Marcum Manufacturing Survey: Optimism Continues Despite Challenges

Manufacturers are feeling optimistic, according to the 2022 Marcum Manufacturing Survey. The annual survey is produced by the Manufacturing & Distribution group of accounting and advisory firm Marcum LLP.

Photo Credit: Unknown

Nearly all respondents to this year’s survey saw an increase in revenue year over year, and well over half expect to keep growing through 2022, approximating the positive outlook that two out of three respondents expressed as a whole.

Among the report’s key findings:

85% of respondents reported revenue increases, despite headwinds from labor and logistics, sourcing difficulties, and ongoing struggles with inflation. 95% of respondents expect 2022 revenue to meet or exceed 2021, and only 5% anticipate a decline. Overall, 60% of respondents have positive feelings about manufacturing’s outlook in 2022.
Replacing the skilled labor lost during the Great Resignation was cited as the biggest challenge by 83% of respondents — by far the largest concern among manufacturers. At the same time, 77% of respondents plan to increase headcount in the next 12 months. Given that, and knowing how competitive the labor environment remains, 86% of respondents raised wages, 66% improved benefits, and more than half increased bonuses last year.
The top three priorities cited by manufacturers for the immediate future are increasing productivity, leveraging technology to drive innovation and improve quality, and expanding product and service offerings.
Half of all respondents invested in new technology last year, and another 40% plan to do so this year.
40% of respondents are seeking to diversify their supply chains, with 63% of respondents reporting shipping delays, and a third unable to meet demand last year due to supply chain issues. Ongoing supply chain disruption was a top concern for 45% of respondents, up from 23% last year.
Manufacturers are responding to escalating inflation with price changes. 70% of respondents plan to raise prices this year, renegotiate with suppliers, and a have renewed focus on efficiency.

To learn more, a review of Valve Magazine’s August Market Outlook Workshop appears in the fall issue, providing more insight into manufacturing’s future down the line.