Survey shows industrial companies confident in growth

From upgrading facilities to buying technology, industrial companies are investing confidently in their businesses to build upon a period of sustained growth, according to the results of the newest Industry Market Barometer™ (IMB) from ThomasNet, New York.

Forty-five percent of the companies that responded report growth over the last six months of 2010, and 88 percent of those are confident in their future expansion. The survey reveals a set of specific strategies that fueled this growth, such as customer-retention efforts and movement into new markets and product development. Bolstered by the results of these strategies, respondents are investing more in their companies and recruiting talent in anticipation of increased customer demand.

Nearly 3,400 professionals, most of whom represent small and midsize businesses, participated in this survey of buyers and sellers of industrial products and services. The research looked at their performance, outlook, and strategies for success. Respondents included business owners and managers, sales and marketing executives, engineers, and purchasing agents from manufacturers, distributors, and service companies in North America.

"Industrial buyers and sellers are busy collaborating in a way that is feeding and sustaining the sector's growth, which bodes well for the overall economy,” said Eileen Markowitz, president of Thomas Industrial Network."

Despite the healthy growth being reported, survey respondents acknowledge the hurdles ahead of them. Their top challenge (cited by 68 percent) is customers cutting back or going out of business, and they are addressing it by focusing on customer retention and service. Domestic competition is another challenge which respondents are tackling by competing more aggressively in core markets and pursuing business in new industries and U.S. geographies.

Companies surveyed list their top priorities as increasing production capacity, adding new lines of products and services, upgrading facilities, and managing costs. Thirty-seven percent planned to hire through the first half of 2011. The most common job openings include skilled trade workers (43 percent), line workers (36 percent), and engineering professionals (35 percent), in addition to customer service and sales/marketing staff.

The survey can be found here.