Manufacturing Industry:
Where Have We Been and Where Are We Going?
by: Carola Cowan & Jesse Jacobs

This article identifies employment and wage trends within Wyoming’s Manufacturing industry. By analyzing the industry by Standard Industrial Classification (SIC), one can get a clearer picture of which sub-groups are contributing employment and wages to the industry. Wage earners can use this as a tool to identify sub-groups with the best potential for employment. One can also note the changes in employment as a percentage of the total jobs. Unless noted, all of the data compiled for this report are taken from the following Research & Planning publications: Wyoming Annual Covered Employment and Wages, 1990-1996 and 1994–1998 What does the Future have in Store for the Wyoming Labor Market?

Manufacturing is only a small part of Wyoming’s economy. The industry averaged 10,810 covered employees or 5.1 percent of the jobs in 1997. Over the last seven years, the Manufacturing industry has experienced a small amount of employment growth from 9,380 employees in 1990 to 10,810 in 19971. As a proportion of the total jobs, Manufacturing increased from 4.9 percent in 1990 to 5.1 percent in 1997. There was a decline in employment in 1995 but the industry recovered and grew 11 percent (1,074 jobs) in 1996. However, most of this increase was due to SIC reclassification, which moved 854 employees from Mining to Manufacturing (see Figure 1, and Table 1).

Figure 1: Manufacturing Industry Percentage of Total Jobs

Manufacturing is organized into 20 different sub-groups using two-digit Standard Industrial Classification (SIC) codes:
  • SIC 20 – Food and kindred finished products
  • SIC 21 – Tobacco products
  • SIC 22 – Textile mill products
  • SIC 23 – Apparel and other products
  • SIC 24 – Lumber and wood products, except furniture
  • SIC 25 – Furniture and fixtures
  • SIC 26 – Paper and allied products
  • SIC 27 – Printing, publishing, and allied industries
  • SIC 28 – Chemicals and allied products
  • SIC 29 – Petroleum refining and related industries
  • SIC 30 – Rubber and miscellaneous plastics products
  • SIC 31 – Leather and leather products
  • SIC 32 – Stone, clay, glass, and concrete products
  • SIC 33 – Primary metal industries
  • SIC 34 – Fabricated metal products, except machinery and computer equipment
  • SIC 35 – Industrial and commercial machinery and computer equipment
  • SIC 36 – Electronic and other electrical equipment and components, except computer equipment
  • SIC 37 – Transportation equipment
  • SIC 38 – Measuring, analyzing, and control- ling instruments; photographic, medical and optical goods; watches and clocks
  • SIC 39 – Miscellaneous manufacturing industries

Table 1 shows Wyoming employment and the growth rates within the different major groups from the years 1990-1996, as well as the industry projections for the years 1998 and 2005. If we look at the Manufacturing industry by major industry groups, we can make several observations. The largest annual average employment in 1996 was in chemicals and allied products. This area had a growth rate of 77.2 percent from 1995-1996 due to a firm reclassification from the potash, soda, and borate minerals (SIC 1474) into the chemicals and allied products industry. Until this reclassification, the largest employer was printing, publishing and allied industries. The third largest industry is lumber and wood products, except furniture followed by industrial and commercial machinery and computer equipment (see Table 1).

Table 1: Manufacturing Historical and Projected Employment
  Projections
Major SIC Code 1990 1991 1992 1993 1994 1995 1996 1990-1996 % change 1995-1996 % change 1998 2005 1996-2005 % change
20 Food 1,021 969 915 1,036 1,079 1,052 1,006 -1.5% -4.4% 1,062 1,062 5.6%
23 Apparel 137 119 109 135 156 160 177 29.2% 10.6% 221 343 93.8%
24 Lumber 1,449 1,332 1,356 1,415 1,485 1,460 1,426 -1.6% -2.3% 1,418 1,421 -0.4%
25 Furniture 41 28 36 35 37 56 100 143.9% 78.6% 26 18 -82.0%
27 Printing 1,774 1,807 1,785 1,780 1,729 1,601 1,607 -9.4% 0.4% 1,666 1,669 3.9%
28 Chemicals 865 861 866 970 972 978 1,733 100.3% 77.2% 2,582 2,582 49.0%
29 Petroleum 1,018 1,047 910 880 891 834 822 -19.3% -1.4% 746 599 -27.1%
30 Rubber 217 207 196 259 291 225 240 10.6% 6.7% 235 232 -3.3%
31 Leather 72 70 83 90 89 76 70 -2.8% -7.9% 120 162 131.4%
32 Stone, concrete 650 630 634 644 723 712 772 18.8% 8.4% 681 681 -11.8%
33 Primary metal 163 168 261 271 298 273 344 111.0% 26.0% 221 201 -41.6%
34 Fabricated metal 399 374 315 343 438 452 458 14.8% 1.3% 390 365 -20.3%
35 Industrial machinery 1,056 1,189 1,171 1,165 1,143 1,101 1,240 17.4% 12.6% 986 986 -20.5%
36 Electronic 0 0 73 95 162 209 214 193.2% 2.4% 324 648 202.8%
37 Transportation 263 252 280 210 253 253 308 17.1% 21.7% 253 253 -17.9%
38 Measuring Instruments 134 126 123 111 120 128 131 -2.2% 2.3% 118 116 -11.5%
39 Misc. 121 130 87 116 138 139 135 11.6% -2.9% 159 183 35.6%
Total 9,380 9,309 9,200 9,555 10,004 9,709 10,783 15.0% 11.1% 11,208 11,521 285.7%

Major groups with large growth rates from 1990-1996 reveal further details about the Manufacturing industry. Some major groups showed very high growth rates but had only a very small number of employees. For example, furniture and fixtures showed a growth rate of 143.9 percent, but in 1996 employed only 100 people. Areas also increasing are apparel and other finished goods along with primary metal industries.

If we look at the projections, we see that there will be an increase of employment in the Manufacturing industry for the coming years (see Table 1). However, again this is primarily due to two SIC reclassifications from the Mining industry to chemicals and allied products. This will increase employment from 865 employees in 1990 to 2,582 in 2005, an increase of 198.5 percent. Another group projected to grow is apparel and other finished products, which is projected to increase to 343 employees. This translates into an increase of 206 employees from 1990-2005 or 150.4 percent. Some groups are projected to decline within the industry. We see a decline in the petroleum refining and related industries group. This industry is projected to decline to 599 employees by 2005. This is a drop of 419 employees from 1990 or 41.2 percent. Another large decrease is projected for the industrial and commercial machinery and computer equipment group. This group employed 1,056 people in 1990 and is projected to decline to 986 employees by 2005.

The industry with the highest average annual wage for 1996 was chemicals and allied products. Average wages for 1996 were $49,132, a 17.1 percent increase over 1995. Again, most of the increase was due to the SIC reclassification which moved 854 employees from Mining to Manufacturing. Previously, petroleum refining and related industries was the highest paid Manufacturing industry group. The lowest paid industry for 1995 and 1996 was apparel and other finished products. Annual average wages dropped from 1995-1996 by $20 from $12,164 down to $12,144. As mentioned above, employment within the apparel industry is on the rise. From 1995-1996, the industry increased 10.6 percent to a level of 177 people (see Table 2, and Figure 2).

Table 2: Manufacturing Historical Annual Average Nominal Wage
Major SIC Code 1990 1991 1992 1993 1994 1995 1996 1990-1996 % Change 1995-1996 % Change 1990 REAL WAGE 1996 REAL WAGE
20 Food 20,586 20,700 21,310 23,531 22,892 23,391 24,751 20.2% 5.8% 15,715 15,765
23 Apparel 10,462 10,050 11,007 10,823 12,476 12,164 12,144 16.1% -0.2% 7,986 7,735
24 Lumber 17,033 17,603 19,431 19,547 19,973 20,388 20,679 21.4% 1.4% 13,002 13,171
25 Furniture 13,600 14,446 15,302 16,308 21,001 19,652 17,332 27.4% -11.8% 10,382 11,039
27 Printing 16,909 17,229 18,016 18,376 19,139 18,779 19,760 16.9% 5.2% 12,908 12,586
28 Chemicals 36,249 39,471 41,027 41,878 42,130 41,974 49,132 35.5% 17.1% 27,671 31,294
29 Petroleum 38,409 40,657 40,095 42,831 43,139 43,995 46,578 21.3% 5.9% 29,320 29,668
30 Rubber 23,163 23,716 24,502 23,713 23,990 26,593 26,285 13.5% -1.2% 17,682 16,742
31 Leather 14,372 14,252 11,939 11,842 12,884 13,984 15,765 9.7% 12.7% 10,971 10,041
32 Stone, concrete 23,690 24,627 25,721 22,602 27,193 28,070 27,673 16.8% -1.4% 18,084 17,626
33 Primary metal 32,832 35,827 30,820 29,795 29,797 28,509 32,061 -2.3% 12.5% 25,063 20,421
34 Fabricated metal 25,970 28,210 30,247 28,794 29,647 29,559 30,286 16.6% 2.5% 19,824 19,290
35 Industrial machinery 22,358 23,523 25,195 24,855 26,222 26,436 25,832 15.5% -2.3% 17,067 16,454
36 Electronic N/A N/A 16,959 15,923 14,268 23,335 24,969 47.2% 7.0% N/A 15,904
37 Transportation 18,892 21,952 22,193 21,422 19,904 19,659 19,169 1.5% -2.5% 14,421 12,210
38 Measuring Instruments 21,316 22,517 22,774 23,357 21,867 21,966 23,180 8.7% 5.5% 16,272 14,764
39 Misc. 16,206 16,224 15,930 17,164 19,150 20,873 28.8% 9.0% 12,371 13,295
Total $23,268 $24,551 $25,273 $25,860 $26,157 $26,559 $29,486 26.7% 11.0% $17,762 $18,781

Figure 2: Wyoming Manufacturing Wages Percentage Change from 1995 to 1996

Average annual wages for the Manufacturing industry as a whole increased 26.7 percent from 1990 through 1996. To provide more insight, real wages can be used to adjust for inflation. To produce real wages, nominal wages are “deflated” to 1982-1984 dollars based on the Consumer Price Index (CPI). In 1990, the real average annual wage for Manufacturing was $17,762. In 1996, the real average annual wage was $18,781. Thus, not only did wages keep up with inflation, they grew by 5.7 percent (see Figure 3).

Figure 3: Wyoming Manufacturing Wages Real Annual Average (1990 & 1996)

An examination of nominal Manufacturing wages shows one sub-group on the rise is electronic equipment and components. Nominal wages increased 47.2 percent from 1992-19962. The employment level for 1996 was 214 versus the 1992 level of 73 employees (see Table 1). Wages for petroleum refining and related industries increased 21.3 percent between 1990 and 1996. The 1996 annual average wage was $46,578. At the same time, the employment level for the group has dropped by 19.3 percent. The decline in employment could be caused by businesses leaving the industry (see Table 2, and Figure 4).

Figure 4: Wyoming Manufacturing Wages Percentage Change from 1990 to 1996

Another area with rising wages is miscellaneous manufacturing industries. Wages for the group between 1990 and 1996 increased 28.8 percent to a level of $20,873. Although the employment level for the industry is fairly low at 135 employees, it is growing. From 1990-1996 the group grew by 11.6 percent (see Table 1, and Figure 4).

Overall, the Manufacturing industry has experienced a slight increase in wages and employment throughout the last few years. It would be helpful to Wyoming’s economy if this trend continues. Wyoming could then rely less on the Mining industry for economic stability. For information on what employees earn statewide for jobs in Manufacturing, see the Wyoming Wage Survey3.

Carola Cowan is a Senior Statistician with Research & Planning, specializing in the Employment Statistics (ES-202) and Labor Market Information (LMI) programs.

Jesse Jacobs was formerly a Statistician with Research & Planning, specializing in Mass Layoff Statistics (MLS).

1 Current Employment Statistics, total employment adjusted to include only covered employment.

2 ES-202 data not available 1990 and 1991.

3 Wyoming Department of Employment, Wyoming Wage Survey, 1996.

This article was published in the Wyoming Labor Force Trends May 1998 issue.

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