Organizations within the US industrial sector are spending more, and the majority are on target to meet or exceed their revenue goals, according to a recent GlobalSpec survey of manufacturing, technical and industrial professionals – its sixth annual Industrial Indicator Survey.
According to the study:
- 69% of respondents indicated that their company’s actual revenue would be higher in 2007 than 2006
- 79% reported that projected 2007 revenue is on or ahead of target.
- 82% reported that spending in the second half of 2007 will be ahead of or equal to spending in the first half of the year.
Results of the survey also reveal that companies within the industrial sector continue to innovate and diversify their offerings:
- 40% of companies are expanding sales into new markets in 2007, compared with 35% of respondents in 2006.
- 37% of companies are increasing product lines, up from 31% in 2006.
Organizations within the industrial sector continue to invest in key areas to support revenue growth in 2007, a trend that continues from 2006:
- 28% of respondents indicate that they are increasing sales and marketing spending.
- 28% are adding headcount.
- 26% are increasing capital expenditures.
Despite increased momentum in the industrial sector, rising costs remain a concern:
- 54% of companies name raw material costs as a top concern, up from 47% in 2006
- 45% of respondents state that they are concerned about or focused on rising energy costs, up from 40% in 2006.
Some additional findings:
- 33% of respondents reported working more hours than last year, and 53% are working on more projects
- 68% of companies outsource at least some engineering work, a slight increase over last year
- The most common areas for company reductions include spending, outsourcing manufacturing, consolidating vendors, and travel.