According to Leading Edge Alliance National Manufacturing Outlook Survey
Saginaw, MI: Yeo & Yeo CPAs & Business Consultants is releasing the results of 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 expecting labor costs to “increase” and an additional 7% expecting 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.
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.
“We can offer a range of solutions to manufacturers, from tax credits and entity structuring, to technology advancements and implementing operational assessments that are important for making sound business decisions,” said Yeo & Yeo Principal and Manufacturing Services Group Leader Amy Buben. “We help manufacturers align the critical operations of their companies: finance, people, processes and technology.”
Read the entire survey report, 2017 National Manufacturing Outlook and Insights – Strategies to Overcome the Headwinds, for in-depth information about the challenges the respondents face, the key strategies that the best-run manufacturers believe will be most effective, and the outlook for 2017.
About Yeo & Yeo
Yeo & Yeo (www.yeoandyeo.com) is a leading accounting, audit, tax and business consulting firm throughout Michigan with a proven reputation for personal service, commitment to clients and community support. Growing since 1923, Yeo & Yeo ranks among the Top 200 accounting firms in the U.S. with more than 200 employees and offices in Saginaw (headquarters), Alma, Ann Arbor, Flint, Greater Detroit, Kalamazoo, Lansing. Midland and Southgate. Other Yeo & Yeo affiliates include Affiliated Medical Billing, Yeo & Yeo Computer Consulting and Yeo & Yeo Financial Services. Yeo & Yeo is a founding member of LEA Global, the second largest international professional association.
About LEA Global
Founded in 1999, LEA Global is the second largest international association in the world, creating a high-quality alliance of 220 firms focused on accounting, financial and business advisory services. LEA Global firms operate in 107 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.