2011 Looking Good with Revenue Growth of 5.6%

Dec. 7, 2010
ISM survey also reports capital expenditure will grow 14.5% next year

Economic growth in the United States will continue in 2011, according to a report released on Dec. 7 by the Institute for Supply Management. Expectations are for a continuation of the economic recovery that began in mid-2009 with business investment increasing substantially.

"They forecast that their capacity to produce products and provide services will rise by 2% during 2011, and capital expenditures will increase by 3.7% from the 2010 level," says Norbert J. Ore, economist, ISM.

Expectations for 2011 are positive as 65% of survey respondents expect revenues to be greater in 2011 than in 2010. The panel of purchasing and supply executives expects a 5.6% net increase in overall revenues for 2011, compared to a 7.9% increase reported for 2010.

Highlights from the report:

  • Respondents report operating at 80.2% of their normal capacity, up from 72.8% reported in April 2010.
  • Capital expenditures will increase by 14.5% in 2011, compared to a 5.9% increase reported for 2010.
  • Survey respondents also forecast that they will reduce inventories in an effort to improve their purchased inventory-to-sales ratio in 2011.
  • Employment in the sector will increase by 1.8%, while labor and benefits costs are expected to increase an average of 1.9% in 2011.
  • Manufacturing purchasers are predicting strength in exports and imports in 2011. They also expect the U.S. dollar to weaken on average against the currencies of major trading partners.
  • The panel also predicts the prices they pay will increase 2.7% during the first four months of 2011, and will increase an additional 1.3% during the balance of the year, with an overall increase of 4% for 2011.

Survey respondents expect to realize supply chain improvements through improved inventory/asset management; cost reduction; supplier development/better metrics; supplier consolidation; and better risk management.

To view the full report visit http://www.businesswire.com/news/home/20101207005352/en

About the Author

IW Staff

Find contact information for the IndustryWeek staff: Contact IndustryWeek

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!

IndustryWeek Photo Essay with Image Courtesy of Allison Transmission
Allison Transmission's plant in Indianapolis is a top-performing facility and was the site of factory tours for IndustryWeek's 2024 Operations Leadership Summit. The company improved to No. 1 on the IndustryWeek 50 Best U.S. Manufacturers List for 2025, up from No. 2 in 2024.
© Albertshakirov | Dreamstime.com
daddreamstime_xxl_139613399
IndustryWeek
iw_500_logo

Sponsored