2019 Manufacturing Survey Top Priorities and Hurdles

What are your company’s top priorities for 2019? If you said improving profitability, growing sales and addressing the workforce shortage, you are in good company.

We’ve highlighted below the top priorities and hurdles for manufacturers per the recent 2019 National Manufacturing Outlook and Insights report published by SVA Certified Public Accounts:

Top 3 Priorities of manufacturers surveyed said:

  1. 81% expected their revenue to grow in 2019! 50% of the responders said they expected the growth to come organically from domestic markets.
  2. 54% identified improving profitability as key opportunity, with 31% expecting to INCREASE spending on marketing and advertising initiatives and on technology.
  3. 43% named addressing workforce shortage as a key focus with 62% expecting hiring to INCREASE at their company and 59% will increase spending for employee wages.

So what are the top hurdles to capitalizing on the revenue growth in 2019?

Surveyed companies responded with the following:

  1. Raw materials costs saw a significant increase with recent changes to tariffs. Increasing profitability can make up for the added materials cost.
  2. Labor costs are also increasing due to inflationary factors across the U.S. In order to reach full potential, manufacturers need to improve financial performance to help offset the expense — positively impacting the bottom line.
  3. Lack of available talent with hiring on the rise leads to the increase in labor costs. Companies are needed to focus on retaining current talent by increasing employee engagement and investing in their teams.
  4. Competition is increasing due to steady growth for U.S. manufacturers. This is seen as the second greatest risk to growth in 2019. However, competition breeds innovation — a driver to success in today’s economy.

While 2019 looks to be a strong growth year for U.S. Manufacturers, there will still be the need to maximize profitability, retain strong performers and operate as efficiently as possible to seize the opportunities.

Your APICS Milwaukee Chapter is a non-profit association with a mission to serve Supply Chain professionals and their companies in the Milwaukee area. The APICS body of knowledge and certification courses have been proven to help companies reduce costs, improve ROI and invests in employees. We can deliver the training at your location or frequently host educational programs at the APICS Milwaukee offices in Milwaukee.

We also provide opportunities to learn from each other such as our upcoming breakfast and tour at Thermo Fisher on March 28th titled Back to Fundamentals: Detailed Planning and Scheduling. Thermo Fisher leaders will be sharing how APICS certification has made them more efficient. The tour will be limited to 20 people, so you’ll want to register early!

We look forward to helping you and your company in 2019. For additional information, contact us via our website at: http://apicsmilw.org or via email at: [email protected]