Maine losing manufacturing jobs at slow rate

PORTLAND – Maine continues to lose jobs in the manufacturing sector, but at a considerably slower rate than a few years ago.

In April, Maine had 62,200 people employed in manufacturing, according to the latest Bureau of Labor Statistics data. That represents a loss of 800 manufacturing jobs from a year earlier and 1,900 jobs from April 2003.

Even though there continues to be job losses, the numbers are encouraging compared to the losses earlier this decade, when Maine was losing a greater percentage of its manufacturing jobs than any other state. Between the summer of 2000 and the summer of 2003, Maine lost 17,800 – or 22 percent – of its manufacturing jobs.

Daniel Innis, dean of the University of Maine’s School of Business, Public Policy and Health, said the state is seeing job losses of 50 or 100 or 150 at a time, rather than hundreds or more than a thousand that can occur with the shutdown of a paper mill or large factory.

“Overall, my view and the view of many of us is that the state’s economy is pretty solid. It could always be better,” Innis said. “If we continue to move toward tax reform and a better business climate, it will get better.”

Darren McKinney, spokesman for the National Association of Manufacturers, said most states continue to lose manufacturing jobs, but at a slower pace. The job losses, he said, are primarily due to two factors: increased productivity and growing global competition.

“We’re producing more than ever before with fewer workers than two, three, four years ago,” said McKinney. “While disappointing certainly to those who have lost a manufacturing job, it is not a disaster for the sector and for the economy.”

While increased productivity can lead to job losses, things could be worse without increased efficiencies, said Innis.

A 500-person company that becomes 10 percent more efficient and lays off 50 people still has 450 people working for it. But a 500-person company that doesn’t become more efficient could shut down because it isn’t competitive or move to another country – and thereby employ nobody in Maine.

“If they don’t become more efficient here, they’re going to go away to become more efficient elsewhere,” said Innis.

Some manufacturing sectors are doing quite well, and those in the metal products industry are thriving, said Lisa G. Martin, executive director of the Maine Metal Products Association. Martin said there are 500 to 600 open positions in the sector, with businesses looking for welders, machinists and skilled workers.

“We do hear a lot that manufacturing’s declining; that’s not the case in our industry,” said Martin. “Our industries are so diverse; they’re working in defense, aerospace, medical – everything you touch, practically, is somehow affected by metal manufacturing.”