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Manufacturing by
the Numbers
A quantitative look beyond the hype at Connecticut's historic bread and butter
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Business New Haven
1/11/1999
By: BNH
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Whither Connecticut manufacturing at the turn of the 21st century?
“Connecticut did get hit very hard in the early 1990s,” concedes Fred Carstensen, professor of economics at the University of Connecticut and director of the Connecticut Center for Economic Analysis. However, while problems remain, neither the numbers nor the reality is quite as gloomy as it was several years ago.
The number of people employed in manufacturing in the state has continued to decline. However, the employment numbers are somewhat misleading. Carstensen points out that the classification system currently used for workers is based on product, not process. This means that accounting, human resources, and other personnel employed in manufacturing firms were all counted as manufacturing workers, as well as the men and women actually out on the plant floor.
Over the last year or two, more and more companies have been outsourcing their accounting and other non-manufacturing functions. While this shows up in the statistics as a drop in manufacturing employees, in reality the same number of workers may remain on the production line.
Peter Gioia, economist with the Connecticut Business & Industry Association (CBIA), adds that the tendency of Connecticut manufacturers to use more machines and fewer workers in their production processes has also resulted in a drop in numbers which may have no measurable effect on
output.
1. Number of workers employed in
manufacturing
1998: 275,000
1995: 279,000
1993: 294,000
1990: 353,726
Sources: Connecticut Department of Labor
(1993-98); Connecticut Department of Economic
& Community Development (1990)
2. Manufacturing employment growth, 1995 to 1996: 1.31% decrease
This figure earned Connecticut a ranking of 36th among the 50 states for growth in manufacturing employment during this time period. Wyoming ranked first, with a 10.52-percent rate of growth. Delaware ranked dead last, posting a 5.49-percent decrease in manufacturing employment.
Source: U.S. Department of Labor
Still, the number of skilled workers available continues to be a problem for manufacturers. “The deep pool of skilled employees Connecticut always used to pride itself on is not so deep anymore,” notes Frank Johnson, executive director of the Manufacturing Alliance of Connecticut (MAC).
This is evidenced by the fact that the percentage of students enrolled in manufacturing and industrial technologies courses, while high, has failed to increase over the last four years. The average age of those currently employed in manufacturing is high - over age 40. Where will the workers come from to replace those who will soon retire?
3. Regional vocational technical school enrollment in manufacturing and industrial technologies as of October 1, 1997: 29 percent of all students enrolled
This is higher than the percentage enrolled in any other cluster, including:
• Construction & design: 27%
• Service careers: 22%
• Transportation technologies: 14%
• Health technologies: 8%
Significantly, the percentage of voc-tech students enrolled in manufacturing-industrial technologies courses is the same in 1997 as it was in 1994 (29 percent).
Source: Connecticut Vocational-Technical
School System
4. Average age of manufacturing employees: 40.1
Source: MAC survey, February 1998
5. Average weekly wages of all
manufacturing employees:
1993 1998
$547.72 $648.40
6. Average annual wages of
manufacturing employees in
selected sectors:
Industry 1995 1988
Plastics materials
and synthetics $50,995 $30,577
General industry
machinery $39,804 $29,827
Electronic
components $31,529 $23,366
Source: Connecticut Department of Economic & Community Development
7. Average weekly hours worked
by manufacturing employees:
1993: 42.1
1998: 43.4
Source: Connecticut Department of Labor
Although the availability of workers is a concern for manufacturers, the workers that are currently employed are in the aggregate productive, and manufacturing in Connecticut remains a productive sector of the state's economy. “Connecticut manufacturing is very, very highly productive,” notes Carstensen.
8. Productivity per manufacturing worker, in chained 1992 dollars (vs. selected other sectors):
Sector 1982 1994
Manufacturing $40,816 $62,262
Transportation $36,958 $39,895
Communications $81,145 $137,493
Trade $27,214 $40,389
Services $31,415 $33,875
Agriculture,
Forestry, Fishing $29,599 $38,616
Finance, Insurance,
Real Estate $69,313 $147,680
Construction
& Mining $31,671 $39,215
Source: U.S. Bureau of Economic Analysis, Regional Economic Information System
9. Productivity per manufacturing employee in 1997, compared with selected other states:
1. District of Columbia: $395,938
9. Connecticut: $118,397
51. Mississippi: $57,404
Among other Northeastern states, New Jersey ranked sixth, New York seventh and Massachusetts tenth.
Source: U.S. Department of Commerce
While the output of manufacturing firms has definitely decreased compared to what it was two or more decades ago, it has remained relatively constant over the past five years.
10. Value added to gross state
product by manufacturing:
1996: $24,771,700,000
1995: $24,972,300,000
1992: $24,437,100,000
1987: $22,348,900,000
1982: $16,373,400,000
Source: Connecticut Department of Economic
& Community Development
11. Percentage of gross state product accounted for by manufacturing:
1996: 16.7%
1995: 16.77%
1993: 16.92%
1990: 20.07%
1980: 29.14%
Source: Connecticut Department of Labor
The total number of manufacturing firms has not declined appreciably, neither has the distribution of manufacturing activity changed much.
12. Number of manufacturing firms
in Connecticut:
1995: 6,138
1990: 6,474
1987: 6,747
Source: Connecticut Department of Economic
& Community Development
13. Geographic distribution of
manufacturing firms by county:
County 1995 1990
Fairfield 1,557 1,705
Hartford 1,587 1,689
Litchfield 481 481
Middlesex 321 326
New Haven 1,629 1,699
Tolland 141 152
Windham 186 176
Source: Connecticut Department of Economic
& Community Development
14. Leading Connecticut manufacturing sectors (with number of firms represented in 1995):
Industrial machinery (533)
Metalworking machinery (481)
Misc. plastics products (227)
Fabricated structural metal products (180)
Electronic components (180)
Misc. metal products (174)
Engraving and related (152)
Measuring and controlling devices (140)
Metal forging and stamping (138)
Aircraft and parts (112)
Source: Connecticut Department of Economic
& Community Development
Finally, there is a growing optimism among manufacturers themselves. In a CBIA/Arthur Andersen survey conducted last September, 62 percent of respondents said they planned to expand or relocate in Connecticut. This figure is up from 54 percent the previous year. Also, twice as many respondents in the 1998 survey described the lending climate as “good” as did so in 1996.
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