Ninety-seven percent of respondents reported they expect revenues to be better than or equal to the first half of 2013. Forty-two percent anticipate revenue growth will be higher in the second half of 2013 than in the first half. A surge in customer demand (55 percent) and launch of new product lines (48 percent) were most often cited as the reasons for the expected increase.
The level of capital expenditures is expected to increase at one out of three companies in the second half of 2013.
A record number (47 percent) of small and midsize manufacturers expect to hire in the second half. This result is the highest level seen in these second half surveys since the start of the recession (up from 39 percent in 2012 and 36 percent in 2011).
Concern about upward cost pressure on raw materials has declined sharply from previous periods (63 percent of respondents expressed concern, down from 90 percent in February 2013).
The majority of small and midsized manufacturers (62 percent) believe that fiscal policy uncertainties have had a negative impact on their business and the overall economy. Most respondents (58 percent) anticipate the negative impact to continue into the next 12 months.
To request a copy of the 2013 Fall Prime Advantage Group Outlook Survey, go to www.primeadvantage.com/forms/paform.jsp?id=961.
Publication date: 9/16/2013