Rhode Island’s manufacturing industry got what some are calling a "much needed boost" late in this year’s General Assembly session.
Both the House and Senate passed legislation, that was later signed by Gov. Lincoln Almond, allowing for the expansion of the Workshare program – an economic initiative that allows employers to reduce their employees’ work weeks, instead of reducing their workforce.
The program is used by a number of local manufacturers currently fighting tough economic climates, said John Grady, executive director of the Rhode Island Manufacturers Association, a local lobbying group.
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"A lot of our members thought that this was an important thing that we needed to get done because of the hard times we have had this year … many of them put it at the top of their priority list," he said. "It certainly helps manufacturers hold on to their skilled workforce. If they are having trouble financially they can have someone work 20 hours a week, and then when things pick up they aren’t looking for new workers."
According to the Rhode Island Department of Labor and Training, today the local manufacturing industry employs just over 14 percent of the state’s workforce. And while the numbers have continued to decline in recent years, Dr. Lee Arnold, director of the Department of Labor and Training, said it’s likely the industry won’t lose too much more of its workforce.
"I attended a conference recently of the New England Economic Project, and the numbers that were released said that people in Rhode Island who are engaged in manufacturing are likely to remain engaged in that for the foreseeable future," he said during a recent forum on manufacturing sponsored by the Providence Business News. "Their foreseeable future, understanding I was with economists, was 2006. What they are saying is that despite the fact that last year we had a reduction in our manufacturing workforce, they think that we have pretty much bottomed out. So between now and 2006, we’re likely to see a drop of another of another 2000 people, but otherwise it should be stable."
But for some local manufactures the past six months have been anything but stable.
"We started to see a recession in the fourth quarter of 2000 and, we are absolutely not seeing any turnaround," said Steve Fielding, president of Fielding Manufacturing in Cranston.
Other manufacturers are seeing small signs of hope, but aren’t getting too excited.
"It’s far too early to see if we have made it through yet," said Alec Dawson, president of Central Tools in Cranston. "We are experiencing longer lead times, and less responsiveness from our suppliers so that means we are getting busier but you never know."
