TROY, N.Y.Although most companies are on target to meet or exceed revenue goals, many are still reducing overall spending this year, according to a recent
TROY, N.Y.—Although most companies are on target to meet or exceed revenue goals, many are still reducing overall spending this year, according to a recent survey of engineering, manufacturing, technical and industrial professionals.
The seventh annual Industrial Indicator Survey conducted by GlobalSpec revealed that 81% of executives said their company is on or ahead of revenue targets for 2008, and 60% indicated that 2008 revenue will be ahead of 2007 revenue. In addition, 41% of survey 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.
Nevertheless, current economic conditions are beginning to take a toll on some companies within the industrial sector. Forty-one percent of respondents said that their companies are reducing overall spending in 2008.
Rising energy costs in particular are causing concern among companies within the industrial sector; 49% indicated that it is an issue that their company is currently concerned about or focused on, and 10% stated it’s the biggest issue facing their company this year.
In addition, concern over healthcare and transportation costs rose significantly in 2008, with 44% of respondents stating healthcare costs are an issue (compared to 28% in 2007) and 41% stating transportation costs are an issue (compared to 31% in 2007). Ten percent of respondents said they outsource more than half of their engineering work.
“According to our survey results, current economic conditions have not yet made a significant impact on the revenue targets of companies within the industrial sector, but there is concern over rising costs,” says Angela Hribar, GlobalSpec chief sales and marketing officer.