Manufacturing Barometer Q2 2009

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PricewaterhouseCoopers' Manufacturing Barometer is a quarterly survey of executives in large, US-based, multinational industrial manufacturing businesses. Survey findings compare the economic outlook in the US industrial manufacturing sector to that of the broader marketplace - the consensus view of all surveyed companies. The accompanying charts and tables also provide contrasts of the manufacturing and non-manufacturing sectors. Captured are survey participants' assessments of the direction of the economy, their company's revenue growth trend, plans for major new investments, plans to add new workers, barriers to future growth, and much more.

US-based industrial manufacturers appear to have turned a corner in Q2 2009. Looking forward, fewer are pessimistic and more are optimistic about the US and global economies. Of those surveyed, one-third continued to project negative revenue growth into mid-2010, but 43% expect positive revenue growth over the next 12 months. Overall, respondents projected a relatively flat revenue growth rate, at minus 0.4%. Contributions from international markets, which have been strong among these industrial manufacturers, are projected at 30% of revenue, the lowest they have been in the previous four quarters. Scarce market demand remains the chief concern or barrier to growth. Prospective investments and increased budget spending show signs of improvement, along with M&A and new business initiatives. On the workforce front, respondents projected a continued pace of reductions over the next 12 months.