Finance Loan volume at major Third District banks has been steady in April as a decline in consumer loans was offset by an increase in commercial and industrial lending. The increase in business lending posted in April came largely from new borrowing by existing customers, especially middle market companies, according to bank lending officers. Bankers said the borrowing has been by firms in a wide variety of industries that are purchasing new equipment and making improvements in their facilities in order to cut costs and expand their operations. Labor Demand Employers in the Third District generally are adding modestly to their work forces, although demand for technical workers continues to be strong. Service industry firms report they are in need of qualified computer personnel, especially programmers and software developers.
Demand is particularly strong at telecommunications companies.
Manufacturers are seeking machinists and workers trained in automated production processes. Educational institutions in the region are establishing training programs in cooperation with large employers or employer groups to meet the need for workers with these skills. Salaries for these jobs were rising sharply according to firms in the region, but for wages in general, most companies contacted said they anticipate the increase during 1997 will be around 3 percent. Although most business firms contacted for this report said prices for both the goods they purchase and the products they produce or sell have been steady, there has been an increase in recent months in the number of manufacturing firms that have experienced increases in input costs. Cost-reduction measures cited included concentrating orders with lower cost suppliers, streamlining purchasing procedures, reducing inventories, reconfiguring manufacturing processes to shorten production time, installing more efficient equipment, and establishing more integrated links in sales and production plans between supplier firms and their customers.