U.S. Manufacturers Expect Revenue Growth in 2017 According to Manufacturing Outlook Survey

Yeo & Yeo CPAs & Business Consultants is releasing the results of the 2017 Leading Edge Alliance (LEA Global) National Manufacturing Outlook Survey.

With more than 250 participants, this survey report contains the expectations and opinions of manufacturing executives in more than 20 states across the country 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% expecting 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.

“We can offer a range of solutions to manufacturers, from tax credits and entity structuring, to technology advancements and implementing operational assessments that are important for making sound business decisions,” said Yeo & Yeo Principal and Manufacturing Services Group Leader Amy Buben . “We help manufacturers align the critical operations of their companies: finance, people, processes and technology.”

Read the entire survey report, 2017 National Manufacturing Outlook and Insights – Strategies to Overcome the Headwinds, for in-depth information about the challenges the respondents face, the key strategies that the best-run manufacturers believe will be most effective, and the outlook for 2017.