The number of organizations reporting expectations of increased revenue in the current year doubled from last year (from 24 to 51 percent), reflecting optimism about the recovering economy within the U.S. industrial sector, according to a survey by GlobalSpec. In addition, 66 percent also stated that company revenue is on target or above for 2010.

Overall, the survey’s data indicates that the economy is pointed in the right direction, although some companies and sectors are recovering faster than others, and complete recovery may still take some time. However, the survey showed that many companies are focusing on growth-oriented initiatives. Eighteen percent have increased headcount, compared to only 5 percent a year ago. Almost twice as many companies have increased spending in 2010 over 2009 (13 percent versus 7 percent). Forty-seven percent are focused on improving production efficiencies, with 44 percent focused on expanding sales into new markets, and 42 percent focused on quality.

GlobalSpec predicts these areas of focus will lead to spending on components, parts, and services in the second half of 2010 to develop new products and improve production processes and quality control. Seventy-one percent of survey respondents stated the component and services spending they account for or influence will increase or remain the same in the second half of 2010 compared to the first half, indicating stable or increasing budgets.

Survey results also show that spending reductions are slowing down. Compared to 2009, fewer companies are reducing spending in key areas. Overall, 64 percent of companies are reducing spending in 2010 compared to 73 percent in 2009. Specifically, fewer companies are reducing capital expenditures, travel, headcount, R&D spending, and sales and marketing spending.

For additional findings from the “GlobalSpec Industrial Indicator Survey,” visit http://bit.ly/2010GSIndicators.