THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Monday, January 20, 1997              TAG: 9701180844
SECTION: BUSINESS WEEKLY         PAGE: 8    EDITION: FINAL 
SERIES: 1997 FORECAST
SOURCE: BY LON WAGNER, STAFF WRITER 
                                            LENGTH:   48 lines

[1997 FORECAST] MANUFACTURING: AS BEFORE INDUSTRY CAN EXPECT MORE JOB LOSSES BY DECEMBER

This year's outlook for manufacturing jobs in Hampton Roads doesn't differ much from last year's or several years previous to that: It is more than likely that at the end of 1997 there will be fewer manufacturing jobs than at the beginning.

All the region can do is hope to hold on to most of the manufacturing jobs it has.

Though military personnel will be added at Oceana Naval Air Station this year, the Defense Department's continued budget cutting will continue to result in trimmed private sector payrolls at places like Newport News Shipbuilding.

The massive Peninsula shipyard is shedding workers more slowly than anticipated, but shedding them nonetheless. The shipyard six years ago employed 30,000 - it's 1997 employment could continue dropping to around 16,500, the shipyard has said.

Yet, there is hope.

``We still have a good manufacturing base here,'' says Roy Pearson, director of the bureau of business research at the College of William and Mary. ``I'm looking for us to hold our own there.''

The hope lies in countering the loss of thousands of manufacturing jobs like those at the shipyards by adding them dozens at a time at smaller businesses.

One of those smaller businesses to watch this year is Southland Technologies Inc., a Chesapeake manufacturer of molded rubber automotive engine sealing components.

Southland employs 350 workers at three manufacturing plants, but the company expects to add to its payroll over the next couple of years. It will do that partly by expanding to Europe, where it has recently been awarded three major engine-sealing contracts.

The company will add new injection molding presses this year to meet increased demand for its products. Company president John Dannenhoffer said the company has not determined how many more workers will be needed, but that ``we do anticipate adding new injection molding employees over the next few years.'' ILLUSTRATION: [Color Photo]

[Gear]

KEYWORDS: 1997 FORECAST MANUFACTURING