Industrial Suppliers, Manufacturers Focusing on Revenue Growth, Quality in 2006

GlobalSpec Industrial Indicator Survey also shows overall optimism within the marketplace, but a watchful eye on rising costs

GlobalSpec Industrial Indicator Survey also shows overall optimism within the marketplace, but a watchful eye on rising costs

Troy, NY — August 21, 2006 — Organizations within the U.S. industrial sector are investing within their companies to support growth, with enterprises targeting headcount increases, expansion into new markets and rising spending on sales and marketing, according to a recent survey of industrial and manufacturing professionals.

These views were uncovered in the fifth annual Industrial Indicator Survey conducted by GlobalSpec, a specialized search engine, information services and e-publishing company for the engineering, industrial and technical communities.

Thirty-eight percent of respondents in the survey indicated they will be adding headcount in 2006, while 35 percent are expanding sales into new markets and 28 percent are increasing sales and marketing spending. These results were offset by reductions in other areas, including spending and travel, and vendor consolidation, which increased by 8 percentage points in 2006 over 2005.

Concern over Costs

Other results indicated uncertainty over increased costs among companies within the industrial sector. Raw material costs were a concern for 47 percent of respondents, while 15 percent said it was the single biggest issue facing their company this year. Rising energy costs was cited by 40 percent of respondents as an area of increased focus, with 12 percent citing it as their greatest concern.

Overall, results of the survey imply optimism within the marketplace. More than 90 percent of survey respondents foresee their spending increasing or remaining the same in the second half of 2006, as compared to the first half of the year. Additionally, 71 percent of companies anticipate their 2006 revenue will be ahead of 2005.

Additional findings from the GlobalSpec Fifth Annual Industrial Indicator Survey include:

  • 83 percent of respondents say revenue projections for their company are ahead of, or on target for, 2006;

  • More than 50 percent of respondents reported that they are focused on, or concerned about, quality and improving production efficiencies.

Additional Articles of Interest

— Read about one high-tech manufacturer's quest to deliver near-perfect fill rates across its global service organization in "Managing a Global Supply Chain in a 'Flat' World," from the June/July 2006 issue of Supply & Demand Chain Executive.

— America's aging transportation infrastructure can't keep up with relentless world trade growth, and if it isn't overhauled, consumers and the U.S. economy will pay a steep price, warns APL President John Bowe. Read more in this story.