Industrial Sector Says Economy Pointed in Right Direction
Annual GlobalSpec Industrial Indicator Survey Reveals Companies Preparing for Growth with Revenues on Target and Spending Reductions Slowing Down
East Greenbush, NY – (Business Wire) – September 16, 2010 – The number of organizations reporting expectations of increased revenue in the current year doubled from last year (from 24 to 51 percent), reflecting optimism about the recovering economy within the U.S. industrial sector. In addition, 66 percent also stated that company revenue is on target or above for 2010. These findings were uncovered in the ninth annual Industrial Indicator Survey conducted by GlobalSpec, the leading specialized vertical search, information services, e-publishing and online events company serving the engineering, manufacturing and related scientific and technical market segments.
Overall, the survey's data indicates that the economy is pointed in the right direction, although some companies and sectors are recovering faster than others, and complete recovery may still take some time.
However, the survey showed that many companies are focusing on growth-oriented initiatives. 18 percent have increased headcount, compared to only five percent a year ago. Almost twice as many companies have increased spending in 2010 over 2009 (13 percent versus 7 percent). 47 percent are focused on improving production efficiencies, 44 percent on expanding sales into new markets, and 42 percent on quality.
These areas of focus will lead to spending on components, parts, and services in the second half of 2010 to develop new products and improve production processes and quality control. 71 percent of survey respondents stated that the component and services spending they account for or influence will increase or remain the same in the second half of 2010 compared to the first half, indicating stable or increasing budgets.
Survey results also show that spending reductions are slowing down. Compared to 2009, fewer companies are reducing spending in key areas. Overall, 64 percent of companies are reducing spending in 2010 compared to 73 percent in 2009. Specifically, fewer companies are reducing capital expenditures, travel, headcount, R&D spending, and sales and marketing spending. These results further validate the conclusion that companies are beginning to recover from the recession and the severe cutbacks from last year.
"The stated optimism from the survey should mean more market opportunity, but manufacturers and suppliers still need to concentrate on efficiently using their marketing budgets," said Chris Chariton, vice president of supplier marketing and marketing services for GlobalSpec, Inc. "Marketers interested in reaching a targeted audience of industrial professionals should ramp up efforts so their company, products and services can be found by customers and prospects where they are looking for information and solutions – online."
For additional findings from the ninth annual GlobalSpec Industrial Indicator survey, access the complete results at: http://bit.ly/2010GSIndicators.
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