Manufacturing companies in Western Pennsylvania plan to add workers and expect sales growth despite national and statewide reports of a downturn in the sector.

Of 98 companies surveyed by accounting firm Alpern Rosenthal and the University of Pittsburgh's Institute for Entrepreneurial Excellence, 71 percent of those based here said they planned to expand in the next three years. That's up from 44 percent a year ago that said they planned to expand within three years.

"I think what's significant ... is that local manufacturers have a positive outlook and continue to feel revenues will grow," said Joel Rosenthal, director of the manufacturing services group at Alpern Rosenthal, Downtown. "It digs down into the type of manufacturers we have that they've positioned themselves fairly well in the current market."

An overwhelming majority of those surveyed, 88 percent, said they added jobs over the past three years with a 13 percent mean increase in their employment. Over the next three years, 89 percent expect to add jobs and 49 percent expect to increase their payrolls by more than 10 percent.

Of those surveyed, the largest number of companies, 22 percent, were in the fabricated metals industry. The next highest group, 13 percent, were rubber and plastics makers, and 11 percent make electronic equipment.

"Metal and steel have been strong industries," said Mr. Rosenthal, who could not identify specific companies in the report because it was a blind survey. "But I sense from their optimism ... that these companies have made themselves niche players."

Of those surveyed, almost half had annual revenues totaling between $10 million and $50 million; 32 percent had revenues of $50 million or more; and 22 percent had revenues below $10 million.

A majority of those surveyed had more than 50 employees: 35 percent had 51 to 150 workers; and 33 percent had more than 151 workers.

Despite their optimism, those surveyed have concerns about doing business in the region with the top three issues being state taxes, economic incentives from the state and regulatory conditions.

"Other states have become more competitive in taxing companies," said Mr. Rosenthal. "The income tax on corporations here is pretty hefty." The corporate net income tax in Pennsylvania is 9.99 percent.

"A company that's been here 80 years may not like the taxes or incentives, but they're not going anywhere," said Mr. Rosenthal. "But to attract new business, we need to create incentives."