Industry Headlines

Manufacturers Don'T Communicate Well with Investors

NEW YORK—Manufacturers are not communicating with investors and analysts as effectively as they think they are.

According to a survey by PricewaterhouseCoopers, just 8% of investors and 3% of analysts believe that manufacturers maintain an active dialog with them. Yet at the same time, 50% of manufacturers believe they are proactive in communicating with investors and analysts.

The survey results reveal that with investor cynicism about short-term earnings running high, good communication with the capital markets is more important than ever.

“Communicating more effectively with the markets should be at the top of manufacturing companies' boardroom agendas,“ says Richard W. Ellis, U.S. manufacturing leader for PricewaterhouseCoopers. “Our re-search has shown that at least 80% of investors and analysts think it would enhance management credibility and have a significant impact on price-to-earnings ratios and share prices.

“Those manufacturing companies that actively communicate with the markets...will have a better chance of creating long-term value and maintaining a market capitalization that reflects their true worth.“

Most manufacturing executives believe these companies create long-term value, but 60% believe the markets undervalue their companies.

The reason for this discrepancy may be that manufacturing executives and market analysts do not agree on key performance measures. When the survey asked executives and analysts to rank the importance of 30 key value indicators, the executives agreed on only six, while analysts agreed on 18.

Did you enjoy this article? Click here to subscribe to Quality Magazine. 

You must login or register in order to post a comment.




Karen Spencer, Clinkenbeard's quality manager, discusses what makes the plant stand out, advice for other plants, and looks to the future.
More Podcasts

Quality Magazine


2015 May

The May 2015 edition of Quality Magazine includes articles on cloud technologies, depth gages, ISO 9001, digital inspection and cool new products.

Table Of Contents Subscribe

Topics to Talk About

What topics would you like to see Quality cover more?
View Results Poll Archive

Clear Seas Research

qcast_ClearSeas_logo.gifWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Facebook2015_40 twitter_40px.png  youtube_40px.pnglinkedin_40px.png  GooglePlus_40