Most contacts report that materials costs are flat or down somewhat. Some contacts have avoided metals price increases by entering into long-term contracts. Selling prices also remain largely flat, although higher costs for hardwoods are putting upward pressure on furniture prices. Automakers reportedly are forcing lower prices and profitability onto equipment and parts manufacturers. Price trends for computer products vary considerably, depending on shifting demand for different technologies.
Most respondents report very little net change in their head counts over the past year.
For firms seeking to hire workers, labor availability is generally viewed as adequate, except for skilled technical positions. Company-wide wage and salary growth is mostly in the range of 2 to 5 percent, but engineers and software specialists are receiving increases that are considerably higher. A Connecticut-based manufacturer notes that market conditions no longer allow the company to freeze pay. Manufacturers generally anticipate reasonably good macroeconomic growth with little inflationary pressure for the remainder of 1997. Some express concerns about exchange rates or specific product lines.