For many in Washington, the growth and success of large corporations is a major factor in the growth of the American economy. However, for the majority of companies in America—the ones that are hiring the most Americans—it’s small companies that truly matter. And, according to a report, small industrial companies are experiencing growth and are anticipating further growth.
ThomasNet.com, a sourcing and product directory in the industrial sector puts out a semi-annual report called the Industry Market Barometer. All of the 3,370 professionals who responded to the IMB are from North America. Primarily, they come from small companies—fewer than 100 employees and less than $10 million in revenue—which back up the claim I made above about what type of companies make up the majority of our economy.
The big sign that the survey revealed was the continued growth and confidence as companies develop strategies to deal with their growing challenges. Executives have found that growth is caused by a set of core strategies ranging from customer retention efforts to product development and new market expansion. Due to this growth, many of the respondents are investing more money in their companies and hiring new people to meet the increase in demand.
What the data demonstrates is a consistent growth in the industrial sector. From the South West to the Ohio Valley to the North East, the data reveals a sector that is pushing forward. Companies are continuing to expand, with 1.5 times more growth than declines across the country in every segment and among small and large businesses alike.
For the companies that are growing, 78% can attribute it to a focus on customer retention and service. Other important strategies include developing new products, seeking out business in other US regions, competing more in core markets and utilizing more online marketing.
Despite the tremendous growth reported, there are still many challenges these companies are facing. 68% admitted that customers cutting back or closing shop as their greatest challenge. Domestic competition is another point of difficulty for 46%. Nearly 30% said that international competition was hurting them, but to combat this, many are pushing into overseas markets.
Jobs are clearly the key for the American economy. 37% of all respondents said that they will be adding employees through June 2011. Overall, 43% will add skilled trade workers, 36% will add line workers, and 45% will hire engineering members.
Growing smart, though, is very important to these companies. While they are investing heavily to meet demands by increasing production capacity, adding new lines and adding more employees, 9 out of 10 respondents said that “managing costs” was their top priority.
The industrial sector is such an important part of the American economy. And while many other sectors have seen growth, there were many who argued that the industrial sector was doomed in America due to overseas competition. What the IMB demonstrates is that there has been growth and that there is more anticipated growth going forward. With the increase in manufacturing and industrial business, unemployment should drop. On the back of the industrial sector, America can finally begin pulling out of this recession.