New Survey Shows Manufacturers Expanding; Investing in New Technologies
NEW YORK, March 17 /PRNewswire-FirstCall/ -- Encouraged by a stronger U.S.
economy and increased corporate spending, business leaders are optimistic
about industry growth in 2004, a new survey shows. 63 percent of U.S.
manufacturers have a positive outlook for the future and believe their
industry will improve in the coming year, according to a national survey of
manufacturers released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20021029/SILOGO )
The survey, conducted by Penn, Schoen & Berland Associates Inc., also
found investing in new automation technologies to be a top priority for
corporations. More than half (61 percent) of respondents say their company is
either in the process of investing in new automation technologies, or will be
sometime this year.
"Technology spending is back because companies have a reason to invest in
technology now more than ever," said Bill Zadrozny, CEO, Siemens Financial
Services, Inc. "Companies see a pickup in the demand for business equipment,
they see consumer spending continue at a very high level, they see the economy
improving, so they're investing in new technologies to improve productivity,
increase efficiency, and increase capacity."
Siemens, a leading technology company, sponsored the survey to shed light
on attitudes shaping today's manufacturing industry. The company recently
began touring the U.S. with the Siemens technology train, a 1,000-ft.
exhibition on rails that shows how automation technologies can help U.S.
manufacturers stay competitive. The 14-car train, called the "Exider," is
outfitted with an impressive array of high technology and is visiting 10
cities coast to coast.
"Investment in automation goes right to the bottom line and with that
increased bottom line, companies have the ability to expand their businesses,"
Zadrozny said. "It's a virtuous cycle and as they expand their businesses, it
will create those jobs we've been looking for these last two years."
In addition to increased profit margins, respondents of the survey also
linked automation technologies to the potential for increased sales.
Automation technologies, such as those on the Exider, can help manufacturers
hold down costs, which in turn could help them lower their bids and win new
contracts. In addition, respondents noted that raising productivity and
increasing capacity through automation also could attract new customers.
The Exider train demonstrates how automation technology is transforming
today's industrial workplace, with simulated applications in the
pharmaceutical, chemical, and automotive industries, among others. Individual
cars showcase such themes as process and discrete manufacturing, machine tool
components, commercial and residential power distribution, and engineering
services.
The Siemens technology train pulls into New York City's Grand Central
Station on March 24, the latest stop on a world tour that has attracted nearly
100,000 visitors in 15 countries. Prior stops include Chicago, Atlanta, and
Greer, SC. Next up are Boston, Detroit, Houston, Los Angeles, San Francisco
and Seattle.
A Closer Look at The Survey Results
* Another positive economic trend revealed by the survey: Almost half (49
percent) of the business leaders polled say they are expanding their
businesses this year, compared to only 11 percent who say they are
downsizing.
* Manufacturers see automation technology as having the greatest positive
impact on manufacturing in the year ahead. Nearly three-fourths of
respondents believe their competitors are investing in new
manufacturing or automation technologies.
* Respondents say the biggest issues facing their industries are pricing
pressures (18 percent) and cost cutting (16 percent). Production
efficiency is seen as the key to success, with two thirds (65 percent)
saying more efficient production systems will help their companies win
new business or increase sales.
* Business leaders believe the high-tech equipment industry will see the
biggest growth in 2004-05. Healthcare and computer technology are seen
as the strongest emerging industries.
* By region, manufacturers say that the Southeast and Southwest have the
most positive outlook for 2004-05, while the Pacific Northwest has the
weakest.
How the Survey Was Conducted
Penn, Schoen & Berland Associates Inc. conducted 76 phone interviews
between February 20, 2004, and March 3, 2004, with business leaders in the
manufacturing and automation industries. Respondents work in a wide range of
industries, including automotive, oil and gas, packaging, publishing, plastics,
dairy, cosmetics, consumer products, biotechnology and semiconductor.
The survey interviewed C levels, VP levels, directors and managers in the
Northeast, Southeast, Southwest, Midwest and Pacific Northwest regions of the
U.S. Respondents included executives in Boston, New York, Atlanta, Washington
DC, Charlotte, Houston, Los Angeles, Chicago, Detroit and San Francisco.
The margin of error among the entire sample is +/-11.3 percent and larger
among sub-groups.
For more Exider information and images: http://www.usa.exider.com
Siemens AG (NYSE: SI) is a leading global electronics and engineering
company with reported worldwide sales of $80.5 billion in fiscal 2003. With
its U.S. corporate headquarters in New York City, Siemens in the USA has sales
of $16.6 billion and employs 65,000 people throughout all 50 states and Puerto
Rico. Eleven of Siemens' worldwide businesses are based in the United States.
With its global headquarters in Munich, Siemens AG and its subsidiaries employ
417,000 people in 192 countries.
For more information on Siemens in the U.S.: http://www.usa.siemens.com.
SOURCE Siemens Corporation
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Related links:
http://www.usa.siemens.com
http://www.usa.exider.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20021029/SILOGO
Company News On-Call:
http://www.prnewswire.com/comp/000728.html
CONTACT:
Jim Miller, +1-201-886-8469,
jvmill@verizon.net, or Lisa Quirindongo, +1-212-660-6784,
lquirindongo@dcinyc.com, both of Dentsu Communications, for
Siemens Corporation; or Paula Davis of Siemens Corporation,
+1-212-258-4260, paula.davis@siemens.com
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