Nine in 10 Connecticut manufacturers struggle to find and retain workers, the sector’s biggest barrier to growth, according to a new report.
The Connecticut Business & Industry Association, in partnership with its affiliates CONNSTEP and ReadyCT, on Friday released its 2021 Connecticut Manufacturing Report, which outlined how the industry’s long-running labor shortage continues to be a top challenge.
In fact, the survey found that 88% of manufacturing executives reported difficulty finding and retaining workers and 41% call the labor shortage the main obstacle to growth.
“… 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,” said CBIA President and CEO Chris DiPentima.
Despite the workforce challenges, industry officials are still optimistic about the future, although their optimism is marked by caution as companies continue to recover from the pandemic, DiPentima said.
The survey also found that:
- 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%)
- 58% of employers report at least 75% of their employees are fully vaccinated
- 87% of manufacturers applied for a federal Paycheck Protection Program loan and 14% for other U.S. Small Business Administration loans or grants
The survey was mailed and emailed from Aug. 4 through Sept. 8, to 858 top manufacturing executives throughout the state. The survey had a response rate of 25%, according to the CBIA.
