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Report: Manufacturing Jobs Down, Productivity Increases

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Report: Manufacturing Jobs Down, Productivity Increases

(AP) –– Manufacturers in Connecticut produced one-third more goods between 1984 and 2001 despite losing half their workers during that time, a new report says.

The Manufacturing Alliance of Connecticut released its fourth annual MAC Index Report on Monday, in conjunction with the Connecticut Economic Resource Center and the Connecticut Center for Economic Analysis at the University of Connecticut.

The index measures the competitiveness of Connecticut’s manufacturers against their counterparts in other states.

The state had 415,000 manufacturing jobs in 1984, but the number dropped to 216,000 in 2002, the report says. But “gross product originating” statistics show Connecticut manufacturers improved productivity by 250 percent during that period.

The report suggests that the improvements in productivity have allowed manufacturers in the state to remain competitive with companies worldwide.

The alliance says in the report that a loss of 26,000 jobs in manufacturing jobs in the state in the past 28 months is troubling because they represent more than ten percent of total manufacturing jobs and are part of a continuing decline since August 2000.

For the past two-and-a-half years, the United States has lost manufacturing jobs every month. Since August 1998, the nation has lost more than two million jobs, a decline of more than 12 percent.

Controlling for inflation, the study found that despite the recession, Connecticut is faring better than the rest of the country.

Connecticut ranked high in three of six measures of competitiveness in manufacturing. The state’s highest ranking was in the quality of life category (third), followed by technology (fourth), and work force productivity (seventh).

The study compares Connecticut’s position to all other US states in six critical areas: economic structure, manufacturing costs, physical infrastructure, quality of life, technology, and workplace productivity.

The report also highlights recent and long-term trends, in addition to performance trends in each of the six categories.

According to study results, the state faces challenges in three areas.

Connecticut was described as “not quite as strong” in the area of economic structure (12th), “at a distinctive disadvantage” in the areas of physical infrastructure (31st), and manufacturing costs (35th).

MAC President Frank Johnson said the report identifies areas the manufacturing community and state legislature might focus on to give Connecticut an opportunity to retain and gain a more competitive edge.

Mr Johnson cited the proposed elimination of the Manufacturing PILOT Fund, which provides personal property tax credits to qualifying manufacturers.

“Personal property taxes represent a threat to Connecticut’s competitiveness as they further increase manufacturing costs relative to other states,” Mr Johnson said.

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