Industry Headlines

National Manufacturing Survey Finds Serious Inflation Concerns

May 3, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

CHICAGO- In a national survey of U.S. manufacturing CFOs and senior controllers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, there are serious concerns about inflation, as 66% say that their company intends to raise the sales price for their goods over the next six months, up from 35% six months earlier.

“This was to be expected given the increase in commodity raw material costs experienced by most manufacturers over the last 12 months,” says Wally Gruenes, Grant Thornton’s national managing partner for consumer and industrial products. “With the precipitous increase in these commodity prices in recent months, manufacturers have no choice but to pass along such increases to their customers. While they have done a good job of improving operational efficiencies and driving down costs over the past three years, manufacturers simply could not drive down their conversion costs enough to absorb these raw material price increases.”

When asked about specific pricing concerns, 96% identified raw materials such as cotton, metals and petroleum-based products- which was up from 62% six months earlier; and 58% identified energy, up from 33% six months earlier.

While still not robust, 47% intend to increase head count (up from 18% six months earlier), and 58% are optimistic about their own company over the next six months (up from 35%).

Regarding the Japan disaster, 90% say it will impact the U.S. economy and most believe that Japan will not fully recover for one to three years.

Grant Thornton LLP conducted the biannual national survey from March 22 through April 6, 2011, with 318 U.S. CFOs and senior controllers participating, of which 50 were from manufacturing companies.

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

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

Multimedia

Videos

Podcasts

 In honor of World Quality Month, we spoke to James Rooney, ASQ Past Chairman of the Board of Directors 2013, for his take on quality around the world.
For more information, read the ASQ Speaking of Quality column.
More Podcasts

THE MAGAZINE

Quality Magazine

cover_image

2014 April

Check out the April 2014 edition of Quality Magazine for features!
Table Of Contents Subscribe

Manufacturing Process

Has/does news about a manufacturers’ recall (like the GM recall in the news now) cause you or your company to reexamine its manufacturing process?
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.

eNewsletters

STAY CONNECTED

facebook_40.png twitter_40px.png  youtube_40px.pnglinkedin_40px.png