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Small manufacturers cutting back, delaying hiring

Andrew Harrer | Bloomberg | Getty Images

After three years of investing billions into their factories, adding thousands of jobs and watching their profits grow, many small manufacturers in America are now cutting back. A new report from PayNet, which tracks the investments of 75 million small businesses, said small manufacturers cut their spending by 2 percent during the 12 months that ended in June.

It is the first decline in investments by small manufacturers PayNet has recorded since June of 2010.

"Small manufacturers in all these different sectors are finding that there are less orders coming in for their goods and services," said Bill Phelan, president of PayNet. "With less orders, they don't see the need to invest in greater capacity."

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