TROY, NY – (INTERNETWIRE) – 09/04/02 – Businesses in the industrial sector expect to lower capital expenditures and other expenses, such as travel and head count, while increasing product-related purchasing of components and software, along with achieving higher revenues in the second half of 2002 compared to the first half of the year. These are just a few findings resulting from a recent survey by GlobalSpec, Inc., the worldwide leader of online media solutions and information resources serving the manufacturing and engineering communities. GlobalSpec conducted an online survey to assess the impact of economic conditions on organizations in the industrial sector and compiled the information provided by 600 of its U.S.-based registered users. The majority of the respondents categorized their positions as design engineering, process/production engineering, or technical support.

Confirming that many industrial companies are optimistic about the economy, 43% of the respondents stated they plan to increase spending for components and engineering services in the second half of 2002, with an additional 43% expecting their spending to at least remain the same as it was for the first half of the year. With regard to technology, 64% indicated that their companies have implemented CAD software solutions, and another 13% plan to implement them in the next twelve months, while 27% have implemented MRP software solutions. Although spending is occurring in key areas, many companies have taken a cautious approach and implemented steps to control some of their expenses. Forty-two percent of the respondents stated head count in their company has been reduced, 37% stated capital expenditures were down, and 39% stated employee travel has been reduced as well.

Overall, the survey indicates a positive trend for economic conditions in the industrial sector during the second half of the year. In conjunction with the planned increase in spending, 38% of the respondents stated they are increasing the number of vendors they purchase from. And despite the economic uncertainty early in the year, 51% expect their company’s total revenue for 2002 will be greater than last year’s, with 28% expecting growth to be flat, and only 21% predicting a decline.

“The goal of the survey was to understand the impact of current economic conditions on organizations in the industrial sector,” said Guy Maser, Vice President of Marketing, GlobalSpec, Inc. “We asked users to identify current and projected financial performance, purchasing plans and other key cost management tactics. The good news for manufacturers trying to reach technical buyers and engineers is that many are ready to purchase technical components and services to meet their product development needs for the remainder of this year.”

About GlobalSpec, Inc.

GlobalSpec, Inc. is the world’s largest online resource of technical catalogs searchable by specification, connecting engineers and technical buyers with the products and services they need. SpecSearch®, GlobalSpec’s parametric search technology, provides users bias-free access to more than 8,000 searchable supplier catalogs in over 900 product areas. GlobalSpec currently has more than 420,000 registered users. Information about GlobalSpec can be found at http://www.globalspec.com.

GlobalSpec, GlobalSpec.com, and SpecSearch are registered trademarks of GlobalSpec, Inc.

Contact:
GlobalSpec Marketing
E-mail: marketing@globalspec.com

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