News Summary
Polaris Manufacturing Extension Partnership is set to release an updated edition of its ‘State of RI Manufacturing’ study. This report will provide insights on current trends affecting Rhode Island’s manufacturing sector, including workforce dynamics and technology investments, and will inform new programming initiatives to support local manufacturers amidst market uncertainties.
Providence, Rhode Island – Polaris Manufacturing Extension Partnership (MEP) is preparing to release an updated edition of its “State of RI Manufacturing” study, which will shed light on the latest trends within Rhode Island’s manufacturing sector. This new report aims to build on the insights gathered from the comprehensive 2022 report which had significant implications for programming and support initiatives tailored to local manufacturers.
The manufacturing industry plays a vital role in Rhode Island’s economy, contributing approximately 9.1% to the state’s Gross Domestic Product (GDP). Given the current uncertainties tied to national and international markets, Polaris MEP recognizes the need for the most current data to support the sector’s growth and resilience. The updated study comes in response to ongoing challenges that manufacturers face, including fluctuating market conditions.
Matt Watson, the director of Polaris MEP and 401 Tech Bridge, emphasizes the importance of understanding these challenges. The latest report addresses crucial areas impacting manufacturing, including workforce dynamics, growth prospects, barriers to success, and plans for technology investments. The data collected through this survey will not only inform but also refine existing programs and lead to the development of new initiatives focused on enhancing technology and workforce development.
The survey was a collaborative effort, conducted with the assistance of local partners like the R.I. Commerce Corporation, the Rhode Island Manufacturers Association, and the Rhode Island Textile Innovation Network. Points Consulting managed the data collection and analysis process, ensuring an accurate representation of current industry trends and challenges.
The previous edition of the “State of RI Manufacturing” study laid the foundation for multiple initiatives aimed at supporting local manufacturers. The insights generated from that report were pivotal in shaping various programming strategies, which assisted manufacturers in adapting to changing circumstances brought about by the COVID-19 pandemic.
Additionally, the hospitality sector within the state has been recovering at a slower pace since the economic fallout from the pandemic in 2020. Various factors are currently affecting employees and consumer behaviors, ultimately impacting the hospitality industry’s recovery trajectory. Notably, the restaurant sector has experienced a partial return of employees lost during the pandemic, but progress remains uneven; while some areas have improved, full-service restaurants particularly lag behind in recovery.
Recent reports indicate that even with regained employment levels, the number of job openings in the restaurant industry continues to outpace the number of unemployed workers, resulting in a competitive job market. This sector, particularly the food and accommodation services, has one of the lowest average annual wages in Rhode Island. Census data highlights that as of 2023, 15.9% of the workforce in accommodation and food services is aged 55 or older, reflecting a demographic that is aging, while around 66% of employees are over the age of 25.
Additionally, according to a Gallup report, a significant proportion of the global workforce, 77%, is either disengaged or actively disengaged from their work. This statistic raises concerns about productivity levels across industries, including hospitality. To combat low engagement levels, the Rhode Island Hospitality Association is offering training programs designed to enhance employee involvement and satisfaction.
Consumer habits are also shifting, with a growing preference for luxury accommodations contrasting a decline in budget options. Hotels in Rhode Island are seeing occupancy rates that are just one percentage point lower than the national average, with specific variations anticipated for regions such as Warwick and Aquidneck Island. While projections indicate that the restaurant industry could see employment numbers bounce back to pre-pandemic levels by July 2024, recent years have shown dynamic employment changes within the accommodations and food service sector between 2021 and 2022.
As Rhode Island’s manufacturing and hospitality industries work to navigate these challenges, the data from the upcoming “State of RI Manufacturing” study will serve as an essential resource for predicting future trends and addressing the evolving needs of these crucial sectors.
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Additional Resources
- Providence Business News: Polaris MEP Survey
- Encyclopedia Britannica: Manufacturing in Rhode Island
- GoLocalProv: RI Economy Analysis
- Redfin: Major Industries in Rhode Island
- NewportRI: Hospitality Industry Trends
