LUTZ BUSINESS INSIGHTS

 

DESPITE INDUSTRY HEADWINDS, U.S. MANUFACTURERS ARE OPTIMISTIC, EXPECTING REVENUE GROWTH IN 2017

According to Leading Edge Alliance National Manufacturing Outlook Survey

 

With hundreds of participants, this survey report contains the expectations and opinions of manufacturing executives in more than 25 states across the county producing a wide variety of products including industrial/machining, transportation/automotive, construction, food and beverage, and other products.

Results from the survey include:

  • 74% of small manufacturers and 69% of large manufacturers expect revenue to grow in 2017.
  • Manufacturers are more optimistic about their local/regional economies than the national or global economies.
  • The top priority for manufacturers in 2017 is “cutting operations costs”, however, high-growth manufacturing respondents are more focused on “research and development”, with 12% of high-growth respondents reinvesting more than 10% of annual revenue.
  • Labor continues to be a challenge for manufacturers with 67% of respondents expecting labor costs to “increase” and an additional 7% expect labor costs to “increase significantly” in 2017.
  • Appropriate cost allocation and accurate and timely data will become required capabilities for successful businesses in the industry.
  • More manufacturers will be considering both sales and mergers in 2017 as well as strategic acquisitions.

U.S. manufacturing industry headwinds are significant and include both internal issues, such as high inventory-to-sales ratios, the cost of technology, and labor shortages, as well as external issues like the price of raw materials and strength of the dollar.

Strategic manufacturers should have ongoing conversations with all of their advisors, including their accounting and tax provider, as to how to overcome these challenges and achieve their business goals.

“There are a range of value added services we can offer manufacturers, from tax credits to export tax incentives,” said Lutz Partner and manufacturing client group leader, Jim Honz. “What manufacturers cannot afford to do, is take a ‘wait and see’ approach.”

DOWNLOAD THE SURVEY!

MANUFACTURING GROUP LEADERS

Jim Honz

402.492.2121

jhonz@lutz.us

JIM HONZ + TAX SHAREHOLDER

Jim Honz joined the firm in 1984 and currently serves as a Tax Shareholder. His areas of expertise include export tax incentives (IC-DISCs), choice of business entity, and methods of accounting (including Lifo Inventory). In addition, Jim works with tax-exempt organizations on tax and organizational issues.

AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Certified Public Accountant
  • Silver Medal on CPA Exam for second highest score
EDUCATIONAL BACKGROUND
  • BSBA in Accounting, Creighton University, Omaha, NE
COMMUNITY SERVICE
  • Catholic Charities, Past Board Member/President
  • Nebraska Organ Recovery System, Inc., Board Member/Treasurer
  • Creighton University Financial Advisory Committee, Past Alumni Member Appointed by CU President
  • St. Wenceslaus Church, Elected Parish Council Member (Vice President), Chairman of Finance Committee
  • Creighton University Accounting Department, Past Advisory Board Member
  • SIDs 398 (Pacific Springs) & 189 (Georgetown), Elected Trustee/Chairman
  • NSCPA, Political Education Committee Member
Lutz Audit Partner Sam Addy

402.827.2061

saddy@lutz.us

LINKEDIN

SAM ADDY + AUDIT SHAREHOLDER

Sam Addy is an Audit Shareholder at Lutz with over 17 years of experience. He has significant experience in providing accounting, auditing and consulting services to privately-held companies in various industries including agriculture, manufacturing, and wholesale.

AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • BSBA, Colorado State University, Fort Collins, CO
COMMUNITY SERVICE
  • Memorial Little League, Treasurer
  • First Tee of Omaha, Treasurer

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