A survey that finds nearly two-thirds of northern Nevada manufacturers have expansion on their minds is important for a reason beyond its bullishness.
The study is believed to mark the first time that manufacturers throughout the region not just those in Washoe County or not just those in the Carson City area were surveyed in a joint effort by economic development agencies.
Volunteers from the Northern Nevada Development Authority and the Economic Development Authority of Western Nevada found that manufacturing executives in the region have big plans.
During the next three years, the executives said, they plan to add more than 1,000 jobs and build more than 500,000 square feet of factory space.
And that only begins to tell the story. About a quarter of the companies that plan expansion didn't disclose details during the survey.
Larie Trippet, business development manager of NNDA, said a key finding is that 86 percent of the manufacturers who were surveyed have introduced new products in the past five years, and 84 percent of them plan to do so in the next two years.
"This shows a lot of confidence in the region," he said.
Donna Crooks, the business expansion manager for EDAWN, said the projected growth in manufacturing employment is particularly good news because jobs in the sector pay an average of $39,358 7 percent higher than the average in all other industries.
And those jobs bring new dollars into the regional economy. Some 73 percent of the companies surveyed said they sell primarily into national or international markets.
Crooks and Trippet said the first-of-its-kind regional survey recognizes the reality that companies view northern Nevada as a unified region rather than a group of individual counties.
"It is likely that an executive will live in one county, work in another county and shop in yet a third county," said Trippet.
Crooks said the economic development agencies will use the upbeat report as a recruiting tool, showing companies that are scouting the area that existing manufacturers are satisfied.
The region's business climate was cited most often by manufacturers as a reason for their success. Faced with global competition, they need to keep their costs low to survive.
The biggest challenge, manufacturing executives said, is finding enough good workers in a tight labor market.
In their recruiting efforts, EDAWN and NNDA these days make much of Nevada's fast population growth, noting that a steady stream of workers continues to pour into the state. And they note that tight labor markets are common throughout the West.
