The 2010 GlobalSpec Industrial Indicators Survey provided some hopeful data about the industrial sector. 67 percent of industrial professionals stated that their company revenue is above or on target for 2010. The worst of the economic downturn appears to be over, with many companies now focusing on growth-oriented initiatives they were unable to support last year. For example:
- 18 percent of industrial companies have increased headcount, compared to only five percent a year ago.
- Almost twice as many companies have increased spending (13 percent) this year compared to a year ago (7 percent).
- 15 percent of companies are increasing research & development spending, a 50 percent increase over last year.
What areas of business are beneficiaries of this growth-oriented spending? 47 percent of companies are focused on improving production efficiencies, 42 percent on quality and 39 percent on new product development.
In order to support the development of new products and improvement of production processes and quality control, companies will need to spend on components, parts and services in the second half of 2010. 71 percent of survey respondents stated that the component and services spending they directly purchase or influence will increase or remain the same in the second half of 2010 compared to the first half, indicating stable or increasing budgets.
The takeaway for suppliers and manufacturers is to continue to market or ramp up efforts so that their company, products and services can be found by customers and prospects. Be sure to include online marketing as an integral part of your marketing mix, as research has shown that over 90 percent of engineers use the Internet to locate suppliers, components and products.