Manufacturing employment quietly rises

By Alex Gary

BusinessRockford.com

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ROCKFORD — The employment news has grown increasingly grim throughout 2009.

In the past six months, in fact, the number of people in Boone and Winnebago counties filing for unemployment benefits grew from 21,056 to 27,340 in September.

In other words, there are more people in the Rock River Valley collecting jobless benefits than living in Loves Park, Machesney Park or Belvidere.

But there has been a glimmer of light in the past three months: Since bottoming out at a decade low of 29,000, manufacturing employment grew for the third straight month in September, up to an estimated 30,400.

Although the biggest jump came in August, when Chrysler’s Belvidere assembly plant restarted production, the small gains in July and September were not automotive related.

One came in Machesney Park at Energy Dynamics Inc. The company is back on 40-hour workweeks, won back a contract that had been moved to China and rehired one of the three people it had to let go in May.

“June and July were very slow,” said Patrick Bye, owner of the contract machining company that employs 22 people making components for hydraulics systems used in earth-moving equipment, the aerospace industry, at airports and to build bridges.

“Our upward trend started in August and has continued so far into November, with each month being better than the previous.”

Best October since 2006
Even at companies where workers have not been brought back, the job and hour cuts have stopped.

“In our case, orders are up and we are starting to at least have some 40-hour workweeks from 24 hours,” said Bob Trojan, president of Rockford Linear Actuation, which designs and manufacturers hydraulic cylinders.

And it isn’t just local. The U.S. factory sector saw its best month of expansion in October since 2006, according to the Institute for Supply Management. Its monthly index of manufacturing activity jumped to 55.7 last month after standing at 52.6 in September and 52.9 in August. Any score above 50 indicates that manufacturing activity is expanding.

Ride’s not over yet
Locally, there’s likely to be more fluctuation in manufacturing jobs in the near term. In October, Acument Global Technologies announced it is closing its Camcar Aerospace plant — which it opened in March 2008 — and moving the operation and its 50 jobs to California by Dec. 31.

Last week, Hamilton Sundstrand, the area’s largest manufacturing employer, laid off 25 people. It’s at least the third job reduction at Sundstrand since the recession started in December 2007.

But the work force numbers also will receive a temporary boost from Chrysler Group LLC, which is launching a temporary second shift this week with about 1,000 workers. The surrounding Chrysler suppliers will boost their payrolls as well while the shift is in operation.

Bye of Energy Dynamics said part of the increase is that companies all through the supply chain ran so lean earlier this year that orders naturally had to pick up. The other part, at least in his industry, comes from federal stimulus spending.

“(In) my opinion, it is a real increase in demand, but it is not on fire,” Bye said. “One gauge I look at is the massive amount of road work that has been going on at a much faster and extensive pace than in the past. That in itself creates a demand for equipment, supplies and the people working those jobs have money to spend.

“From my perspective, only the stimulus dollars ... have a pretty broad reach and a lasting benefit because it needed doing.”

Reach Assistant Business Editor Alex Gary at agary@rrstar.com or 815-987-1339.

ON THE WEB
Blog: Manufacturing 2.0

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Manufacturing rebounds slightly
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RECENT LOCAL MANUFACTURING NEWS
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Aug. 15: Called loan brings end nearer for DB Metal
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