Despite dismal economic news overall, some business sectors are showing signs of improvement: Fully one-half of industrial-sector companies are expecting annual revenues in 2010 to be higher than they were in 2009, compared with the 24% of companies that reported the same a year earlier, according to a survey from GlobalSpec.
In addition, 66% of industrial-sector companies report their 2010 annual revenues are running on or above target.
Below, other findings from GlobalSpec's ninth annual industrial indicator survey, which polled 515 US companies in the engineering, manufacturing, and related scientific and technical market segments.
With projected annual revenues on target, some industrial companies have begun to increase spending modestly in 2010 on growth-oriented initiatives:
- 18% are increasing headcount, compared with 5% of companies that did so in 2009.
- 17% are increasing spending on sales and marketing (vs. 15% in 2009).
- 15% are allocating more spending to overtime help (vs. 6% in 2009).
- 13% are increasing general spending (vs. 7% in 2009).
Just 30% are expanding sales into new markets, compared with 41% of companies that did so in 2009.
The recession has forced many companies to work harder on workforce productivity and operational efficiency: 47% of industrial companies report a greater focus on improving production efficiencies in 2010, and 12% cite efficiency improvements as their single greatest area of concern this year.
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