Connecticut manufacturers are more skeptical than most businesses that a recovery is at hand, so they continue to shed workers and look for ways to cope with the state’s high operating costs, according to a new survey.
The manufacturing supplement to the Connecticut Business & Industry Association–BlumShapiro survey found that many state businesses struggle with increasing global competition and economic uncertainties, the challenges have been especially pronounced and harmful for the state’s nearly 5,000 manufacturers.Â
Many makers of durable goods continue to struggle, with 82 percent of them forced to cut their workforces vs. 64 percent of businesses in the state, the recent survey found.
Nearly three-quarters (72 percent) said their greatest concern is the high cost of doing business in the state. Compared with Connecticut businesses overall, manufacturers appear to be much more impacted by costs associated with doing business, primarily because of their increasingly global competition.
Other business challenges are national economic uncertainties (57 percent), commodity prices (13 percent), short-term business vitality (13 percent), and a tighter lending climate (8 percent).
Manufacturers are positioning themselves for recovery by taking cost-cutting measures and investing in research and development, information technology, equipment and growth strategies.
Despite high costs, more than two thirds (68 percent) of manufacturers recorded a profit in 2008, but only 35 percent expect to be profitable this year.
More than three-quarters (77 percent) say current business conditions for their firms are fair or poor. Even more (86 percent) say conditions are fair or poor for their industry.Â
