While one report expects less manufacturing growth in coming months…

As manufacturers lower their average revenue growth projections for the next 12 months, executives are only expecting a 3% revenue growth rate for the industrial manufacturing sector as a whole in the 2007 calendar year.


PricewaterhouseCoopers’ Manufacturing Barometer reports that U.S. industrial manufacturers lowered their average revenue growth projections for the next 12 months from the 6.8% reported in the first quarter to 5.7%, a 16% reduction. Additionally, executives are only expecting a 3% revenue growth rate for the industrial manufacturing sector as a whole in the 2007 calendar year.
While optimism in the global economy remains high, more than half %%MDASSML%% 53% %%MDASSML%% of manufacturing executives cite competition from foreign markets as one of the leading barriers to achieving revenue targets.
“Most U.S. manufacturers believe that the world economy will grow faster than the domestic economy, and in order to grow their business they need to compete successfully outside the United States,” said Barry Misthal, partner and industrial manufacturing sector leader, PricewaterhouseCoopers . “As more and more of their sales come from abroad, however, it's also apparent that they are keeping a keen eye on foreign competition, which continues to intensify.”
The leading threat to revenue growth is the oil/energy impact on increased costs. Competition from foreign markets follows closely and is up significantly from last quarter. Monetary exchange rates and interest rates pose additional cause for concern among senior executives, as nearly one-third of the respondents cited exchange rates as a future barrier to growth. Twenty-eight percent considered higher interest rates as another possible barrier to growth.
Yet, despite these threats, 62% of those surveyed are optimistic about the domestic economy, and 69% believe the U.S. economy grew during the second quarter. In fact, 90% of executives think the world economy expanded in the second quarter.
For those industrial manufacturing companies selling overseas, the majority increased international sales during the second quarter. Looking ahead over the next 12 months, international marketers expect 35% of their total revenue to come from abroad.
During the second quarter, a little under half of industrial manufacturers experienced increased costs and 38% decided to raise their prices. Overall, gross margins appeared to fare well, with 31% citing higher gross margins while only 16% reported lower gross margins.
Plans for major new investments of capital are also on the rise, with 57% of companies looking to invest in a variety of business initiatives, including new product/service introductions, information technology and research and development. Executives anticipate spending 9.4% of revenues on such investments.
“Overall, these results indicate that manufacturing executives are expecting slower, but still positive, growth over the next year,” said Misthal. “International sales are up, margins are steady and new capital investments are in the works. At the same time, however, they are concerned about continued high energy costs, fluctuating monetary exchange rates and higher interest rates.”

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
IIoT grows up; Six ways to lower IIoT costs; Six mobile safety strategies; 2017 Salary Survey
2016 Top Plant; 2016 Best Practices on manufacturing progress, efficiency, safety
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
What controller fits your application; Permanent magnet motors; Chemical manufacturer tames alarm management; Taking steps in a new direction
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on preventing compressed air leaks and centrifugal air compressor basics and best practices for the "fifth utility" in manufacturing plants.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
click me