Manufacturers see positive outlook

Conducted by the organization in January, the survey showed that nearly 70 percent of respondents expect to increase their work forces in 2006, and 73 percent expect to increase profits.

One such company is Industrial Machine and Engineering Co. in Monett, which recently completed a building expansion that doubled its facility to nearly 45,000 square feet. The expansion is a sign of a stronger manufacturing sector overall – IMEC makes components and machine parts for other manufacturing companies.

2001 and 2002 were difficult years for manufacturers. “We’ve been very busy building back up, and it’s because our customers have become busier with their products,” said Dan Conner, general manager of IMEC. “Over 80 percent of our customers are original equipment manufacturers. We depend solely on them. We’re just following the trend of the overall industry.”

But even with the positive outlook, most manufacturers remain cautiously optimistic.

“I think we are (positive), but I think that we tend to be kind of short-sighted when we say that,” said Mark Cook, president of Central States Industrial. “There are still issues that make it very difficult to compete with many foreign competitors. Governmental regulation is a big one, taxation is a big one, and also cost of wages.”

That caution is a result of recent history.

In 2001 and 2002, companies nationwide were cutting back work force numbers due to the weak national economy.

That painful history has not gone unnoticed by the Springfield Area Chamber of Commerce. Senior Vice President of Economic Development Greg Williams said southwest Missouri needs to keep up with the changes in the manufacturing industry.

“We want to make improvements in the number of quality industrial and manufacturing jobs that come here,” Williams said. “But advanced manufacturing, (research and development), the synergies that are going to be created from the Jordan Valley Innovation Center are the next big thing for this community.”

Even as the local manufacturing industry prepares to deal with changes, it also continues to deal with one of its biggest concerns: the impact of the rapidly retiring baby boom generation on the work force.

More than 7,900 people will turn 60 each day in 2006, according to U.S. Census projections – nearly 2.9 million people this year alone.

And that’s just the first group of boomers.

The inability to find good people to replace those who retire brings the issue to the forefront for manufacturers.

“It’s difficult to find people with technical skills and the willingness to use them,” CSI’s Cook said. “Fortunately for us, we don’t need large numbers at a time – we’re usually adding one or two people at a time.”

SAMA Executive Director Rita Needham has seen the staffing issue surface time and time again.

“Week after week, as I’m out talking with manufacturers in the region, and I ask them what their greatest challenge is, they’ll bring up workers – being able to find someone, and someone dependable,” she said.

One reason for the lack of qualified applicants is the manufacturing industry’s image problem.

“We find too often that there’s this myth that manufacturing is just assembly line work and it’s dull, dangerous, dirty and not something they want to do,” Needham said.

“But when we bring (people) into a modern manufacturing facility, they see the automation and the opportunity. They’re just not aware of that until they see it.”

She added that the association is looking to reintroduce an awareness program in area junior highs and high schools to make students more aware of the career opportunities available in the manufacturing sector.

Until those programs begin, though, companies are continuing to look at new solutions to the problem.

“During the last year we focused more, even as small as we are, on training people who come in with the attitude that they want to work and learn,” IMEC’s Conner said. “We have one person who came in last year to do nothing but develop those strategies. For a company our size, it’s tough, but it’s the only way we’re going to get people that we can work with.”

Despite the difficulties, however, most companies think conditions are improving.

“From our viewpoint people really need to look at productivity,” Cook said. “It’s stronger than it was a couple of years ago. I’d say the outlook is stable.”

SAMA survey results

Southwest Area Manufacturers Association’s annual member survey comprises responses from 65 of the group’s 120 member companies. It was completed in January.

In the coming year (2006), what best describes your expectations compared with 2005?

Increase Decrease Stay the Same

Work force 68.8% 3.1% 28.1%

Sales 86.3% 1.5% 12.3%

Profit 73.3% 6.7% 20.0%

SAMA prepares for annual Manufacturing Summit

The Southwest Area Manufacturers Association is bringing in a big name for its third annual Manufacturing Summit and Legislative Update on April 21 in Springfield.

The keynote speaker at the event is Albert Frink, U.S. secretary of Commerce for manufacturing and services. Frink, appointed to the position by President Bush in 2004, opened carpet manufacturing company Fabrica International in Orange County, Calif., in 1974. The company grew from five employees to more than 400 when it was acquired by the Dixie Group in 2000.

In addition to Frink’s speech, the summit will feature an update on manufacturing-related legislation, and special recognition for state and national legislators who have worked to help the manufacturing industry.

The association also will hand out the first SAMA Summit Awards, recognizing 12 SAMA member companies that have been in business for 30 years or more.

The summit will run 11 a.m.–3 p.m. at University Plaza Hotel and Convention Center. The cost of the event is $25 per person for SAMA members and $30 for nonmembers.

For more information or to register, call the SAMA office at (417) 863-7262.[[In-content Ad]]