Manufacturers reeling from recession; Dec. 2 conference set

(Nov. 23, 2009) Hit more severely by the recession than most other Connecticut businesses, manufacturers in the state are not yet optimistic about prospects for a quick economic turnaround and are concerned about the continuing high costs of doing business in the state.

Those are some of the results from the 2009 CBIA/Blum Shapiro Survey of Connecticut Businesses -- and topics sure to be under discussion at a statewide forum for manufacturers set for Wednesday, Dec. 2 in Cromwell. CBIA’s Manufacturers Advisory Council is hosting the forum, where manufacturers will discuss their challenges, get updates from state officials, and learn strategies to convince policymakers of the need to support manufacturing.

Speakers at the forum will include Lt. Gov. Michael Fedele, Department of Environmental Protection Commissioner Amey Marrella and Aric Newhouse of the National Association of Manufacturers.

In addition, a panel of manufacturing executives will include Sam Bergami Jr., CEO, Alinabal Holdings Corp.; Joe Vrabley Jr., President, Atlantic Steel & Processing; and Carol Wallace, President and CEO, Cooper-Atkins Corp. They will talk about how to engage employers, employee, business groups and the general public in the effort to convince policymakers of the importance of manufacturing in Connecticut.

To register for the manufacturing conference, contact CBIA’s Registrar Lise Cliché at 860-244-1977 or e-mail her at registrar@cbia.com.

More survey results
More than three-quarters (77%) of manufacturers responding to the survey said business conditions for their firms were fair or poor. Eighty-two percent say they had been forced to cut their workforces because of the recession. And while many manufacturers were profitable in 2008, only 35% expected to be profitable this year.

In each of those responses, manufacturers were significantly less optimistic than businesses in general who responded to the survey.

Manufacturers named the high cost of doing business in the state, national economic uncertainties, commodity prices (13%), short-term business vitality (13%), and a tighter lending climate (8%), as specific business challenges.
They are positioning themselves for recovery by taking cost-cutting measures and investing in research and development, international trade, and technology as growth strategies.

“Despite a difficult economy, Connecticut manufacturers continue to develop new products and invest in research and development,” says Pete Gioia, CBIA economist. “These are not only keys to turning around companies, they are essential to help turn around the economy.”

Other survey highlights:
Transportation costs are a pressing concern for manufacturers, with 88% actively trying to reduce these costs.

Three-quarters of manufacturers say they are having difficulty filling key positions.
While 56% of manufacturing respondents have reduced employee benefits, almost all, 98 percent, continue to offer health insurance to their employees.

More than half (60%) of manufacturers say they have taken their concerns to the State Capitol, contacting state senators and representatives regarding business conditions and their ability to survive in the state.

For more information about the survey, contact CBIA’s Pete Gioia at 860-244-1945.

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