Manufacturing to Rebound in 2010

A new report based on a survey of small- to mid-sized U.S. manufacturers has found that 44% of the companies plan to begin hiring workers again as soon as next year if the economy rebounds as they expect.

But first, according to the report from RSM McGladrey, the manufacturing sector, which has lost 1.6 million jobs since the recession began, needs to put 2009 behind it.

The report, which was based on a survey of 923 manufacturers and will be released later on Monday, found that 40% of manufacturers said their businesses were still declining, 18 months after the current recession began, up from just 12% last year.

Only 9% characterized their current business as "thriving and growing," down from 38% last year when the recession took hold, and nearly 50% back in 2007.

Sixty-two percent of the companies responding said they were girding for sales declines domestically. As a result, 52% said they planned to cut jobs in 2009, up from 26% last year.

The downturn is not affecting all manufacturers the same way, RSM McGladrey found.

Executives at companies that make medical devices and food and beverages were far more upbeat than those in the transportation equipment, building materials and metal fabrication sectors. Companies with international footprints and sales are doing better, on average, than those confined to the domestic market.