Stanley-Bostitch Closes: Where Was the EDC?

Stanley-Bostitch Closes: Where Was the EDC?

After Stanley-Bostitch announced it was closing its factory in East Greenwich and laying off 128 workers, some candidates for governor are renewing their calls for reform of the Economic Development Corporation.

One of the key missions of the state agency is keeping business in Rhode Island, but the EDC has been more focused on attracting out-of-state business, according to J.R. Pagliarini, campaign manager for Lincoln Chafee. He noted that the EDC has been pursuing a $75 million deal with an out-of-state company that did not have a proven track record—Curt Schilling’s video game company. He said it was “unfortunate” that the state was unable to cobble together the resources necessary to keep a business with a proven track record here.

Chafee: EDC Needs to Get Its Priorities in Focus

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Pagliarini said the EDC needs to redirect its attention to holding onto the businesses that are already here. If elected, he noted that Chafee would modify the loan guarantee program, capping the amount an individual company can receive to $6.25 million. He said that would have helped Stanley-Bostitch stay in Rhode Island.

Republican John Robitaille has also proposed reform of the EDC by separating it into two divisions—one focused on business retention, the other on getting new businesses to the state.

“This is just one more example of the unfriendly tax climate in the state of Rhode Island that drives businesses out and we need to stop it immediately,” said Robitaille spokesman Mike Napolitano. “We need to lower taxes and become more climate-friendly for businesses in Rhode Island.”

Manufacturing Leader Criticizes EDC

A spokesman for the manufacturing industry also questioned the EDC’s priorities. “In the past the EDC hasn't been concentrating on existing businesses,” said John Grady, executive director of the Rhode Island Manufactures Association. “They’ve been concentrating on bringing in new businesses. They need to concentrate on existing businesses as well.”

He said the $75 million used to bring 38 Studios to Rhode Island could have been better spent on existing businesses. “I believe that money could be used to help a lot of other existing businesses here,” Grady said. “I don't know if that's the best use of that money.”

But he was not sure what the current leadership could have done about the plant closing, saying it had been in the works for a while.

A spokeswoman for the EDC did not respond to a request for comment in time for publication.