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VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
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3. Manufacturing Report. Copyright 2015, Sikich LLP. 3Manufacturing Report. Copyright 2015, Sikich LLP. 3
Abstract
In effort to understand the issues facing the manufacturing and distribution industry, Sikich
conducted a survey in March 2015 to determine manufacturers’ top concerns and predictions for
the near future. The survey touched on some of the most critical issues, such as expectations for
the industry, the U.S. economy, overall performance and challenges. The end goal was to analyze
emerging trends in a rapidly changing industry. After reviewing the survey results, we concluded
five key findings:
ùù Manufacturers feel a need to grow in existing markets,
ùù Hiring qualified workers is critical,
ùù Reducing operational costs will be crucial for success,
ùù Effective supply chain management is of extreme importance and
ùù Technology remains a significant challenge.
In the long term, these five findings will prove to play a major role in the evolution of the
manufacturing industry. This report addresses the reasons behind this hypothesis and explores
case studies that illustrate the findings.
Introduction
An industry once isolated from technology is now experiencing fast-paced shifts, from
advancements in 3D printing to the emergence of the Internet of Things (IoT). In fact, the next big
trend looking to make waves in the manufacturing industry is the blending of analog and digital
worlds with the incorporation of augmented reality via holography. Take a moment to imagine
what becomes possible when a designer in California is collaborating with both a manufacturer in
Ohio and a supplier in China on the exact virtual object in real time. Or taking the premise a step
further, imagine a systems engineer pulling real-time data over the IoT from a piece of equipment
that is reporting a malfunction, then visually directing an on-site field technician wearing a virtual
reality device how to fix that problem over a Skype link. The definition of collaboration will soon
take on a whole new meaning.
About the Survey
In March 2015, Sikich conducted a survey to learn more about issues facing the manufacturing
and distribution industry. The survey covered critical concerns such as expectations for the
industry, the U.S. economy, overall performance and challenges, and our goal was to analyze the
trends emerging in a rapidly changing industry. Of the survey respondents, almost 75 percent
have annual revenue ranging from $1 million to $100 million, with nearly 25 percent taking in more
than $100 million. While only 16 percent have an employee headcount of 251 to 500, 40 percent
have between two-to-four locations worldwide with 82 percent headquartered in the Midwest and
44 percent with international operations. About half of the manufacturers declared they are more
optimistic about the U.S. economy compared to last year. In fact, 54 percent expect their revenue
to increase by more than 5 percent in 2015, and more than 90 percent expect the industry to
expand or stay the same over the next year.
4. Manufacturing Report. Copyright 2015, Sikich LLP. 4
While expectations are high for the next year, the manufacturing industry is still overcoming
barriers in order to meet those goals. After reviewing our survey results, we discovered five key
findings that will prove to play a major role in the manufacturing industry:
ùù Manufacturers feel a need to grow in existing markets,
ùù Hiring qualified workers is critical,
ùù Reducing operational costs will be crucial for success,
ùù Effective supply chain management is of extreme importance and
ùù Technology remains a significant challenge.
Key Finding #1: Growing in Existing Markets
When companies target growth in existing markets, there is often
reduced risk. Business leaders understand market size, as well as
their target audience and how that audience reacts to the product.
Regardless if the product is marketed in a new way, at the end of
the day, the target customer is already aware of the product and is
oftentimes purchasing it. While there is a need for manufacturers to
develop new products and services within new markets, an increase in
existing markets may be more efficient for manufacturers today. In fact,
as shown in Figure 1, 37 percent of manufacturers surveyed believe
an increase in existing markets is their main opportunity for growth,
whereas 22 percent believe their main opportunity for growth lies in new
product and service development.
Manufacturers often stick to existing markets to avoid risk, though no
matter how predictable existing markets may be, they are still deep-
rooted with competition. If a competitor has a higher-quality product,
substantial capital and customer loyalty, it can be difficult to establish a secure footing in the
market. When remaining in an existing market, manufacturers need to create products that are
exceptionally better than currently existing products to truly attain marketplace leadership and
experience high profitability.
The practice of avoiding new markets may be
holding many manufacturers back. As shown
in Figure 2, 32 percent of survey respondents
spend fewer than 1 percent of sales on new
product research and development. That is a
staggeringly low percentage for an industry
that is evolving on a daily basis. In order to
survive and remain competitive, manufacturers
will need to progress with the trends or they
will be left behind. One advantage of pursuing
a new market is it’s less likely to be entrenched
with competitors, making it easier to obtain
market leadership.
Figure 1: Main opportunity for business growth in the next
12 to 18 months
Increased share in
existing markets
New product or
service development
37%37%
22%22%
Figure 2: Sales invested in new product research
and development (R&D)
Less than 1%
51%51%
13%13%
4%4%
32%32%
1% to 5%
6% to 10%
Greater than 10%
5. Manufacturing Report. Copyright 2015, Sikich LLP. 5
A big challenge for many manufacturers is embracing change in whatever
shape or form it presents itself. When manufacturers can accept the changing
environment that is their industry, they can better adapt their business outlook
and practices for the future and increase revenue. In fact, the majority of
survey respondents expect to increase their revenue this year by more than 5
percent as shown in Figure 3.
Often, business leaders get so comfortable with their current strategy that
they fail to see opportunities, let alone leverage what is in front of them. Both
existing and new markets come with their fair share of risks, from too many
competitors dominating an existing market to the fear of a new market never
really emerging at the pace and size required for success. Regardless of the
reason, manufacturers will need to determine how to sell existing products to
new markets and new products to existing customers.
Key Finding #2: Hiring Qualified Workers
Manufacturing looks much different than it did just five years
ago. Innovative technologies have broken down barriers
and thrust a once dark-aged industry into the 21st century
with advanced robotics, 3D printing and the IoT. Today,
manufacturers are using technologies to drive innovation
and renewal into the industry, and many are investing heavily
in high-tech equipment, which in turn requires a specific
skill set to perform and operate. Ironically, while these
advanced technologies bring opportunities, they also create
a significant widening in the already-existing workforce skills
gap. However, even though the industry continues facing the
issue of how to strengthen the manufacturing workforce, 96
percent of our survey respondents expect hiring to increase
or, at the very least, stay the same in 2015 (see Figure 4).
With a refreshingly positive outlook on hiring, overcoming a large skills gap will not likely happen
overnight. One way manufacturers can mitigate the struggles the skills gap has produced is to
proactively develop a workforce trained in science, technology, engineering and math (STEM). As
the industry continues to rapidly evolve, the emphasis on a STEM-based workforce is needed now
more than ever. The need to attract and retain an advanced STEM workforce became stronger
when the Brookings Institution released its report, America’s Advanced Industries1
. Within the
report, Brookings identified 50 advanced industries, including 35 from the manufacturing sector,
from aerospace, communication equipment and industrial machinery to motor vehicles, audio
and video equipment and medical equipment. These advanced industries create a super-set of
industries that have the potential to revive the U.S. economy. Creating a workforce with these
specific STEM skill sets is now critical for manufacturers to remain competitive.
Figure 3: Revenue expectations for 2015 compared to 2014
Increase more
than 5%
Increase up
to 5%
Stay the same
54%54%
29%29%
11%11%
Figure 4: Expectations for hiring in 2015
Decrease Increase Stay the same
55%55%
41%41%
4%4%
1
Andes, Scott; Fikri, Kenan; Kulkarni, Siddharth; Muro, Mark; Rothwell, Johnathan. (February 2015). America’s Advanced
Industries: What They Are, Where They Are, and Why They Matter. Retrieved from http://www.brookings.edu/research/
reports2/2015/02/03-advanced-industries#/M10420
6. Manufacturing Report. Copyright 2015, Sikich LLP. 6
While not every position in manufacturing requires STEM knowledge, a STEM job typically remains
unfilled longer than a non-STEM job, such as assemblers and fabricators on the assembly line.
Currently, there are significant job opportunities within the manufacturing industry. According to
the Brookings report, a job posting for a STEM-related occupation remains open for an average
of 43 days, compared to 32 days for a non-STEM job. Manufacturers have inadequately prepared
workers that can be developed and trained to match those STEM skills. According to the National
Association of Manufacturers2
, there are more than 12 million Americans employed directly in
manufacturing, and if the industry placed emphasis and value on teaching current employees the
technical skills needed, it would not only fill the STEM positions, but also retain its employees by
helping them succeed. As these sectors labeled as advanced industries prove to be a major role
in closing the workforce skills gap and increasing educational requirements, manufacturers must
acquire qualified workers quickly.
In order to do so, the industry must change the public’s perception of manufacturing, especially in
the classroom. Today’s graduating generation lacks an interest in manufacturing due largely to an
outdated perception of the industry and what the jobs entail. Many students do not know how the
industry has evolved or the technical skills needed to obtain a career in modern manufacturing.
Reintroducing today’s youth to the basic art of building products we use every day is critical to
illustrate how manufacturing is no longer dark and dirty, but instead sleek and high-tech with
3D visualization tools, robotics and emerging technology, like the IoT and Microsoft’s latest
invention, HoloLens. Manufacturers need to connect and build relationships with educational
institutions from local universities to high schools, which can lead to opportunities for the students
to accurately learn what the industry is really all about. This is a chance for manufacturers to
reposition themselves within the community to show why manufacturing is a noteworthy career
choice, the knowledge and skill sets required and how it can open the door to a high-paying and
satisfying career with the ability to move from the shop floor to management.
Many educational institutions have failed to sufficiently emphasize the importance of STEM-
based knowledge, and both manufacturing’s public and private sectors have failed to correct the
dated image and improve strategies to develop and promote STEM education. Now, the U.S.
government is finally putting a focus on manufacturing and STEM skill training to help the industry
shrink the skills gap and remain competitive. The creation and funding of manufacturing innovation
institutes by the Obama administration aim to drive a much-needed refocus on the industry
and position America at the forefront of 21st century manufacturing. In addition, manufacturing
universities will strengthen their programs, and each institute will bridge the gap between applied
research and product development by bringing together companies and universities to develop
cutting-edge technologies. According to the Brookings report, for every new job in an advanced
industry sector, 2.2 jobs are created domestically. This means that in addition to the 12.3 million
workers currently employed in the advanced industry sector, another 27.1 million U.S. workers
owe their jobs to economic activity supported by these industries. To meet these figures, it’s
imperative that the government initiative aligns with the public and private manufacturing
initiative to better educate our workforce for the technically advanced skillset workers in the U.S.
manufacturing industry will need to improve our worldwide competitive capabilities for the future.
2
Bureau of Labor Statistics (2014), with estimate of total employment supported by manufacturing calculated by NAM using
data from the Bureau of Economic Analysis (2013, 2014). Retrieved from http://www.nam.org/Newsroom/Facts-About-
Manufacturing/
7. Manufacturing Report. Copyright 2015, Sikich LLP. 7
Key Finding #3: Reducing Operational Costs
Forecasting in today’s evolving manufacturing industry can be unpredictable
at times. However, the last seven years–following the financial crisis–the U.S.
manufacturing sector is showing signs of healthy growth to fuel a much-
needed revival. While manufacturers are experiencing this growth, they aren’t
without obstacles, such as cutting operational costs.
Manufacturing costs can typically be divided into three categories: raw
materials, direct labor and overhead. Shortage of resources and long supply
routes contribute to frequent price changes for many raw materials used
by manufacturers. Steel prices, for example, can change by more than 30
percent from year-to-year. Crude oil and natural gas prices can also move
more than 30 percent annually. Raw materials often account for the majority of
the cost of finished products. Direct labor is another factor, as manufacturers
need employees who can work the production line, and with the need for
qualified workers, there will be an increase in hiring and wages. On top of raw
materials and labor is the all-too-familiar struggle between the shop floor and
the back office, particularly when it comes to overhead costs. Since there
are so many indirect variables that increase or decrease the cost, monitoring
overhead remains a challenge. While cutting operational costs is a must, an
overwhelming majority of our survey respondents expect raw materials
(Figure 5.1), taxation (Figure 5.2) and labor (Figure 5.3) costs to either
remain the same or increase in 2015.
Many manufacturers also need to make large investments in production
equipment and computer systems to improve efficiency and research and
development for new products.
Figure 6 provides a breakdown of
the top capital expenditures planned
for in 2015. As shown, 32 percent of
manufacturers surveyed are planning
capital expenditures for equipment this
year. With operational costs expected
to remain the same or increase this
year and the need to cut costs across
the board, how will manufacturers be
able to invest in equipment capital
expenditures?
Despite the need to cut costs when
they are expected to remain high, many
manufacturers have brought production back to the U.S.,
making the proximity to the customer closer and allowing for quick turnaround and delivery. These
continued improvements allow for brand consistency and provide faster response times and better
products. While there are many issues contributing to cutting operational costs, manufacturers
can leverage their supply chain relationships to increase production and delivery and better
manage materials, labor and overhead.
Figure 5.1: Expectations for raw material costs in the next 12 months
Increase Remain the Same Decrease
47%47%
39%39%
11%11%
Figure 5.2: Expectations for taxation costs in the next 12 months
Increase Remain the Same Decrease
50%50%
44%44%
4%4%
Figure 5.3: Expectations for labor costs in the next 12 months
Increase Remain the Same Decrease
25%25%
68%68%
4%4%
Figure 6: Top capital expenditures planned in 2015
Computer
Hardware
Computer
Software
Manufacturing
Equipment
Plant Expansion
Modernization
21%21%
12%12%
21%21%
32%32%
8. Manufacturing Report. Copyright 2015, Sikich LLP. 8
Key Finding #4: Effectively Managing the Supply Chain
Maximizing supply chain management is critical now more than ever before.
A highly efficient supply chain helps to streamline day-to-day processes and
manage the flow of products and information. Today’s supply chain can even
have tremendous impact on a manufacturer’s bottom line and can increase
customer service by delivering the right product and quantity in a timely
manner. It’s this impact that drives almost 60 percent of survey respondents to
say supply chain management is important or highly important to their plants’
success in the next five years (see Figure 7).
As more manufacturers realize the importance of supply chain management,
the competition will begin to grow, and building a more resilient supply chain
will be critical. In 2013, Sikich client AcuSport, one of the leading distributors
of outdoor sports in the nation, saw a significant growth in annual volume with
order lines increasing 300 percent from 2012 to 2013. AcuSport’s primary
distribution center was a 96,000-square-foot warehouse, which could not sustain the rapid growth
the company was experiencing from both a storage and throughput standpoint. Business leaders
realized their existing Ohio warehouse, which processed 85 percent of orders, was too small and
bottlenecked to handle the expected growth.
To accommodate the rapidly growing business, AcuSport partnered with Sikich’s supply chain
team to engineer and manage an expansion to the warehouse, which included the addition
of a new 96,000-square-foot building, an Automated Storage and Retrieval System (ASRS), a
modularized picking and conveyor system and a new warehouse system. As a result of the new
additions and configurations, AcuSport has greatly benefitted from the new space utilization and
increase in productivity. By doubling in size and introducing an ASRS system with the carton and
case pick modules, the company realized a 250 percent increase in storage capacity with pick and
pack rates more than doubling.
Today’s emerging technology and machinery is forcing supply chains to stay competitive by
reducing their response times and creating products faster. The deployment of new machinery
and technologies can substantially reduce lead times; materials can be used more efficiently
and scraps can be repurposed for additional projects; new designs get to the market faster; and
logistics will give visibility to inventory. There’s value in taking a complex product once made on
an assembly line and increasing production by developing the product in a more efficient manner,
thus lowering prices and giving manufacturers a competitive edge. An effective supply chain
creates unique opportunities, but a failed supply chain prevents a manufacturer from generating
even more revenue. With today’s emerging trends, creating a solid supply chain management
strategy is one of the most critical business decisions a manufacturer can make.
In addition, collaborating and creating a stronger relationship with inbound and outbound supply
chain partners can allow manufacturers to achieve common goals and share risks and rewards.
Furthermore, a focus on core competencies is important so manufacturers aren’t diverting
attention and resources away from what the company does best. Investing in innovation for core
competencies can ensure customers that the manufacturer is flexible and can adapt quickly.
Figure 7: The importance of supply chain management to achieve
success over the next five years
Not
Important
Minor
Importance
Somewhat
Important
Important Highly
Important
7%7%
14%14%
20%20%
37%37%
22%22%
9. Manufacturing Report. Copyright 2015, Sikich LLP. 9
Key Finding #5: Technology Remains a Significant
Challenge
New advances in technology have made it easier for U.S.
manufacturers to lower costs by investing in systems such as an
enterprise resource planning (ERP) solution. When engaged with the
appropriate ERP software, manufacturers can gain the intelligence
to improve products and optimize performance such as inventory
counts, production metrics, cost histories, labor reports, creation
and monitoring of part numbers, accounting and business planning.
However, not every manufacturer has invested in a technologically
advanced ERP system. Provided in Figure 8, 53 percent of survey
respondents admitted to still using spreadsheets and other manual
processes to prepare their key performance indicators (KPIs). Accurate
KPIs are critical to drive current business and future success, and managing a manual process to
monitor operational performance and drive strategic initiatives is problematic.
Sikich client Hagler Systems operates a 90,000-square-foot engineer-to-order machining and
fabricating facility in Augusta, Georgia. As a small, but fast-growing company, Hagler has tried to
embrace the growing pains that come with significant change and expansion. Four years ago, the
company faced a complicated, time-consuming paper work process, and it even lacked inventory
part numbers for thousands of parts. Hagler employees were literally working with and managing a
paper-heavy process on million-dollar projects.
Realizing their manual paper system wasn’t going to work favorably during this time of expansion,
Hagler leaders partnered with Sikich to implement an ERP system. Hagler employed the
implementation of Microsoft Dynamics AX with Sikich and credits the ERP system for operational
and process improvements, as well as the development of new, sophisticated products. No longer
relying on tribal knowledge, Hagler can now use visual planning for the entire company, from
management to the shop floor, providing a new level of transparency and accountability.
Many manufacturers are turning to technology to support business growth and the long-term
strategies accompanying that growth. To illustrate, Sikich asked survey respondents to identify
the top two business drivers impacting their technology strategies in the next year. Figure 9 shows
34 percent claimed their own growth expectations impact their technology strategies the most,
compared to 24 percent with improving customer service and response time.
At the start of the implementation process, Hagler
had no basic building blocks and had to start from
scratch. When implementing an ERP system, it’s
important to consider not only what is required
for the business today, but what will benefit the
company for the future as well. Since Hagler
implemented Microsoft Dynamics AX, those on the
shop floor can tackle more work, the sales force
can expand the company’s customer base to a
level that requires more detailed documentation and
senior leaders can invest more in engineering and
production.
Figure 8: System used to prepare key performance indicators (KPI)
53%53%
11%11%
26%26% Spreadsheets and
Manual Processes
Financial application
module (ERP)
Custom built/
Legacy application
(i.e. in-house
application)
Figure 9: Top two business drivers impacting technology strategies
34%34%
Our own growth
expectations
Improve
customer service
and response time
24%24%
10. Manufacturing Report. Copyright 2015, Sikich LLP. 10
As a manufacturer, making smarter purchasing decisions and forecasting
is important to remain competitive in a fast-growing market. Twenty-
one percent of survey respondents use technology to improve their
manufacturing processes and only 12 percent state they use an ERP
integration to improve their performance (see Figure 10).
Technology is transforming the manufacturing world, and the pace at
which trends are emerging shows no signs of slowing down. From a
manufacturer’s perspective, we are still only scratching the surface of
possibilities. In fact, some industry observers see the current state of
manufacturing as a new global industrial revolution. We have already seen
scanning technologies that read bar-coded labels and transmit information
to computing devices. Now imagine how much more efficient we will
become when manufacturers can use a virtual reality device to show a 3D
virtual representation of a warehouse, and guide workers to where they
need to be and the most efficient way to reach that point from where they
are now.
The Bottom Line
The demand for consumer goods continues to surge, making it more imperative for manufacturers
to gain a competitive edge. The topics discussed in this report–growth in existing markets,
the need for qualified workers, reducing operational costs, the importance of supply chain
management and challenges with technology–may be barriers for manufacturers to overcome;
however, once the hurdles are cleared, manufacturers will have the ability to further restore an
industry that was once lost to overseas production. By becoming more productive, sustainable
and flexible as an industry, U.S. manufacturers will be able to evolve with emerging trends and
continue reviving an industry that is looking to break free from the financial crisis that has held
them back for far too long.
Contact Information
Jim Wagner
Partner-in-Charge, Manufacturing Distribution Services
Phone: 262-754-9400
Email: jwagner@sikich.com
Connect: www.linkedin.com/in/jamesjwagner1
Figure 10: Main uses of technology to improve performance
Business
intelligence and
reporting
Daily quallity
analysis
transformation
or integration
Manufacturing
processes
New or expanded
ERP integration,
process assessment
or redesign
14%14%
12%12%13%13%
21%21%
11. Manufacturing Report. Copyright 2015, Sikich LLP. 11
Survey Questions
1. What is your annual revenue?
a. Less than $1M
b. Between $1M - $10M
c. Between $10.1M - $20M
d. Between $20.1M - $50M
e. Between $50.1M - $100M
f. Greater than $100M
2. Does your business have international operations?
a. No
b. Yes
3. How many locations does your company have worldwide?
a. 1
b. 2 - 4
c. 5 - 7
d. 8 - 10
e. 11+
4. What is the approximate headcount of employees in your company?
a. 1 - 50
b. 51 - 100
c. 101 - 250
d. 251 - 500
e. 501 - 1,000
f. 1,001 – 2,500
g. Over 2,500
5. In what geographic region is your company headquarters located?
a. East
b. Located outside of North America
c. Located outside of the United States
d. Midwest
e. Pacific West
f. South
12. Manufacturing Report. Copyright 2015, Sikich LLP. 12
6. What is your specific industry?
a. Distribution
b. Equipment
c. Printing
d. Third Party Logistics
e. Transportation
f. Wholesale
g. Other
7. What are your revenue expectations for 2015 compared to 2014?
a. Decrease more than 5 percent
b. Decrease up to 5 percent
c. Increase more than 5 percent
d. Increase up to 5 percent
e. Stay the same
8. Currently, which of the following actions are among your company’s top priorities
(select all that apply)?
a. Cutting operational costs
b. Developing new products and services in response to changing consumption patterns
c. Ensuring organization and responding quickly to changing economic condition
d. Long-term strategic planning
e. Reconfiguring supply chain
f. Restructuring company to position for growth
g. Restructuring management team
h. Seeking MA opportunities
i. Seeking new markets for products and services
j. Short-term strategic planning
k. Other (please specify)
9. Are you planning capital expenditures in any of the following areas in 2015
(select all that apply)?
a. Computer hardware
b. Computer software
c. Manufacturing equipment
d. Office equipment
e. Plant expansion/modernization
f. Transportation equipment
g. Other (please specify)
Survey Questions continued...
13. Manufacturing Report. Copyright 2015, Sikich LLP. 13
10. What do you see as the main opportunity to grow your business in the next 12-18 months?
a. Increased share in existing markets
b. MA
c. New geographic MA markets
d. New joint ventures and/or strategic alliances
e. New operation(s) in foreign markets
f. New product or service development
g. Organic growth in existing domestic market
h. Organic growth in existing foreign market
11. How important is supply chain management to your plant’s success over the next five years?
a. Not important
b. Minor importance
c. Somewhat important
d. Important
e. Highly important
12. What percentage of sales is invested into new-product development (RD)?
a. Less than 1 percent
b. 1 – 5 percent
c. 6 – 10 percent
d. More than 10 percent
13. In the next 12 months, do you expect your business’s raw materials cost to:
a. Significantly increase
b. Increase
c. Remain the same
d. Decrease
e. Significantly decrease
14. In the next 12 months, do you expect your business’s taxation costs to:
a. Significantly increase
b. Increase
c. Remain the same
d. Decrease
e. Significantly decrease
Survey Questions continued...
14. Manufacturing Report. Copyright 2015, Sikich LLP. 14
15. In the next 12 months, do you expect your business’s labor cost to:
a. Significantly increase
b. Increase
c. Remain the same
d. Decrease
e. Significantly decrease
16. How does your optimism regarding your company’s prospects compare to last quarter?
a. Less optimistic primarily due to external factors (i.e. economy, industry
and market trends)
b. Less optimistic primarily due to internal/company-specific factors (i.e. products, services,
operations and financing)
c. More optimistic primarily due to external factors (i.e. economy, industry
and market trends)
d. More optimistic primarily due to internal factors (i.e. products, services, operations
and financing)
e. No notable change
17. What system do you currently use to prepare your Key Performance Indicators (KPIs)?
a. Custom built/legacy application (i.e. in-house application)
b. Dedicated application for advanced planning (i.e. advanced application)
c. Financial application module (i.e. ERP system)
d. Spreadsheets and manual processes
e. Other
18. How do you measure the success of your Key Performance Indicators (KPIs)?
a. Predetermined organizational goals
b. Published statistics from an industry source
c. Other
19. Is your company considering an MA this year?
a. No
b. Yes
20. Has your company initiated an MA this year?
a. No
b. Yes
Survey Questions continued...
15. Manufacturing Report. Copyright 2015, Sikich LLP. 15
21. In 2015, operational spending will increase on (select all that apply):
a. Advertising
b. Business acquisition
c. Business intelligence
d. Facilities expansion
e. Geographic expansion
f. Information technology
g. Internet commerce
h. Marketing and sales promotion
i. New product or service introduction
j. Research and development
k. Other
22. In 2015, expected barriers to business growth are (select all that apply):
a. Capital constraints
b. Competition
c. Decline in demand from domestic U.S. markets
d. Decline in demand from overseas markets
e. Decreasing profitability
f. Healthcare costs
g. Higher interest rates
h. Industry-specific regulation (i.e. environmental regulations, health care regulations,
labor regulations, trade regulations and taxation issues)
i. Inflation
j. Lack of qualified workers
k. Legislative/regulatory pressures
l. Monetary exchange rate
m. Oil/energy prices
n. Pressure for increased wages
o. Taxation policies
Survey Questions continued...
16. Manufacturing Report. Copyright 2015, Sikich LLP. 16
23. Our company uses technology to improve performance of (select all that apply):
a. Business intelligence and reporting
b. Collaboration with business partners
c. Consolidation of critical systems
d. Data quality analysis, transformation or integration
e. E-commerce
f. Enterprise architecture
g. Manufacturing processes
h. New or expanded ERP integration, process assessment or redesign
i. Supply chains/distribution
j. Sustainable cost reduction
24. Do you think your industry will contract, stay the same or expand over the next 12 months?
a. Contract
b. Expand
c. Stay the same
25. In 2014, our international sales have:
a. Decreased
b. Increased
c. Stayed the same
d. N/A – We do not have international sales
26. In 2014, our company’s inventory turnover has:
a. Decreased
b. Increased
c. Stayed the same
27. In 2015, we expect hiring to:
a. Decrease
b. Increase
c. Stay the same
28. What is your view of the world economy over the next 12 months?
a. Declining
b. Growing
c. Unchanged
Survey Questions continued...
17. Manufacturing Report. Copyright 2015, Sikich LLP. 17
29. Are you more or less optimistic about the U.S. economy compared to last year?
a. Less optimistic
b. More optimistic
c. No change
30. What are the top two business drivers impacting your technology strategies?
(Please select two)
a. ERP industry consolidation (application vendors being acquired)
b. Global market factors impact where products are made, bought and sold
c. Issues between multiple business systems
d. Issues across multiple manufacturing locations
e. Issues with customers/suppliers
f. Improve customer service and response time
g. Reduce costs
h. Our own growth expectations
i. Regulatory compliance requirements (SOX, IFRS, HIPAA, FDA, etc)
Survey Questions continued...