b'Manufacturing business outlook by quarter, 2018-2020Record High93.5% 95.1% 92.5%88.7% 89.5%79.8%75.6%67.9% 67.6%Lowest SinceQ1:200933.9%2018:1 2018:2 2018:3 2018:4 2019:1 2019:2 2019:3 2019:4 2020:1 2020:2Note: Percentage of respondents who characterized the current business outlook as somewhat or very positive National Association of Manufacturers. Outlook for Manufacturers from 604 manufacturers. The Wash- Automation makes every skilled ington,D.C.-basedassociationworker that much more valuable, noted that employment in manu- McGibbon said. The more auto-have until orders improve. facturing declined by at least 1.3mation that you can latch a skilled Ive heard a number of mem- million from February to April. person to, the more productive that berstalkingabouthowduringThe survey stated that despiteperson is going to be. Those people the pandemic, they are furlough- workforce concerns no longer hold- are scarce. And because they are ing people one week, McGibboning the top spot, respondents con- scarce, if you can get them in a po-5 said. And the next week, the peo- tinued to expect long-term strug- sition to leverage automation, their ple that were furloughed come ingleswithidentifyingpromisingsalaries will reflect that as well.and those working are put on fur- candidates,especiallyasmoreFor those still employed in manu-lough just to help stretch out peo- Americans retire. Indeed, 50.5% offacturing, the expected growth rate ple employed at some level and themanufacturing leaders anticipatedfor employee wages over the next whole team from being able to sur- that difficulties in attracting and re- 12 months was up 0.5%, the lowest vive it. taining employees would continuefigure for the survey since second Those types of actions help man- to be a challenge over the next 12quarter 2009. The survey noted that ufacturers be as productive as theyto 18 months, assuming that COVID- the crisis led 22.2% of manufactur-were before the pandemic without19 abated. ers to cut pay for some workers.hiring new workers. The NationalAutomation will remain significantTo help attract and retain work-Association of Manufacturers re- in boosting productivity of existingers, McGibbon said manufacturers ported in its second quarter out- workers. should increase digitalization, or the look survey that full-time employ- digital thread that connects various ment over the next 12 months wasabout the authorelements of a production environ-expected to decrease by 2.2% ment. He said virtual reality and ar-the lowest figure since first quar- Alan Richter istificial intelligence will be integral to ter 2009. Just more than 30% ofeditor-at-large ofshop floors and enable work to be manufacturers saw wages rising byCTE. Contact himperformed remotely.up to 3%, with 45.3% expecting noat alanr@ Where the rubber meets the change. ctemedia.com. road on the production floor, he The survey received responsessaid, they will be integrated be-48AUGUST 2020IndyAnalysis.indd 48 7/17/20 3:16 PM'