Manufacturing is still a big part of the Oregon economy

Rumors of its demise are greatly exaggerated. Oregon’s manufacturing sector still provides more than 200,000 payroll jobs and more than $10 billion per year in payroll – exceeded by only two other sectors. In 2006 the manufacturing sector accounted for one-in-eight payroll jobs in Oregon and one-in-six payroll dollars earned, higher than the national shares.

It is true that Oregon’s manufacturing sector used to be even more prominent than it is today. Employment in the sector has been more or less flat over the past 30 years while the rest of the economy soared. Manufacturing employed about 200,000 in 1976, just as it did in 2006. Thus, its share of total employment and payroll has declined to its current and still prominent size.

Oregon now has a diverse manufacturing sector that adds to economic stability. While retaining some of its concentration in wood products, the sector now also boasts considerable employment in high technology as well as in food products, transportation equipment, fabricated metals, machinery, primary metals, kitchen cabinets and similar furniture, printing, plastics, and paper.

Manufacturing is not just a big-factory industry in Oregon. There are lots and lots of small firms, too. More than 2,000 manufacturing businesses in Oregon had four or fewer employees in 2005. Almost 1,800 more had from five to 19 employees. Yet we have large factories as well. More than 400 businesses had 100 or more jobs and 15 had 1,000 or more jobs.

Manufacturing jobs tend to pay well. In 2006, the average annual pay per job was $49,700. This is much higher than the $38,057 average for all industries. And employee benefits tend to be more available, too. A 2005 survey of Oregon businesses found that 71 percent of manufacturers offered their full-time employees health insurance, whereas across all industries only 60 percent did so.

Many jobs in manufacturing require only on-the-job training. About one-quarter of the sector’s jobs can be learned on the job within one month. Another third require up to one year of on-the-job training. But college graduates also have opportunities in manufacturing: more than 15 percent of jobs require at least a bachelor’s degree. Of course, whether the position requires only on-the-job training or a college degree, employers often prefer candidates with related work experience.

Over the coming decade, there should be many job openings in Oregon’s manufacturing sector. No, we don’t expect rapid growth, but we do expect many jobs to open up as current workers either change industries or retire. That spells excellent job opportunities for younger workers. And these jobs will be available in all areas of the state, in rough proportion to the number of manufacturing jobs in each location. Production occupation jobs are the most numerous and should have the most openings, but we expect employment opportunities all the way up to management positions.

For more information, contact Art Ayre, Art.L.Ayre@state.or.us, 503-947-1268.