Chapman report predicts more hires

Managers at Orange County manufacturing companies expect to increase production, hire more employees and otherwise grow during the second quarter, according to the results of a Chapman University survey released Monday.

Hiring in the rest of the economy typically lags manufacturing, so a positive outlook — for a second quarter in a row — bodes well.

“Unlike last year, when there wasn’t much hiring at all, the second quarter is going to be much better,” said Raymond Sfeir, an economics professor at the Gary Anderson Center for Economic Research and the author of the report.

The report publishes an index based on a survey of purchasing managers. It is at 62, up from 59 in the first quarter. The last time the index reached 62 was in the fourth quarter of 2005.

Those in the high-tech industries, the durable goods industries (other than high-tech), and the non-durable goods industries are forecast to expand.

An indicator of note is the inventories of purchased materials: That index is expected to increase eight points from 50 in the first quarter. Companies stock up materials in anticipation of orders, but low demand has been one of the biggest drags on the recovery.

“That must indicate that they believe the consumers will be spending more,” Sfeir said.

The largest bump in employment is expected in computer electronic products, primary metals, fabricated metal products, furniture and related products. Employment is expected to contract most rapidly in wood products and plastics/rubber products.