Manufacturing success depends on skilled labor, technology.

Manufacturers concerned about their current and future success are worrying about hi ring and keeping skilled employees and keeping up to date with new technology and equipment, according to a Norton Co. survey undertaken at the International Manufacturing Technology Show (IMTS '94).

The

"Clearly, the survey underscores two key areas of concern manufacturers are facing today and expect to face in the future," said Barry Cole, Norton's manager, marketing communications. "Addressing skilled labor needs and technological advancements are not new concerns, but they continue as top-of-mind issues among firms serious about their competitiveness and future viability.

"Business - manufacturers and suppliers - and government and education would do well to continue to focus and improve Upon efforts to address these concerns."

Skilled Workers

Nearly half the respondents (49%) said hiring and keeping skilled employees is one of their three key challenges in running their operations. More than 4 out of 10 (44%) listed training skilled operators as another challenge. Automotive industry respondents were overwhelmingly concerned about skilled, trained employees.

A second tier of challenges mentioned by respondents included concerns over the lack of up-to-date technology (24%), and business issues such as unreasonable delivery demands by customers (23%) and turnaround problems (21%).

Technology Issues

About half the respondents said they will have to address two issues to ensure a viable business future: keeping up to date with new technology (50%) and facing up to new equipment needs (46%).

Qualified employees (44%) and government regulations (38%) followed closely as concerns. About 30% of the respondents said they will have to face increasing business costs and the need to improve tolerances and quality standards.

Meanwhile, respondents involved in the auto industry saw a somewhat lesser need to keep current with technology (42%) and a larger need to have qualified employees (51%).

Respondents involved in heavy machinery were more concerned than other sectors about government regulations (45%) and qualified employees (45%) than with keeping up with technology (42%) or rising business costs (21%).

Tax Credit Favored

When asked about their views on economic development reform, only one possible action stood out among a large proportion of those polled: a desire for the government to increase the investment tax credit (46%).

About 25% of the respondents cited lower corporate taxes as their first choice, while 26% listed health-care reform and 23% mentioned export support.

Other respondents backed free-trade enhancement (21%), support for industry coalition (20%) and restrictions on foreign competition (18%),

However, auto industry respondents saw less of a need for industry coalition support (12%) and more of a need to restrict foreign competition (26%). Heavy machinery respondents cited less need for export support (15%) and more of a need for foreign competition (24%).