Click here to close now.

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.

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
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Alert Logic provides Security-as-a-Service for on-premises, cloud, and hybrid IT infrastructures, delivering deep security insight and continuous protection for cust...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations migh...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...