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.
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.
More than half of respondents admitted to experiencing an information security event in the past 12 months with the top three events being:
Thirty-six percent of respondents admitted to experiencing two or more different kinds of information security events.
are taking two or more of these steps
are identifying alternative supplies and alternative products
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.
Those who are gearing up for facility updates in 2022 are planning to:
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
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.
OUR EXPERTS CLOSELY FOLLOW ALL THE LATEST FEDERAL TAX LEGISLATION DEVELOPMENTS.
Learn the latest on the BBB by watching here.
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