Manufacturers Optimistic As Efforts to Train, Attract Workers Grow
/As Connecticut officials highlighted a new partnership to train workers in building aerospace components to boost the state’s manufacturing industry, a new survey found that 9 in 10 Connecticut manufacturers are currently struggling to find and retain workers, which has become the sector’s biggest barrier to growth.
The 2021 Connecticut Manufacturing Report, produced by CBIA and affiliates CONNSTEP and ReadyCT—and made possible through the support of RSM—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 survey highlights how the state’s manufacturing community is navigating coronavirus pandemic disruptions, transitioning from what essentially was a survival phase to pursuing growth opportunities.
The partnership announced in late October by Goodwin University, in partnership with the Connecticut Center for Advanced Technology, and Pratt & Whitney, all based in East Hartford, unveiled a new Advanced Composites Technology Center. The initiative received $5 million in state investment to train workers in building aerospace components from composite materials. In making the announcement, Governor Ned Lamont said the new Center will help to support the manufacturing supply chain that has been impacted by COVID-19.
The CBIA survey, taken in August and released last week, saw considerable optimism by manufacturers, even amidst the challenges in hiring:
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
Almost two-thirds (64%) of manufacturers reported profits in 2020, down from 76% in 2019
Seventy percent expect a profitable 2021, with just 10% forecasting losses
Over half (53%) see their businesses growing, up from 18% last year, while just 12% forecast contraction
Forty percent expect Connecticut’s economy to grow (compared with just 10% last year), and 58% expect national growth (32%)
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—despite thousands of job openings, the manufacturing sector has recovered just 38% of COVID-related job losses, well below the state’s recovery rate.
DiPentima called on manufacturers to do more to turn their optimism into reality.
“How do we get people back into the manufacturing workforce? The jobs are there and it’s clear that we need a more aggressive approach to resolve this issue.
Of the new Center at Goodwin and the public-private partnership, “these are the types of partnerships that are going to define Connecticut’s manufacturing ecosystem, not just in the state but in the region, in the decades ahead,” said Ron Angelo, president of the Connecticut Center for Advanced Technology.
Goodwin University offers Certificates, Associate Degrees or Bachelor’s Degrees in CNC Machining, Manufacturing Management, Mechatronics, Quality Management Systems and Welding to prepare students for “an industry driven by technology, innovation and creativity,” according to the university’s website.
CBIA surveyed 858 top manufacturing executives from August 4 through September 8 throughout the state. The survey had a response rate of 25% and a margin of error of +/-3%. Seventy percent of manufacturers who responded to the survey employ fewer than 50 employees, while 84% have less than 100 employees.
