Tennessee industrial jobs down 12.6% in past two years

Industrial employment in Tennessee fell 12.6 percent over the past 24 months according to the 2010 Tennessee Manufacturers Register, an industrial directory published annually by Manufacturers' News Inc. MNI reports Tennessee lost 56,647 manufacturing jobs over the past two years, with 15,110 jobs lost between September 2007 and September 2008 and 41,537 industrial jobs from 2008 to September of this year.

Manufacturers' News reports Tennessee is now home to 7,711 manufacturers employing 403,030 workers, compared to a high of 547,494 industrial workers recorded by MNI in 2001. Manufacturing jobs have declined steadily in the state since 2001, dropping 144,464 jobs, or 26.4 percent. The loss of nearly 41,537 manufacturing jobs over the past year marks the sharpest decline MNI has ever reported in the 12 years it has been tracking the state's industry.

"As with the entire nation, the recession continues to hit Tennessee's core sectors, while the faltering housing market has affected industries such as wood products, furniture and building products," says Tom Dubin, president of the Evanston, Ill.-based publishing company, which has been surveying industry since 1912.

Employment in the furniture/fixtures sector saw the sharpest decline, down 20.8 percent over the past 24 months, following the closures of New Generations and Berkline/Benchcraft LLC, among others. Employment in lumber/wood saw a 19.5 percent drop.

Tennessee's top manufacturing sector remains transportation equipment with 43,959 jobs, down 20.6 percent over the past 24 months, due partially to the closure of truck assembly plant Peterbilt Motors and layoffs at Nissan's Smyrna facility. Second-ranked industrial machinery and equipment employs 43,317 workers, down 13.6 percent, while fabricated metals manufacturing employs the third-most in the state with 42,417 workers, down 12.6 percent over the past two years.

Most other sectors in Tennessee lost jobs within the past 24 months and included rubber/plastics, down 20.4 percent; textiles/apparel, down 16.1 percent; electronics, down 15.4 percent; stone/clay/glass, down 9.6 percent; food products, down 9.3 percent; primary metals, down 8.8 percent; paper products, down 6.1 percent; and printing/publishing, down 4 percent.

Despite the losses, some bright spots have emerged recently including the opening of tire manufacturer Carlisle Tire & Wheel in Jackson, the opening of furniture manufacturer BJS East Inc. in Dandridge and the expansion of refrigeration equipment maker Delfield Company in Covington.

According to the industrial directory, Northeast Tennessee accounts for the largest share of Tennessee's industrial employment with 119,480 manufacturing jobs, down 12.8 percent over the past 24 months. Southeast Tennessee ranks second at 108,343 manufacturing jobs, down 14.6 percent over two years. Southwest Tennessee is home to 88,430 industrial jobs, down 9.8 percent, while the Northwest is home to 86,777 jobs, down 11.2 percent.

MNI's city data shows Memphis is Tennessee's top city for manufacturing employment, with 40,552 jobs, up a half percent over the past 24 months. Nashville ranks second with 29,432 jobs, down 5 percent over two years. Chattanooga is home to 19,565 industrial jobs, down 12.2 percent, while Knoxville accounts for 16,928 jobs, down 15.8 percent over the past 24 months. Morristown industrial jobs dropped 10.7 percent, with the city currently home to 11,292 jobs.