|By Marketwired .||
|February 5, 2014 05:29 PM EST||
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.
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.
©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.
Sage North America
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 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 Dev...
Jan. 17, 2017 02:45 PM EST Reads: 4,084
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
Jan. 17, 2017 02:30 PM EST Reads: 1,725
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International 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 developm...
Jan. 17, 2017 02:15 PM EST Reads: 3,338
"We formed Formation several years ago to really address the need for bring complete modernization and software-defined storage to the more classic private cloud marketplace," stated Mark Lewis, Chairman and CEO of Formation Data Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 17, 2017 02:15 PM EST Reads: 6,305
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 17, 2017 02:15 PM EST Reads: 3,621
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Jan. 17, 2017 02:00 PM EST Reads: 5,348
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Jan. 17, 2017 02:00 PM EST Reads: 1,057
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Jan. 17, 2017 01:45 PM EST Reads: 905
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Jan. 17, 2017 01:45 PM EST Reads: 176
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...
Jan. 17, 2017 01:45 PM EST Reads: 794
“RackN is a software company and we take how a hybrid infrastructure scenario, which consists of clouds, virtualization, traditional data center technologies - how to make them all work together seamlessly from an operational perspective,” stated Dan Choquette, Founder of RackN, in this SYS-CON.tv interview at @DevOpsSummit at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 17, 2017 01:15 PM EST Reads: 3,507
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 17, 2017 12:45 PM EST Reads: 4,404
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 17, 2017 12:45 PM EST Reads: 5,529
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices 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 business opportunity. Submit your speaking proposal ...
Jan. 17, 2017 12:45 PM EST Reads: 5,046
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 17, 2017 12:45 PM EST Reads: 3,410