Welcome!

News Feed Item

Sage Manufacturing Survey: More Than a Third of Manufacturers Expect Stronger Economy Over Next Six Months

Reshoring of Manufacturing Seen as a Driver of Industry Growth in 2014

IRVINE, CA -- (Marketwired) -- 02/05/14 -- More than a third of manufacturing firms in the small and midsized business (SMB) sector expect the economy to strengthen in the coming six months, while nearly half expect it to remain the same, according to the results of the second annual Sage Manufacturing Survey announced today by Sage North America. Respondents also anticipate an increase in orders, production and exports. Sage, a leading provider of business management software and services to more than 6 million small and midsized businesses worldwide, conducted the survey among small and midsized manufacturers and distributors.

Economic confidence is on the rise
Small manufacturing firms are becoming more confident in the economy, with 36 percent of respondents expecting the economy to grow stronger and 48 percent expecting it to remain the same. These numbers are up from 2012, when only 27 percent anticipated an improvement and 57 percent expected no change. Sixteen percent of manufacturers surveyed expected the economy to weaken, showing no change from 2012.

Over the next six months, 49 percent expect orders to increase, 42 percent believe production will rise, and 25 percent anticipate more exports.

The December 2013 jobs report from the Bureau of Labor Statistics, which was seen as positive, showed the number of manufacturing jobs continuing to trend upward with the addition of another 9,000 jobs. The economy added 77,000 manufacturing jobs in 2013.

"Manufacturers are heading into 2014 with increased confidence in the economy and an optimistic outlook for growth in both production and hiring," said Joe Langner, executive vice president -- mid-market solutions for Sage North America. "To that end, companies should continue to look at technology to augment and support their expansion.

"With manufacturers predicting much stronger growth with fewer order backlogs and inventory decreases, an inventory management tool, like Sage Inventory Advisor, becomes critical in helping businesses better anticipate needs and effectively adjust to demand. The cost of inventory can impact the bottom line dramatically due to the amount of capital invested in stock and associated warehousing costs. Sage Inventory Advisor provides a daily diagnostic of inventory, reduces time spent on forecasts, and resolves the optimal investment required to achieve target fill."

Domestic demand and global recovery driving growth
Among the three areas that manufacturers believe most positively impact their business are:

  • Stronger domestic demand (68 percent).
  • The global economic recovery (36 percent).
  • "Reshoring" of manufacturing (26 percent).

Two out of five manufacturers mentioned "reshoring" of manufacturing as a significant driver of business growth -- a noteworthy statistic as the American manufacturing segment continues to come back to life. Among those who believe "reshoring" is having a positive effect, many are gaining new business by offering customers greater flexibility to make product adjustments based on market response and the ability to produce smaller lots. None planned to offshore any manufacturing to other countries, and another 5 percent plan on bringing some production back to the U.S.

Forty-six percent of respondents are looking to invest to support their top priorities in the next six months. Investing to increase sales topped the list of investment priorities at 53 percent, followed by 36 percent each for investing to develop new markets and increase productivity.

Trends that respondents foresee as possibly having the most negative impact on their businesses include:

  • Domestic economic slowdown (53 percent).
  • Additional environmental or financial regulations (35 percent).
  • Global economic slowdown (29 percent).

"Compliance with evolving regulations and quality standards are a major challenge for midsized businesses," continued Langner. "In particular, in highly regulated industries such as food and beverage, pharmaceuticals or chemicals, manufacturers must keep track of all ingredients, allergens or hazardous substances that they process as part of a complex supply chain. Without the right management system to ensure the full traceability of ingredients and to optimize production planning and quality controls, the risk of non-compliance and the manufacturing costs skyrocket.

"Modern ERP systems such as Sage ERP X3 offer extensive forward and backward traceability capabilities that help quickly isolate quality issues, reduce the scope of a possible contamination and eventually, eliminate the risk and financial impact of a massive recall. Midsized manufacturers can dramatically lower production costs, while ensuring compliance with FDA regulations and minimizing the risk and cost of errors," Langner concluded.

The Sage Manufacturing Survey focused primarily on small and midsized manufacturers and distributors in the U.S. (defined as smaller than 100 employees for the purposes of this survey). Over 90 percent of manufacturers in the United States are considered small businesses according to the SBA. About nine out of ten of the businesses responding have been in business longer than ten years.

Methodology
The Sage Manufacturing Survey was a web-based survey of U. S. manufacturers and distributors, conducted among potential respondents who were designated by SIC as a manufacturer or distributor on October 31, 2013. By December 2, 215 responses were received. Of the respondents about two out of five were manufacturers, one out of five both manufactured and distributed their products and a similar proportion were distributors only. The margin of error is +/- 6% with a confidence level of 95 percent.

For more insight into the manufacturing industry, sign up for an Executive Panel webinar hosted by Aberdeen, where attendees will receive a snapshot of some of the issues and opportunities awaiting manufacturers in 2014: Executive Panel: What's in store for the manufacturing industry for 2014.

About The Sage Group plc
Sage Group plc is a leading global provider of business management software to small and medium sized companies, creating greater freedom for them to succeed. Sage understands how and why each business is unique. We provide products and services that suit varying needs, are a pleasure to use and are secure and efficient. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has over 6 million customers and more than 13,380 employees in 24 countries covering the UK & Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil. For further information please visit: www.sage.com.

For more information about Sage in North America, please visit the company website at NA.Sage.com. Follow Sage North America on Facebook, Facebook.com/Sage, and Twitter, Twitter.com/SageNAmerica.

©2014 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc. or its affiliated entities. All other trademarks are the property of their respective owners.

Press contact:
Melody Chalaban
Sage North America
[email protected]
949-754-3503

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!