Revenues Revved Up to Record High

Technology Sector

In the technology sector, Apple Inc. (IW 500/9) was the shining star, jumping five spots on the annual ranking. The company realized revenue growth of 66% and a profit increase of 85% to $25.9 billion, bolstered by the success of its iPad and iPhone.

Industries that continue to struggle include manufacturers that supply the housing and construction sectors. Average profits dropped 32.6% for the wood-products sector. The industry also showed the slowest rate of revenue growth at 0.11%. Furniture and fixtures and stone, clay, glass and concrete products sectors also struggled in 2011.

Some notable companies that are not present on this year's IW 500 include Timberland Co., which VF Corp. (IW 500/110) acquired last June; Baldor Electric Co., which ABB Ltd. purchased on Jan. 27; and National Semiconductor Corp., which merged with Texas Instruments Inc. (IW 500/88).

For 2012, manufacturing growth is expected to begin slowing down with volume increases nearly even with 2011 at 5%, says IHS's Runiewicz. By 2013, growth will slow to approximately 3% as manufacturers' capital-investment needs are filled, he says. Also contributing to the slowdown is a projected drop in capital-equipment exports. "You're going to see some real struggling in terms of exports for capital equipment," Runiewicz says.

A drop in the euro against the dollar combined with increasing competition from European manufacturers could impact exports, Runiewicz says.

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