Firm Releases Results from First Regional Manufacturing Capability and Outlook Survey
HORSHAM, PA, April 29, 2013 — Kreischer Miller, a leading independent accounting, tax, and business advisory firm serving the Greater Philadelphia area since 1975, today announced that its Manufacturing Industry Group has released the results from its first Regional Manufacturing Capability and Outlook Survey. Key areas of the survey included anticipated growth rates and hiring plans, production wages and worker productivity, business improvement initiatives, and supply chain and profitability improvements.
In the survey, manufacturers in the Greater Philadelphia region expressed optimism about their growth prospects for 2013. Eighty-three percent of smaller manufacturers (annual revenues less than $20 million) and 56 percent of larger manufacturers (annual revenues greater than $20 million) expect positive growth this year.
Respondents also indicated a desire to continue or add to their business improvement programs this year in pursuit of sustainable profits. Key planned improvement initiatives identified for 2013 included Quality Certifications (46 percent), Preventive Maintenance (41 percent), Waste Reduction (38 percent), and Lean Manufacturing (28 percent). The most-cited planned supply chain improvement initiative for 2013 was Certification of Suppliers (51 percent), while IT System Improvements (62 percent) were cited as having the greatest impact on firm profitability.
However, the survey found that the region’s manufacturers are feeling the same pains and experiencing many of the same issues being reported by their peers nationwide. Many are not yet hiring, and those that are cannot necessarily find the right talent fit for their open positions. Seventy-six percent of respondents indicated they have no new full-time, part-time, or contract hiring plans in 2013. For those that are hiring, a large percentage indicated that finding the right talent has been either somewhat difficult (62 percent) or very difficult (19 percent), reflecting the shortage of skilled labor being experienced throughout the industry.
“Privately-held middle-market manufacturing firms in the Greater Philadelphia region are working hard to position themselves for increased success,” said Michael A. Coakley, Director in Kreischer Miller’s Audit & Accounting group and head of the firm’s Manufacturing Industry Group. “Most firms that responded to our survey seem to be keeping a tight lid on new hiring while investing in internal technology and human capital improvement initiatives based on priorities identified by their customers.”
Kreischer Miller surveyed privately-held and family-owned manufacturers in the Greater Philadelphia region, comprising most of southeastern Pennsylvania and southern New Jersey. Respondents included companies with annual revenues ranging from $3 million to $450 million and averaging $46 million. They also represent a cross section of the manufacturing sector, from more traditional chemical, industrial equipment, and metals verticals to the emerging aerospace, medical devices, and biotechnology market sectors.
To download a copy of the full survey results, visit http://www.kmco.com/industries/manufacturing/survey/.
Melanie L. Vivian
About Kreischer Miller
Kreischer Miller is a leading independent accounting, tax, and advisory firm, serving the Greater Philadelphia area since 1975. The firm is built to respond to the unique needs of growth-oriented private companies, helping them smoothly transition through growth phases, business cycles, and ownership changes. Kreischer Miller offers a wide range of services, including Audit & Accounting, Tax Strategies, Business Advisory, Human Capital Resources, and Technology Solutions across an array of industries, including manufacturing, distribution, construction, real estate, not-for-profits, media, government contracting, professional services, family-owned businesses, and investment firms. The firm provides insight and creative services to organizations that need to be able to quickly adapt and respond to changing market opportunities and challenges. To learn more, call us at 215.441.4600 or visit www.kmco.com.