Several contacts plan new store openings in 1997 and expect small gains in employment as a result. Wage increases of 2 to 5 percent are anticipated. Manufacturing A slight majority of the First District manufacturers contacted indicate that sales are little changed from a year ago. Some of these firms, however, report improved profits through cost reductions. The remaining contacts indicate solid sales gains from a year ago.
Manufacturers generally say that they are successfully managing their inventories.
A couple of contacts note medical supply markets as a source of rapid growth. A textile manufacturer detects a small improvement in apparel retailing, after several slow years. Several respondents mention adverse effects of foreign imports. For example, a maker of high-quality furniture notes that while his own business is thriving, the U.S. furniture parts industry is shrinking because of competition, especially from China. Automotive suppliers indicate a need to develop other products because carmakers increasingly are turning to low-cost offshore suppliers.