September 13, 2012
Prime Advantage, a Chicago-based buying consortium for midsized manufacturers, has announced the findings of its 10th semiannual Group Outlook Survey, revealing financial projections and top concerns of its member companies for the second half of 2012.
The majority of surveyed manufacturers report healthy revenue projections and strong hiring and capital spending plans. For a small portion of respondents, however, these plans may be delayed because of uncertainty about the results of the federal elections.
Forty-eight percent of respondents expect their revenues to increase from the first half of 2012. Overall increase in customer demand was named as the primary reason for the revenue growth in 58 percent of responses, followed by the introducution of new product lines (32 percent). Midsized manufacturing companies expect to increase new hires at a greater rate in the second half of 2012 than in the same period in 2011.
While costs pressures from raw materials continue to decrease, health care costs have become the second-highest cost concern for manufacturers.
Capital spending also is set to increase for one-third of polled companies in the second half of 2012, compared to a year ago, when only one-quarter of respondents budgeted an increase in capital spending.