Survey says profits up; firms bullish on '98
By Staff -- Industrial Distribution, 1/1/1998
New York, N.Y.--Most mid-size manufacturers expect higher year-end profits from an average 11 percent increase in sales during 1997, according to a survey of 250 top companies. Nearly nine of ten manufacturers contacted were bullish about the U.S. economy overall and 82 percent reported 1997 sales would surpass those of 1996. The telephone survey of executives was conducted recently by Grant Thornton LLP, a national accounting and management consulting firm."Many manufacturers have seen substantial growth in the past year, with orders remaining exceptionally strong,'' says Martin Cooperman, partner in charge of Grant Thornton's manufacturing practice. "So long as inflation remains in check, few companies are concerned that the economic tide will turn any time soon and most believe that demand for their products will remain strong.''
Inflation is only a modest concern, as nearly half the executives reported they expect increases in raw materials and component parts of under five percent each this year. Half of the respondents expect prices will remain the same or decrease. Only two percent said they anticipate a decrease in company orders this year.
Fifty-three percent of the firms, which reported annual sales of between $20 and $500 million, report a hike in orders during the past three months.
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