Specifically, the sector declined 3.35 percent over the previous month, declined 7.69 percent over 1999, declined 4.23 percent over 1998 and declined 11.8 percent over 1997. The sector reached its lowest index value since December of 1995. The graph below illustrates the changes in the manufacturing sector of the Index since 1994. The declines in manufacturing activity are not unique to Humboldt County. Across the nation manufacturing activity is reported to be leveling off or slowing.
Reports indicate that manufacturer's input costs, namely energy and labor, have increased.
Manufacturers report that they have been unable to raise selling prices, despite the increased costs. In fact, prices paid for lumber have declined across the nation. Some attribute the decline to increased import competition. In addition to rising costs and declining prices, the greatest easing of the labor market has been reported in the manufacturing sector. Many economists expect manufacturing employment to continue to decline, due to seasonal layoffs.