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Survey: Manufacturers optimistic about economic recovery

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Indiana manufacturers, many of which have suffered major job losses, are optimistic the economy will rebound next year, according to an annual survey commissioned by Katz Sapper & Miller LLP.

The Indianapolis-based accounting firm’s fourth Gear and Fulcrum report indicates that only 3 percent of respondents think the economy will worsen in 2010, compared with 30 percent that expected conditions to decline this year when they were surveyed a year ago.

What’s more, 95 percent of companies surveyed anticipate steady or improved performance next year, echoing sentiments from economists that a recovery could be at hand.

“With all the recent challenges, the vast majority of companies look toward improvements in 2010,” said Scott Brown, partner in charge of Katz Sapper’s manufacturing and distribution practice. “Hopefully, that optimism is warranted.”

Yet demand for workers within the manufacturing sector remains weak. Indiana factories have shed 108,000 jobs since the start of 2008, according to the Indiana Manufacturers Association.

The Katz Sapper report said the severe nature of the job cuts, most of which occurred on shop floors, could imply that companies will need to ramp up operations quickly if conditions get better.

But Brian Burton, vice president of the IMA, predicted employment growth likely will lag any rebound.

“I think there are signs of optimism out there, that we have hopefully hit the bottom and will start to see some recovery coming up in the next year,” he said. “However, some of the long-range forecasts that we have seen show that unemployment rates will continue to increase through next year.”

Indiana’s seasonally adjusted unemployment rate in August, the most recent month for which state statistics are available, stood at 9.9 percent, 1 percentage point above the national jobless rate in September. Many economists predict the rate ultimately will top double digits.

Not surprisingly, the Katz Sapper study said that 65 percent of respondents reported that the recession has had a “significant negative impact” on sales.

 

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  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

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