Dean Dorton, through our alliance with RSM, has access to many resources to assist us in serving our clients. One such resource is the Manufacturing & Distribution Monitor Report, which is an annual report based on the results of an extensive survey of manufacturing and distribution companies across the United States.
The 2015 report includes a great deal of information about 2015 results as well as the outlook of the manufacturing community for 2016 and beyond.
With employment and wages in the United States rising and the dollar gaining strength, it is tempting to think that the U.S. economy has recovered. Although expectations are not quite as high as they were at the beginning of 2015, the outlook for manufacturing remains positive and industry executives anticipate healthy profits to come in the next 12 months.
- Privately or closely held companies, managing labor and equipment intensive operations and serving a variety of customer segments anticipate healthy profits, on average 11 percent, in the next 12 months.
- Companies still rely primarily on domestic revenue to drive growth. By the end of the year, the majority of companies will be selling products and services outside of their home country. Non-U.S. companies are showing more appetite for pursuing new international markets.
- Companies continue to purchase the majority of their goods and materials domestically; however, by the end of the year, 63 percent of U.S. and 68 percent of non-U.S. companies intend to be doing at least some of their sourcing internationally.
Industry executives in U.S. based companies continue to face significant challenges from offshore competition. The U.S. economy has made the domestic market very attractive and other markets are less economically stable or inviting to foreign investment. We are sharing this report with you to assist you in your annual planning and risk assessment processes.