Nearly nine in 10 Connecticut manufacturers are struggling to find and retain workers, making it the biggest obstacle facing the sector according to the latest CBIA report.
Nevertheless, the survey paints a mostly positive picture for the state”™s manufacturing community.
The 2021 Connecticut Manufacturing Report, produced by the organization and its affiliates CONNSTEP and ReadyCT, reviews the state of the sector, examines the impact of state and federal policies, and explores the outlook for the next 12 months, including growth factors, legislative priorities, and hiring and investment trends.
The report, underwritten by audit, tax, and consulting firm RSM, explores how the state”™s manufacturing community is navigating coronavirus pandemic disruptions, transitioning from what essentially was a survival phase to pursuing growth opportunities.
Key Takeaways
- 88% of manufacturers reported difficulty finding and retaining workers and 41% call the labor shortage the main obstacle to growth.
- 44% expect their workforce to grow in the next six months, a 24-point jump over last year.
- 64% of manufacturers reported profits in 2020, down from 76% in 2019.
- 70% percent expect a profitable 2021, with just 10% forecasting losses.
- 53% see their businesses growing, up from 18% last year, while just 12% forecast contraction.
- 40% expect Connecticut”™s economy to grow (compared with just 10% last year), and 58% expect national growth (32%).
- 58% of employers report at least 75% of their employees are fully vaccinated.
- 87% of manufacturers applied for a federal Paycheck Protection Program loan and 14% for other U.S. Small Business Administration loans or grants.
“It”™s clear from this report that Connecticut manufacturers are optimistic about the future, although their optimism is marked by caution as our recovery faces many challenges,” said CBIA president and CEO Chris DiPentima.
“And there is no greater challenge than the labor shortage,” he continued. “Despite thousands of job openings, the manufacturing sector has recovered just 38% of COVID-related job losses, well below the state”™s recovery rate.
“Lawmakers must continue supporting policies that will help manufacturers –particularly small and medium-sized manufacturers — recruit and retain employees,” DiPentima said.
The 2021 Manufacturing Report survey was mailed and emailed from Aug. 4 through Sept. 8 to 858 manufacturing executives throughout the state. The survey had a response rate of 25% and a margin of error of +/-3%.
Roughly 70% percent of manufacturers who responded to the survey employ fewer than 50 employees, while 84% have less than 100 employees.
The average age of surveyed companies was 58 years, with 90% in operation for more than 20 years. Only three firms had less than 10 years in operation, while 22 are more than 100 years old.
