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Q&A Rita Needham, Executive Director, Southwest Area Manufacturers Association

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SBJ: As 2006 gets under way, how would you describe conditions in the manufacturing sector?

Needham: While manufacturing still faces its share of ongoing challenges, the majority of members I talk with in southwest Missouri seem to have a steady workflow, and a number of them are looking to add skilled employees to their work force. Ongoing challenges, in addition to the cost of labor, that affect the ability of American manufacturers to successfully compete in the global economy include taxes, health care costs, energy costs, over-burdensome government regulations and the costs associated with frivolous lawsuits.

SBJ: What challenges will SAMA help its members address in 2006?

Needham: SAMA will continue its efforts to provide an opportunity for its members to achieve long-term rate stability for health care costs. The SAMA I Health Care Consortium became effective Jan. 1 and includes approximately 2,000 covered lives. We plan to develop a second health care consortium in 2006.

SBJ: In what ways does manufacturing continue to be an essential part of the Ozarks economy?

Needham: Manufacturing contributes to the wealth of any economy in which it exists. The manufacturing process leads to increased economic activity in other sectors of the economy. For every $1 of goods produced, an additional $1.43 worth of economic activity is generated - more than any other economic sector.

SBJ: Manufacturing already is a $3 billion sector employing more than 20,000 locally, according to Springfield Business & Development Corp. What sort of growth do you expect in local manufacturing in 2006?

Needham: Based on current economic indicators and feedback from area manufacturers, I anticipate 2006 to be a year in which manufacturing in southwest Missouri experiences slight, but steady growth.

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