Survey reveals manufacturers’ confidence in economy through 2014

Chicago-based Prime Advantage, a buying consortium for midsized manufacturers, has announced the findings of its 13th "Purchasing and Manufacturing Survey," revealing financial projections and top concerns of more than 700 U.S. industrial manufacturing companies. The results show continued optimism about revenues and employment, despite concerns about rising costs and a lack of qualified workers.

Forty-nine percent of respondents expect revenues to increase in the second half of 2014 compared to the first half. Of these, 22 percent anticipate revenue growth will be more than 10 percent greater this year than last year, while 28 percent expect revenue growth of up to 10 percent.

Capital expenditures are expected to increase in the second half of 2014 for 42 percent of the midsized manufacturing companies in the group, an increase of 12 percent from 2013’s survey projections. Fifty percent of companies expect to hire in the next six months, and only 1 percent are predicting layoffs.

The cost of raw materials continues to be the main purchasing concern for members; the survey indicates an increased focus on process cost savings and efficiency. The top prediction for potential barriers to continued business growth is a lack of qualified workers at 53 percent.