The latest edition of the PwC US Manufacturing Barometer reports that despite ongoing uncertainty about the global economy, a vast majority of U.S. industrial manufacturers expect positive own-company revenue growth for 2011 and the next 12 months. While several key factors including higher costs of raw materials and commodities, oil and energy prices, higher costs of services worldwide and the economic impact of Japan’s earthquake and tsunami have contributed to the uncertainty about the world economy over the past 12 months, U.S.-based industrial manufacturers continued to grow international sales in the second quarter of 2011 and are projecting continued strength for overseas revenues.
The composite average growth estimate for own-company revenue growth in the calendar year rose to 6.3% in the second quarter of 2011 from 5.3% in the previous quarter, the fifth consecutive quarterly increase and nearly four times higher than the second quarter of 2010. Eighty-eight percent of respondents forecasted positive own-company revenue growth for 2011, an increase of 4 points over the first quarter of 2011 and 23 points over the second quarter of 2010. Of those, 33% are forecasting double-digit growth for 2011, which is flat compared to the prior quarter, while 55% are forecasting single-digit growth, up 4 points over the prior quarter and 20 points higher than the same time a year ago. Only 8% forecast negative growth in the second quarter of 2011, versus 13% in the first quarter of 2011 and 20% in the second quarter of 2010.
Looking at the next 12 months, 90% of those surveyed expect positive revenue growth for their own companies, up a point compared to the first quarter of this year and 17 points higher than the second quarter of 2010. Twenty-eight percent forecast double-digit growth while 62% forecast single-digit growth, compared to 33% who forecast double-digit growth and 56% forecasting single-digit growth in the first quarter of 2011.