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.
Full survey results can be found at www.globalspec.com/wp/Industrial_Indicator_Survey_2008.pdf.