percent saying healthcare costs, 25 percent saying the ability to forecast results, and 22 percent saying that maintaining employee morale and productivity were top internal issues for their companies’ leaders.

Level pricing

When asked to forecast changes in 2010, 64 percent indicated that their companies would keep prices the same this year, with 27 percent saying they believed prices would increase. And in another sign of optimism, 45 percent predicted that productivity, in terms of hours worked, would increase in 2010, while 48 percent predicted corporate earnings would increase, 39 percent predicted that wages/salaries would increase, and 42 percent predicted that new product development spending would increase. However, 79 percent also predicted that healthcare costs would increase in 2010. In addition, 30 percent are planning to increase both capital spending and marketing/advertising spending in 2010.

“It is clear that small and mid-sized manufacturers are optimistic about the future,” said Louise O’Sullivan, president, founder and chief executive officer of Prime Advantage. “However, our CFOs also understand that good business planning and the savings realized through our programs are vital to their financial success.”

The Prime Advantage Group CFO Survey was conducted in January using an online survey platform. Prime Advantage surveyed a cross section of finance executives from its member companies consisting of industrial manufacturing firms from various sectors with annual revenues ranging between $10 million and $10 billion, of which the majority ranges between $20 million and $500 million.

The survey received a 45 percent response rate from 80 financial executives representing U.S.-based manufacturers in more than 25 different industries, including commercial foodservice, packaging, truck/trailer, material handling, food processing and construction.

American Machine Tool Distributors’ Association
www.amtda.org

Prime Advantage
www.primeadvantage.com

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