According to a survey performed by Prime Advantage, a buying consortium for mid-sized manufacturers, U.S. industrial manufacturing companies show continued optimism about revenues and employment, despite concerns about rising costs and a lack of qualified workers.

Summary of findings:

• Forty-nine percent of respondents reported they expect revenues to increase in the second half of 2014 compared to the first half. Of these, 22% anticipate revenue growth will be more than 10%, while 28% expect revenue growth of up to 10%.
• Capital expenditures are expected to increase in the second half of 2014 for 42% of the mid-sized manufacturing companies in the group, an increase of twelve percentage points from 2013’s survey projections.
• Fifty percent of companies expect to hire in the next six months and only one percent are predicting layoffs.
• The cost of raw materials continues to be the main purchasing concern for members; the survey indicates an increased focus on process cost savings and efficiency. The top prediction for potential barriers to continued business growth is a lack of qualified workers at 53%.

Revenues and capital spending remain strong for the rest of 2014:

Forty-nine percent of small and midsize manufacturers anticipate revenues will increase in the second half of 2014, an increase from the 42% that predicted a revenue increase in the last half of 2013. Just two percent believe they may be looking at a decrease in revenue up to 10%. Survey respondents indicate that improved customer demand (63%) will fuel this expected revenue increase.

Once again, capital expenditures appear to be on solid ground for the last half of 2014 among these small and mid-sized U.S. manufacturers, with 42% predicting an increase from H1 2014 spending (a significant increase over the 30% of companies that planned to increase in capital expenditures over the final six months of 2013).

To view the full Prime Advantage news release, click here.