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.”

Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
October 2018
Tools vs. sensors, functional safety, compressor rental, an operational network of maintenance and safety
September 2018
2018 Engineering Leaders under 40, Women in Engineering, Six ways to reduce waste in manufacturing, and Four robot implementation challenges.
GAMS preview, 2018 Mid-Year Report, EAM and Safety
October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, programming cavity pumps
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
October 2018
Complex upgrades for system integrators; Process control safety and compliance
September 2018
Effective process analytics; Four reasons why LTE networks are not IIoT ready

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Material Handling
This digital report explains how everything from conveyors and robots to automatic picking systems and digital orders have evolved to keep pace with the speed of change in the supply chain.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
click me