Employment is up, but outlook mixed for state
BYLINE: Cathy Proctor
The number of Coloradans employed in manufacturing appears to be rising after a two-month dip, despite mixed results from January surveys of Denver manufacturers and Colorado business owners.
The Denver chapter of the National Association of Purchasing Managers surveys local manufacturing executives every month in conjunction with the University of Colorado's College of Business.
In January, the survey showed its key index dropping to 46.4, indicating a negative outlook because the number was below 50. That's down from a 51.6 in December 2006 and down from a 59 posted in November 2006.
An index below 50 indicates the majority of survey respondents reported a decline in activity compared to the previous month. The further below 50, the greater the number of respondents reporting a decline. An index over 50 indicates growth, or improvement.
But a wider survey of Colorado business owners -- the Colorado Business Condition's Index conducted by Creighton University in Omaha, Neb. -- showed a positive outlook, with an index of 69.8. That's up from the 50.4 notched in December 2006 and 55.6 recorded in November 2006.
And December's preliminary employment figures -- seasonally adjusted -- showed 151,700 people working in manufacturing across the state, according to the U.S. Department of Labor's statistics. That's back to the level posted in September 2006, before the numbers dropped to 151,200 in October and November 2006.
People who work with manufacturers on a day-to-day basis say they're hearing positive comments, along with ongoing worries.
"Colorado hasn't been a large manufacturing center, compared to other states," said Al Timothy, the immediate past chairman of the Colorado Association of Commerce and Industry (CACI), and vice president for government affairs for Coors Brewing Co.
"But for those manufacturers who are here, Colorado is a pretty business-friendly state. They're doing pretty well," Timothy said.
Many worries for manufacturers center on energy costs and health care costs, Timothy said.
"You're always worried about costs and the manufacturing environment in general, along with competing with lower-cost producers around the world," he said.
CACI also has its eye on efforts by the Legislature and Gov. Bill Ritter to boost the amount of renewable energy produced in Colorado.
"We're not against renewable energy, but there are questions about the costs and maybe those costs can be ameliorated somehow," Timothy said. "Business is always interested in efficiency."
Elaine Thorndike, CEO of the Colorado Association for Manufacturing and Technology, said executives she works with tell her one of their biggest hurdles is finding and retaining employees.
Western Slope employers have struggled with higher wages in the booming oil and natural gas fields attracting workers, a struggle that appears to be spreading statewide, Thorndike said.
"The small manufacturers in Grand Junction are being hit really hard," Thorndike said. "You can be driving a truck for the drilling companies out there and be making $60 or $70 an hour.
"It's having an impact. Skilled and unskilled workers are being drawn to the salaries out there," she said.