GlobalSpec (www.globalspec.com) published its Eighth Annual Industrial Indicator Survey, highlighting the scope of the economic downturn in the industrial sector in 2009. The survey, which focused on GlobalSpec’s user base of engineering, technical, manufacturing and industrial professionals, asked respondents to identify current and projected financial performance, purchasing plans, and other business initiatives in their companies.
All told, 89% of the U.S. respondents indicated that they are involved in the purchasing of technical products, components or services, with 60 percent influencing more than $50,000 in annual component/equipment spending, and 29% influencing more than $200,000 in annual spending.
Highlights from the survey results include:
• 50%stated their company’s 2009 revenue will be lower than 2008 revenue
• 55%stated their company is below revenue projections set for 2009
• 54%stated their company is focused on expanding sales into new markets; 46% are focused on new product development
• 73% have reduced spending; 48% have reduced travel
• 44%have reduced headcount; 43% have implemented reduced work schedules
• 16% cited pricing pressure as the single biggest issue facing their company
• 10% stated that capacity utilization was the biggest concern
According to GlobalSpec, in the second half of 2008, when companies were making projections for 2009, many of them underestimated the negative impact the economy would have on their revenue. Now, GlobalSpec says half of companies expect 2009 revenue to be below 2008 and the majority (55%) stated that their company is operating below revenue projections set for 2009.
GlobalSpec says companies are now aggressively seeking growth and will resume spending in the second half of 2009. Despite — or perhaps because of — the tough economy, companies are seeking out growth opportunities. Even though 50% of companies expect 2009 revenue to be lower than 2008, another 50% expect revenue to be the same or higher.
GlobalSpec says 54% of companies are focused on expanding sales into new markets and 46% are focused on new product development. In addition, 44% are focused on quality and 47% on improving production efficiencies. These initiatives will lead to spending on components, parts and services in the second half of 2009 to develop new products and improve production processes and quality control. Survey respondents stated 36% of the component and services spending they directly purchase or influence will increase or remain the same in the second half of 2009 compared to the first half.
To review the full GlobalSpec Industrial Indicator survey, visit www.globalspec.com/wp/2009_Industrial_Indicator_GlobalSpecm.