Survey: Manufacturing suppliers see growth ahead for 2009
MFGWatch survey finds suppliers optimistic
By Purchasing Staff -- Purchasing, 4/9/2009 2:00:00 AM
Suppliers to manufacturing industries expect growth in the months ahead and are optimistic about a global economic rebound.
That's according to results of a January survey of 570 North American suppliers by the online manufacturing marketplace MFG.com. The MFGWatch Survey polls manufacturing suppliers on topics such as the state of the global economy, current business conditions and survival plans to combat the economic downturn. Forty-five percent of respondents see growth in 2009, while 28% project their business to remain at last year's level.
The MFGWatch survey asked if participants are optimistic about the global industry rebounding in 2009. Thirty-seven percent of respondents stated they are optimistic, 28% are neutral on the possibility and 34% think a 2009 rebound is unlikely.
Queried about overall business conditions, 51% replied that their businesses are experiencing declining conditions, while 49% stated improving or excellent business conditions. These respondents were also asked if they notice an increase or decrease in new demand over the past six months. Fifty percent responded there has been a decrease in demand, while 28% report there has been no change in customer demand. Eighteen percent experienced an increase in business from their current customers. Three percent are not sure.
Suppliers were also asked if their customers had increased or decreased the volume (both value and quantity) of their orders in the past six months. Sixty-one percent responded their orders had decreased, 22% have no change in business, while 15% are experiencing an increase in orders from their client base. Two percent are not sure.
In response to the current economy, 18% of suppliers said they have stopped hiring new employees; 15% postponed or cancelled capital equipment purchases; 12% have not stopped any purchases to date; 11% stopped hiring replacement employees and 11% curtailed business travel to customers and trade shows.
In reference to expanding their business, 75% of suppliers stated they are looking to expand their offerings into other industries. The respondents saw promise for additional contract manufacturing business in a variety of industries.
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