Report says U.S. is primed for manufacturing renaissance

According to BDO’s "2017 Manufacturing RiskFactor Report," although facing multiple concerns, U.S. manufacturers are believed to be primed for a manufacturing renaissance. Manufacturers reportedly are feeling the promise of the fourth industrial revolution and the new administration’s vocal support for the industry—and their confidence is at an all-time high, per the National Association of Manufacturers (NAM).

“While manufacturing companies are riding a wave of optimism propelled by the Trump administration’s stated focus on regulatory reprieve, the feasibility and speed of potential reform is still murky,” said Rick Schreiber, leader of BDO’s Manufacturing & Distribution practice and NAM board member. “There’s hope in the industry that a solid level of balance will be reinstated between the greater good some regulations seek to achieve and the high costs of compliance.”

Research indicates that the top 20 risk factors cited in the 10-K filings of the 100 largest manufacturers in the fabricated metal, food processing, machinery, plastic and rubber, and food manufacturing sectors are:

1. Supplier, vendor, or distributor disruption
2. Federal, state, and local regulations
3. Labor costs, retention, and outsourcing
4. General economic conditions, including disruptions in the financial markets
5. Competition and pricing pressure
6. Environmental regulations and liability
7. Cybersecurity breaches
8. International operations
9. Failure to execute growth or efficiency strategy
10. Foreign currency exposure
11. M&A, joint ventures, and partnerships
12. Operational infrastructure, including transportation systems and technology
13. Loss of demand for products or services
14. Commodity, component, and raw materials costs and availability
15. Natural disasters, terrorism, and geopolitical events
16. Access to capital, financing, and liquidity
17. International trade policies
18. Innovation and meeting consumer needs/preferences
19. Litigation and legal proceedings
20. Product contamination and recalls

The full report can be accessed here.