NMW 2003: A majority of companies expect 2003 revenue growth

Chicago, IL — About 68% of companies expect revenue growth in 2003, compared to 2002, according to a survey done by National Manufacturing Week organizers Reed Exhibitions (Norwalk, CT). Results were analyzed by AMR Research (Boston, MA).

03/04/2003


Chicago, IL - About 68% of companies expect revenue growth in 2003, compared to 2002, according to a survey done by National Manufacturing Week organizers Reed Exhibitions (Norwalk, CT). Results were analyzed by AMR Research (Boston, MA ).

''This is more optimism than we've seen in doing these surveys in the past year and a half,'' according to Bill Swanton, vp and research fellow, AMR Research. Among small manufacturers (under 500 employees), 27% think the economic turnaround has already begun. That's significant, he said, because smaller companies tend to lead an economic recovery. Overall, capital-spending expectations for 2003 increase slightly over 2002, responses showed. There was considerable variability in results, but a noticeable optimistic tendency. Mr. Swanton made the comments in a March 3, 2003, press conference at the opening of National Manufacturing Week here.

Other trends, Mr. Swanton said, that results showed:

  • Globalization is an opportunity, rather than a threat;

  • Potential war with Iraq will hurt companies economically more than it will help.

  • No massive shift in outsourcing trends. About 17 of plant maintenance and operations is outsourced; 14% of large companies expect to outsource significantly more, versus 7% of small companies.

  • That the favored approach for industrial automation and manufacturing IT is largely still ''do it yourself,'' with more than 55% choosing to design and integrate purchased components in-house. Third party and automation vendors need to do a better job convincing companies there's value in outsourcing, he said.

  • For IT-related spending, one-third expect an increase, and half expect no change in 2003, compared to 2002.

  • More than 65% use strategic sourcing techniques to reduce costs or improve quality of purchased material. More than 40% are reducing the number of suppliers. More than 35% are interacting with suppliers over the Internet.

  • That when building or acquiring new plants, small companies stick close to home; large companies have major efforts in China. About 55% of small companies are building or acquiring in the U.S. or Canada, compared to 40% for large companies. In China, under 30% of small companies are building or acquiring, compared to nearly 50% for large companies. Mexico was the next highest region, with about 24% and 33% for small and large companies, respectfully.

Data were collected in a survey posted at www.manufacturingweek.com for about six weeks ending Feb. 27. Demographics roughly equal those attending National Manufacturing Week, Mr. Swanton said. Of 750 responding to the survey, 73% worked for companies under 500 employees, 13% for companies employing 500-2499, and 14% for companies larger than 2,500 employees.

Industries split as follows:

  • 41% General manufacturing;

  • 14% Chemicals; 10% High tech;

  • 9% Automotive;

  • 5% Wholesale distributor; and

  • 21% Other.

''I think people will be cautious, but more positive about revenue growth than with capital spending, until they get their margins back. That's expected,'' Mr. Swanton concluded.

Control Engineering Daily News Desk
Mark T. Hoske, Editor-in-chief
MHoske@cfemedia.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Controller programming; Safety networks; Enclosure design; Power quality; Safety integrity levels; Increasing process efficiency
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me