Georgia Manufacturing Vital Signs

Manufacturing Jobs Declining, Earnings Up, Wage Gap Decreases

Manufacturing employment in Georgia declined for the second quarter in a row. The number of manufacturing jobs in Georgia, which totaled 591,030 in September 1999, dropped by 0.3 percent between the second and third quarters of 1999. This decline is roughly the same as that experienced by the nation and the Southeast. (See Chart 4.1) Florida, Kentucky, and Louisiana were the only Southeastern states with an increase in manufacturing jobs in the third quarter of 1999. Georgia's apparel and textile, fabricated metal and products, and transportation equipment industries experienced the largest declines in number of employees between the second and third quarters of 1999.
    Average hourly earnings for manufacturing employees in Georgia rose in the third quarter of 1999 to $12.59 per hour. Hourly manufacturing wages were up over 5 percent compared to one year ago. However, Georgia wages were still $1.41 below the national average (compared to $1.45 in the second quarter of 1999) and slightly below the third- quarter average for the Southeast ($12.63). The gap between Georgia and U.S. manufacturing wages decreased slightly in the third quarter of 1999 compared to the second quarter of 1999.

Chart 4.1

wpeA.jpg (69907 bytes)

Electronic Commerce Has Caught on Among Georgia Manufacturers

Use of electronic commerce technologies and techniques among Georgia manufacturers has increased dramatically in the last two-and-a-half years, but small firms lag behind larger companies in such usage, according to the latest Georgia Manufacturing Survey. The survey shows that 68 percent of responding manufacturers use e-mail (compared to 38 percent in 1996), 59 percent have a Web site (compared to 16 percent in 1996), and 22 percent engage in online ordering and selling (compared to 11 percent in 1996). It took just one year for Web site use to go from 5 percent to 25 percent penetration in the state, compared with 7 to 12 years for manufacturing technologies such as computer-aided design or computer numerical control. (See Chart 4.2)
    Among manufacturers with fewer than 50 employees, the numbers run slightly less for e-mail and Web use, but are much lower for other types of e-commerce technologies. For example, only 19 percent of small manufacturers place orders and sell to customers compared to nearly 50 percent of large manufacturers.

Chart 4.2
Small Manufacturers Lag Behind Large Manufacturers in Use of Electronic Commerce Technologies

wpeC.jpg (80803 bytes)