Our second annual Manufacturing and Distribution Pulse Survey Report explores the impact of the pandemic on the industry, and how businesses have pivoted to survive, including managing new product offerings, technology implementation, and supply chain disruptions. During this webinar session, we discussed how 200 leaders of M&D companies, ranging from $20 million to over $1 billion in revenue, responded to our survey.  Topics included: •  How COVID-19 has accelerated the 4th Industrial Revolution •  Product sourcing changes •  Business pivots and what made them successful

1. A YEAR LIKE NO OTHER
Manufacturing and Distribution
Industry Perspectives
September 16, 2021 | C-Suite Snacks Webinar Series

2. MARK FAGAN, CPA
Partner, Manufacturing and Distribution Practice Co-Leader
Citrin Cooperman
mfagan@citrincooperman.com
914.949.2990
Welcome &
Introduction

3. This survey was conducted online in conjunction with the
research arm of FINN Partners between March 30 and April 14,
2021.
Respondents had to be VP/SVP of operations or above and
work within companies generating $10M annual revenue or
more.
A total of 200 respondents took the survey: manufacturing only
businesses totaled 34%; distribution only, 26%; and both
manufacturing and distribution, 40%.
2021 Manufacturing &
Distribution Industry
Pulse Survey
METHOD & DEMOGRAPHICS

4. New product and service
offerings are the story of
2020 and beyond.
Supply chain disruption
and constraints forced
businesses to pivot.
The shift to e-commerce is
no longer a trend, it’s a
landslide.
Summing Up Our Findings

5. REPORT SIGNIFICANT OR
SOME/MODEST REVENUE
GROWTH IN 2020
Revenues and earnings are healthy or stable for most, painful for the minority.
Financial Performance
REPORT FLAT REVENUE
GROWTH IN 2020
REPORT SIGNIFICANT OR
SOME/MODEST REVENUE
DECLINE IN 2020
46% 20% 34%
Certain sectors performed better than others. In the food sector alone, those that serve booming supermarkets have
fared better than those serving unfilled hotels and restaurants.

6. Product performance was positive, yet new product and service offerings are the story
of 2020 and beyond.
Product Performance
Introduced new products
or services:
Expect the new products to
continue post-COVID-19:
Did you introduce a new product line or service due to COVID-19? Do you intend for the new product line or service to
continue once life returns back to the way it was?

7. Online sales spike and dominate revenues – as you may have expected from all those
boxes in your garage.
E-Commerce and the Amazon Effect
Current percentage of online sales?
SAY MORE THAN A
QUARTER OF THEIR SALES
COME THROUGH AMAZON
69%

8. Supply chains were stretched to the breaking point in 2020. Companies were forced to
pivot to survive.
Supply Chain and Logistics
How has disruption to the global
supply chain caused you to
significantly change how your
product is sourced?
HAVE CHANGED HOW A
PRODUCT IS SOURCED DUE
TO A DISRUPTION IN THE
GLOBAL SUPPLY CHAIN.
66%

9. Most have implemented data analytics in their companies, nearly all are working to make
their use of analytics better.
ERP & Data Analytics
How are you currently using data analytics? Select all that apply.
COMMON
KPIs
MONITORED
QUALITY CONTROL 71%
MATERIAL COSTING, 51%
CUSTOMER COMPLAINTS, 43%

10. ERP & Data Analytics
Does your ERP system give you monthly profitability information at the product level?

11. Almost half (42%) of respondents surveyed say their company is considering a potential sale in
the next three years.
Exit Plans
Is your company considering a potential sale of your business in the next three years?

12. Fixing up your business for market? Here’s how.
Exit Plans
Which of the following do you believe you would need to upgrade if your
company were to be sold in order to maximize your company’s value?
In order to determine the best use of resources,
time, and effort, business owners will have to
determine first how they will exit:
• Family Succession - Transfer the business
to a family member(s)
• Internal Succession - Sell or transfer the
business to one or more key employees or
co-workers, or sell to employees using an
Employee Stock Ownership Plan (ESOP)
• External Succession - Sell the business to
an outside third party, an investment by a
private equity firm, initial public offering (IPO),
or strategic merger

13. The way forward demands agility with e-commerce, technology, and new products.
Tomorrow’s Growth
Biggest keys to your future growth strategy?
SAY THAT ONE OF THE TWO
BIGGEST HURDLES TO FUTURE
GROWTH IS TECHNOLOGY
REQUIREMENTS
49%
While e-commerce is likely to be a significant growth area going forward, it brings investments that companies have
historically been slow to make.

14. Questions?

15. Thank You
F o r Wa t c h i n g & L i s t e n i n g