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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.