Industry Pulse:

Manufacturing & Distribution Results
The Sikich Industry Pulse surveys manufacturing and distribution executives from across the nation multiple times throughout the year, highlighting and responding to top trends as they arise. The Pulse results provide readers with real-time competitive intel to adjust and apply to their business strategies.
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Industry Pulse

In 2020, manufacturers and distributors learned how to adapt to an unprecedented global pandemic. This year, they’re taking those lessons learned and positioning their companies for growth in a redefined marketplace (though, growing pains are inevitable).

In the Sikich Industry Pulse, our optimism index shows industry executives are hopeful about the coming six months. Their hope is coupled with the reality of continued hiring challenges and a heightened focus on validating and protecting their data. To overcome these challenges, I urge industry leaders to embrace automation, adopt innovation and challenge the status quo.

We’re challenging our own status quo by committing to survey the manufacturing and distribution industry multiple times throughout 2021, providing real-time data for our clients and colleagues.

Stay tuned!

 

Jerry Murphy, CPA, CMA, CGMA, Partner-in-Charge
Manufacturing & Distribution Services

Q1 Results

INDUSTRY EXECUTIVES fairly
optimistic
one year after
pandemic shock
DESPITE NATIONAL UNEMPLOYMENT RATE, FILLING OPEN POSITIONS still a challenge.
According to the U.S. Bureau of Labor Statistics, “The [national] unemployment rate edged down to 6.0 percent in March. The rate is down considerably from its recent high in April 2020 but is 2.5 percentage points higher than its pre-pandemic level in February 2020.”

0%

of respondents
plan to increase their workforce
in the next
six months
But only 5% are completely confident in their ability to obtain the talent required
uncertainty
looms over

employee retention credit eligibility

of manufacturers and distributors don't plan to take advantage of or are unsure if they qualify for the credit
Business sales already on the horizon? Succession plans LARGELY UNCHANGED by pandemic conditions.
70% of respondents said their business succession plans remain the same, and our experts want to know more.
4%
Moving up plans by 3-5 years

7%
Moving up plans by 1-2 years

6%
Delaying plans by 3-5 years

13%
Unsure

70%
Plans remain the same

“I’ve seen plenty of manufacturing companies considering or actively selling part or all of their business in the near future. I have to question if those sticking with pre-pandemic succession plans already had a sale or tuck-in in their sights because the M&A market is hot.”
– Ray Lampner, Partner-in-Charge, CPA Consulting Services
ROOM FOR IMPROVEMENT IN USING AND PROTECTING DATA.
Nearly ¾ of executives are fairly or completely confident in using their existing data to make business decisions
More than half of manufacturers and distributors experienced at least 2 information security events in the past 12 months.
top reported incidents:

0%

email phishing scams

0%

unemployment fraud

0%

ransomware
“I’m most alarmed at the amount of ransomware events the industry experienced. A ransomware event has a lot of lasting ramifications, from permanently losing critical data to exposed sensitive customer and employee data to paying a hefty ransom to recover the data – these attacks are no joke.”
– Kevin Bong, Director, Information Security
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