DENVER – In a manufacturing plant in Denver, Noel Ginsburg has known for months what Wall Street learned on Wednesday: Job growth for small businesses is finally happening.
ADP Employer Services reported that 93,000 jobs were added in November by private companies. That represents the biggest jump in job growth in three years. It was news Ginsburg saw coming.
“It does not surprise me. We began to see the trend change about three or four months ago,” Ginsburg said. “I went home yesterday happy because our sales are up 67 percent at Intertech Plastics.
That jump in sales has translated into the creation of jobs.
“We have added in the last two months about 15 percent more in our workforce or about 15 additional jobs,” Ginsburg said.
He says the prospects are so good that they considering reinstating wage changes necessitated earlier by the recession.
Job creation in the private sector and especially by small businesses has been seen as critical to the economic recovery.
“This is movement, 93,000 jobs in November are significant because that is not seasonal hiring yet, so I think these are real jobs. This is a sign of real economic growth and the need for employment,” said Mac Clouse, professor of finance at the Daniels College of Business at the University of Denver.
Ginsberg believes the growth in manufacturing is not isolated. He says there is a six month waiting period on the purchase of manufacturing equipment, an indication that other manufacturers are ordering equipment to keep up with orders.
Clouse says growth in manufacturing can have a positive impact on other segments of the economy.
“That’s real critical because manufacturing in one sector leads to manufacturing in other sectors,” he said.
The economic forecast for 2011 is strong as well for Intertech Plastics.
“We’re projecting sales up 50 percent next year and some of that is due to sales efforts we’ve been doing over the last several years,” Ginsburg said. “We’ll be adding jobs into next year.”
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