Report: Manufacturers, distributors optimistic one-year into pandemic
But challenges remain, including meeting hiring goals, fighting cybersecurity threats, and improving data quality.
Nearly three-quarters of manufacturers and distributors are optimistic about their business prospects in the next six months, according to a report from advisory firm Sikich, released April 28.
The firm polled more than 120 executives from manufacturing and distribution companies across a range of industries, including industrial equipment, wholesale distribution, and transportation, and found that 72% ranked their level of optimism at seven or higher on a scale of one to 10. The survey also found that more than half of manufacturers and distributors want to expand their workforce in the next six months.
“As the world slowly opens back up, manufacturers have a lot to look forward to,” Jerry Murphy, partner-in-charge of Sikich’s manufacturing and distribution team, said in a statement announcing the report’s findings. “This past year has showcased the resilience of the manufacturing industry. From quickly implementing safety protocols in their facilities to maintaining production in a fast-changing environment, manufacturers impressively adapted throughout the past year. Having navigated a tumultuous 2020, the industry appears primed for growth.”
The report identified three main challenges facing manufacturing and distribution firms this year:
- Hiring problems. Although 56% of survey respondents said they plan to grow their workforces, just 5% say they are confident in their ability to obtain the talent required.
- Cybersecurity threats. Cybersecurity breaches still run rampant. More than half of manufacturers and distributors experienced at least two information security events in the past 12 months, according to the report. The most common cybersecurity incidents include email phishing scams (81%), unemployment fraud (42%), and ransomware (9%).
- Data quality issues. More than a quarter of survey respondents (28%) are only slightly or somewhat confident in using their existing data to make business decisions, emphasizing a need for improved data quality.
The full report is available on the Sikich website.