Despite the downward dive of the rest of the nation, manufacturing in Western Pennsylvania is looking up.
A recent survey of 100 manufacturers here reports a substantial increase in employment and a potential rise in future employment. A substantial majority, 86 percent, will expand operations in the coming year, up from 71 percent in 2007.
Meanwhile, in the rest of the nation, manufacturing employment has declined 6 percent nationwide, according to the U.S. Dept. of Labor Statistics. The regional survey is conducted annually by
Alpern Rosenthal and the
University of Pittsburgh Institute for Entrepreneurial Excellence.
“Really it is the tale of two stories,” notes Larry Barger, director of manufacturing services for the Pittsburgh office of Alpern. “The survey is reflective of the third quarter. While many had a good 2008, they’re looking ahead with caution to 2009.”
Then again, the diversification of industry in the region has contributed to its steady growth, he adds.
“We’re not as tied into the auto industry or steel as we were years ago,” Barger says. “This area is entrepreneurial. Our region has seen a number of spinoffs and startups and those companies are today’s success story. It’s fair to say that the diversity and depth of specialized, high tech manufacturers may set us apart from other parts of the country.”
Some survey highlights:
· Over the past three years, 78 percent of the respondents said they’ve increased employment. Some 91 percent expect to increase employment in the next three years.
· Revenues have increase for about 85 percent over the last three years.
· A total 56 percent expect net operating profits next year.
· Manufacturers cite three positive reasons for operating a business in Pennsylvania—a superior, trained workforce, relative low cost of manufacturing and superior transportation.
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Writer:
Deb SmitSource: Larry Barger, Alpern Rosenthal
Image courtesy Alpern Rosenthal