Industrial firms spending more, exceeding revenue goals

Organizations within the U.S. industrial sector are spending and the majority are on target to meet or exceed their revenue goals, according to a recent survey of manufacturing, technical and industrial professionals. These findings were uncovered in the sixth annual Industrial Indicator Survey conducted by GlobalSpec, a leading specialized search engine, information services and e-publishing company for the engineering, industrial and technical communities.

Sixty-nine percent of respondents indicated that their company’s revenue would be higher in 2007 than 2006, while 79 percent reported that 2007 revenue is on or ahead of target. Additionally, 82 percent of respondents reported that spending in the second half of 2007 will be ahead of or equal to spending in the first half of the year.

Results of the survey also reveal that companies within the industrial sector continue to innovate and diversify their offerings. Forty percent of companies are expanding sales into new markets in 2007, as compared to 35 percent of respondents in 2006. And 37 percent of companies are increasing product lines, up from 31 percent in 2006.

Organizations within the industrial sector continue to invest in key areas to support revenue growth in 2007, a trend that continues from 2006. Twenty-eight percent of respondents indicate that they are increasing sales and marketing spending, 28 percent are adding headcount and 26 percent are increasing capital expenditures.

“The survey results indicate that 2007 is shaping up as a good year in the industrial sector,” says Globalspec chief sales and marketing officer Angela Hribar. “Marketers looking to capitalize on this momentum should focus on making investments that capture the demand in the marketplace. By promoting their product and service portfolios to a broader audience in new markets, and by adopting online marketing solutions that help them easily be found by customers and prospects, companies have a good opportunity to gain business and strengthen their position in the marketplace.”

While there is increased momentum among companies in the industrial sector, rising costs continue to remain a concern. Fifty-four percent of companies name raw material costs as a top concern, up from 47 percent in 2006. And, 45 percent of respondents state that they are concerned about or focused on rising energy costs, up from 40 percent in 2006.

Additional findings from the GlobalSpec Sixth Annual Industrial Indicator Survey include:

• 33 percent of respondents reported working more hours than last year, and 53 percent are working on more projects
• 68 percent of companies outsource at least some engineering work, a slight increase over last year
• According to respondents, the most common areas for company reductions include spending, outsourcing manufacturing, consolidating vendors and travel

Access the survey results at http://www.globalspec.com/wp/GS_IndustrialIndicator_0807.