2013 manufacturing and distribution monitor state reports ohio · 8/16/2013 · national response...

OHIO state RepORt

2013 McGladrey Manufacturing & Distribution Monitor

2013 McGladrey Manufacturing & Distribution Monitor State Report n 1

The 2013 Monitor Manufacturing & Distribution report examines an industrial base moving forward in a recovering business environment. On one hand, growing demand spurs executives to invest in new capital equipment and information technologies. On the other hand, political indecision and uncertainty over new regulations undermine executive confidence, and limit hiring and expansion.

The 2013 Monitor report—based on findings from a survey of 1,067 industry executives—offers insights into how businesses are balancing courage and caution in this challenging economy.

state of the industry: Nationwide Following are highlights from the aggregate national results of the 2013 Monitor report:

Outlook for growth Most businesses report they are thriving (32 percent) or holding steady (61 percent), but the percentages are down slightly from 2012. At the same time, business executives remain optimistic about their company, their industry and the U.S. economy, and are more optimistic this year regarding the world economy. Having weathered the recession, executives seem impatient with results that are better than before, but not yet what they need to feel comfortable investing for the future.

Nearly 71 percent of businesses posted U.S. sales increases in the past 12 months (a lower percentage than in 2012), but average U.S. sales increases of 7 percent illustrate healthy growth in the industrial sector. Fully 83 percent of business executives expect U.S. sales to increase in the next 12 months at a rate of 8 percent.

Growth isn’t limited to domestic markets; despite an often chaotic world economy, U.S. businesses are still expanding abroad. A majority of businesses with sales outside of the United States (57 percent) posted non-U.S. sales increases in the past 12 months, and 63 percent of executives expect non-U.S. sales to increase in the next 12 months at a rate of 9 percent.

Business executives are primarily focused on growth tactics as their top corporate objectives: introducing new products

and/or product lines, investing in process-improvement initiatives and investing in new or upgraded information technologies.

Executives are most worried about the potential negative impact on growth from government regulations, implementation of the Affordable Care Act, an increase in payroll taxes for Social Security and Medicare and the federal deficit.

Operating cost expectations and maintaining margins Executives also expect most operating costs to increase. For example, 89 percent of executives expect transportation/fuel costs to increase, with an expected average increase of 6 percent.

Executives expect to reinvest some of their profit growth into operations. For example, 79 percent of businesses will increase spending on information technology, with an average increase of 11.5 percent. Similarly, 75 percent of businesses will increase spending on equipment/machinery, with an average increase of 9.7 percent.

Executives will maintain or improve margins by relying on operational efficiencies (89 percent of businesses), working with suppliers and customers to improve processes and costs (59 percent) and making investments in equipment (56 percent).

Over half of the Monitor participants believe it is important to locate their business in close proximity to their customers. One approach being taken by an increasing number of companies is to ‘onshore’ or ‘nearshore’ operations; that is, bring work back to operations in or near the United States. Many of the cost savings gained by offshoring production no longer apply, and bringing work back to the U.S. can result in lower costs, shorter cycle

times and improved quality.

Workforce and operations Sixty-three percent of businesses will increase employment

in the next 12 months, with just 10 percent of businesses

reducing their workforces. The employment increase is

broad-based, with most industry sectors expecting to hire

in 2013.

Executive summary

www.mcgladrey.com n 2

Not surprisingly, wage, health care and other benefit costs are expected to increase this year. Health care costs are expected to increase by an average 10.2 percent, and one in 10 businesses expect health care costs to rise by 20 percent or more.

Unfortunately, employee costs may not be the sector’s most pressing problem: 43 percent of businesses find the skilled talent they need only rarely or some of the time. Skills gaps may be contributing to stagnant and/or declining productivity at many firms.

Information technology Almost 68 percent of executives believe that their business data is at little or no risk. This may be due to the fact that 65 percent of businesses now have an IT risk management process in place, and 74 percent regularly monitor systems to review threats and attacks.

Approximately 45 percent of businesses use cloud computing for IT systems or applications, an increase from 41 percent in 2012. Some 59 percent of businesses use social media (e.g., LinkedIn, Facebook, Twitter), with another 12 percent planning to use social media.

Executives see their IT environments (infrastructure, applications and organization) as most effective for sharing information within the company (49 percent). Yet many leaders are dissatisfied with their current systems, as evidenced by purchase and upgrade plans. Tops on the list for purchase or upgrade in 2013 are: Internet/Web applications (25 percent of businesses); customer relationship management (22 percent); and enterprise resource planning (17 percent).

state of the industry: OhioThe state of the industry in Ohio generally reflects that of the industry nationwide. Statistically, the state has about the same percentage of thriving, holding steady and declining companies, compared to the nation overall. Among the 111 companies from across the state participating in the Monitor survey, executives agreed with the national consensus, and are generally optimistic regarding their own growth prospects, but are more skeptical about the United States economy. Likewise, Ohio executives are more optimistic regarding the world economy than they were in 2012.

Ohio executives also agree with their colleagues across the country that regulatory and policy roadblocks are the biggest threats to growth. Although most executives in the state feel their information is at little or no risk, they do intend to increase spending for various information technology needs. Similarly, most agree that workforce costs will rise in the coming year, including health care expenditures, which like the rest of the country are anticipated to rise the most by an average of about 10 percent.

Notably, a greater percentage of Ohio executives feel that government regulations, skills shortages and economic conditions will limit or significantly limit growth than their national counterparts. Ohio survey participants also feel more strongly than the national average about improving growth and profit margins through investments in equipment and utilizing process improvements.

Although these Ohio executives are unlikely to ‘onshore’ or offshore operations in the next 12 months, like their counterparts across the country, they generally agree it is important to have operations in close proximity to their customers, engineering and product development and supply chains.

Business conditions

National response Ohio response

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

n Thriving n Holding steady n Declining

61.1%

31.5%

62.7%

30.9%

6.4%7.4%

If you have questions or would like to discuss this

information further, please contact your McGladrey

representative.


Findings for Ohio

Business optimism

Your company

U.S. economy

World economy

n 2013 n 2012

17%

29%

53%

46%

67%

85%

sales changes in U.s. vs. Non-U.s.

0% 20% 40% 60% 80% 100%

8% 84%

23% 74%

9%

3%

Non-U.S. sales next 12 months

Non-U.S. sales past 12 months

U.S. sales next 12 months

U.S. sales past 12 months

n Decrease n No change n Increase

6% 42%

12% 48%

52%

40%

Change in your company’s net income in the next 12 months

Increase No change Decrease

78%

17%

5%

Manufacturers anddistributors are

optimisticabout their own

growthprospects

But they are more

skepticalabout economic conditions in the

U.S. andabroad

Issues affecting company growth

0% 20% 40% 60% 80% 100%

61% 15%

3%

Global economic conditions

U.S. economic conditions 57%

20%

36%

4%

4%

n Limit or significantly limit n No effect n Improve or significantly improve n Don’t know


Manufacturers and distributors see

regulatory and policy roadblocks

as the biggest threat to growth

Limit or signi�cantly limit

No e�ect Improve or

signi�cantly improve

Don’t know

53%

44%2% 2% Limit or

signi�cantly limit

No e�ect Improve or

signi�cantly improve

Don’t know

57%

34%2% 7%

affect of increase in capital gains and dividends tax rate on growth

affect of increase of personal tax rate for highest-earning bracket on growth

Issues affecting company growth

0% 20% 40% 60% 80% 100%

80% 3%

87% 5%

15%

6%

Federal deficit

Increase in payroll taxes for Social Security and Medicare

Implementation of the Affordable Care Act (health care reform)

Government regulations

67% 25%

69%

2%

2%

29%

3%

1%

6%

2%

n Limit or significantly limit n No effect n Improve or significantly improve n Don’t know


Middle-market manufacturers and distributors willadd jobs over the next year, but are concerned about

rising employee costs and

skills shortages

HIRINGSkilled

Unskilled

Changes in employee levels in next 12 months

0% 20% 40% 60% 80% 100%

1%

22%

1%

35%

10%

8%

Ohio 2013

2013 All respondents



n > 11% decrease n 1 - 10% decrease n No change n 1 - 10% increase n >11% increase

0%

8%

1%

28%

27%

8%

5%

8%

7%

8%

63%

48%

57%

56%

employee cost changes in next 12 months

0% 20% 40% 60% 80% 100%

95%

78%

4%

22%

Wages

Health care costs

Other benefits

n Decrease n No change n Increase

90%8%

0%

2%

1%


Technology is proving a major

opportunity and

challenge

for manufacturers and distributors

Technology

perception of information/data risks

0% 20% 40% 60% 80% 100%

72% 20%

14%

2013

2012

n 1 or 2 = Not at risk n 3 = Neutral n 4 or 5 = Very much at risk

78%

8%

8%

Business analytics

Customer relationship management

Enterprise asset management

Enterprise resource planning

Financial management system

Internet/Web applications

Manufacturing execution system

Mobility solutions (including tablets)

Product life cycle management

Social media applications

Supplier management system

Transportation management system

Warehouse management systems

n Major upgrade n Purchase new

0% 5% 10% 15% 20% 25%

systems to purchase or upgrade in 2013


Use of It risk management processes

0% 20% 40% 60% 80% 100%

57.4% 24.1%

20.6%

Does your company regularly monitor systems to find threats and attacks

that may have occurred?

Does your company have an IT risk management

process?

n Yes n No n Don’t know

70.1%

18.5%

9.3%

effectiveness of It environment on following capabilities

Improve company productivity/reduce costs

Enhance corporate security/reduce risks

Share information with suppliers

Share information with customers

Share information within the company

Minimize corporate risk

Improve customer satisfaction

Increase revenue

Improve profit margin

n 1 or 2 = Not effective n 3 = Neutral n 4 or 5 = Extremely effective

0% 20% 40% 60% 80% 100%

25% 31% 45%

30% 44% 26%

44% 32% 24%

37% 30% 33%

15% 37% 48%

41% 37% 22%

25% 31% 44%

48% 34% 18%

32% 41% 27%


Data tables

Reading the data tablesData should be read down the columns. For the example below: For Respondents in “Ohio” - 6.4 percent are reporting a

“Decline,” 62.7 percent are reporting “Holding steady” and 30.9 percent are reporting they are “Thriving.”

You can then compare Respondents in “Ohio” to those within the same division and region, as well as the national

aggregate. For the same example below: Respondents in “Ohio” reported that 30.9 percent are “Thriving.” This compares

to 30.2 percent in the East North Central Division, 32.1 percent in the Midwest Region and 31.5 percent of All Businesses

that reported “Thriving.”

please describe the current condition of your business: Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 110 381 546 1,062

Declining 6.4% 6.3% 7.0% 7.4%

Holding steady 62.7% 63.5% 61.0% 61.1%

Thriving 30.9% 30.2% 32.1% 31.5%

*(N): The number or count of responses for a question.

Please use this U.S. Census map as a reference to the states included when referring to the division and region

data columns.

Includes AK & HI

MT

WY

CO

NMAZ

UTNV

ID

WA

OR

CA

ND

SD

Paci�c Mountain

WEST MIDWESTWest North

CentralEast North

CentralMiddle Atlantic

New England

West South Central

East South Central

South Atlantic

NORTHEAST

SOUTH

NE

KS

OK

TX

AR

LA

MN

IA

MO

WIMI

IL IN OHPA

NY

NJ

KY

TN

MS AL GA

FL

SC

NC

VAWV

CTRI

MANH

VT ME

DE

MD


Questions and answer categories generally are presented in the same wording and format as they appeared on the study

questionnaire. Quantitative responses to questions presented in this report consist of three types: directive single-answer

questions for which respondents were asked to “check one” answer category; directive multiple-answer questions for which

respondents were asked to “check all” answer categories that apply; and open-ended questions for which respondents were

asked to report a numeric answer. For some questions, participants also were asked to provide brief written answers; those

write-in responses do not appear in this report.

Data for both types of directive questions list the frequency (N) and percentage for each answer category (see Glossary for

definitions of “percentage” and other terms). Answer categories that were not selected by any participants (if applicable)

have been incorporated into the tables as 0 percent. The tables for open-ended questions are presented with frequency (N),

median, average, 75th percentile and 25th percentile statistics. It is often best to focus on and report the median figure or

median and average figures. Unlike arithmetical averages, the median is the “typical response,” and is not distorted by a few

unusually high or low values that may exist in the sample due to special circumstances. If a question has insufficient data

for disclosure in this report, the acronym “ISD” will be shown in the table for that question.

Which best describes your company’s business activities? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 111 383 548 1,067

Manufacturing 72.1% 58.8% 57.5% 50.2%

Mostly manufacturing, some distribution 10.8% 15.4% 14.1% 14.3%

Distribution 17.1% 25.9% 28.5% 35.5%

Not a manufacturer or distributor 0.0% 0.0% 0.0% 0.0%

Business descriptionWhich of the following best describes your primary

customer market?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 110 382 545 1,060

Industrial or Commercial 86.4% 77.2% 76.2% 71.3%

Retail or Consumer 8.2% 16.5% 16.5% 17.8%

Construction 5.5% 5.5% 6.4% 8.8%

Government 0.0% 0.8% 0.9% 2.1%

What products does your company primarily

manufacture?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 92 283 389 679

(multiple responses allowed)

Metal Fabrication 29.4% 27.9% 28.0% 25.9%

Industrial and Commercial Machinery 29.4% 26.2% 27.3% 24.0%

Automotive (OEM and Aftermarket) 27.2% 20.9% 19.3% 16.1%

Aerospace 21.7% 11.3% 12.9% 11.9%

Chemicals, Petroleum and Plastics 16.3% 12.4% 10.5% 9.7%

Food and Beverage 6.5% 9.9% 9.0% 9.7%

Building Materials 10.9% 9.9% 9.5% 9.3%

Transportation Equipment (other than Aerospace or

Automotive)

9.8% 11.0% 10.5% 8.8%

Biotech, Life Sciences and Medical Equipment/Supplies 9.8% 6.0% 9.0% 8.7%

Computers, Electronics and Electrical Components/

Appliances

2.2% 6.0% 8.5% 7.8%

Furniture and Fixtures (including home and office

furnishings)

6.5% 6.7% 7.5% 6.8%


What products does your company primarily

manufacture?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Wood/Paper Products and Printing 2.2% 4.6% 5.7% 6.3%

Energy and Clean Tech 4.4% 4.2% 5.1% 4.6%

Textiles, Apparel and Accessories (including fashion

products)

0.0% 0.7% 1.8% 3.4%

Other 19.6% 23.0% 22.4% 22.1%

What category(s) describes the products your company

distributes?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 18 95 152 367


Industrial and Commercial Parts And Machinery 38.9% 24.2% 28.3% 23.2%

Building Materials 16.7% 15.8% 13.2% 15.8%

Food/Food Service and Beverage 11.1% 13.7% 11.2% 13.4%

Chemicals, Petroleum And Plastics 22.2% 11.6% 8.6% 11.4%

Hardware, Plumbing and Heating Equipment and

Supplies

11.1% 9.5% 13.2% 10.4%

Computers, Electronics, Electrical and Appliances 11.1% 6.3% 5.9% 7.1%

Wood/Paper and Office Products 16.7% 9.5% 6.6% 4.4%

Metal Service Centers 0.0% 10.5% 6.6% 4.1%

Motor Vehicles and Parts 5.6% 9.5% 6.6% 4.1%

Medical Equipment and Supplies 16.7% 5.3% 4.0% 3.8%

Furniture and Fixtures 0.0% 0.0% 0.7% 3.3%

Textiles, Apparel and Accessories 0.0% 1.1% 0.7% 3.3%

Pharmaceuticals 0.0% 0.0% 0.0% 1.4%

Other 27.8% 24.2% 29.6% 30.5%

What best describes your core customers? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 110 382 546 1,058


Manufacturers 80.9% 64.7% 62.3% 55.6%

Distributors 26.4% 33.0% 33.5% 33.7%

Retailers 10.9% 18.9% 20.3% 23.8%

Government 15.5% 12.6% 12.6% 14.6%

Consumers 9.1% 11.0% 12.3% 12.8%

Service industries 12.7% 11.5% 10.3% 10.8%

Transportation 13.6% 10.7% 9.5% 10.4%

Institutional 6.4% 8.1% 8.4% 9.8%

Health care 6.4% 7.3% 8.4% 9.7%

Other 5.5% 7.3% 8.8% 11.5%


Which of the following best describes your company? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 109 377 541 1,051

Publicly traded corporation 1.8% 2.1% 3.5% 3.9%

Private or closely held business 84.4% 82.0% 83.0% 79.9%

Private equity-owned business 11.0% 11.9% 10.2% 11.7%

Division of a larger U.S.-based company 0.0% 0.5% 0.4% 1.1%

Division of a larger non-U.S.-based company 2.8% 3.5% 3.0% 3.4%

Which of the following best describes your title? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 109 378 543 1,057

Chief Executive Officer, President, Chairman, Owner 55.1% 51.6% 51.2% 51.0%

Principal, Managing Partner, Partner 2.8% 2.1% 2.0% 2.8%

Chief Operating Officer 6.4% 5.0% 4.8% 4.5%

Chief Financial Officer, Senior Finance Executive 17.4% 27.8% 27.6% 29.0%

Chief Marketing or Sales Officer 1.8% 1.9% 1.5% 2.0%

Chief Information Officer 0.0% 0.0% 0.0% 0.2%

Other title 16.5% 11.6% 12.9% 10.4%

Business conditionsplease describe the current condition of your business: Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 110 381 546 1,062

Declining 6.4% 6.3% 7.0% 7.4%

Holding steady 62.7% 63.5% 61.0% 61.1%

Thriving 30.9% 30.2% 32.1% 31.5%

How optimistic or pessimistic are you about overall

economic growth prospects for the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

For your company

(N) 110 382 547 1,064

Very Pessimistic 0.9% 0.5% 0.7% 1.2%

Somewhat Pessimistic 13.6% 12.6% 14.1% 14.0%

Somewhat Optimistic 62.7% 63.6% 62.5% 62.6%

Very Optimistic 22.7% 23.3% 22.7% 22.2%

For your industry

(N) 110 378 543 1,060




Very Optimistic 9.1% 7.7% 6.6% 6.8%

For the U.S. economy

(N) 110 380 545 1,061






How optimistic or pessimistic are you about overall

economic growth prospects for the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

For the world economy

(N) 111 380 545 1,061





How will the following issues affect your company’s

growth in the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Consumer confidence levels

(N) 111 380 545 1,061

Significantly limit 2.7% 2.9% 2.6% 2.5%

Limit 26.1% 24.0% 24.8% 25.4%

No effect 19.8% 21.6% 22.4% 23.6%

Improve 36.9% 41.6% 40.4% 38.5%

Significantly improve 6.3% 5.5% 5.7% 6.0%

Don’t know 8.1% 4.5% 4.2% 4.1%

Government regulations

(N) 109 380 545 1,060


Limit 63.3% 55.8% 55.8% 55.2%

No effect 6.4% 13.4% 13.0% 15.1%

Improve 3.7% 6.6% 6.4% 6.7%


Don’t know 1.8% 2.1% 2.4% 2.8%

Implementation of the Affordable Care Act

(Health care reform)

(N) 110 381 545 1,062


Limit 50.9% 49.6% 50.6% 49.7%

No effect 14.6% 21.5% 21.3% 23.7%

Improve 1.8% 1.3% 0.9% 1.1%


Don’t know 2.7% 2.4% 3.3% 3.9%

Skills shortages

(N) 111 383 547 1,064


Limit 50.5% 53.0% 53.9% 49.3%

No effect 34.2% 33.7% 34.4% 39.7%

Improve 0.0% 1.0% 1.1% 1.7%


Don’t know 0.0% 0.8% 0.7% 1.1%




Ohio east North

Central Division

Midwest

Region

National

aggregate

Supplier product shortages

(N) 109 378 542 1,056


Limit 32.1% 36.2% 36.9% 38.4%

No effect 54.1% 51.3% 49.6% 48.9%

Improve 2.8% 4.2% 3.5% 3.3%


Don’t know 6.4% 2.4% 2.0% 2.0%

Material and components pricing

(N) 109 377 542 1,055


Limit 60.6% 57.0% 57.9% 56.7%

No effect 24.8% 26.3% 26.8% 28.1%

Improve 10.1% 8.2% 7.6% 7.1%


Don’t know 1.8% 1.1% 0.9% 1.4%

Possible repeal of last in/first out (LIFO) inventory

valuation method

(N) 109 377 541 1,055


Limit 14.7% 17.5% 15.5% 14.0%

No effect 68.8% 68.4% 69.7% 72.2%

Improve 0.0% 1.9% 1.3% 1.5%


Don’t know 10.1% 6.4% 6.1% 6.1%

Increase of personal tax rate for highest-earning bracket

(N) 110 381 544 1,060


Limit 36.4% 42.5% 42.8% 41.1%

No effect 43.6% 43.0% 43.2% 45.6%

Improve 0.9% 0.3% 0.4% 0.7%


Don’t know 1.8% 1.8% 1.3% 1.3%

Extension of bonus depreciation (Section 179)

(N) 109 381 543 1,056


Limit 5.5% 7.9% 8.1% 7.4%

No effect 44.0% 40.7% 38.7% 42.2%

Improve 33.9% 37.3% 40.2% 37.8%


Don’t know 7.3% 5.8% 5.0% 5.1%




Ohio east North

Central Division

Midwest

Region

National

aggregate

New Repairs Regulations

(N) 107 378 541 1,049


Limit 16.8% 18.8% 18.9% 17.9%

No effect 40.2% 43.7% 44.7% 48.9%

Improve 1.9% 7.1% 7.8% 7.1%


Don’t know 36.5% 26.5% 24.6% 22.7%

Increase in capital gains and dividends tax rate

(N) 108 377 541 1,055


Limit 49.1% 46.2% 45.8% 43.7%

No effect 34.3% 39.8% 40.7% 43.4%

Improve 0.9% 0.8% 0.7% 1.0%


Don’t know 6.5% 4.2% 3.5% 3.5%

Increase in payroll taxes for Social Security and

Medicare

(N) 111 383 547 1,064


Limit 54.1% 57.2% 57.8% 59.1%

No effect 28.8% 29.8% 30.2% 28.5%

Improve 1.8% 1.0% 0.9% 0.9%


Don’t know 0.9% 1.0% 0.9% 1.7%

Extension of R&D tax credits

(N) 110 382 542 1,053


Limit 4.6% 3.9% 3.7% 3.3%

No effect 40.9% 43.7% 43.9% 49.8%

Improve 40.9% 39.8% 40.6% 36.8%


Don’t know 3.6% 2.4% 2.4% 2.7%

U.S. economic conditions

(N) 110 382 546 1,059


Limit 49.1% 40.8% 42.5% 41.7%

No effect 2.7% 4.7% 5.7% 6.0%

Improve 30.9% 36.9% 34.8% 36.5%


Don’t know 3.6% 2.4% 2.2% 2.3%




Ohio east North

Central Division

Midwest

Region

National

aggregate

Global economic conditions

(N) 109 381 545 1,055


Limit 55.1% 47.8% 47.9% 44.7%

No effect 14.7% 17.3% 16.9% 18.9%

Improve 17.4% 21.8% 22.2% 23.8%


Don’t know 3.7% 2.6% 2.8% 2.9%

Federal deficit

(N) 110 380 543 1,056


Limit 50.0% 51.8% 51.8% 52.3%

No effect 24.6% 28.2% 25.8% 26.9%

Improve 0.9% 1.1% 1.5% 1.5%


Don’t know 6.4% 5.0% 4.4% 4.6%

Availability of financing/credit

(N) 111 380 543 1,056


Limit 27.9% 22.1% 21.6% 22.7%

No effect 55.9% 53.4% 55.1% 52.3%

Improve 8.1% 12.9% 13.4% 15.3%


Don’t know 0.9% 1.6% 1.3% 1.2%

How important will the following corporate objectives be

for your company in the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Make an acquisition

(N) 111 382 546 1,062

1=Not important 46.0% 50.8% 51.1% 50.9%

2 17.1% 13.6% 13.2% 15.3%

3 18.9% 16.8% 17.2% 15.4%

4 11.7% 12.8% 12.6% 12.2%

5=Extremely important 6.3% 6.0% 5.9% 6.4%

Divest a business unit

(N) 110 381 546 1,062

1=Not important 76.4% 81.6% 80.2% 80.3%

2 9.1% 7.9% 8.4% 8.3%

3 7.3% 6.6% 7.3% 7.1%

4 5.5% 2.9% 2.6% 3.0%





Ohio east North

Central Division

Midwest

Region

National

aggregate

Sell the company

(N) 108 379 544 1,057

1=Not important 77.8% 78.6% 78.7% 76.4%

2 8.3% 8.4% 8.3% 9.2%

3 12.0% 9.0% 9.0% 9.2%

4 0.9% 1.9% 2.0% 2.7%


Form a partnership/alliance

(N) 110 381 545 1,057

1=Not important 51.8% 53.8% 54.1% 52.7%

2 18.2% 18.6% 18.0% 18.3%

3 16.4% 12.9% 15.1% 16.5%

4 10.9% 10.8% 9.2% 9.4%


Expand existing facilities(s)/warehouse(s)

(N) 109 377 542 1,057

1=Not important 33.9% 35.8% 34.7% 35.2%

2 19.3% 17.2% 17.3% 18.5%

3 20.2% 22.8% 22.7% 22.2%

4 14.7% 15.7% 17.0% 16.1%


Build or acquire new facilities(s)/warehouse(s)

(N) 109 377 542 1,053

1=Not important 51.4% 49.9% 47.4% 47.0%

2 11.0% 15.7% 16.2% 17.3%

3 22.9% 15.9% 17.2% 16.5%

4 9.2% 12.7% 13.5% 12.6%


Close facilities(s)/warehouse(s)

(N) 111 378 542 1,053

1=Not important 79.3% 79.9% 80.3% 79.0%

2 5.4% 7.4% 7.9% 9.3%

3 9.9% 8.2% 7.6% 7.0%

4 4.5% 2.9% 3.0% 3.5%


Invest in process-improvement initiatives

(N) 109 377 542 1,054

1=Not important 7.3% 6.1% 6.3% 8.4%

2 5.5% 11.1% 10.3% 9.7%

3 32.1% 23.6% 24.9% 24.3%

4 30.3% 35.8% 35.1% 34.7%





Ohio east North

Central Division

Midwest

Region

National

aggregate

Introduce new products/product lines

(N) 111 382 547 1,058

1=Not important 9.9% 7.9% 7.1% 7.4%

2 11.7% 10.7% 11.0% 11.5%

3 20.7% 22.8% 24.1% 22.8%

4 30.6% 30.4% 32.4% 31.9%


Introduce new services

(N) 110 376 540 1,052

1=Not important 22.7% 21.8% 21.1% 22.2%

2 14.6% 16.5% 16.3% 18.4%

3 29.1% 28.7% 29.6% 26.6%

4 21.8% 23.1% 24.8% 24.1%


Invest in new or upgraded information technologies

(N) 111 379 543 1,050

1=Not important 8.1% 7.9% 7.7% 8.7%

2 17.1% 17.7% 16.2% 16.4%

3 29.7% 29.6% 31.5% 31.5%

4 27.9% 29.8% 29.5% 28.6%


Which of the following do you plan to do in the

coming year? [Food and Beverage participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 9 42 53 116

Acquire a company(s) or part(s) of a company 22.2% 26.2% 26.4% 22.4%

Sell a company(s) or part(s) of a company 11.1% 9.5% 9.4% 10.3%

Neither acquire nor sell 66.7% 64.3% 64.2% 66.4%

Both acquire and sell a company(s) or part(s) of a

company

0.0% 0.0% 0.0% 0.9%

If you were involved in merger or acquisition activity in

the past 12 months or are planning such activity, what

primarily drove/drives your decision? [Food and Beverage

participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 5 21 28 62


Create cost synergies/improve margins 80.0% 52.4% 60.7% 51.6%

Improve market position 60.0% 71.4% 67.9% 66.1%

Alleviate retailer pressures 0.0% 4.8% 7.1% 4.8%

Create stronger position with suppliers 0.0% 9.5% 25.0% 25.8%

Business exit strategy 0.0% 19.1% 14.3% 19.4%

Other 0.0% 9.5% 7.1% 11.3%


By approximately what percentage do you anticipate

your costs and expenditures will change in the next 12

months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

CostsInventory/material/components

(N) 107 372 535 1,034

Median 5.0% 4.0% 4.0% 4.0%

Average 4.6% 4.5% 4.4% 4.5%

75th Percentile 5.0% 5.0% 5.0% 5.0%

25th Percentile 3.0% 2.0% 2.0% 2.0%

Decrease 5.6% 8.9% 8.6% 8.9%

No change 3.7% 5.7% 6.5% 7.3%

Increase 90.7% 85.5% 84.9% 83.9%

Transportation/fuel

(N) 106 372 535 1,031

Median 5.0% 5.0% 5.0% 5.0%

Average 6.1% 5.6% 5.6% 6.0%

75th Percentile 10.0% 8.0% 8.0% 10.0%

25th Percentile 3.0% 3.0% 3.0% 3.0%

Decrease 3.8% 3.5% 2.6% 2.3%

No change 6.6% 10.2% 9.5% 9.1%

Increase 89.6% 86.3% 87.9% 88.6%

Energy/utilities

(N) 107 372 534 1,028

Median 3.0% 3.0% 3.0% 3.0%

Average 3.9% 3.7% 4.0% 4.1%

75th Percentile 5.0% 5.0% 5.0% 5.0%

25th Percentile 0.0% 0.0% 2.0% 2.0%

Decrease 11.2% 7.5% 5.4% 5.2%

No change 18.7% 18.0% 15.4% 14.6%

Increase 70.1% 74.5% 79.2% 80.3%

Cost of debt

(N) 103 365 521 1,010

Median 0.0% 0.0% 0.0% 0.0%

Average 1.1% 1.2% 1.2% 1.4%

75th Percentile 2.0% 1.0% 1.5% 2.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decrease 2.9% 5.2% 5.8% 6.1%

No change 55.3% 59.2% 58.0% 56.4%

Increase 41.8% 35.6% 36.3% 37.4%




months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

InvestmentsEquipment/machinery

(N) 106 368 525 1,020

Median 5.0% 5.0% 5.0% 5.0%

Average 8.4% 8.8% 7.8% 9.7%

75th Percentile 10.0% 10.0% 10.0% 10.0%

25th Percentile 2.0% 1.0% 0.0% 0.0%

Decrease 4.7% 5.7% 6.3% 4.3%

No change 17.0% 18.8% 19.4% 20.9%

Increase 78.3% 75.5% 74.3% 74.8%

Information technology

(N) 105 364 521 1,019

Median 5.0% 5.0% 5.0% 5.0%

Average 18.0% 13.8% 11.9% 11.5%

75th Percentile 10.0% 10.0% 10.0% 10.0%

25th Percentile 2.0% 1.3% 1.5% 2.0%

Decrease 1.9% 3.0% 3.3% 2.5%

No change 18.1% 18.1% 17.9% 18.4%

Increase 80.0% 78.9% 78.9% 79.2%

Physical facilities/warehouses

(N) 105 365 519 1,011

Median 2.0% 2.0% 2.0% 2.0%

Average 11.3% 8.1% 7.7% 7.6%

75th Percentile 8.5% 8.0% 10.0% 5.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decrease 2.9% 1.9% 2.9% 3.0%

No change 36.2% 42.7% 43.9% 43.3%

Increase 61.0% 55.3% 53.2% 53.7%

Fleets/vehicles

(N) 102 361 513 1,001

Median 0.0% 0.0% 0.0% 0.0%

Average 3.1% 3.5% 3.2% 3.4%

75th Percentile 5.0% 5.0% 5.0% 5.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decrease 2.9% 1.1% 2.0% 1.5%

No change 55.9% 59.0% 56.9% 55.0%

Increase 41.2% 39.9% 41.1% 43.6%




months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Research and development

(N) 104 363 514 1,001

Median 3.0% 3.0% 3.0% 2.0%

Average 4.8% 5.2% 5.1% 4.9%

75th Percentile 5.8% 8.0% 8.0% 6.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decrease 0.0% 1.1% 1.2% 1.5%

No change 31.7% 34.2% 35.0% 41.4%

Increase 68.3% 64.7% 63.8% 57.1%

What strategies are you using today to maintain or

improve profit margins, given the current economic

environment?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 108 380 545 1,058


Lowering costs through operational efficiencies 87.0% 88.7% 89.0% 88.7%

Working with suppliers and/or customers to improve

their processes and costs

60.2% 58.2% 59.3% 59.3%

Investing in equipment 67.6% 61.3% 58.9% 55.9%

Increasing prices to a few selected customers and

markets

45.4% 43.2% 41.5% 41.1%

Increasing prices to a majority of our customers 45.4% 38.4% 38.5% 40.6%

Substituting lower-priced inventory/materials/

components

27.8% 31.3% 28.6% 28.4%

Adopting green/sustainable processes and conservation

measures

13.9% 16.6% 15.4% 15.8%

Instituting fees for service 13.0% 11.6% 12.5% 13.7%

Introducing or increasing surcharges 11.1% 10.0% 10.1% 12.1%

Financial hedging against raw material costs 13.9% 12.6% 11.7% 10.3%

Reorganizing under a different section of the tax code

(e.g., from S-corp to C-corp)

2.8% 3.4% 2.8% 2.5%

Other 10.2% 7.1% 6.1% 7.3%

By approximately what percentage will prices for your

company’s goods increase in the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 102 362 521 1,015

Median 4.0% 3.0% 3.0% 3.0%

Average 4.4% 4.3% 4.4% 4.6%

75th Percentile 5.0% 5.0% 5.0% 5.0%

25th Percentile 2.0% 2.0% 2.0% 2.0%

Decrease 2.0% 1.9% 1.7% 1.7%

No change 6.9% 8.8% 9.6% 9.8%

Increase 91.2% 89.2% 88.7% 88.6%


By approximately what percentage will prices for your

company’s services increase in the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 81 294 418 831

Median 2.0% 0.0% 0.5% 2.0%

Average 2.6% 2.2% 2.4% 2.7%

75th Percentile 5.0% 4.0% 4.0% 5.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decrease 0.0% 0.0% 0.0% 0.1%

No change 45.7% 52.0% 50.0% 46.3%

Increase 54.3% 48.0% 50.0% 53.6%

salesWhat was your company’s annual gross revenue for the

most recent fiscal year?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 108 378 543 1,054

$1 billion or more 2.8% 3.2% 3.5% 2.8%

$500 million - $999.9 million 1.9% 2.7% 2.4% 3.1%

$250 million - $499.9 million 3.7% 4.0% 3.9% 4.7%

$100 million - $249.9 million 9.3% 14.8% 14.2% 15.3%

$50 million - $99.9 million 11.1% 13.0% 15.1% 14.5%

$25 million - $49.9 million 13.0% 13.5% 13.8% 16.0%

$15 million - $24.9 million 6.5% 10.1% 12.5% 12.3%

Less than $15 million 51.9% 38.9% 34.6% 31.2%

How have your company’s sales changed? Ohio east North

Central Division

Midwest

Region

National

aggregate

U.S. sales change in the past 12 months

(N) 105 366 530 1,033

Median 5.0% 5.0% 6.0% 5.0%

Average 4.4% 6.0% 6.7% 6.9%

75th Percentile 10.0% 11.0% 12.0% 12.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decreased 22.9% 21.3% 19.1% 21.2%

No change 2.9% 6.8% 7.6% 8.0%

Increased 74.3% 71.9% 73.4% 70.8%

Sales change outside the United States in the past 12

months

(N) 94 317 461 896

Median 0.0% 0.0% 0.0% 0.0%

Average 11.9% 8.6% 8.9% 6.8%

75th Percentile 10.0% 8.5% 10.0% 8.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decreased 11.7% 12.6% 10.9% 11.1%

No change 40.4% 41.3% 41.0% 44.2%

Increased 47.9% 46.1% 48.2% 44.8%


How do you expect your company’s sales to change? Ohio east North

Central Division

Midwest

Region

National

aggregate

U.S. sales change expected in the next 12 months

(N) 104 363 525 1,022

Median 5.0% 6.0% 6.0% 6.0%

Average 7.8% 8.1% 7.6% 7.8%

75th Percentile 10.0% 10.0% 10.0% 10.0%

25th Percentile 3.0% 3.0% 3.0% 3.0%

Decrease 7.7% 8.0% 7.6% 8.3%

No change 8.7% 9.1% 8.8% 8.7%

Increase 83.7% 82.9% 83.6% 83.0%

Sales change outside the United States expected in the

next 12 months

(N) 95 319 462 899

Median 1.0% 2.0% 2.0% 0.0%

Average 4.4% 5.9% 6.5% 6.6%

75th Percentile 10.0% 10.0% 8.0% 8.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

Decrease 6.3% 5.0% 5.2% 4.7%

No change 42.1% 44.2% 42.9% 45.8%

Increase 51.6% 50.8% 52.0% 49.5%

How will sales of the following change in the


Ohio east North

Central Division

Midwest

Region

National

aggregate

Private-label products

(N) 8 40 51 115

Increase 37.5% 52.5% 54.9% 49.6%

Stay the same 12.5% 12.5% 13.7% 14.8%

Decrease 0.0% 7.5% 5.9% 6.1%

No products of this type 50.0% 27.5% 25.5% 29.6%

Branded products

(N) 8 40 51 115

Increase 37.5% 57.5% 54.9% 53.0%

Stay the same 12.5% 12.5% 15.7% 23.5%

Decrease 0.0% 7.5% 7.8% 7.8%

No products of this type 50.0% 22.5% 21.6% 15.7%


please indicate approximately what percentage of your

company’s consumer products in the recent year were

sold: [Consumer product participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

Above established price

(N) 14 72 105 224

Median 0.0% 0.0% 0.0% 0.0%

Average 1.4% 3.4% 3.1% 4.1%

75th Percentile 1.3% 2.0% 2.0% 2.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

At established price

(N) 14 72 105 224

Median 85.0% 75.0% 80.0% 75.0%

Average 71.4% 67.9% 70.6% 68.2%

75th Percentile 100.0% 90.0% 90.0% 95.0%

25th Percentile 36.3% 50.0% 50.0% 50.0%

1-25% below established price

(N) 14 72 105 224

Median 10.0% 15.0% 15.0% 15.5%

Average 21.8% 24.4% 23.0% 23.7%

75th Percentile 42.5% 30.0% 30.0% 30.0%

25th Percentile 0.0% 5.0% 5.0% 5.0%

26-50% below established price

(N) 14 72 105 224

Median 0.0% 0.0% 0.0% 0.0%

Average 4.3% 3.9% 3.1% 3.1%

75th Percentile 5.0% 0.0% 0.0% 0.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

More than 50% below established price

(N) 14 72 105 224

Median 0.0% 0.0% 0.0% 0.0%

Average 1.1% 0.3% 0.3% 1.0%

75th Percentile 0.0% 0.0% 0.0% 0.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

through which of the following channels are you likely

to increase sales to consumers in the coming year?

[Consumer product participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 15 71 102 227


Retail stores 33.3% 59.2% 60.8% 62.6%

Website 80.0% 50.7% 44.1% 40.5%

Online selling through other retailers 40.0% 35.2% 30.4% 26.9%

Outlet stores 13.3% 8.5% 6.9% 6.2%

Other 33.3% 22.5% 23.5% 24.7%


By what percentage will your company’s net income

change in the next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 98 326 473 930

Median 5.0% 6.0% 5.0% 5.0%

Average 11.3% 15.8% 14.5% 16.5%

75th Percentile 10.0% 12.0% 12.0% 15.0%

25th Percentile 2.0% 0.0% 0.0% 1.0%

Decrease 17.4% 18.4% 17.6% 16.5%

No change 5.1% 7.1% 7.6% 7.7%

Increase 77.6% 74.5% 74.8% 75.8%

What are your top sales strategies to drive growth in the

next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

New geographies/regions within the United States

(N) 106 368 530 1,034

1=Not important 37.7% 32.1% 32.5% 36.1%

2 17.9% 18.8% 18.7% 17.7%

3 18.9% 18.5% 19.6% 19.1%

4 14.2% 18.8% 17.6% 16.0%


New geographies/regions outside the United States

(N) 106 368 526 1,026

1=Not important 47.2% 45.4% 45.6% 47.7%

2 15.1% 15.0% 13.9% 14.2%

3 12.3% 14.7% 15.4% 13.7%

4 10.4% 12.0% 12.0% 11.7%


New customer segments

(N) 106 367 529 1,035

1=Not important 8.5% 10.4% 10.8% 11.8%

2 8.5% 10.6% 14.0% 14.7%

3 26.4% 27.8% 28.2% 26.2%

4 37.7% 31.9% 29.7% 29.5%


Increased penetration in existing markets

(N) 107 373 537 1,047

1=Not important 0.0% 1.3% 1.1% 1.2%

2 4.7% 5.1% 5.2% 4.9%

3 18.7% 15.3% 16.6% 16.7%

4 39.3% 43.2% 41.0% 37.7%


New products and line extensions

(N) 106 371 533 1,038

1=Not important 8.5% 9.4% 8.4% 7.9%

2 12.3% 11.3% 12.0% 12.9%

3 18.9% 18.3% 20.6% 21.8%

4 36.8% 34.2% 34.2% 32.7%



What are your top sales strategies to drive growth in the

next 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

New services

(N) 106 361 522 1,017

1=Not important 42.5% 41.3% 39.1% 37.9%

2 17.0% 19.7% 20.9% 22.3%

3 22.6% 19.9% 20.5% 20.4%

4 11.3% 12.7% 13.0% 13.0%


New channels of distribution

(N) 105 365 523 1,020

1=Not important 39.1% 35.9% 34.4% 34.5%

2 16.2% 19.2% 20.8% 19.8%

3 21.9% 18.9% 19.9% 21.5%

4 13.3% 17.0% 17.0% 15.2%


What value-added services are the most important to

your company’s growth?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 19 93 144 359


Sequencing of orders to customers schedule 31.6% 29.0% 27.1% 27.9%

Kitting/assembly 21.1% 25.8% 27.1% 25.1%

Relabeling/repackaging 36.8% 20.4% 20.1% 20.6%

Light manufacturing 21.1% 17.2% 20.8% 18.7%

Product returns (ease of product returns) 26.3% 17.2% 18.1% 17.0%

Warranty services 10.5% 8.6% 10.4% 13.7%

Reverse logistics 5.3% 8.6% 9.0% 6.1%

RFID labeling 5.3% 5.4% 4.2% 5.0%

Other 15.8% 17.2% 19.4% 19.8%

No value-added services 5.3% 22.6% 22.9% 21.7%

What are the top ways your company will innovate in the


Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 7 36 46 107


Create new products 71.4% 72.2% 65.2% 61.7%

Change marketing/branding strategies 85.7% 50.0% 54.4% 56.1%

Change sales/distribution channels 14.3% 25.0% 23.9% 29.0%

Change package style 14.3% 22.2% 21.7% 25.2%

Change ingredients for existing products 0.0% 27.8% 23.9% 21.5%

Change package size 14.3% 27.8% 23.9% 20.6%

Other 0.0% 5.6% 10.9% 9.4%


What are you doing to make your products more

attractive to consumers wanting healthier food and

beverages? [Food and Beverage participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 3 24 29 66


Introduce healthier products 33.3% 58.3% 58.6% 57.6%

Promote and brand products as healthy 33.3% 45.8% 51.7% 56.1%

Change composition of ingredients 33.3% 41.7% 37.9% 33.3%

Change labeling 0.0% 20.8% 27.6% 25.8%

Change package size 0.0% 29.2% 24.1% 22.7%

Other 33.3% 12.5% 13.8% 7.6%

For which of the following consumer marketing

categories will you increase spending in the coming year?

[Consumer product participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 15 70 103 220


Social media advertising/marketing 40.0% 52.9% 52.4% 55.5%

Online advertising (not including social media) 66.7% 52.9% 45.6% 43.2%

Co-op advertising 6.7% 21.4% 21.4% 30.0%

Print advertising 26.7% 22.9% 26.2% 28.6%

Traditional promotions and/or coupons 6.7% 31.4% 29.1% 24.6%

Online promotions and/or coupons 26.7% 24.3% 23.3% 23.6%

Television advertising 0.0% 7.1% 5.8% 8.2%

Radio advertising 0.0% 2.9% 4.9% 7.3%

Billboards 0.0% 1.4% 1.9% 2.7%

Other 20.0% 15.7% 19.4% 16.4%

How do you plan to help retailers improve profit margins

on your goods? [Consumer product participants only]

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 15 80 113 239


In-store staff 6.7% 22.5% 25.7% 33.9%

Implement improvements to supply chains to get

products to market on a more timely basis

26.7% 32.5% 30.1% 31.0%

Help manage merchandise/inventory allocation process 33.3% 30.0% 28.3% 28.9%

Offer in-store branding materials 13.3% 23.8% 24.8% 28.9%

Provide co-op advertising opportunities 20.0% 27.5% 24.8% 27.2%

Use market research to better understand target

consumers

20.0% 30.0% 31.9% 25.9%

Offer couponing/discount programs 0.0% 17.5% 15.0% 16.7%

Other 6.7% 6.3% 5.3% 4.6%

We do not sell products in retail stores 53.3% 31.3% 35.4% 32.2%


approximately what percentage of your company’s total

revenues are sold to customers outside the United states?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 106 365 521 1,015

Median 5.0% 5.0% 5.0% 5.0%

Average 13.6% 12.9% 12.7% 13.2%

75th Percentile 20.0% 16.0% 15.0% 15.0%

25th Percentile 0.0% 0.8% 1.0% 0.0%

approximately what percentage of your company’s

capital assets (e.g., offices, warehouses, plants) reside

outside the United states?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 104 364 522 1,014

Median 0.0% 0.0% 0.0% 0.0%

Average 4.5% 5.2% 4.7% 5.6%

75th Percentile 0.0% 0.0% 0.0% 0.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

How likely is your company to do the following in the next

12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Relocate some U.S. operations/functions overseas-offshore

(N) 108 376 540 1,049

1=Not likely 78.7% 81.1% 77.6% 75.5%

2 3.7% 4.0% 5.6% 5.2%

3 0.9% 1.9% 2.0% 2.2%

4 4.6% 1.6% 1.5% 1.7%

5=Very likely 1.9% 1.9% 2.2% 2.2%

N/A 10.2% 9.6% 11.1% 13.2%

Bring some operations/functions back to the United States-onshore

(N) 106 373 537 1,043

1=Not likely 54.7% 55.0% 54.2% 52.6%

2 2.8% 2.1% 3.4% 3.5%

3 1.9% 3.2% 2.4% 2.3%

4 0.0% 1.9% 1.7% 1.8%

5=Very likely 0.0% 0.8% 0.6% 0.7%

N/A 40.6% 37.0% 37.8% 39.1%

How important is it to have your operations in physical

proximity to the following?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Customers

(N) 108 376 538 1,047

1=Not important 15.7% 16.8% 17.5% 16.2%

2 14.8% 11.4% 11.3% 11.8%

3 26.9% 25.8% 24.4% 19.5%

4 17.6% 21.0% 21.2% 19.9%

5=Very important 25.0% 24.7% 25.5% 32.2%

N/A 0.0% 0.3% 0.2% 0.5%


How important is it to have your operations in physical

proximity to the following?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Engineering/R&D/product development

(N) 107 373 531 1,034

1=Not important 20.6% 24.7% 25.8% 28.3%

2 15.9% 13.9% 14.9% 12.8%

3 16.8% 16.9% 15.4% 14.9%

4 14.0% 13.9% 14.3% 13.6%

5=Very important 18.7% 21.2% 19.6% 17.2%

N/A 14.0% 9.4% 10.0% 13.2%

Supply chain

(N) 106 371 531 1,034

1=Not important 12.3% 12.4% 12.4% 13.4%

2 14.2% 12.7% 13.4% 13.9%

3 25.5% 26.4% 28.8% 28.4%

4 20.8% 23.7% 24.1% 23.5%

5=Very important 24.5% 22.4% 19.2% 17.4%

N/A 2.8% 2.4% 2.1% 3.3%

Workforce and operationsHow many employees does your company currently

employ?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Total company employees

(N) 107 372 536 1,045

Median 75.0 91.0 101.0 104.0

Average 3,740.5 1,388.6 1,151.6 1,094.9

75th Percentile 205.0 300.0 300.0 300.0

25th Percentile 25.0 40.0 40.0 41.5

Full-time employees in United States

(N) 107 369 533 1,038

Median 65.0 86.0 94.0 93.5

Average 452.5 335.6 342.2 331.6

75th Percentile 200.0 250.0 255.0 250.0

25th Percentile 22.0 35.0 39.5 37.8

Full-time employees outside United States

(N) 103 350 502 979

Median 0.0 0.0 0.0 0.0

Average 3,407.7 1,091.9 843.7 779.4

75th Percentile 0.0 0.0 0.0 1.0

25th Percentile 0.0 0.0 0.0 0.0

Total part-time employees

(N) 101 337 485 954

Median 1.0 1.0 1.0 1.0

Average 4.8 6.1 16.7 51.1

75th Percentile 2.5 4.0 5.0 5.0

25th Percentile 0.0 0.0 0.0 0.0


How many employees does your company currently

employ?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Total temporary employees

(N) 99 336 478 941

Median 0.0 0.0 0.0 0.0

Average 13.3 17.4 25.2 43.4

75th Percentile 5.0 10.0 7.3 6.0

25th Percentile 0.0 0.0 0.0 0.0

Individual independent contractors

(N) 96 329 473 925

Median 0.0 0.0 0.0 0.0

Average 9.0 6.4 6.4 9.0

75th Percentile 1.0 2.0 2.0 2.0

25th Percentile 0.0 0.0 0.0 0.0

By what percentage will your company’s employee levels


Ohio east North

Central Division

Midwest

Region

National

aggregate

Total employees

(N) 106 365 523 1,017

Median 3.0 2.0 3.0 2.0

Average 4.8 4.4 4.3 4.3

75th Percentile 7.0 5.0 5.0 5.0

25th Percentile 0.0 0.0 0.0 0.0

Decrease 7.6% 8.0% 8.0% 9.5%

No change 27.4% 27.7% 26.6% 27.6%

Increase 65.1% 64.4% 65.4% 62.8%

U.S. employees

(N) 106 360 517 1,006

Median 3.0 2.0 3.0 2.0

Average 4.6 5.0 4.7 4.4

75th Percentile 6.0 5.0 5.0 5.0

25th Percentile 0.0 0.0 0.0 0.0

Decrease 7.6% 7.8% 7.9% 9.4%

No change 25.5% 27.8% 26.5% 28.2%

Increase 67.0% 64.4% 65.6% 62.3%

Employees outside United States

(N) 101 336 480 934

Median 0.0 0.0 0.0 0.0

Average 0.9 1.1 1.4 1.6

75th Percentile 0.0 0.0 0.0 0.0

25th Percentile 0.0 0.0 0.0 0.0

Decrease 2.0% 1.5% 1.7% 1.6%

No change 89.1% 86.6% 85.8% 84.5%

Increase 8.9% 11.9% 12.5% 13.9%


By what percentage will your company’s employee levels


Ohio east North

Central Division

Midwest

Region

National

aggregate

Wages

(N) 107 371 534 1,034

Median 3.0 3.0 3.0 3.0

Average 3.3 3.6 3.4 3.5

75th Percentile 4.0 4.0 4.0 4.0

25th Percentile 2.0 2.0 2.0 2.0

Decrease 1.9% 1.4% 2.3% 1.9%

No change 8.4% 5.1% 4.1% 5.2%

Increase 89.7% 93.5% 93.6% 92.8%

Health care costs

(N) 103 361 519 1,010

Median 10.0 10.0 10.0 10.0

Average 11.6 11.6 10.6 10.2

75th Percentile 15.0 15.0 12.0 13.0

25th Percentile 6.0 5.0 5.0 5.0

Decrease 1.0% 1.9% 1.9% 2.1%

No change 3.9% 5.3% 6.0% 6.7%

Increase 95.2% 92.8% 92.1% 91.2%

Other benefits

(N) 103 350 499 964

Median 3.0 3.0 3.0 3.0

Average 3.4 3.5 3.4 3.4

75th Percentile 5.0 5.0 5.0 5.0

25th Percentile 1.0 0.0 0.0 0.0

Decrease 0.0% 0.9% 0.8% 0.7%

No change 22.3% 26.3% 25.7% 27.6%

Increase 77.7% 72.9% 73.6% 71.7%

to what extent has your company found the skilled talent

it requires?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 110 380 544 1,051

Always 8.2% 6.1% 6.1% 5.6%

Most of the time 40.9% 45.0% 47.1% 51.2%

Some of the time 41.8% 42.9% 40.6% 36.7%

Rarely 9.1% 5.8% 6.1% 6.2%

Never 0.0% 0.3% 0.2% 0.3%


How is your company attempting to prevent or address

skills gaps?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 110 377 540 1,043

Internal training and skills development programs 80.9% 78.0% 79.1% 77.8%

Collaboration with vocational/technical schools 39.1% 34.8% 36.5% 32.6%

Collaboration with colleges and universities 39.1% 32.9% 33.0% 31.0%

Apprenticeship programs 20.0% 22.3% 23.9% 22.2%

Outsourcing activities for which skills are lacking 20.9% 23.9% 23.0% 21.4%

Collaboration with trade associations 21.8% 19.4% 19.8% 17.7%

Collaboration with high schools 19.1% 17.8% 18.7% 13.6%

Recruiting talent from outside the United States 4.6% 4.8% 4.6% 5.6%

Other 3.6% 3.5% 3.7% 4.8%

Not doing anything to address skills gaps 8.2% 11.4% 9.8% 10.1%

By what percentage will your company’s total inventory

levels change over the coming 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 103 364 524 1,017

Median 0.0 0.0 0.0 0.0

Average 4.1 2.3 1.7 1.4

75th Percentile 5.0 5.0 5.0 5.0

25th Percentile 0.0 -3.0 -3.0 -4.0

Decrease 24.3% 28.6% 28.4% 29.8%

No change 27.2% 28.6% 27.1% 26.5%

Increase 48.5% 42.9% 44.5% 43.8%

What percentage of your company’s inventory/material/

components are purchased from outside the United

states?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 97 341 491 967

Median 4.0% 5.0% 5.0% 5.0%

Average 10.1% 13.9% 13.9% 16.8%

75th Percentile 10.0% 20.0% 20.0% 20.0%

25th Percentile 0.0% 0.0% 0.0% 0.0%

What is your company’s backlog of unfilled sales orders? Ohio east North

Central Division

Midwest

Region

National

aggregate

Current backlog (weeks)

(N) 78 246 346 612

Median 4.0 4.0 4.0 4.0

Average 7.4 7.2 7.5 8.1

75th Percentile 8.0 10.0 10.0 10.0

25th Percentile 1.0 2.0 2.0 2.0

Backlog 12 months ago (weeks)

(N) 78 243 343 609

Median 4.0 4.0 4.0 4.0

Average 9.2 7.7 7.8 8.5

75th Percentile 8.5 9.0 9.0 10.0

25th Percentile 1.0 2.0 2.0 2.0


By what percentage has your company’s productivity

(sales per employee) changed in the past 12 months?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 93 335 478 929

Median 3.0 4.0 4.0 4.0

Average 3.6 3.9 4.1 4.7

75th Percentile 8.0 7.0 8.0 8.0

25th Percentile 0.5 0.0 0.0 0.0

Decreased 17.2% 16.4% 14.9% 14.8%

No change 6.5% 11.6% 11.9% 13.8%

Increased 76.3% 71.9% 73.2% 71.5%

What factors most improved productivity? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 69 243 344 669

Process improvements (general) 85.5% 80.3% 81.4% 79.2%

Improved labor utilization 59.4% 59.3% 58.7% 55.8%

Training 55.1% 50.6% 51.7% 51.6%

Investment in equipment 55.1% 56.8% 54.7% 50.2%

Improved equipment utilization 52.2% 48.6% 48.3% 45.1%

Investment in information technology 21.7% 22.6% 26.5% 30.3%

(not operations automation)

Labor reductions 14.5% 17.3% 16.3% 19.4%

Investment in operations automation 20.3% 21.4% 21.2% 16.3%

(e.g., robotics, programmable logic controllers)

Other 5.8% 4.5% 4.7% 4.3%

What factors contributed to decreased productivity? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 53 180 260 509

Skills gaps among workforce 47.2% 48.9% 50.0% 49.7%

Disruptions in supply chain 34.0% 34.4% 35.8% 37.9%

Machine downtime 50.9% 47.2% 41.9% 37.3%

Inadequate information technology 15.1% 22.8% 23.9% 22.0%

Other 28.3% 16.1% 14.6% 13.2%

What systems/applications will your company most likely

purchase or upgrade in 2013?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Business analytics

(N) 104 355 515 991

Purchase new 4.8% 7.9% 8.4% 7.9%

Major upgrade 3.9% 5.9% 7.2% 7.1%

Minor upgrade 21.2% 23.1% 22.7% 23.6%

No action 70.2% 63.1% 61.8% 61.5%




Ohio east North

Central Division

Midwest

Region

National

aggregate

Customer relationship management (CRM)

(N) 104 361 523 1,005

Purchase new 5.8% 10.8% 11.7% 11.0%

Major upgrade 3.9% 10.0% 11.9% 11.4%

Minor upgrade 30.8% 23.6% 22.4% 24.1%

No action 59.6% 55.7% 54.1% 53.4%

Enterprise asset management (EAM)

(N) 101 346 501 967

Purchase new 2.0% 2.0% 2.0% 1.2%

Major upgrade 1.0% 1.2% 1.2% 0.9%

Minor upgrade 7.9% 9.5% 10.4% 9.1%

No action 89.1% 87.3% 86.4% 88.7%

Enterprise resource planning (ERP)

(N) 104 362 521 1,000

Purchase new 8.7% 9.7% 8.6% 6.5%

Major upgrade 6.7% 10.5% 10.2% 10.1%

Minor upgrade 20.2% 20.2% 22.5% 22.5%

No action 64.4% 59.7% 58.7% 60.9%

Financial management system (FMS)

(N) 103 351 508 982

Purchase new 4.9% 6.0% 5.9% 4.2%

Major upgrade 4.9% 7.4% 6.5% 6.5%

Minor upgrade 18.5% 17.1% 19.5% 21.1%

No action 71.8% 69.5% 68.1% 68.2%

Internet/Web applications

(N) 105 360 518 1,001

Purchase new 2.9% 4.7% 3.9% 3.4%

Major upgrade 20.0% 20.6% 20.1% 22.0%

Minor upgrade 49.5% 46.9% 47.5% 47.3%

No action 27.6% 27.8% 28.6% 27.4%

Manufacturing execution system (MES)

(N) 84 259 364 633

Purchase new 4.8% 3.5% 3.6% 2.5%

Major upgrade 4.8% 7.3% 6.6% 6.2%

Minor upgrade 21.4% 16.2% 17.0% 17.9%

No action 69.1% 73.0% 72.8% 73.5%

Mobility solutions (including tablets)

(N) 105 353 512 991

Purchase new 6.7% 5.7% 5.3% 6.1%

Major upgrade 6.7% 9.4% 9.8% 10.4%

Minor upgrade 33.3% 32.3% 35.4% 36.4%

No action 53.3% 52.7% 49.6% 47.1%




Ohio east North

Central Division

Midwest

Region

National

aggregate

Product life cycle management (PLM)

(N) 85 257 359 623

Purchase new 0.0% 2.3% 2.2% 1.6%

Major upgrade 5.9% 4.3% 3.9% 3.1%

Minor upgrade 5.9% 8.6% 8.1% 9.8%

No action 88.2% 84.8% 85.8% 85.6%

Social media applications

(N) 104 354 510 990

Purchase new 1.0% 2.5% 2.0% 1.8%

Major upgrade 9.6% 10.5% 11.4% 11.2%

Minor upgrade 32.7% 32.5% 33.3% 35.1%

No action 56.7% 54.5% 53.3% 51.9%

Supplier management system

(N) 101 351 512 977

Purchase new 1.0% 3.1% 2.5% 1.9%

Major upgrade 7.9% 7.7% 6.8% 5.2%

Minor upgrade 16.8% 21.7% 24.0% 24.1%

No action 74.3% 67.5% 66.6% 68.8%

Transportation management systems (TMS)

(N) 18 94 148 353

Purchase new 0.0% 2.1% 1.4% 2.3%

Major upgrade 5.6% 4.3% 6.1% 6.5%

Minor upgrade 27.8% 25.5% 23.0% 19.8%

No action 66.7% 68.1% 69.6% 71.4%

Warehouse management systems (WMS)

(N) 103 350 510 981

Purchase new 5.8% 5.4% 4.7% 4.2%

Major upgrade 3.9% 7.4% 7.1% 8.1%

Minor upgrade 19.4% 20.6% 23.9% 23.6%

No action 70.9% 66.6% 64.3% 64.2%

Other

(N) 25 92 126 244

Purchase new 8.0% 9.8% 9.5% 7.8%

Major upgrade 16.0% 6.5% 5.6% 4.5%

Minor upgrade 0.0% 1.1% 1.6% 2.5%

No action 76.0% 82.6% 83.3% 85.3%

Rate the effectiveness of your company’s It environment

(infrastructure, applications and organization) on the

following capabilities?

Ohio east North

Central Division

Midwest

Region

National

aggregate

Improve profit margin

(N) 105 363 524 1,025

1=Not effective 11.4% 10.7% 10.1% 11.3%

2 21.0% 29.5% 30.2% 27.6%

3 41.0% 40.8% 40.7% 38.8%

4 23.8% 15.2% 15.8% 18.7%

5=Extremely effective 2.9% 3.9% 3.2% 3.5%





Ohio east North

Central Division

Midwest

Region

National

aggregate

Increase revenue

(N) 105 363 523 1,023

1=Not effective 20.0% 21.2% 19.1% 19.2%

2 27.6% 32.8% 34.2% 32.8%

3 34.3% 33.3% 34.4% 33.3%

4 13.3% 9.4% 9.8% 12.3%


Improve customer satisfaction

(N) 105 364 525 1,026

1=Not effective 9.5% 8.2% 7.1% 7.5%

2 15.2% 19.5% 20.0% 19.1%

3 31.4% 40.7% 41.5% 39.7%

4 30.5% 24.2% 25.0% 28.0%


Minimize corporate risk

(N) 105 363 522 1,021

1=Not effective 17.1% 14.9% 13.6% 12.8%

2 23.8% 25.6% 26.1% 25.6%

3 37.1% 36.9% 37.0% 37.7%

4 19.1% 18.5% 19.2% 20.2%


Share information within the company

(N) 105 362 523 1,026

1=Not effective 8.6% 5.3% 4.6% 4.1%

2 6.7% 11.9% 12.4% 10.5%

3 37.1% 35.1% 35.6% 36.1%

4 35.2% 35.6% 36.1% 36.2%


Share information with customers

(N) 106 363 522 1,021

1=Not effective 13.2% 14.6% 12.3% 11.2%

2 23.6% 22.9% 23.6% 24.6%

3 30.2% 32.0% 36.8% 36.4%

4 25.5% 24.2% 22.2% 22.1%


Share information with suppliers

(N) 107 365 522 1,021

1=Not effective 17.8% 17.3% 16.3% 16.5%

2 26.2% 28.2% 28.4% 27.6%

3 31.8% 30.7% 33.7% 35.4%

4 18.7% 19.7% 18.4% 16.5%






Ohio east North

Central Division

Midwest

Region

National

aggregate

Enhance corporate security/reduce risks

(N) 104 361 517 1,016

1=Not effective 11.5% 10.0% 9.3% 9.1%

2 18.3% 23.0% 24.2% 22.9%

3 44.2% 40.2% 38.5% 39.4%

4 20.2% 21.1% 22.2% 22.4%


Improve company productivity/reduce costs

(N) 105 358 518 1,018

1=Not effective 7.6% 7.3% 6.6% 6.3%

2 17.1% 20.1% 21.2% 20.8%

3 30.5% 39.1% 41.3% 38.9%

4 30.5% 26.0% 24.5% 27.4%


Does your company use cloud computing for any systems

or applications?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 108 370 531 1,038

Cloud storage, infrastructure or backup 22.2% 24.1% 22.8% 22.5%

Customer relationship management (CRM) applications 2.8% 2.4% 4.9% 6.4%

Enterprise resource planning (ERP) or financial systems 2.8% 3.5% 3.2% 3.3%

Office productivity systems (e.g., calendars, collaboration

tools)

7.4% 7.8% 8.3% 9.3%

Other 5.6% 4.6% 3.6% 3.6%

No use of cloud computing 59.3% 57.6% 57.3% 54.9%

to what extent is your company using social media (e.g.,

LinkedIn, Facebook, twitter) for any business activities?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 109 374 537 1,048

Extensive use 0.9% 3.5% 4.7% 4.0%

Moderate use 9.2% 14.2% 13.2% 15.3%

Some use 35.8% 36.6% 39.5% 40.0%

Plan to use 11.9% 12.8% 12.9% 12.4%

No plans to use in future 38.5% 28.1% 25.9% 24.9%

Don't know 3.7% 4.8% 3.9% 3.4%

to what extent do you believe your company’s

information/data is at risk?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 109 374 537 1,049

1=Not at risk 24.8% 17.9% 18.1% 17.2%

2 46.8% 52.7% 51.8% 50.4%

3 20.2% 23.0% 23.7% 26.4%

4 4.6% 4.6% 4.8% 4.3%

5=Very much at risk 3.7% 1.9% 1.7% 1.7%


Does your company have an It risk management process? Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 108 372 535 1,043

Yes 57.4% 63.4% 64.3% 65.4%

No 24.1% 25.3% 24.3% 24.8%

Don't know 18.5% 11.3% 11.4% 9.8%

Does your company regularly monitor systems to find

threats and attacks that may have occurred?

Ohio east North

Central Division

Midwest

Region

National

aggregate

(N) 107 371 535 1,041

Yes 70.1% 72.0% 72.5% 74.2%

No 20.6% 19.4% 18.3% 17.3%

Don't know 9.4% 8.6% 9.2% 8.6%


MethodologyThe 2013 McGladrey Manufacturing & Distribution Monitor was conducted using an online questionnaire promoted by

McGladrey and various industrial associations to principally U.S.-based manufacturing and distribution organizations.

There were 1,067 total valid respondents to the 2013 McGladrey Manufacturing & Distribution Monitor (categorized as 688

manufacturers and 379 distributors), with completed questionnaires received in March 2013. Responses were received by

The MPI Group, an independent research firm, and then entered into a database, edited and cleansed where necessary to

ensure answers were plausible. All respondent answers to the 2013 McGladrey Manufacturing & Distribution Monitor are

confidential. As incentive to complete the study, participants are being provided this state benchmark report, as well as

their own customized benchmark report.

GlossaryFrequency (N): The number or count of responses for a question.

average: The average or mean value for answers to open-ended questions (sum of values divided by the number of

responses).

Median: The midpoint value for open-ended questions—the value above and below which half the answers fall;

equivalent to the 50th percentile. The median is frequently the most reliable statistic upon which to base comparisons.

percentage: The percentage of responses for a specific answer category, based on all responses for that particular

question. (Note: This is not based on the total number of respondents for the survey.) For cross-tabulated data, the

percentage is based on those that responded to both the cross-tabulation category question and the question

being analyzed.

percentiles: The 25th percentile is the value below which 25 percent of answers fall. The 75th percentile is the value below

which 75 percent of answers fall.

power comes from being understood.®

When you trust the advice you’re getting, you know your next move is the right move. That’s what you can expect from McGladrey. That’s the power of being understood.

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This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute assurance, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. McGladrey LLP, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person.

McGladrey LLP is an Iowa limited liability partnership and the U.S. member firm of RSM International, a global network of independent accounting, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party.

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2013 manufacturing and distribution monitor state reports ohio · 8/16/2013 · national response...

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