In the Manufacturing Alliance of Connecticut’s recent third annual survey, participants reported challenging economic conditions overall and in the industry.
MAC conducted the survey during the first quarter of 2015 by collecting opinion data from more than 200 manufacturing industry leaders in the state.
The majority of participants cited increased overhead costs due to infrastructure, labor (wages and benefits), taxes and competition both overseas and within the United States as challenges to manufacturing. Overhead increases were the most serious threat to sales growth reported in the survey.
Those with sales growth reported shrinking growth margins over the three years MAC has issued a survey, and companies with sales declines reported those declines have increased.
A majority of manufacturers said the lack of “available skilled labor” is a serious threat to sales growth. About a third of employers reported “benefit costs prohibit additional hiring” to get to their optimal number of employees.
Despite these challenges, more than half of the manufacturers reported hiring more workers last year.
About a third of manufacturers surveyed reported taking advantage of hiring incentive programs including STEP UP (Subsidized Training and Employment Program), Apprenticeship Tax Credit, Veteran Hiring Tax Credit and JET (Job Expansion Tax Credit).
Comments 2