Industrial employment in Tennessee fell 13.7% over the past two years, according to the 2011 Tennessee Manufacturers Register, an industrial directory published annually by Manufacturers’ News Inc.

MNI reports Tennessee lost 61,289 manufacturing jobs and 613 manufacturers over the past two years. The state is now home to 7,506 manufacturers employing 383,278 workers.

“Decreased demand continues to affect Tennessee manufacturing, particularly the transportation sector and industries related to the housing market,” says Tom Dubin, President of the Evanston, IL-based publishing company, which has been surveying industry since 1912. “But losses have definitely slowed over the past year.”

Bright spots include the opening of several new plants. They include Skykits Corp.’s airplane manufacturing plant in Paris; a new cellulosic ethanol production facility in Vonore; a Nissan battery plant in Smyrna; and an Alstom turbine production facility in Chattanooga.

Expansions were also seen at General Mills’ Murfreesboro yogurt plant and at Norcom of Tennessee in Sparta.

According to MNI, fabricated metals manufacturing has overtaken transportation equipment as Tennessee’s top industrial sector by employment with 40,377 jobs, down 16% over the past two years.

MNI’s city data indicates Memphis is Tennessee’s top city for manufacturing employment, with 39,701 jobs, virtually unchanged from two years ago. Nashville ranks second with 29,193 jobs, down 3.3% over two years. Chattanooga is home to 19,804 industrial jobs, down 7.4%, while Knoxville accounts for 15,988 jobs, down 17.2% over the past twenty-four months. Fifth-ranked Kingsport is home to 9,283 industrial workers, with no significant change reported.