Each year, here at Prime Advantage, we survey our Members to see where manufacturing, and specifically procurement within manufacturing, is today and where it’s heading. It’s always encouraging to see when the temperature of this porridge is “hot” or at least, “just right.” Well the results of Prime Advantage’s 8th Annual Purchasing and Manufacturing Survey are in, with some truly fascinating discoveries. On the bright side, 97% of our Member companies are expecting revenue to either jump or sustain in the next 12 months, in comparison to 80% at this time last year.
On the other side of the coin, 52% are indicating that they have not been able to implement cost-saving and performance-improving component changes because of limited engineering bandwidth for approvals. Prime Advantage’s new Contract Services offering will hopefully help our Members in this area so that they can reap the results of their full engineering potential.
Here is a taste of some of the other findings that really peaked our interest:
- 81% of revenue growth for our Members has been fueled by bringing on new customers and increasing current customer demand.
- 76% of procurement professionals said that they currently play an active role in the creation of their company's new offerings.
- 40% of respondents expect to hire in the next 6 months
- Concern about raw materials pricing has increased, with 95% of respondents citing it as the top cost pressure concern
- The biggest external barrier to business growth is the lack of qualified workers (cited by 48%), followed by uncertainty of federal elections (42%).