Vermont Business Magazine Vermont manufacturing employment declined slightly in 2014, according to Illinois-based Manufacturers’ News, Inc. According to data collected by MNI, Vermont lost 605 industrial jobs, or 1.3 percent, from December 2013 to December 2014, in contrast to the 1.7 percent national average gain reported by the Labor Department for the same time period. Manufacturers’ News reports Vermont is now home to 1,363 manufacturers employing 43,777 workers.
The Vermont Department of Labor, using a slightly different data set (nonfarm, nongovernment, unadjusted, actual workers), still had similar, relative numbers for 2014. For the VTDOL, manufacturing employed 31,200 (9.8 percent of the nonfarm workforce) in December 2014, down 700 from December 2013, with electronics losing 800 workers and non-durable goods (food showed zero change) adding 100 workers, for a net loss of 2.2 percent.
“High business costs, global competition, and a shortage of skilled workers have made it difficult for Vermont manufacturers to climb back from the recession,” says Tom Dubin, President of the Evanston, IL-based publishing company, which has been surveying industry since 1912. “However, the state is still home to a number of major manufacturing operations, including several Department of Defense suppliers.”
Manufacturers’ News reports the electronics industry shed the most jobs, down 6.1 percent. The industrial machinery sector, the state’s third-largest by employment, lost 7.7 percent of its jobs. Additional losses were reported in primary metals, down 15.5 percent; printing/publishing, down 7.5 percent; furniture/fixtures, down 4 percent; and lumber/wood, down 2.9 percent.
Growth in the state’s food products sector was a rare bright spot, with jobs up 8.1 percent. Vermont’s food processing industry currently accounts for the second most industrial jobs, employing 5,696. Food processors announcing expansions in Vermont include King Arthur Flour in White River Junction and Vermont Smoke and Cure in Hinesburg.
Employment gains were seen also in the stone/clay/glass sector, which increased 7.4 percent and in rubber/plastics, up 6.1 percent.
Other bright spots for the state included the recent establishment of Twincraft Skincare’s manufacturing operation in Essex and the opening of Department of Defense supplier AirBoss Defense in Milton.
Essex Junction accounts for the most industrial employment in Vermont, with 5,942 workers, down 1.1 percent over the survey period. Burlington ranks second with 3,441 jobs, up 2.1 percent. Brattleboro is home to 2,049 jobs, down 2.8 percent, while industrial employment in Rutland fell 5.2 percent, with the fourth-ranked city home to 1,975 jobs. Industrial employment in Williston rose 10 percent, and currently ranks fifth in the state with 1,593 jobs.
The state recently announced an effort to enhance the manufacturing sector, which despite recent losses (eg, both Plasan plants are leaving Bennington, cutback at Vermont Castings) continues to be a strong sector of the economy. Vermont has a slightly higher percentage of manufacturing jobs than the national average.
According to a report in January 2013 from the Vermont Commerce Agency, average annual earnings in Vermont manufacturing is about 36 percent above statewide average earnings (ie, $51,829 in manufacturing vs $38,124 on average). Manufacturing contributes about 11.1 percent or $2.9 billion (in Year 2009) of Vermont's Gross Domestic Product (GDP).
According to the National Association of Manufacturers, Vermont total manufacturing employment (2013) represents 10.36 percent of employment, while the the US average is 8.8 percent. Manufacturing's contribution to state GSP, however, is lower: Vermont 10.87 percent ($3.21 billion); US 12.45 percent ($2,079.52 billion). Vermont ranks 16th in employment (highest in the Northeast) and 28th in GSP, third in the Northeast behind Connecticut and New Hampshire.
RELATED:
Governor banks on manufacturing, workforce development
Plasan closing second plant in Bennington
Vermont Castings President: Despite Plant Closure, Better Days Ahead
Established in 1912, Manufacturers’ News, Inc is the nation’s oldest and largest publisher of industrial information. MNI offers a variety of tailored solutions to help customers connect with 430,000 manufacturers and suppliers. MNI’s industrial database subscription service EZ Select allows users to tap into a live interactive database of manufacturers, while its industrial search engine IndustryNet connects buyers and suppliers and allows users to view profiles and obtain competitive quotes.
Source: EVANSTON, Ill.--(BUSINESS WIRE)--MNI Graph: National Association of Manufacturers