Ninety percent of manufacturers and distributors are optimistic about their future - which translates into more jobs, greater innovation and continued growth for the industry and U.S. economy as a whole - according to the spring 2011 McGladrey Manufacturing & Distribution Monitor.
Issued by RSM McGladrey Inc. and McGladrey & Pullen, LLP - which combined are one of the nation's largest providers of assurance, tax, consulting services and which operate under the McGladrey brand - the Monitor also found that 45 percent of companies are thriving and growing; twice as many compared to last year, and the highest instance since 2007.
"Manufacturing continues to be the North Star of the U.S. economy, and the Monitor confirms that companies are back in business," said Karen Kurek, national manufacturing lead for RSM McGladrey. "Manufacturing directly employs an estimated 12 million - and has added approximately 250,000 jobs since December 2009, so these results are very encouraging because clearly, a healthy manufacturing industry means a healthy U.S. economy."
In addition to increased optimism, key findings from the Monitor include:
* Sectors that reported the most growth are industrial equipment, transportation and energy and clean-tech.
* Last year, food and beverage was the leading sector in growth. Surprisingly, this year, it is the only sector reporting a decrease (due to rising commodity prices, the economy and consumer confidence).
* More than half of companies (56%) who responded plan to increase their workforce in the next 12 months.
* Manufacturers are aggressively staying competitive and successful through exporting and global expansion, which ultimately creates jobs in the U.S.
* While the overall outlook is bright, issues on the horizon include rising commodity prices, the state of the U.S. economy and federal regulation.
Previously referred to as the annual McGladrey Manufacturing & Wholesale Distribution Survey, beginning this spring, the Monitor will be conducted and results shared quarterly, providing respondents with timely information relevant to their industry and their business.
More findings from the 2011 spring Monitor are available on the McGladrey website. The summer Monitor will launch in early June, and results will be available in August.
The McGladrey Manufacturing & Distribution Monitor surveyed more than 900 industry leaders of manufacturing and distribution organizations to assess the current state of the industry and to ascertain what steps CEOs, CFOs and other executives are taking to grow their business and stay competitive. All data was collected online in response to invitations from McGladrey and from partnering associations and Chambers of Commerce across the United States. The Monitor was fielded on March 11, and data collection was completed on April 4.
About McGladrey
McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients' business needs. Together, they rank as the fifth largest U.S. provider of assurance, tax and consulting services, with 7,000 professionals and associates in nearly 90 offices. The two firms operate as separate legal entities in an alternative practice structure. McGladrey & Pullen is a licensed CPA firm that provides assurance services. RSM McGladrey is a leading professional services firm providing tax and consulting services. Both firms are members of RSM International, the sixth largest global network of independent accounting, tax and consulting firms. For more information, visit the McGladrey website at www.mcgladrey.com, join our Facebook fan page at McGladrey News and/or follow us on Twitter @McGladrey.