The Secret to Making Manufacturing Work in Connecticut

It really can be done!

Small manufacturers love to complain about working in Connecticut.  “It all costs too much”, they say!  Taxes, real estate, regulations, energy, and expensive labor.  “I’m just going to move the business out of state,” they say.

Here’s the question to ask yourself — if it’s so bad, why does anyone still manufacture in our state?  Why are there 4,500 manufacturers, and more than 150,000 manufacturing jobs?

The answer is this: big companies have found less expensive ways to manage their workforce.

An employee’s hourly rate is only a part of the cost of labor in the state.  Short-sighted companies will try to control this by limiting pay increases, cutting back on benefits and overtime, and reducing employee training.  These practices may reduce costs in the short term, but productivity goes down, turnover goes up, and meanwhile, the manufacturer is bleeding money in ways they don’t even see.

The companies with staying power are managing their employees better.  They pay performers well, and develop employees.  They retain employee benefits, but make sure they don’t pay too much for them.  They don’t add excess overhead.  They train, their employees stay, and they are more profitable.  This can work for your business, too, with the right advisor.

There are tremendous advantages to manufacturing in this state.  You won’t find a more educated workforce, or better schools for kids.  There are ports, access to transportation, and affordable access to major consumer markets in New York and Boston.  It doesn’t come automatically to manufacturers — they need to work on managing and designing their processes well.  But the secret to making manufacturing work in Connecticut is that companies that succeed at it will far surpass their competitors.

Your Connecticut manufacturing business can find these savings too; call OEM to see how.

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