Executive Briefings

One Third of Manufacturing CFOs See Recession Continuing Until Second Half of 2010

While some economic signs seem to be improving, nearly 38 percent of manufacturing CFOs and senior comptrollers surveyed by Grant Thornton LLP do not expect to see the U.S. economy coming out of the current recession until the second half of 2010. Nearly 27 percent expect the recession to end during the first half of 2010, and nearly 15 percent see a more bullish outlook, predicting the recession will end by the end of 2009. The bears weighed in also, however, with some 20 percent of CFOs not expecting to see a turnaround until 2011 or beyond.

A positive outlook was revealed in the area of energy costs, where only 32 percent indicated it was major concern, compared to the 47 percent in the previous March 2009 survey that indicated energy costs were a major concern.

Another good piece of news is that only 22 percent expect to reduce headcount over the next six months, a vast improvement over the nearly 47 percent in the earlier study that indicted they were reducing headcount.

The survey results represent 195 manufacturing CFOs and senior comptrollers from companies across the country with revenues from less than $100m to $5bn.

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While some economic signs seem to be improving, nearly 38 percent of manufacturing CFOs and senior comptrollers surveyed by Grant Thornton LLP do not expect to see the U.S. economy coming out of the current recession until the second half of 2010. Nearly 27 percent expect the recession to end during the first half of 2010, and nearly 15 percent see a more bullish outlook, predicting the recession will end by the end of 2009. The bears weighed in also, however, with some 20 percent of CFOs not expecting to see a turnaround until 2011 or beyond.

A positive outlook was revealed in the area of energy costs, where only 32 percent indicated it was major concern, compared to the 47 percent in the previous March 2009 survey that indicated energy costs were a major concern.

Another good piece of news is that only 22 percent expect to reduce headcount over the next six months, a vast improvement over the nearly 47 percent in the earlier study that indicted they were reducing headcount.

The survey results represent 195 manufacturing CFOs and senior comptrollers from companies across the country with revenues from less than $100m to $5bn.

Read Full Article