RSM US LLP recently released the 2016 RSM Manufacturing Monitor Report. This year’s annual manufacturing survey reports optimism both at home and abroad with nearly 70 percent of manufacturers anticipating an increase in operating profits. Automotive, aerospace and construction materials sectors have experienced a record-breaking year according to the survey; while energy, agriculture and general industrial manufacturing are feeling the effects of decreasing demand.
What will it take for all sectors to accomplish their revenue goals in the coming year? The report suggests five key focus areas:
- Growth: As optimism drives increased spending, they should remain realistic in the potential return on their investments.
- Global: With U.S. manufacturers focusing on the domestic market, they may lose out on some opportunities to the initiative of non-U.S. manufacturers. Global expansion, however, is challenging and requires careful analysis.
- Technology: The strongest companies are leveraging technology to help drive toward their increasing revenue goals. Over 60% will invest in enterprise networks, mobile technologies, customer relationship management, and process technologies.
- Margins: As companies look to invest in process improvements, pricing pressures from customers require companies to sharply focus on those improvements that will improve profitability.
- Risk: Companies reported a strong need to manage business and cyber security risks. For U.S. companies, those likely to plan major mitigation initiatives were 36 percent business risk and 44 percent cyber security. For non-U.S. companies, the results were higher with 51 percent business risk and 53 percent cyber security initiatives.
For the complete data and analysis, download the entire RSM 2016 Manufacturing Monitor Report below. If you would like to discuss the report further or have questions, please contact Brant Kennedy, CPA at 800.880.7800 ext. 1425 or email@example.com.