Home | Growth | Survey shows mixed outlook for manufacturing

Survey shows mixed outlook for manufacturing

Font size: Decrease font Enlarge font
Survey shows mixed outlook for manufacturing

Experts urge manufacturers to prepare for slowdown.

An annual survey of middle market manufacturers by professional services firm RSM indicates that manufacturers are optimistic about business growth, but that there is cause for concern in certain pockets of the economy. While manufacturing as a whole is anticipating continued growth, some sectors – particularly energy, agriculture and general industrial manufacturing – are experiencing a decrease in demand with flat or declining revenues.

"US manufacturers need to start thinking more globally to offset some of the competition entering US markets and to avoid long-term risk."

"These findings suggest that while executives have a positive outlook for the manufacturing [industry], there are key areas that must be managed to achieve these expectations," said Steve Menaker, audit partner, national consumer & industrial products industry team leader at RSM. "Increasing globalization, regulations, changing demographics, weakening economies, foreign currency fluctuations and other variables could have an impact on manufacturing."

Most Manufacturers Expect Increase in Operating Profits, But Need to Think Globally

According to the latest report, manufacturers anticipate rising revenue, profits and employment, with 70% of manufacturers in the United States and around the world expecting an increase in operating profits. Further, more than half expect to increase their workforce, and three-quarters expect to increase revenues, many by more than 10%. In the U.S., 40% self-identify as thriving and 55% say they are holding steady.

Despite these ambitious goals, companies that will be poised for continued growth are taking measures to prepare for a potential decline. US companies (62%) are focused primarily on domestic markets, while non-US companies are leading the way in entering or expanding into international markets, the primary foreign market target being the United States. Given the attractiveness of the US economy, US manufacturers will continue to find more competition for domestic market share coming from offshore.

1 2 »
Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image: