Congressman Mike Michaud has released a report based on the results of a survey he developed and made available to Maine manufacturers on his website. 85 Maine manufacturers responded to the survey, and highlights of the report's results can be found below. Michaud developed the survey in order to hear firsthand from Maine's manufacturers so that he could directly communicate their comments and concerns to his colleagues in Congress. A full copy of the report can be accessed here.
Since 1994, Maine's manufacturing employment has declined by 40%, and the state has lost more than 13% of its factories since 2001. In just the last three years alone, 141 factories have shut their doors and 8,600 workers have lost their jobs in the manufacturing sector.
"This survey provided me an invaluable insight into the challenges facing Maine's manufacturers," said Michaud. "Despite some troubles in the sector, Maine manufacturers appear to be as resilient as ever. With the right focus and policies, we can capitalize on our manufacturing sector's strength and help it grow and create jobs."
The survey and its results have prompted Michaud to develop a "Plan of Action for Maine's Manufacturers," which he plans to work on in the coming months and release next year after visiting more Maine manufacturers. As part of this plan, Michaud will draft legislation to address some of the specific concerns raised by companies in the survey.
A sample of the report's survey results.
Despite the decline in the state's manufacturing employment over the last 20 years, many manufacturers would like to hire additional employees in 2011 but cannot find qualified workers with the right skills.
Maine businesses have a positive perception of hiring veterans. The unemployment rate among the state's large population of former service members is increasing and is now greater than the overall unemployment rate. Putting companies and veterans in touch with one another could be beneficial for both the state's manufacturers and veterans.
The financial crisis hit Maine businesses hard, but companies did not necessarily feel the credit crunch directly. Companies primarily relied on personal funds or internal cash flows to weather the downturn. They remain split about whether Maine will see a double dip recession, but more than half also said that their profitability for this year would either stay the same or increase from 2010 to 2011.
More than half of companies said foreign competition had increased over the last 10 years, mostly from China. A very large percent of companies do not export any goods, but slightly more export at least some products. About half of manufacturers now get some of their raw materials abroad.
Maine's manufacturers have mixed opinions about China's growing influence in the global marketplace, but companies overwhelmingly think addressing China's currency manipulation would be more positive than negative.
Although Maine's overall exports have increased significantly in the last two years, most respondents did not anticipate increasing exports in the near future. There was no clear consensus on how the government could increase exports either, though lowering taxes and adjusting trade policy were the most popular suggestions.
Only 16% of manufacturers surveyed contract with the federal government. Those that do not cite red tape as the primary reason why. Most would welcome a strengthening of Buy America standards, though some concerns were raised that global supply chains could make this difficult.
Businesses are very concerned about many issues, but they are most worried about health care costs, government regulation, and taxes.
