Survey Shows Positive, Yet Cautious Industrial Sector Outlook
While most industry sources continue to paint a relatively positive and upbeat picture about the economic outlook for the industrial sector, several recent reports also point to on-going concerns and caution among industrial executives.
For instance, Price Waterhouse Cooper's (PwC) Q1 2013 Manufacturing Barometer Survey shows that 55% of US industrial manufacturing sector respondents express optimism about the 12 month outlook, an increase of 7 points from the previous quarter. However, Bobby Bono, PwC's U.S. industrial manufacturing leader, points out that "management teams are taking a more conservative approach to forecasting top line performance for the year ahead, given the moderate recovery underway and uncertainty pertaining to fiscal policy.”
Likewise, in its' Economic Outlook Survey 2013: State of the Industrial Marketplace, IHS Global Spec reports that nearly half of the companies surveyed expect higher revenues in 2013 compared to 2012, with Biotechnology/ Pharmaceuticals (64%), Instrumentation & Controls (60%) and Automotive (59%) leading the charge. While only 26% expect lower sales for the year, for nearly 60% the economy continues to be the most frequently reported area of concern, an increase of three points from the previous year.
Source: IHS GlobalSpec Economic Outlook Survey 2013.
Besides economic and other concerns, the IHS Global Spec survey also provides insights into the spending and investment priorities and growth initiatives of key decision makers in the industrial sector. In addition to focusing on improving quality, most respondents report they are investing in innovation and growth by:
- entering new markets (60%),
- designing and developing new products (54%),
- researching new projects (47%).
For additional information about industrial sector business priorities and expectations, and/or a free copy of the IHS Global Spec report, just send me an email or give me a call at 513-605-3633.