Industrial manufacturing financial execs express record levels of optimism

Chicago-based Prime Advantage, a group purchasing organization for midsized manufacturers, has announced the findings of the 9th edition of its CFO Survey, revealing the financial projections and top concerns of industrial manufacturing companies. The results show that optimism in manufacturing among the group's members is at its highest levels since the annual survey’s inception in 2008.

A survey record high of 71 percent of members are more optimistic about their companies’ financial prospects for the coming year as compared to last. This result is a 17-point jump from 2016, the largest year-over-year increase in optimism since 2010, when manufacturers were eagerly anticipating the Great Recession would soon end.

Faith in the U.S. economy has skyrocketed compared to last year, as 74 percent of financial executives are more optimistic than they were at this time last year. This 48-point catapult over 2016 is by far the largest increase for this category since the survey began.

Hiring qualified talent continues to be a top concern for manufacturing companies in 2017. Sixty-seven percent of members are expecting to increase their headcount this year, but 78 percent are also struggling to fill open positions.

Member companies continue to project fiscal health for the coming year, crediting new product lines, new customer acquisitions, and an overall increase in customer demand. Expectations are high as 84 percent are stating that revenues will increase in 2017. A survey record low of only 2 percent expect a decline, a nine-point drop over the previous year.

With respect to the most realistic and actionable ways the White House administration and Congress can help businesses, 94 percent of CFOs cited comprehensive tax reform as one of the top three tactics government could use.

The survey, conducted in December 2016, involved financial executives and leaders from member companies with annual revenues from $10 million and $4 billion, most of which are between $20 million and $500 million.

To request a copy of the full report, visit www.primeadvantage.com/surveys/.