Issue link: http://www.insightdigital.biz/i/385615
26 | /INSIGHT ON MANUFACTURING • September 2014 w w w.in s i g h t o n m f g . c o m By the NUMBERS In the second quarter of 2014, optimism among industrial manufacturers decreased 6 points but remained largely positive at 65%, according to the July 2014 Pricewaterhouse Coopers Manufacturing Barometer Business Outlook Report. Part of the decline is attributed to the U.S. GDP dropping 2.9%, largely because of weather. Industrial manufacturers remain uncertain about the world economy, with optimism about their prospects dropping 3 points to 38%. Fewer industrial manufacturers nationally are planning to hire: 48% plan to hire new employees over the next 12 months, 8 points below the prior quarter. However, only 7% plan to reduce the number of full-time employees, and 45% will likely stay about the same. The most sought after employees will be skilled labor (32%), followed by production workers (27%) and professionals/technicians (20%). Global concerns slightly deflate optimism among manufacturers Exporting expected to grow during next 5 years Nearly 50% of Midwest companies have open positions due to a lack of candidates. More than 70% of Midwest companies surveyed expect to hire 1 to 9 employees during the third quarter of 2014. The same percentage of companies have considered adding a training program to address the lack of skilled candidates. More than 27% will increase wages in the third quarter to help retain the employees they have or attract new employees. The top 5 jobs for general labor and skilled manufacturing throughout Illinois, Iowa, Kansas, Missouri and Wisconsin are: General Labor 1. Assembly 2. Packaging 3. Warehouse/Logistics 4. Food Manufacturing 5. Machine Operators Skilled Manufacturing 1. Forklift Drivers 2. CNC Machine Operators 3. Welders 4. Machine Set Up & Maintenance 5. Quality Control 60% of exporters surveyed expect to increase exports. 49% of those surveyed identified China as the top location for growth and new investments. 60% of exporters surveyed indicate that comprehensive trade agreements will make the United States more attractive for global investment. CFOs ranked the tax system No. 1, the regulatory system No. 2 and a skilled workforce No. 3 as the most important areas to improve to increase global investment. Source: The Organization for International Investment (OFII) and PricewaterhouseCoopers LLP (PwC) 2014 Insourcing Survey Source: Quarterly Employment Survey by Wisconsin-based QPS Employment Group Manufacturing may see increased wages