Industrial employment in Arizona fell 3 percent over the past 12 months according to the 2009 Arizona Manufacturers Directory, a manufacturers guide published annually by Manufacturers' News Inc. MNI reports Arizona lost 7,291 industrial jobs and 100 manufacturers between March 2008 and March 2009, the steepest loss MNI has ever reported for the state.
Manufacturers' News reports Arizona is home to 6,004 manufacturers employing 232,936 workers. MNI profiles companies of all sizes including start-up companies with just a few employees.
Over the past few years MNI reported marginal changes in Arizona's industrial employment. The Directory reported a 1 percent gain in employment between 2005 and 2006, a loss of 1.1 percent between 2006 and 2007, and a decline of nearly 1 percent over the 2007-2008 survey period.
"As with the entire nation, weakening demand continues to hit many of Arizona's core sectors, while the faltering housing market has affected industries such as wood, furniture and building products," says Tom Dubin, president of the Evanston, Ill.-based publishing company, which has been surveying industry since 1912.
Employment in the furniture sector alone saw one of the worst drops in employment, down 14.3 percent over the past 12 months. Lumber and wood followed closely behind with a drop of 14 percent. Closures related to the decline in the housing market include a Spring Air bedding plant in Phoenix and a window and door division of Atrium Companies Inc., also located in Phoenix.
Fewer jobs were lost in the state's top three industrial sectors. Transportation equipment saw a drop of 1.8 percent and currently accounts for 32,352 of the state's jobs. Fabricated metals manufacturing ranks as the state's second-largest industrial sector with 26,242 jobs, down 1 percent. Industrial machinery and equipment accounts for 25,607, down 3.1 percent over the year.
Job losses were seen across most other sectors over the past 12 months and included stone/clay/glass down 13 percent; textiles/apparel down 7.7 percent; chemicals down 6.3 percent; electronics down 6.1 percent; printing/publishing down 4.8 percent; paper/allied products down 2.6 percent and food products down 2.2 percent.
Bright spots over the year included employment stability in the rubber/plastics and primary metals sectors as well as a rise in exports. Recent government reports indicate Arizona's exports grew 2.68 percent in 2008, with exports of medical instruments up 9.23 percent. MNI data shows employment in the medical instruments sub-sector saw a rise of 1.3 percent over the year.
Phoenix is the state's top city for manufacturing employment, home to 82,801 jobs, or 35 percent of the state, down 4 percent over the year. MNI reports Phoenix ranks fourth among the nation's cities for number of manufacturers and ranks ninth nationally for related jobs.
Tucson accounts for 32,781 jobs, down 2.6 percent over the year. Tempe is home to 20,946 jobs, down 4.4 percent over the year, while Chandler saw industrial employment decline 1.1 percent and currently accounts for 20,100 jobs. Fifth-ranked Scottsdale is home to 12,865 jobs, down 1.5 percent, according to MNI.
