A survey of Connecticut manufacturers says the sector is strong, but companies are worried about their ability to maintain staffing levels, amid retirements and an ongoing shortage of skilled workers who can replace them.
The first annual Connecticut Manufacturing Report, issued by the Connecticut Business & Industry Association (CBIA), the state’s largest business lobby, and its affiliate CONNSTEP, included responses from more than 350 manufacturers.
“Manufacturers are generally doing well in Connecticut,” the report concludes. “But as this report shows, several critical warning signs require an unprecedented level of public-private collaboration and partnership to address.”
The survey found 60 percent of respondents ranked recruitment, retention and hiring qualified staff as their most immediate significant need, and the numbers show it could only get more challenging.
Connecticut’s overall workforce is aging, with the number of employees either under the age of 25, or between 25 and 54 falling 1.5 percent and 5 percent, respectively, between 2008 and 2018, according to the Connecticut Economic Digest. During the same period, the number of workers over age 54 grew by 7 percent.
The manufacturing industry is expected to experience retirements at a quicker pace than the state’s overall workforce.
According to the CBIA survey, 4 percent of Connecticut’s overall workforce is expected to retire next year, and 19 percent of the state’s manufacturing workers are set to retire between 2021 and 2024.
Replacing them is an ongoing challenge. Just over half of the companies surveyed by CBIA said it is difficult to find and retain younger workers. More than three-quarters of the companies said they require some level of training, such as a technical high school diploma, community college certificate or an in-house training program lasting several months.
Despite workforce concerns, the report said the manufacturing industry, which employs nearly 161,000 people, is profitable for a majority of companies.
Eighty-three percent of respondents said their companies are either growing (35 percent) or holding steady (48 percent). This year, 72 percent said their companies made a profit, a 3 percent drop from last year. But just 12 percent reported losses, which is even with 2018’s figures.
Other findings in the survey include:
- 53 percent said their companies released a new product in the past year, and 49 percent expect to introduce a new product in the next year.
- Nearly three-quarters said their products are produced in Connecticut, and half said they’ll produce new products in the state.
- 58 percent are concerned about the possible impact tariffs may have on their bottom lines going forward.
