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Manufacturers Remain Upbeat

North American manufacturers remain optimistic about their growth prospects for 2012, according to a recent survey by Accenture. The results underscore sentiments in similar surveys among US purchasing professionals and manufacturers. (See: US Buyers Optimistic for 2012 and Data Points to More Onshoring.)

Eighty-nine percent of senior executives at North American manufacturers expect their company’s revenue to grow in 2012, and 50 percent expect growth of at least 6 percent, Accenture said in a press release on its survey. Almost two-thirds of manufacturers said they are optimistic about global economic growth.

The survey also provides additional evidence that manufacturers are looking to onshore more operations. Forty-three percent of the manufacturing respondents said they expect to move operations through 2012 and 2013, according to Accenture.

These moves would follow a flurry of activity that occurred in the last two years, during which 65 percent of the manufacturers said they had moved some operations. Executives most frequently said they moved operations to the United States (40 percent), China (28 percent) and Mexico (21 percent).

Richard Bergmann, managing director for manufacturing at Accenture, said this in the release about motivations for such moves: “We see a strong indication that North American manufacturers are relocating not just to drive down costs, but to seize growth opportunities and maintain customer satisfaction.”

The survey was not electronics-specific — respondents represented the automotive, consumer and industrial products, electronics and high technology, and aerospace and defense sectors — but the IPC is conducting a survey that is. (See: IPC Survey to Measure Onshoring Impact.) That survey is open to both members and nonmembers and will be available until May 25.

5 comments on “Manufacturers Remain Upbeat

  1. Susan Fourtané
    May 23, 2012

    Barbara,

    “Executives most frequently said they moved operations to the United States (40 percent), China (28 percent) and Mexico (21 percent).”

    This reminded me when I lived in Mexico, working closely in a B2B relationship in two of the biggest and most important industrial cities, Guadalajara and Monterrey. There, I had the opportunity to visit some of the factories, and see how things are done. It's not surprising that 21% of the manufacturing operations moved to Mexico. 

    -Susan 

  2. Barbara Jorgensen
    May 23, 2012

    Hi Susan,

    I've been experiencing  the same thing. In a couple of conversations over the past few weeks, including during the EDS trade show, individuals raved about Mexico. Not only is it easy to get to from the US, but the workforce and infrastructure are superior to many sites in Asia. In a way I was surprised, becuase all that stuff has been in the works for 20-odd years with the maquiladora program and NAFTA. It seems to me Mexico dropped off the map when China hit big, and now it is back on the radar again. Assuming they've been progressing during that 10-year “silent period,” Mexico's offerings are no doubt close to state of the art by now.

    Note to self: arrange trip to Mexico to see them first hand 😉

  3. elctrnx_lyf
    May 23, 2012

    Finally there are some good news for us manufacturing industry with strong evidence from Accenture. It could before interesting see what is happening exactly with in the electronics industry.

  4. Susan Fourtané
    May 26, 2012

    Barbara, 

    And if you go to Guadalajara, don't forget to spend a couple of days in Puerto Vallarta, for researching reasons, of course. 😀

    -Susan 

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