Despite Industry Headwinds, U.S. Manufacturers Are Optimistic, Expecting Revenue Growth in 2017
Richmond, VA, December 28, 2016 – Keiter, a nationally recognized professional services firm, today jointly released the results from the 2017 Leading Edge Alliance (LEA Global) National Manufacturing Outlook Survey.
With more than 250 participants, this survey report contains the expectations and opinions of manufacturing executives in more than 20 states across the country producing a wide variety of products including industrial/machining, transportation/automotive, construction, food and beverage, and other products.
Results from the survey include:
- 74% of small manufacturers and 69% of large manufacturers expect revenue to grow in 2017.
- Manufacturers are more optimistic about their local/regional economies than the national or global economies.
- The top priority for manufacturers in 2017 is “cutting operations costs”, however, high-growth manufacturing respondents are more focused on “research and development”, with 12% of high-growth respondents reinvesting more than 10% of annual revenue.
- Labor continues to be a challenge for manufacturers with 67% of respondents expect labor costs to “increase” and an additional 7% expect labor costs to “increase significantly” in 2017.
- Appropriate cost allocation and accurate and timely data will become required capabilities for successful businesses in the industry.
- More manufacturers will be considering both sales and mergers in 2017 as well as strategic acquisitions.
U.S. manufacturing industry headwinds are significant and include both internal issues, such as high inventory-to-sales ratios, the cost of technology, and labor shortages, as well as external issues like the price of raw materials and strength of the dollar.
“We see similar trends with many of our manufacturing clients. These challenges offer opportunities for strategic tax planning, as well as technology and transaction advisory services. We encourage our clients to be proactive,” said Gary Wallace, Keiter Partner. “Strategic manufacturers should have ongoing conversations with all of their advisors, including their accounting and tax provider, as to how to overcome these challenges and achieve their business goals,” Wallace added.
Read full survey: 2017 Manufacturing Outlook Survey
For more accounting news and insights related to the Manufacturing industry, view our blog.
Questions on the survey? Contact us. We can help.
Gary G. Wallace, CPA | 804.565.6025 | email@example.com
Keiter was founded in 1978 and provides a full range of financial services to entrepreneurial minded businesses and their owners. Keiter has over 145 employees and is the largest, local independent accounting firm in Richmond. Keiter has developed specialized expertise in serving the manufacturing, real estate, construction, and financial services industries, as well as not-for-profit entities. Our manufacturing industry team partners with over 50 local and national manufacturing clients to provide accounting insights and opportunities specific to their industry. For more information Keiter, please visit our website. www.keitercpa.com
About LEA Global
Founded in 1999, LEA Global is the second largest international association in the world, creating a high-quality alliance of 226 firms focused on accounting, financial and business advisory services. LEA Global firms operate in 110 countries, giving clients of LEA Global firms access to the knowledge, skills and experience of over 2,000 experts and nearly 23,000 staff members.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.