A sizeable minority express concern that competition will exert further downward pressure on prices. With some exceptions, employment at respondent firms is holding steady. Manufacturers are experiencing very tight labor markets for information technology and engineering positions, as well as some shortages of production workers in rural areas. Average pay is said to be rising at a rate of 3 to 6 percent, with greater increases for some technically-oriented and senior professional categories. On the whole, projections for 1998 are somewhat guarded.
Some manufacturers foresee revenue growth in the low single digits.
Others expect better results but most hasten to add that rates of growth are unlikely to match this year's performance. Temporary Employment Firms Expansion in the temporary employment industry continues. Most contacts report revenues to be growing 14 to 40 percent annually. However, respondents cite little or no effect on wage growth, which continues to range between 3 and 10 percent annually. Many mid-size firms are merging or being acquired.