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Industry Pulse

manufacturing + distribution

2022    VOL 1

In February 2022, Sikich surveyed nearly 100 manufacturing and distribution executives on supply chain disruptions, workforce needs, facility plans and more.

TAB THROUGH THE RESULTS BELOW.

The Sikich Industry Pulse surveys manufacturing and distribution executives from across sectors and 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 apply to their business strategies.

optimism looks
promising

In February 2022, 75% of manufacturing and distribution executives rated their optimism at a seven or higher on a scale of one to 10, which is 3% higher than this time last year and 4% higher than September of 2021.

When surveyed on optimism again in March, we found manufacturers have remained optimistic. Nearly 70% of manufacturers still rate their optimism of business prospects over the next six months at a seven or higher. This optimism may be impacted as geopolitical conflicts continue to unfold.

ARE YOU PROTECTED?


More than half of respondents admitted to experiencing an information security event in the past 12 months with the top three events being:

0%

email phishing scams

0%

unemployment fraud

0%

ransomware

Thirty-six percent of respondents admitted to experiencing two or more different kinds of information security events.

REady to revisit your cybersecurity approach?
Learn about the newest cybersecurity threats and how to better protect your systems and data from them by watching our latest webinar on the topic.

Supply Chain
Obstacles
First, the pandemic led to material shortages and delays, and now, geopolitical conflicts may prolong and exacerbate supply chain challenges. Industry executives are taking, or plan to take, the following steps to mitigate the supply chain disruptions.
of these respondents

are taking two or more of these steps

of these respondents

are identifying alternative supplies and alternative products

help still wanted

Those looking to maintain their current workforce (25% of respondents) should focus on employee retention. While student loan payments were paused during the pandemic, they are likely to resume in 2022. Incorporating an educational assistance program (EAP), offering student loan repayment assistance on a tax-free basis to employees, can aid in this effort. Currently, only 4% of survey respondents have, or plan to offer, this. 

Ten percent are very confident in their ability to obtain the talent required – an increase in confidence from Q1 of 2021 (5%)

ARE ROBOTS THE ANSWER TO LABOR GAPS?

Understand common misconceptions in implementing robotic automation.

planning for the
future
MANUFACTURERS AND DISTRIBUTORS PLAN UPDATES TO THEIR EXISTING FACILITIES

Those who are gearing up for facility updates in 2022 are planning to:

MANUFACTURERS AND DISTRIBUTORS ARE ALSO PARTICIPATING IN THESE OTHER CORPORATE responsibility initiatives:

Forty-six percent are taking two or more corporate responsibility initiatives.

“If the update is to your existing facility, and not an entire new facility, you might be entitled to have the upgrade treated as a “qualified improvement property” (“QIP”). As QIP, it could be eligible for 100% bonus depreciation and, therefore, all deducted in 2022. The 100% bonus depreciation figure slips to 80% in 2023.”

– JIM BRANDENBURG, CPA, MST, TAX PARTNER

mixed expectations
regarding the
"build back better" legislation

Thirty-nine percent of survey respondents are unsure of how the “Build Back Better” legislation will impact their business if enacted, and 26% of manufacturers and distributors don’t think the legislation will have much impact on their business.

BUSINESSES EXPECTING AN IMPACT ARE ANTICIPATING THE FOLLOWING TOP THREE PROVISIONS:

OUR EXPERTS CLOSELY FOLLOW ALL THE LATEST FEDERAL TAX LEGISLATION DEVELOPMENTS.

Learn the latest on the BBB by watching here.

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