GlobalSpec Survey Reports Optimistic Market Conditions
Survey results anticipate industrial companies' sales and departmental budgets will be up this year.
June 27, 2011
By DE Editors
GlobalSpec has announced the availability of its newest research report, “2011 Economic Outlook Survey: Improving Conditions Present Market Opportunity for Suppliers.” The survey results reflect economic indicators that are more optimistic than they have been in several years, according to the company, with spending and sales expected to increase for a majority of companies.
According to respondents, 55% of industrial companies anticipate sales will be up in 2011, while only 24% expect sales to be down. Departmental budgets are also increasing, with 30% of engineers and technical professionals reporting that their departments plan to increase budgets in 2011, compared to only 18% in 2010.
The report features the results of a survey of more than 1,000 engineering, technical, manufacturing and industrial professionals in the United States, 54% of whom influence more than $50,000 in annual spending on components, equipment or services.
Other highlights from the 2011 Economic Outlook Survey results include:
- From 2010 to 2011, the percentage of companies spending more has increased in 24 of 28 industries, with the other four industries holding at the same level of spending as last year. The top industries spending more are manufacturing equipment, test and measurement equipment, fabrication services, building and construction, process equipment, and electronic components.
- Industries with the largest percentage of respondents anticipating higher sales are paper, printing and textiles (82%), packaging machinery (78%), and chemicals, plastics and rubber (74%). Oil and gas saw a significant jump—from 40% of respondents in 2010 to 72% in 2011—in those who expect sales to be up this year. The automotive and consumer products/electronics industries also anticipate higher sales.
- The top three areas where industrial companies are investing the most are researching future products (50%), new product design and development (49%) and entering new markets (49%).
- Engineers are devoting more time to projects to save energy (45%), reduce waste and scrap (43%), and increase production capacity of existing lines (43%).
- Every industry will experience the same or increased spending in 2011, according to the survey. Eighty-five percent of respondents said they would spend the same or more for mechanical components, 84% for electrical and electronic components, and 82% for calibration and testing services, as well as materials, chemicals and adhesives.
- The majority of engineers and technical professionals (51%) are working on more projects in 2011 than they did in 2010, up nine percentage points from last year’s survey.
“This is the brightest economic outlook the industrial market has had in the past few years,” says Chris Chariton, senior vice president of product management and supplier marketing for GlobalSpec. “Smart suppliers continue to enhance their marketing strategies in order to achieve a strong return on their investments. The most successful suppliers are investing in measurable marketing programs as they seek to expand their online presence into growing markets, and this report provides excellent recommendations that will enable to take advantage of both the short- and long-term market opportunities.”
For more information, visit GlobalSpec.
Sources: Press materials received from the company and additional information gleaned from the company’s website.
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