InterOcean Advisors has released its annual InterOcean Manufacturing Survey, which surveyed executives of major players in the manufacturing sector to provide insight into the current manufacturing landscape. Questions were designed to address recent trends and reveal prospects for the next twelve months. To gain a complete picture of the manufacturing sector, InterOcean targeted companies which operate production facilities in InterOcean’s key manufacturing verticals (aerospace & defense, automotive, building products, capital equipment, flow control, metals and plastics & packaging). Survey questions focused on revenue growth and growth drivers, M&A activity, changes in the business environment and perspectives on current and future market conditions. The data in this report includes information from the survey responses and was analyzed both independently and in comparison to responses contained in the 2013 InterOcean Manufacturing Survey.
Key findings from this year’s survey were:
› Labor shortages are a serious concern. Skilled labor has become increasing difficult to find. No respondents indicated a greater ease in recruiting skilled labor in the last twelve months and nearly 60% of respondents reported increasing difficulty. Shortages of skilled and unskilled labor were reported as the most universal impediments to growth in the last twelve months.
› Demand, volume, and revenue have all improved. More than 50% of manufacturers surveyed reported increased LTM revenues. Less than 25% reported declines, compared to 35% of respondents last year. Contributing to significant growth in the last twelve months, 42% reported improved market conditions and related demand.
› Manufactures are preparing for growth. New this year, InterOcean asked executives to comment on expected capital expenditures over the next twelve months. More than 50% of respondents expect an increase and less than 8% a decrease.
› The current healthy M&A market is expected to continue. Nearly 50% of respondents plan to make an acquisition in the next twelve months, compared to 39% from last year.
Information pertaining to the identity of recipients, their firms, and the underlying companies remains completely anonymous. Information from all respondents was aggregated by InterOcean prior to distribution.
Click here to read the report.