McGladrey® Manufacturing & Distribution Monitor - Fall 2011 edition
Results from our most recent survey indicate that manufacturers, particularly in the durable goods sector, suffered from a number of challenges leading into the fall, including supply chain disruptions, continued high levels of energy and raw material costs, and falling business and consumer sentiment. Nevertheless, 43 percent of Fall Monitor participants say their businesses are thriving and growing.
Yet a number of concerns continue to plague the industry. In particular, the view that federal government gridlock is the highest risk to business growth increased more than 50 percent over the summer survey results.
In this quarter's Monitor, we focus on exporting and establishing a direct presence overseas, and look at the associated motivations and the challenges. While 71 percent of respondents overall report that they export to countries outside the U.S., a striking finding is the correlation between growth in exports and companies' health: 60 percent of those companies that are thriving have increased their exports, a sign that exporting sales is recognized as a key driver for growth. The most common driving force for middle market manufacturers and distributors to export is, not surprisingly, customer and/or key client demand, followed by more strategic approaches. There is a rising level of interest in exporting to emerging markets, notably Central and South America, (particularly Brazil), in which middle market manufacturers see the greatest export growth potential.
The survey was fielded on September 21, 2011 and data collection concluded on October 10. The report aggregates responses from more than 511 executives. Along with this report, Monitor participants received access to a customized dashboard that provides views of their responses to the questions posed, along with comparisons to the aggregate responses for their industry category and geographic location. The dashboard is automatically updated upon completion of each quarterly survey, making it an increasingly valuable analytical tool. The analysis in this report – along with the dashboard – provides a comprehensive view of the business environment.
This is the sixth consecutive year McGladrey has polled manufacturing and distribution industry executives. For 2011, McGladrey has expanded its study and now conducts surveys quarterly
Manufacturing & Distribution Monitor Report
Middle-market manufacturers and distributors are largely optimistic about their own businesses, yet they are grappling with a variety of challenges.
Offers tax tips, news and information pertinent to the manufacturing and distribution industries.
Provides private companies with industry benchmarking information on a real-time basis.