17/11/10 – US Survey Optimistic About 2011 Manufacturing Outlook
17 November 2010
The second annual Manufacturing Outlook Survey carried out by the American Society for Quality, ASQ, indicates that a vast majority of manufacturers are optimistic about an economic upturn in 2011 for their companies.
The survey states 68% of respondents employed in the manufacturing sector predict their organizations will experience revenue growth.
Despite the economic landscape, a year ago, 64.7 % of respondents predicted that revenue would grow in 2010. This year, when asked if their organization did experience revenue growth in 2010, 67% indicated “yes.”
More than 1,200 manufacturing professionals from the United States and Canada responded to the online survey October 24 – November 5, 2010. The two areas from the survey that showed the most promise were in the area of payroll and operational budgets.
Only 18% expect a pay freeze in 2011 — compared to 44.8% in 2010 at their organizations and 18% predict mandatory budget cuts in 2011 — whereas 35.2% did in 2010. The survey showed that 48% of respondent expect salary/merit increase and 47% expect continued efforts to reduce costs. A similar number of respondents, 42%, believed their organizations would maintain staffing levels and increase staffing.
As many organizations had to make sacrifices to survive a down economy, the survey inquired whether staff reductions or other cutbacks implemented in 2010 negatively impacted the quality of the products/services delivered. Some 33% of respondents believed that the quality of their products/services was negatively impacted will 32% believed that the quality did not suffer.
Respondents were also asked what one tip they would give to manufacturers to ensure revenue growth in 2011. The top four tips, were:
· Continue to take part in continuous improvement practices, and increase use of quality processes
· Increase customer satisfaction
· Implement more lean processes
· Reduce costs/eliminate waste