Average pay increases are typically 3 to 4 percent, but higher at some companies making intensive use of high-end technical workers. In discussing future prospects, many manufacturers cite reasons that their industry or the U.S. economy will grow more slowly in the coming twelve months. Nevertheless, most are quite upbeat about their own companies' prospects, at least through the end of this year. Insurance Restructuring of the insurance industry continues, as acquisitions, sales of divisions, and demutualization transform many companies. As a result, underlying trends in employment and revenue are hard to discern.
Some contacts report employment reductions as operations are rationalized.
Several spoke of competitive pressures on pricing. Some contacts note difficulty filling information technology and other specialized positions, but few complain of labor market pressures. Salaries generally are increasing at an annual rate of 4 to 5 percent. Although most companies do not think demand for their services would be strongly affected by a possible slowing of economic growth, two contacts express concern regarding increased default risk on corporate bonds they hold. Residential Real Estate Residential real estate markets in New England remain strong.