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IndustryNet Blog

Connecticut adds manufacturing jobs at fastest rate in decades

Posted by IndustryNet on Thursday, November 8, 2018

100000297CONNECTICUT_Advanced_Manufacturing_FundAccording to new data released by MNI, Connecticut’s manufacturing sector added jobs at its fastest rate in decades.

MNI, compiler and publisher of the industrial information that powers IndustryNet, reports Connecticut added 3,153 manufacturing jobs, or 1.5% between June 2017 and June 2018.

This marks the state’s third straight year of gains, and one that far outstripped increases of the past few years.

Connecticut struggled to add manufacturing jobs after the recession as a strong dollar hit its export market; global competition took hold, and high business costs sent some manufacturers to cheaper locations.

The state’s manufacturing sector all but flatlined, with industrial employment inching down 4% between June 2010 and June 2015.

The gains of the past three years, however, suggest things are looking up for Connecticut manufacturing. In this past year alone, the state added more manufacturing jobs than at any year since MNI began reporting on its manufacturing climate in 2002.

Connecticut manufacturing gains: the year in review

Connecticut’s manufacturing gains were led by the state’s transportation equipment sector, which skyrocketed 13% in the past year. Transportation equipment accounts for the greatest number of industrial jobs in the state, with 40,446 workers.

The industry’s employment levels were boosted by hiring at Pratt & Whitney’s engine plant in East Hartford, and expansions at aerospace suppliers like Aero Gear.

Additional industries adding jobs included food processing; furniture/fixtures; stone/clay/glass; and rubber/plastics.carlas pasta

These gains were offset by losses in chemicals processing, after Alexion Pharmaceuticals moved its headquarters to Boston. Printing/publishing also declined, as did the state’s lumber/wood sector.

Industrial employment levels surged 7% in East Hartford and remained steady in Stratford and North Haven.

A number of companies announced new plants in Connecticut, including Serta Simmons, which established a mattress plant in Windsor Locks.

Other new plants on the horizon include Morgan Truck Company, which announced plans to build a $19 million factory in Plainfield. In addition, Carla’s Pasta expanded its facility in South Windsor for the third time in fifteen years and Economy Spring doubled its manufacturing space at its Southington facility.

A thriving transportation equipment industry

Transportation equipment has led manufacturing job growth for many U.S. states in the post-recession era, and Connecticut is no exception. The industry has been at the forefront of the recent rise in durable goods orders, as reported by the Commerce Department.

Orders for transportation equipment have increased steadily over the past three months, up $1.8 billion or 1.9 percent to $97.4 billion.

This is largely due to significant increases in defense spending, including the lifting of the “sequestration” of the budget caps for defense that have been in place for five years, as well as the tax overhaul. Commercial airline travel is also on the rise, which has contributed much to the increased demand.

Connecticut is home to some major defense contractors like Pratt & Whitney, Sikorsky, UTC Aerospace, and New England Airfoil Products, Inc.

A skilled workforce and focus on innovation

Connecticut’s highly educated workforce has drawn numerous innovative and advanced manufacturing operations to its borders over the years. The recent tax reform bill, enacted in January, has helped many manufacturers invest and expand hiring, while a number of enterprises have set up shop in Connecticut, drawn by its skilled labor pool and focus on technology.

Precision_machining_student_femaleA recent study by CNBC ranks Connecticut 16th in the nation for the quality of its workforce, and 9th in the nation for education.

The tight labor market, however, is proving to be a serious challenge for Connecticut manufacturers -- especially in the aerospace industry -- as the unemployment rate continues to decline.

The state’s Department of Economic and Community Development reported more than 13,000 manufacturing jobs are currently unfilled in Connecticut as of May 2018.

Related: Top resources for finding skilled manufacturing workers

Connecticut continues to partner with community colleges to bring more skilled workers to its manufacturing sector. Programs like the Advanced Manufacturing Technology Center fast-tracks students into manufacturing careers and promises a 98% placement rate.

The Connecticut Center for Advanced Technology has helped numerous Connecticut manufacturers thrive by implementing new technologies.

Challenges ahead

Ongoing trade tensions remain a growing concern among manufacturers in Connecticut and across the nation, especially those that rely on imported materials to produce their goods. Because of its large aerospace sector, Connecticut is especially vulnerable to tariffs on imported steel and aluminum.

According to Marketwatch, Connecticut is the third-most affected state in the U.S. when it comes to tariffs, with 107,000 of its workers employed by industries that rely on imports of these materials – roughly half of its industrial workforce.

Related: USTR announces new tariffs on 6,000+ Chinese products. Here is the full list.

It remains to be seen how the tariff situation will unfold in Connecticut. Many manufacturers are turning to industrial marketplaces like IndustryNet to find local suppliers of steel and aluminum, while others are seeking exemptions to the tariffs.

By the Numbers

Connecticut’s 4,790 industrial companies employ 215,652 workers. Here’s a breakdown of the numbers:

Top 5 sectors in Connecticut by number of manufacturing jobs:

18% Transportation equipment
13% Fabricated metal products
13% Industrial machinery and equipment
9% Instruments and related products
9% Printing and publishing

Largest Connecticut manufacturing companies by number of workers:

Sikorsky, A Lockheed Martin Co. (Stratford) - 7,500 employees
Electric Boat Corp. (Groton) - 5,936 employees
Medtronic, Inc. (North Haven) - 5,200 employees
ESPN, Inc. (Bristol) - 5,000 employees
UTC Aerospace Systems - Space Systems (Windsor Locks) - 4,000 employees

Connecticut cities with the most manufacturing jobs:engine_worker

Stratford - 10,931
Bristol - 8,734
North Haven - 8,270
Norwalk - 7,198
Danbury - 6,834

Top counties in Connecticut by number of industrial jobs

Hartford - 73,274
Fairfield - 56,934
New Haven - 50,454
New London - 12,608
Middlesex - 12,155

Contact Connecticut manufacturers

MNI’s extensive manufacturing data powers IndustryNet, an industrial marketplace that connects buyers with suppliers. IndustryNet allows users to search and source more than ten thousand types of products, parts, supplies, and services for free. IndustryNet® lists every U.S. manufacturer plus thousands of wholesalers & distributors and industrial service providers.

To connect with industrial suppliers in Connecticut and across the U.S. start your search on IndustryNet. Or, to access detailed profiles of Connecticut’s 4,700 manufactures and their 13,000 executives, learn more about MNI’s IndustrySelect database subscription.




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