Industrial manufacturers feel economic recovery is on track

Prime Advantage, Chicago, has announced the results of its sixth Prime Advantage Group Outlook Survey, revealing the top economic concerns of midsized industrial manufacturers for 2010. The study results indicate that the sense of confidence that returned to small and midsized industrial manufacturers at the beginning of the year is giving way to some uncertainty midyear, in terms of expectations for revenue and customer demand.

Among the highlights of the survey findings, 36 percent of respondents indicated that they expected revenues to increase for the second half of 2010, which is nearly identical to the survey results from 12 months ago, when 37 percent of respondents predicted that revenues would increase for the remainder of 2009. Eighteen percent predict revenues will decrease over the next six months, compared to 11 percent in the last survey, which was conducted in February 2010.

The latest survey data was collected in August from 53 representatives of industrial manufacturing companies, including business owners, vice presidents of procurement, and senior purchasing professionals. The survey polled respondents on their projections for the next six months of the year, often in comparison to the past six months.

Forty-five percent of respondents said they expect revenues to stay the same for the second half of 2010, a slight uptick from February’s survey when 43 percent estimated no new growth in the immediate future, but still well off the 2009 midyear survey, when 55 percent predicted no new growth. Also, 20 percent predicted a decrease in capital spending from the first half of 2010.