DESPITE INDUSTRY HEADWINDS, U.S. MANUFACTURERS ARE OPTIMISTIC, EXPECTING REVENUE GROWTH IN 2017
According to Leading Edge Alliance National Manufacturing Outlook Survey
OMAHA, Neb., February 27, 2017 – Lutz, an accounting and business solutions firm, recently released the results from the 2017 Leading Edge Alliance (LEA Global) National Manufacturing Outlook Survey.
With hundreds of participants, this survey report contains the expectations and opinions of manufacturing executives in more than 25 states across the county 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% expect 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.
“There are a range of value added services we can offer manufacturers, from tax credits to export tax incentives,” said Lutz Partner and manufacturing client group leader, Jim Honz. “What manufacturers cannot afford to do, is take a ‘wait and see’ approach.”
To learn more and download the survey, visit www.lutz.us/2017manufacturingsurvey.
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ABOUT LUTZ Lutz is the accounting and business solutions firm for businesses and individuals seeking a partner to help energize and heighten financial and organizational success. Born and raised in Nebraska, our experienced team simplifies complexities and provides accounting, wealth management, recruiting, M&A and technology services. We embrace your business as our own to spark the right solutions and help you thrive. MIND WHAT MATTERS + WWW.LUTZ.US
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>p>>strong>DESPITE INDUSTRY HEADWINDS, U.S. MANUFACTURERS ARE OPTIMISTIC, >/strong> >strong>EXPECTING REVENUE GROWTH IN 2017>/strong>>/p>
>p>>em>According to Leading Edge Alliance National Manufacturing Outlook Survey>/em> >em> >/em> >/p>
>p>>strong>OMAHA, Neb., February 27, 2017>/strong> – Lutz, an accounting and business solutions firm, recently released the results from the 2017 Leading Edge Alliance (LEA Global) National Manufacturing Outlook Survey. >/p>
>p>With hundreds of participants, this survey report contains the expectations and opinions of manufacturing executives in more than 25 states across the county producing a wide variety of products including industrial/machining, transportation/automotive, construction, food and beverage, and other products. Results from the survey include: >/p>
>ul>
>li>74% of small manufacturers and 69% of large manufacturers expect revenue to grow in 2017.>/li>
>li>Manufacturers are more optimistic about their local/regional economies than the national or global economies.>/li>
>li>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.>/li>
>li>Labor continues to be a challenge for manufacturers with 67% of respondents expecting labor costs to “increase” and an additional 7% expect labor costs to “increase significantly” in 2017.>/li>
>li>Appropriate cost allocation and accurate and timely data will become required capabilities for successful businesses in the industry.>/li>
>li>More manufacturers will be considering both sales and mergers in 2017 as well as strategic acquisitions. >/li>
>/ul>
>p>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. >/p>
>p>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. >/p>
>p>“There are a range of value added services we can offer manufacturers, from tax credits to export tax incentives,” said Lutz Partner and manufacturing client group leader, Jim Honz. “What manufacturers cannot afford to do, is take a ‘wait and see’ approach.” >/p>
>p>To learn more and download the survey, visit >strong>www.lutz.us/2017manufacturingsurvey>/strong>>strong>.>/strong> >/p>
>p>### >strong> >/strong>>/p>
>p>>strong>ABOUT LUTZ>/strong> Lutz is the accounting and business solutions firm for businesses and individuals seeking a partner to help energize and heighten financial and organizational success. Born and raised in Nebraska, our experienced team simplifies complexities and provides accounting, wealth management, recruiting, M&A and technology services. We embrace your business as our own to spark the right solutions and help you thrive. MIND WHAT MATTERS + WWW.LUTZ.US>/p>