’s unemployment compensation tax to bail out a trust fund bankrupted by high unemployment rates, Gossett fears more South Carolina manufacturers will be forced to close.

During his address to Rotary Club members, Gossett argued South Carolina needs to address its tax structure, which he said acts as an impediment to doing business here and requires incentives to attract new companies.

He also argued South Carolina has to do more to train the next generation of workers and address some fundamental problems in society.

One company he works with recently interviewed 50 people for job openings and 42 of the 50 applicants failed drug tests, he said.