1. Manufacturing in Massachusetts Early Results from the Survey of Massachusetts Manufacturers Don Walsh Barry Bluestone Alan Clayton-Matthews Lauren Nicoll Marc Horne Abby Goldstein

2. Part I: Characteristics of Manufacturing Firms Demographic Information with an Emphasis on Springfield

3. Top Industries in Massachusetts by NAICS Code as found by the Northeastern Manufacturing Study (N=706) 1. Fabricated Metal Product Manufacturing20% 2. Misc. Manufacturing 14.6% 3.Printing and Related Support Activities11% 4.Plastics and Rubber Plastics Manufacturing7.9% 5.Primary Metal Manufacturing7.1% 6.Machinery Manufacturing7.0% 7.Electronic Equipment, Appliance and Component Manufacturing5.1% 8.Misc. Manufacturing Services4.9% 9.Wood Product Manufacturing4.1% 10.Food Manufacturing4.0% Question: Which industry sectors best describe your company’s operations in Massachusetts?

4. Industries in Springfield, MA Respondents to the Massachusetts Manufacturing Survey Plastics and Rubber Manufacturing Fabricated Metal Product Manufacturing Misc. Manufacturing Services Machinery Manufacturing Misc. Manufacturing Paper Manufacturing Primary Metal Manufacturing All Springfield Firms Printing Fabricated Metal Products Computers and Electronic Products Misc. Manufacturing Furniture Transportation Equipment Food Apparel Paper Manufacturing Chemicals Primary Metals Nonmetallic Mineral Products Wood Products Electronic Equipment Plastics and Rubber Beverage and Tobacco Textile Products Petroleum and Coal Products

5. Top Cities for Manufacturing In MA (N=706) Factories (# of Factories) 1.Worcester (28) 2.Boston (24) 3.Woburn (18) 4.Leominster (15) Fall River (15) 6.Westfield (13) 7.Springfield (12) Lawrence (12) Headquarters (# of HQs) 1.Worcester (25) 2.Boston (20) 3.Woburn (17) 4.Westfield (16) 5.Fall River (15) 6.Leominster (12) 7.Attleboro (11) Waltham (11) 9.Springfield (10)

6. Top Cities for Manufacturing in MA, All Cities Sampled 1.Boston – 532 firms 2.Worcester – 271 3.Woburn – 207 4.Springfield – 153 5.Waltham – 138 6.Attleboro – 134 7.Billerica – 130 8.Lowell – 129 9.Fall River – 119 10.New Bedford - 114

7. Number of Years Manufacturers Have Operated in MA Question: How long has your company had operations in Massachusetts?

8. Number of Years Springfield Manufacturers Have Operated in MA N=12

9. Ownership Structure of Manufacturers in MA

10. Size of the Manufacturing Industry in Massachusetts: Number of Employees

11. Size of the Manufacturing Industry in Springfield: Number of Employees (N=12)

12. Growth and Decline of MA Manufacturers

13. Part II: Labor Force Characteristics of Massachusetts Manufacturing Firms

14. Education Requirements Question: Approximately what percentage of the jobs in your Massachusetts facility(ies) requires no more than a high school diploma/GED? A bachelor’s degree but no more? A graduate degree/formal education beyond the bachelor’s degree? Specific advanced/technical skills (e.g., skilled craftsman)? 0-25%, 26-50%, 51-75%, 76-100%

15. Education Requirements Question: Approximately what percentage of the jobs in your Massachusetts facility(ies) requires no more than a high school diploma/GED? A bachelor’s degree but no more? A graduate degree/formal education beyond the bachelor’s degree? Specific advanced/technical skills (e.g., skilled craftsman)? 0-25%, 26-50%, 51-75%, 76-100%

16. Education Requirements Question: Approximately what percentage of the jobs in your Massachusetts facility(ies) requires no more than a high school diploma/GED? A bachelor’s degree but no more? A graduate degree/formal education beyond the bachelor’s degree? Specific advanced/technical skills (e.g., skilled craftsman)? 0-25%, 26-50%, 51-75%, 76-100%

17. Education Requirements Question: Approximately what percentage of the jobs in your Massachusetts facility(ies) requires no more than a high school diploma/GED? A bachelor’s degree but no more? A graduate degree/formal education beyond the bachelor’s degree? Specific advanced/technical skills (e.g., skilled craftsman)? 0-25%, 26-50%, 51-75%, 76-100%

18. Difficulty in Recruitment

19. Type of Labor in MA

20. Wages for Manufacturing in MA Average Hourly Pay for Skilled Workers: $20.48 Average Hourly Pay for Unskilled Workers: $12.81

21. Part III: Characteristics of Production in MA Manufacturing Firms

22. Lean Production Methods Question: To what extent does/do your Massachusetts facility(ies) employ continuous improvement/lean/just-in-time production methods?

23. Supply Chains in MA A “supply chain” refers to an integrated network of manufacturers who share common production standards, jointly plan work and produce individual parts and components that are ultimately assembled into end products. Based on this definition, is your company’s Massachusetts facility(ies) a member of one or more supply chains?

24. Outsourcing by MA Manufacturers Most Important Reasons for Outsourcing Need for lower cost supplies, energy, services or parts Need to cut labor costs Other reasons including improving delivery time, reducing the distance to markets and accessing supplies.

25. Massachusetts Incentive Programs

26. Changes Experienced by MA Manufacturers Over the Past Decade Increased use of new technology 3.00 Substitution of less skilled labor for skilled labor 1.87 Increase in productivity 3.22 Increased customer demand for product quality 3.57 Reduction in employment due to improved technology 2.25 Increased customer demand for improved service delivery 3.70 Increased off shoring 1.66 Increased customer demands for lower prices 3.85 Increased outsourcing to other MA firms 1.77 Shift from local to national markets 2.65 Increased outsourcing to non-MA firms 1.77 Shift from national to global markets 2.42 Substitution of skilled labor for less skilled labor 1.96 Other 3.09 Question: To what extend has/have your Massachusetts facility(ies) experienced the following characteristics over the past decade? (1=Not at all, 5=A great deal) Factor Mean

27. Factors Important to Continued Operations in Massachusetts Reasonable or low taxes and fees Strong work ethic in workforce Inertia (too hard to relocate) Reasonable cost of living Timely permitting, licensing and regulatory environment Availability of appropriate and reasonably priced labor Question: How important is each of the following factors to your decision to continue to operate manufacturing facilities in Massachusetts (1=Not important at all; 5=Extremely important)

28. Challenges to Sustaining or Expanding Manufacturing in Massachusetts High Labor Costs3.88Aggressive Unions1.91 Cost of Construction2.96Cost of Supplies, Services, or Parts3.25 Inferior Quality of Massachusetts supplies, services, or parts 1.88Customers are moving to other locations 2.46 Suppliers are moving to other locations2.04High taxes3.97 Zoning and building code regulations3.16Environmental regulations3.18 Inadequate supply of appropriately skilled labor force 3.15High energy costs3.94 Massachusetts weather and climate2.23Inadequate transportation or infrastructure 1.90 Ability to import skilled foreign labor (H1B) 1.62Increased merger and acquisition activities 1.68 Succession plan for ownership/operations (private business) 2.22High cost of housing3.38 High cost of health care4.35High cost of Worker’s compensation4.09 Other challenge3.93 Question: To what extent does each of the following factors present a significant challenge to sustaining or expanding your company’s operations in MA? (1=Not at all, 5=A great deal) Factor Mean

29. Manufacturer Perspectives on Policy Initiatives Most Popular Ideas Reduce health insurance costs Reduce cost of Worker’s compensation Reduce cost of unemployment insurance Ensure availability of lower cost energy Encourage business-friendly state government Question: Below are a number of state or local initiatives that, if implemented, could affect business in Massachusetts. To what extent would each help your company sustain or expand its operations in Massachusetts? (1=Not at all; 5=A great deal)

30. The Future of Manufacturing in Massachusetts Production Levels Over the Next Five Years Question: What do you expect production levels to be for your company’s Massachusetts facility(ies) over the next five years?

31. The Future of Manufacturing in Massachusetts Employment Levels Over the Next Five Years Question: What do you expect employment levels to be for your company’s Massachusetts facility(ies) over the next five years?

32. The Future of Manufacturing in Massachusetts 70.4% of manufacturers in Massachusetts expect to initiate the production of new products over the next five years. 37.2% anticipate that they will need more real estate space over the next 5 years, 53.8% expect to use the same amount of space, and 8.9% expect to use less space.