The results of this year’s PLANT Manufacturers’ Outlook Survey, based on 450 replies from senior manufacturing executives, suggests that manufacturers expect growth to be higher in 2014. Analysts have been predicting modest growth of 2.3% over the next five years.
The highlights of the survey include:
- Companies are getting most of their revenue from Canada (62%) and the US (27%) but business is going up by small steps in other areas such as Western Europe (2.6%) and China (almost 2%).
- Access to financing continues to be the biggest growth constraint, according to 49% of the executives, while 71% intend to finance using internally generated cash flow.
- More companies anticipate hiring over the next three years (58% compared to 54% in 2013), adding new lines of business (43% from 39%), and 33% intend to expand their plants.
- The largest priority for the next three years is investment in machinery and equipment (76%).
- On the innovation front, 32% of companies intend to spend 1% to 3% on R&D, but 27% are not sure what they will spend, and 47% plan to take advantage of the SR&ED tax credit.