2018 is looking good according to a recent survey of manufacturers. The 2018 Leading Edge Alliance (LEA) National Manufacturing Outlook Survey found that manufacturers have a more positive outlook about the economy for 2018 than in 2017.
Some of the reasons include the growing U.S. and global economies, rising energy and commodity prices, and improved business and consumer confidence support this positive outlook.
More than 450 manufacturing executives participated in the survey, conducted by LEA which is the second largest international association in the world.
Survey results for 2018 include:
--81% of manufacturers believe their revenue will increase in 2018, with 72% eyeing organic growth in the U.S. as their primary opportunity to increase sales.
Manufacturers are more optimistic about the regional and national economy than the global economy; yet, notably, the optimism rating for all three has increased by more than 10 points since the 2017 outlook.
--62% of manufacturers expect their sectors to grow, more than doubling the 2017 outlook; food and beverage (71%) and construction materials (69%) cite the highest optimism for sector growth. Others include machining/industrial (59%) and automotive (52%).
--Manufacturers’ top three priorities are growing sales, cutting costs, and addressing the talent gap.
Despite the improved outlook, hurdles remain.
- As in past years, labor remains a significant challenge. More than half of survey participants cited the labor shortage as the greatest risk or barrier to growth, and more than half of manufacturers expect to increase hiring.
- Respondents plan to utilize technology to reduce risks and build a competitive advantage; 75% said that they will investigate/prioritize cybersecurity in 2018, and 50% will investigate/prioritize Big Data/ERP/IoT.
- The dichotomy of growing sales while cutting costs may also present a challenge. Through all the potential changes, working with a team of industry-experienced advisors to provide insight and answers continues to be critically important.