United States (US) Survey Finds Small and Midsize Manufacturers Conservatively Optimistic
12th March 2014 16:18 - Industrial
According to the second annual Sage Manufacturing Survey, small and midsize U.S. businesses are conservatively optimistic about business growth. More than one-third of surveyed manufacturing firms in the small and midsize business (SMB) sector predict the economy will strengthen in the next six months, while half (48%) expect it to remain the same.
The survey, which was conducted in December 2013 amongst 215 SMB respondents in the United States, suggests that only a quarter (27%) anticipated an improvement in the economy last year (2013) compared to more than a third (36%) this year (2014).
During the same period, half (49%) of surveyed manufacturers expect orders to increase, two-fifths (42%) believe that production will rise, and a quarter (25%) anticipate more exports.
U.S. manufacturers identified three main areas which they believed would positively impact their business in the next six months:
· Stronger domestic demand (68%)
· The global economic recovery (36%)
· The re-shoring of manufacturing - transfer of business operation back to its country of origin (26%)
According to findings, many manufacturers surveyed are gaining new business by offering customers greater flexibility to make product adjustments based on market response and the ability to produce smaller lots.
Five percent of those surveyed plan on bringing some production back to the United States in the next six months, and none planned on off-shoring any manufacturing to other countries.
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