Manufacturers gear up for growth in '07 and beyond

A survey by the Economic Development Authority of Western Nevada forecasts a sunny outlook for manufacturing not just in 2007, but for much of the rest of this decade.

In Washoe County, 58 percent of the companies questioned said they plan to expand within the next three years, compared to the prior year when only 25 percent planned expansion.

These companies plan 860 new jobs in the next three years. They'll occupy over 1.2 million square feet of new space. And lay out a capital expenditure of more than $192 million.

Those numbers are further fuel to a fire that's already burning strong.

Nevada leads the nation in manufacturing job growth. During the past five years, Nevada showed a 10.7 percent increase in manufacturing employment, while the nation showed a decrease of more than 21 percent.

Northern Nevada's proximity to West Coast markets remains a growth factor, as companies find it cheaper to build a western facility than to ship from the East Coast.

But a train wreck in the national economy could derail the rosy outlook.

"You tell me what housing is going to do in the Western U.S. and I'll tell you what the northern Nevada economy will do," says Ray Bacon, executive director of the Nevada Manufacturers Association.

Manufacturers turning out roofing and siding, panels and cement are dependent on home building.

Another worry plagues defense contractors. Asks Bacon: "What will federal spending be?"

But not all home products companies rely on new construction.

"We're expecting a solid year," says Maureen Murray, a spokeswoman for Trex Company Inc., a maker of wood-and-plastic composites with a major plant at Fernley.

"Nationwide, housing starts were down, affecting manufacturing," she says. "But Trex is more tied into remodeling and consumer markets. The great majority of sales go to the homeowner who wants to remodel or replace a deck."

The Fernley plant will add another production line in 2007, says Murray. "And roll out a fencing line, Trex Seclusion, in what we consider strong fencing markets, which includes Nevada and California." The company is also introducing another new product with an authentic wood look.

Sherwin-Williams, a paint manufacturer based in Fernley, also forecasts increased sales.

"We plan to manufacture and fill over 20 million gallons of paint next year," says Francis Huppman, project director. "That's 15 percent more than we forecasted when we did the pro-forma forecast."

Two years ago, he says, you could say sales were driven by the housing market. "But when people buy new they paint, and when they stay put they paint instead."

At Electronic Evolution Technologies, meanwhile, "We're excited about 2007," says Karla Osorno, chief operating officer.

The company makes electronic circuit boards for such things as gaming devices, robotics and medical imaging devices and it continued to diversify into new industries this year.

Whereas growth in electronics manufacturing services is forecast at 12 percent this year, Osorno says EET expects to top the industry average. To support that growth, the company expects to add another 50 employees next year.

The gains are expected to come from medical devices and from fuel cell technology, an accelerating industry. Good prospects are also in automotive-related products, which are handled at Electronic Evolution's plant in Mexico. Meanwhile, she says, "We're being told gaming will be relatively flat."