Quality Magazine

Contract Manufacturers Holding Steady in 2009

April 29, 2009

ATLANTA-Forty-five percent of contract manufacturers are projecting growth in 2009, while 28% project their business to remain at last year’s level, according to MFG.com’s MFGWatch survey conducted in January 2009. A total of 570 North American contract manufacturers participated in the survey, covering topics such as the state of the global economy, current business conditions and survival plans to combat the economic downturn. Overall, manufacturers are making tough choices to steady the bottom line and boost operational efficiencies.

As manufacturing continues at a 26-year low in the United States, the survey asked if participants were optimistic about the global industry rebounding in 2009. Thirty-seven percent of respondents stated they were optimistic, 28% were neutral on the possibility and 34% thought a 2009 rebound was unlikely.

Queried about overall business conditions, 51% replied that their businesses were experiencing declining conditions, while 49% stated improving or excellent business conditions. Those respondents also were asked if they noticed an increase or decrease in new demand during the past six months. Fifty percent responded there has been a decrease in demand, while 28% reported there has been no change in customer demand. Eighteen percent experienced an increase in business from their current customers. Three percent were not sure.