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Oct 18, 2024, 08:12 ET
Manufacturing Executives Adapt to Evolving Economic Landscape with Technological Innovations and Strategic Planning
NEW YORK, Oct. 18, 2024 /PRNewswire/ — Marcum’s 2024 National Manufacturing Survey provides valuable insights into the sector’s performance, challenges, and strategies. The survey, produced by the accounting and advisory firm’s Consumer & Industrial Products Group, highlights a cautious yet optimistic outlook as manufacturers navigate revenue declines, labor shortages, and supply chain stabilization.
Revenues Decline but Optimism Remains
Over 1/3 of respondents reported a year-over-year revenue decline, with 20% experiencing declines of at least 10%.Post this
Over one-third of respondents reported a year-over-year revenue decline, with 20% experiencing declines of at least 10%. Despite these figures, only 15% of manufacturers expressed significant concern about revenue in the upcoming year, underscoring resilient optimism in the sector.
“Despite facing numerous challenges, the manufacturing industry has shown remarkable resilience and adaptability. Our survey indicates that technological advancements and strategic planning are pivotal for future growth. It’s crucial for manufacturers to continue leveraging these tools to overcome obstacles and drive innovation,” said Michael Sacco, Marcum’s National Consumer & Industrial Products Leader.
Impact of Higher Interest Rates
High interest rates have curtailed capital spending, leading to project delays and fewer opportunities for bidding. In response, 43% of companies have raised prices, while 40% have reduced expenses to mitigate financial pressures.
Technological Opportunities
The survey underscores technology’s role in driving efficiency, automation, and competitive advantage. Notably, 64% of respondents plan to invest in technology next year—the highest percentage ever recorded since Marcum began the survey. Furthermore, 62% have recently adopted new technologies, with growing interest in AI and augmented learning.
“The data reveals a promising trend towards increased investment in technology and strategic planning. These elements are essential for navigating the current economic landscape and ensuring long-term success. At Marcum, we are committed to supporting our clients in implementing these strategies,” added Jonathan Shoop, Marcum’s Midwest Consumer & Industrial Products Leader.
Key Findings:
- Labor as a Critical Challenge:Â Securing and retaining skilled labor remains the top challenge for the fourth consecutive year. A notable 30% of manufacturers reported a shrinking workforce, a significant increase from 10% last year.
- Rise in Strategic Planning:Â There has been an increase in strategic planning among manufacturers, though the underutilization of tax incentives remains a concern, with 26% not leveraging any tax benefits.
- Sales and Marketing Trends:Â There has been a significant uptick in interest and planning for sales and marketing strategies, with 62% of manufacturers enhancing their efforts to stay competitive.
- Supply Chain Stabilization:Â For the first time in three years, supply chain management is no longer among the top three challenges for manufacturers, a result of pandemic-era supply chain issues stabilizing.
The full Marcum 2024 National Manufacturing Survey report is available for download here:
About Marcum LLP
Marcum LLP is a top-ranked national accounting and advisory firm dedicated to helping entrepreneurial, middle-market companies and high net worth individuals achieve their goals. Marcum’s industry-focused practices offer deep insight and specialized services to privately held and publicly registered companies, and nonprofit and social sector organizations. The Firm also provides a full complement of technology, wealth management, and executive search and staffing services. Headquartered in New York City, Marcum has offices in major business markets across the U.S. and select international locations. #AskMarcum.
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