News

Posted On: 08/27/2008

Survey reveals some companies have momentum, others are affected by economic issues

PlantServices.com

The majority of organizations within the U.S. industrial sector are on target to meet or exceed their revenue goals, but many indicate that they are reducing overall spending in 2008, according to a recent survey of engineering, manufacturing, technical and industrial professionals. These findings were uncovered in the seventh annual Industrial Indicator Survey conducted by GlobalSpec.

About 80% of respondents stated that their company is on or ahead of revenue targets for 2008. Additionally, 60% indicated that their company’s 2008 revenue will be ahead of 2007 revenue.

Survey results also show that companies remain committed to growing their businesses. About 40% of respondents stated that their company has expanded sales into new markets in 2008, up from the previous year. And 32% of respondents revealed that they are increasing their sales and marketing spending.

Many companies are maintaining momentum and growing, but current economic conditions are beginning to take a toll on some companies within the industrial sector. About 40% of respondents said that their companies are reducing overall spending in 2008.

Rising energy costs are a cause for concern among companies within the industrial sector with 49% of respondents indicating that it is an issue that their company is concerned about or focused on, with 10% stating that it’s the biggest issue facing their company this year. In addition, concerns about health care and transportation costs rose significantly in 2008, with 44% of respondents stating health care costs are an issue (compared to 28% in 2007) and 41% stating transportation costs are an issue (compared to 31% in 2007).

Additional findings include:

• 13% of respondents are working fewer hours each week and 17% reported their company has implemented reduced work schedules
• Respondents reported the most common areas for reduction are overall/general spending, travel and capital expenses
• 10% of respondents indicate that they outsource more than 50% of their engineering work, a number that has remained unchanged in past years

For more information, see the survey results.