Survey: Manufacturers and distributors gain optimism
The number of manufacturing and distribution executives who are optimistic about the U.S. economy is 146 percent greater now than a few short months ago.
According to results from the winter 2012 McGladrey Manufacturing and Distribution Monitor - a survey of middle-market manufacturing and distribution executives, optimism increased significantly since the fall survey.
"The increase in optimism in the U.S. economy among middle-market manufacturers in the winter Monitor (59 percent this winter, compared to 24 percent in the fall) is striking," said Karen Kurek, national manufacturing leader for McGladrey & Pullen, LLP, which operates under the McGladrey brand. "Optimism about the world economy increased significantly, as well, with 27 percent indicating optimism this winter, compared to 17 percent in the fall. These increases in optimism are good signs for 2012."
The winter Monitor also shows that automotive and transportation executives are more likely than others to be optimistic about their companies, and automotive and industrial machinery executives are more likely than others to be optimistic about their industries.
The winter Monitor results, which took a look back over the course of a year, showed that the number of participants who said their companies are thriving and growing averaged 45 percent throughout 2011 – nearly twice the level of those who responded positively in 2010 (24 percent), and comparable to 2007 levels (48 percent). Notably, the number of companies in decline is much lower than in 2007 (3 percent vs. 9 percent).
While the winter Monitor shows increased levels of optimism, this is somewhat tempered by several factors that many executives are concerned with, including federal government gridlock, access to free trade agreements, the lack of a meaningful energy policy in the U.S. and the uncertainty of regulations due to the impending election this fall. These issues need to be addressed if the U.S. manufacturing industry is to remain competitive.
Another area of concern is the challenge of finding skilled workers. "Winter Monitor results show that nearly 60 percent of survey participants expect to increase their workforce (compared to 50 percent in the fall), but finding qualified workers to fill open positions continues to be a concern for the industry – an unusual dichotomy, given that national unemployment rate remains high," said Kurek. "The need for a skilled workforce could be one of the greatest impediments to growth for U.S. manufacturers and distributors, and makes it difficult to compete in the global market."
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
