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October 2, 2024

CBIA report finds CT manufacturers still struggling with higher costs, lack of skilled workers

Chris DiPentima
By Andrew Larson

A new report from the Connecticut Business and Industry Association found that 80% of manufacturers in the state said it was difficult to find and retain workers, amid an ongoing national labor shortage. 

According to the 2024 Connecticut Manufacturing Report, companies are simultaneously facing another hurdle: higher costs.

Eighty-seven percent of manufacturers said the cost of doing business in Connecticut has increased, based on CBIA’s survey, which was conducted over the summer.

Company officials cited rising labor and supply costs, state mandates and taxes as the driving forces behind the cost increases.

The report also found that 27% of manufacturers planned to grow their workforce in the next six months.

Sixty-five percent of Connecticut-based manufacturers reported profits in 2023, 21% posted losses and 15% broke even, according to the report.

Meantime, 41% of manufacturers said the state’s business climate was static, 38% said it was declining and 5% said it was improving.

The report was produced by CBIA along with its affiliates, CONNSTEP and ReadyCT, with support from the consulting firm RSM.

“The need to grow Connecticut’s manufacturing workforce cannot be understated, and neither can the barriers hampering hiring efforts across the state,” CBIA President and CEO Chris DiPentima said.

DiPentima added that manufacturers are addressing the challenges by investing in workforce development, in addition to adopting innovative practices and new technologies.

Manufacturers are also facing costly state mandates and continued supply chain risks, DiPentima said. 

The state's workforce shortage is exacerbated by its high cost of living, limited workforce housing and lack of affordable childcare options, he said.

The report highlights several recommendations: the Office of Manufacturing’s Make It Here 2030 plan, a list of priorities to spur growth, and increasing funding for the state’s Manufacturing Innovation Fund. 

“It’s critical that we work together to find solutions that create sustained economic growth, improve manufacturing career pathways and make Connecticut a more attractive and affordable place to live and work,” DiPentima said.

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