Report: Workforce, Costs, Uncertainty Hamper Manufacturing Growth

Workforce challenges, rising costs, supply chain shifts, and policy uncertainty remain key obstacles to the growth of Connecticut manufacturing according to a new report.

The 2025 Connecticut Manufacturing Report, produced by CBIA and affiliates CONNSTEP and ReadyCT, and made possible with the support of RSM, found that 82% of manufacturers have difficulty finding and retaining workers. 

Released today at the Made in Connecticut: 2025 Manufacturing Summit, the report also found that the cost of doing business is rising for 95% of manufacturers.

Key Takeaways  

• 82% of manufacturers report difficulty finding and retaining workers, with skills gaps the top barrier 
• 95% say the cost of doing business is rising, driven by labor, healthcare, and energy expenses 
• 70% of firms were profitable in 2024, while 14% broke even and 16% reported losses 
• Exports rose to $16.1 billion in 2024, and defense contract spending reached $26.6 billion 
• Property and facilities remain the largest investment area 
• Only 27% have integrated artificial intelligence technologies 
• 45% of executives view the state’s business climate as declining, 43% say it is static, and 12% see improvement 

“This year’s report highlights both the enduring strengths and the pressing challenges facing Connecticut manufacturing,” said CBIA president and CEO Chris DiPentima.

“Manufacturers are growing despite navigating numerous headwinds including increased labor, healthcare, and energy costs.

“Growing uncertainty due volatility surrounding federal tariff and trade policies are also testing manufacturers’ resilience.

“Despite those challenges, Connecticut manufacturers accounted for a record $34.2 billion dollar output in 2024—almost 12% of the state’s economy.

“Manufacturers are embracing innovation and new technologies while investing in their employees and workforce development initiatives to grow their productivity.”

Manufacturing Coalition

The report highlights the road ahead to growing the industry, including the launch of the CBIA Manufacturing Coalition.

Launched today in partnership with affiliate CONNSTEP, the coalition’s singular vision is to build a statewide manufacturing community that drives collaboration and growth through comprehensive training, valuable resources, and strategic networking.

“This coalition comes at a pivotal moment for Connecticut’s manufacturing industry,” said CONNSTEP president and CEO Beatriz Gutierrez.

“Amid ongoing labor shortages and supply chain uncertainty, it is strong partnerships like these that will give manufacturers the tools and voice to position the industry to grow and thrive.”

“Doubling down on our manufacturing strengths and addressing issues through coordinated workforce strategies, smart investments, and supportive policy will be critical to sustaining momentum and driving long-term competitiveness,” added DiPentima.

The information and data shared in the 2025 Connecticut Manufacturing Report was drawn from multiple sources, including a comprehensive June 3-July 17 CBIA survey of manufacturers, data from numerous state and federal agencies, and interviews with public and private sector manufacturing leaders.

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CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please contact Scott Beaulieu(860.244.1929).