Managing Editor
Optimism continues among manufacturers in Jacksonville and nationwide.
On Tuesday, the Arizona-based Institute for Supply Management reported that economic activity in the manufacturing sector expanded in May for the 10th consecutive month and that the overall economy grew for the 13th consecutive month.
Area manufacturers reflect the trend, showing optimism about the economy and indicating they expect to boost sales and jobs this year.
The First Coast Manufacturers Association surveyed its more than 300 members earlier this year and more than 60 responded.
Of those, while almost 60 percent said sales dropped the last half of 2009 from the year before, more than 40 percent expect higher sales the first half of this year and even more - almost 68 percent - expect sales to rise the last half of 2010.
They also are optimistic about employment.
While 60 percent laid off workers or cut or froze pay or hours in the last half of 2009, just 11 percent expect to do so for all of 2010.
Another 57 percent expect to maintain staff this year and 31 percent say they will add jobs.
“We actually started to be optimistic about a year ago,” said Michael Corrigan, a City Council member and one of the three chairs of the manufacturers association.
“I said, ‘Look, my company has taken off already. There are good things coming and this is the beginning,’” said Corrigan.
Corrigan is president and co-owner of Nu-Trend Plastics, which makes disposal plastic packaging used in candy and muffin trays and other food-product containers. Clients include Delta Air Lines, Little Debbie, Publix and Peterbrooke, he said.
Some customers need 1,000 trays a week; others need 300,000. The material comes in as rolls of plastic and goes out as trays.
“We are optimistic things will turn around because people are using discretionary money to buy candy and cheesecake,” said Corrigan, in addition to traveling with Delta.
Corrigan said that when the economic recovery began, which many economists say was in the summer or fall of 2009, manufacturers needed to start producing goods again to meet demand.
He said manufacturers began to hire people or call back those on furlough. “Manufacturing is going to be the takeoff point of the recovery. I always felt that. I think you’re seeing that now,” said Corrigan.
The association estimates there are more than 1,500 manufacturing companies in Northeast Florida with more than 45,000 jobs.
As manufacturers add sales and jobs, they may or may not reach the higher levels of years past.
State numbers show that the five-county Northeast Florida area continues to lose manufacturing jobs, falling by 1,900, from 29,100 to 27,200 from April 2009 to April 2010.
The entire goods-producing category of jobs, which includes mining, logging, construction and manufacturing, lost 5,800 jobs because of the decline of 3,900 construction jobs over the year, settling at 57,000 in April.
But the monthly moves are encouraging. The area added 200 construction jobs between March and April and lost just 100 manufacturing jobs.
Candace Moody, communications vice president for the WorkSource job service, said overall hiring is up 20 percent across most industries and that manufacturing job postings spiked in March, leveled off in April and have remained steady since.
She said those numbers don’t capture the level of manufacturing hiring done by staffing companies, but that staffing companies tell WorkSorce that their activity also is up about 20 percent.
“Chances are good that companies will hire through that source first, before bringing on permanent staff,” said Moody.
Goods-producing jobs make up 11.3 percent of private employment in Northeast Florida and 9.7 percent of total employment.
Manufacturing jobs make up 5.4 percent of private jobs and 4.6 percent of all jobs.
In addition, the state predicts Northeast Florida will add about 842 production jobs on average annually through 2017, with 302 of those new jobs and 540 jobs that will need to be filled because of turnover.
The Institute for Supply Management report said that the rate of growth nationally was driven by continued strength in new orders and production and that employment continued to grow as manufacturers added to payrolls for six consecutive months.
The institute said 16 of 18 manufacturing industries reported growth in May.
Corrigan said his business, which is in West Jacksonville near Downtown, employs seven people and staffing remained steady during the recession.
While Corrigan was optimistic, he wasn’t ready to declare a return to the glory days of manufacturing, which formerly claimed a larger share of area employment.
His caveats are what happens when local manufacturers are bought and sold and also the effect of port expansion.
With it and an eventual nuclear carrier at Naval Station Mayport, he believes “we will get glory days.”
Without port expansion, he said manufacturing would continue growing, but not as quickly.
First Coast Manufacturers Association 2010 Sales and Employment Survey
Did your sales revenue increase, decrease or remain unchanged compared to the year before?
What changes happened in your workforce?
Source: First Coast Manufacturers Association
356-2466