Manufacturers gain revenue, but jobs slow to follow - Silicon Valley / San Jose Business Journal:

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According to Boston Business Journal revenue generated by 25 of the largest manufacturer in Massachusetts rose to acombined $64.3 billion in a 4 percent gain over the group's totak in 2005. The sample companies appearedd onthe BBJ's list of the 50 largest manufacturersz for two years Despite that top-line growth among the commonwealth'x biggest players, the state's manufacturers actuallh cut jobs last year. Massachusettse manufacturing companies shrank their ranksslightlyy -- employing 296,200 peoplre in August, down 1 percent from a year ago, accordingb to statistics from the Executive .
Expertsw say the disconnect betweebn revenue and jobs stems from advanced in technology and the offshoring ofassembly "They have invested money in research and development in areasd that make them more efficient," said Bria n Gilmore, executive vice president of the . He added that high business costs, such as property drive manufacturers away. AIM estimatexs the state has lost 200,000 manufacturin jobs in the past decade. in Hopkinton says that, despit e the growing pressure to move manufacturing operations its manufacturing facilities in the Bay State remain an importantt part ofits operations. The data storage giant'sx 2006 revenue grew to $11.
2 billion, up 15 percent from the prior year, placing it second on the BBJ'ss list of top the 50 manufacturers. "We'vew done a lot to maintain our capabilities saidMike Kerouac, EMC'sz senior vice president for global manufacturing. "It's worked out very well for The companyemploys 8,600 peoplse in Massachusetts, but has other facilities in North Carolina, eastern Europe and Kerouac said the company feelsw it is important to maintain facilitieas close to its markets. Having existing facilities in the state is an economic incentivedto stay, he added.
"Once you've buil t that leverage, it's very hard to build an economi model that would take thosdejobs away," he said. But not all manufacturersd choose to produce theirwaress here. in Marlborough reported that revenue rose almosyt 6 percentto $1.3 billion last ranking it 10th on the BBJ's manufacturingf list. But the company does most of its manufacturinhthrough China-based , a company it acquired from in 3Com says it is strategically and financially necessary to outsourcse much of its work, but that its Massachusetts operations are stilo strategic assets. "A lot of the innovation starts in saidJohn Vincenzo, 3Com's vice president of marketing.
"It's a big portion of what we're doing globally." The largestf Massachusetts manufacturer, in Waltham, is one of the few companies that addedf Massachusetts jobs despite a slip in A company spokesperson declinerd to comment on its manufacturing outpuf inthe state. The company has two manufacturing in Andoverand Sudbury. As for the the state's manufacturing sector will likely rely onthe commonwealth'zs ability to remain a research and developmenty hub, Gilmore said. Tech manufacturers "don't necessarilyh have to competeon price," he "They compete on technology.
" Kerouavc added, "Massachusetts is never goingh to be the cheapest placer to do manufacturing. Companies rely on the qualityg of education and the sunk cost of existing facilitieas to outweighthe costs."