Sikich has released the results of its latest Industry Pulse report, which seems to indicate that optimism amongst manufacturers is on the rise. To obtain these results, Sikich surveyed more than 100 manufacturing and distribution executives in February 2024. The executives came from a range of industries, including industrial equipment, metal fabrication, food and beverage, transportation, and more.
According to the data, on a scale of one to 10, manufacturing executives rated their optimism an average of 7.07. This is the highest recorded rating since June 2021. When asked why they were optimistic about business prospects over the next six months, 51% of manufacturers cited an increase in customer demand, with labor challenges and costs having less of an impact than in August 2023. In addition, over the past three years, 76% of manufactures have implemented at least one operational efficiency project, and 75% of survey respondents are planning an operational efficiency project for this year.
What people are saying
In a recent quote, Jerry Murphy, partner-in-charge of manufacturing and distribution services at Sikich, said, "Ongoing concerns about the economy have plagued manufacturers for the past few years; it's great to see those concerns begin to lessen. Now is an ideal time for executives to prioritize growth initiatives. Upgrading technology and facilities, upskilling workforces, and executing business transformation projects will set manufacturers up for long-term success."
Jenny Massey, director of site selection and business incentives at Sikich, added, "Organizational redesign and Kaizen events are great tools for manufacturers to improve processes and add efficiency. One under-utilized efficiency project manufacturers should consider is conducting an analysis of incentives and tax credits available in their current location. Only 9% of manufacturers are considering moving facilities this year. By strategically assessing and optimizing available incentives, manufacturers can potentially reduce operational costs and enhance their competitive position without the need for relocating to lower-cost areas. However, if a company is considering relocation, substantial incentives may be available in the form of real or personal property tax abatements and should certainly be investigated."
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