By DE Editors
The number of organizations reporting expectations of increased revenue in the current year doubled from last year (from 24% to 51%), reflecting optimism about the recovering economy within the U.S. industrial sector. In addition, 66% also stated that company revenue is on target or above for 2010. These findings were reported in the ninth annual Industrial Indicator Survey conducted by GlobalSpec.
The survey showed that many companies are focusing on growth-oriented initiatives. Eighteen percent have increased headcount, compared to only five percent a year ago. Almost twice as many companies have increased spending in 2010 over 2009 (13% vs. 7%). Forty-seven percent are focused on improving production efficiencies, 44% on expanding sales into new markets, and 42% on quality.
These areas of focus will lead to spending on components, parts, and services in the second half of 2010 to develop new products and improve production processes and quality control. Seventy-one percent of survey respondents stated that the component and services spending they account for or influence will increase or remain the same in the second half of 2010 compared to the first half, indicating stable or increasing budgets.
Survey results also show that spending reductions are slowing down. Compared to 2009, fewer companies are reducing spending in key areas. Overall, 64% of companies are reducing spending in 2010 compared to 73% in 2009. Specifically, fewer companies are reducing capital expenditures, travel, headcount, R&D spending, and sales and marketing spending.
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Sources: Press materials received from the company and additional information gleaned from the company’s website.