One in four Indiana-based manufacturing companies say their current financial performance is challenging, according to the 2023 Indiana Manufacturing Survey: Sailing in Troubled Waters.
That survey was conducted by Katz, Sapper, & Miller in partnership with Indiana University’s Kelley School of Business and the Indiana Manufacturers Association.
“55% of Hoosier manufacturers think there is going to be a recession next year. For every article that says there won’t be a recession, there’s another article that says there won’t be,” said Mark Frohlich, associate professor of operations management and the Gregg and Sabine Sherrill Director of the Center for Excellence in Manufacturing at the Indiana University Kelley School of Business, in an interview with Inside Indiana Business.
Less than half of respondents (41%) indicated that the number of manufacturing jobs at their organization is increasing, and 45% say they expect the number of skilled jobs to increase because of advanced technology and automation. Many companies also plan to be conservative about having plans that would expand their business, such as investing in new equipment or facilities.
Only 30% of those in the survey said their businesses are “healthy.” Despite that, Jason Patch, chair of Katz, Sapper & Miller’s Manufacturing believes the stage is set for a challenging, yet hopeful period for Indiana manufacturers.
“Owners and operators appear prepared to face these challenges in the months ahead, but they will need legislative support to make sure they can provide for employees, including skills gap training,” said Patch.
Frohlich says despite the concerns, manufacturers are committed to investing in technologies, developing the workforce, and finding ways to maintain profitability.
2 comments
Indiana has the technology and should be the generic drug manufacturer for the U.S. Add A.I.. to the mix and put a one or two drug factory in every town. The quality of product must be guaranteed to the public. Trusting foreign governments to monitor quality is a fool’s position. The people in the towns would have life jobs providing quality product. Eli Lilly was the generic manufacturer many years ago. I know the profits aren’t nearly as great as brand name drugs but the quality, service and jobs to the communities are desperately needed.
It’s very ironic that Indiana is home to two of the best technical job skills training systems companies and yet Indiana doesn’t have the intelligence to take advantage of that… They just keep utilizing high dollar, high waste colleges who offer very limited applied practical training at an excessive cost per student with very little skills advancement. Such a shame for taxpayers!