Executive Briefings

Manufacturers Said to Be Upbeat This Year About Making IT Investments, Expanding Supplier Bases

This year is expected to be one of growth, with many product development companies looking to make new technology investments and expand their supplier base, according to a survey of 8,840 sourcing professionals by MFG.com, an online manufacturing marketplace.

The canvass included managers across the automotive, aerospace, medical, industrial equipment, consumer products and textiles industries.

With 76 percent of survey respondents expecting to spend the same or more on contract manufacturing services this year, manufacturers can look positively at the future. Additionally, more than half of the participants reported that they expanded their supply chain in 2012 and 80 percent expect to maintain or expand their supply chain in 2013.

Quality of products is by far the leading criteria for selecting a new supplier, as indicated by 84 percent of respondents. Overall cost is also a major factor, but falls in second by 28 percent. This result, combined with the responses to a reshoring question in the survey, clearly indicates that many companies are looking into supply chain alternatives that don't require them to compromise on product quality in order to reduce costs.

"The most recent MFGWatch sourcing survey tells us that the manufacturing industry in North America is continuing to rebuild itself," said Mitch Free, founder and CEO of MFG.com. "It is no surprise that quality of products is the top concern for sourcing professionals selecting a new supplier. Product quality over total cost continues to be the new norm, which is a really good thing for manufacturers. Furthermore, a projection of increased technology investments will contribute to the continuing growth of North American manufacturing."

Source: MFG.com

The canvass included managers across the automotive, aerospace, medical, industrial equipment, consumer products and textiles industries.

With 76 percent of survey respondents expecting to spend the same or more on contract manufacturing services this year, manufacturers can look positively at the future. Additionally, more than half of the participants reported that they expanded their supply chain in 2012 and 80 percent expect to maintain or expand their supply chain in 2013.

Quality of products is by far the leading criteria for selecting a new supplier, as indicated by 84 percent of respondents. Overall cost is also a major factor, but falls in second by 28 percent. This result, combined with the responses to a reshoring question in the survey, clearly indicates that many companies are looking into supply chain alternatives that don't require them to compromise on product quality in order to reduce costs.

"The most recent MFGWatch sourcing survey tells us that the manufacturing industry in North America is continuing to rebuild itself," said Mitch Free, founder and CEO of MFG.com. "It is no surprise that quality of products is the top concern for sourcing professionals selecting a new supplier. Product quality over total cost continues to be the new norm, which is a really good thing for manufacturers. Furthermore, a projection of increased technology investments will contribute to the continuing growth of North American manufacturing."

Source: MFG.com