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Minority of Manufacturing Companies See Their Business as Thriving

By robottf | August 6, 2008

 

Economic concerns driven by accelerating inflation in energy and commodity costs have drastically eroded confidence in most manufacturing and wholesale distribution segments in the U.S., according to the RSM McGladrey 2008 Manufacturing and Wholesale Distribution (MWD) National Survey.

 

Overall, business conditions for most industries responding to the survey have eroded since 2006. Only 38 percent of 2008 survey respondents describe their business as “thriving and growing”–nearly 20 percent fewer than in 2006. This negative view extends to economic conditions. Nearly 80 percent of respondents were pessimistic about prospects for the U.S. economy–an increase from the previous two survey years.

 

Concerns about inflation contribute significantly to these declines. More than 80 percent of companies in the survey expect cost increases exceeding six percent in energy, raw materials, operating labor, freight, and benefits. Health care costs once again are projected to increase on an average exceeding 10 percent–meaning that health benefit expenses have tripled since the 2006 survey.

 

Source: IndustryWeek

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