Already last in the nation when it comes to industrial jobs, Hawai'i lost 5.6 percent of its manufacturing work force in 2006, according to a new report.

In its 2007 Hawaii Manufacturers Directory, Evanston, Ill.-based Manufacturers' News Inc. said the state lost 1,545 factory jobs and 68 plants last year.

According to MNI, the closing of the local Frito-Lay factory figured prominently in last year's job losses. In November, the snack-food producer closed its 24-year-old O'ahu plant and moved its production operations to the Mainland in a move that eliminated 108 jobs.

"Many Hawai'i companies ... (continue) to be lured by cheaper labor costs overseas," said MNI president Tom Dubin. "For the plants that remain, fewer employees are needed thanks to automation and technology. Instead of four low-skilled workers on an assembly line, you now may have one worker entering numerical codes into a computer that controls the manufacturing process."

MNI said Hawai'i had a total of 1,265 manufacturing companies employing 25,924 workers in 2006. By comparison, the state had 1,333 plants and 27,469 jobs a year earlier.

MNI ranked Hawai'i 50th in the nation for the number of manufacturing jobs with 5,000.

The report said Honolulu accounted for 54 percent of all manufacturing jobs in the state. The Honolulu factory job count was 14,086, down 1.9% from last year's 14,367 jobs.

Kapolei ranked second with 2,198 jobs and 69 plants, which was down 8.8 percent from last year. Waipahu was next with 1,254 jobs and 53 plants while 'Aiea was fourth with 1,140 jobs and 44 plants.

Besides Frito-Lay, companies cutting jobs last year included Peterson Sign Co. and the Pacific Poultry Co., MNI said.

According to the 2007 study, the food industry was Hawai'i's largest manufacturing sector with 221 companies and more than 3,800 jobs. Major Hawai'i food plants include the Maui Land and Pineapple Co., Dole Foods, and the Hawaiian Commercial & Sugar Co.

Printing and publishing was the second-largest sector, with 202 companies, while apparel and fabric ranked third with 172 plants.

The three sectors accounted for 47 percent of all manufacturers in Hawai'i.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.