HORSHAM, PA, October 3, 2022 —Kreischer Miller, a leading independent accounting, tax, and business advisory firm serving the Greater Philadelphia and Lehigh Valley areas, today released the results of a recent survey of Greater Philadelphia manufacturers and distributors. The 10th annual survey was intended to gauge the economic results and outlook of the region's middle market manufacturers and distributors. It also provides owners, executives, and industry leaders a snapshot of best practices being utilized by their peers as well as trends being observed in the industry.
The survey found that revenue growth expectations for 2022 among manufacturers and distributors are generally positive, with nearly two-thirds of respondents saying they anticipate growth rates of more than five percent. Profit expectations were less optimistic, however. Close to 35 percent expect 2022 profit to either stay the same as 2021 or decline, and another 37 percent said they expect profit to be less than five percent.
A lack of qualified workers and skilled labor continues to be the industry’s largest barrier to growth, with nearly 75 percent citing it as their top business challenge. Despite the difficulties in finding skilled labor, more than half of survey respondents said they plan to increase their head count this year.
In addition to the skilled labor challenge, inflation and supply chain disruption were each cited by 57 percent of respondents as a significant business challenge. Perhaps it is not a surprise, then, that 63 percent of respondents stated they feel some level of pessimism about the U.S. economy over the next 12 months. And, nearly half of respondents said that external factors such as economic, industry, and market trends are causing them to be less optimistic about their company’s prospects than a year ago.
When asked to cite the largest challenge facing their businesses in the next five years, 62 percent indicated people-related challenges such as an aging workforce, fewer young people pursuing careers in the industry, trying to find skilled labor at a reasonable wage, or seeking talent to accommodate growth plans. Other top responses included concerns about the economy, inflation, raw material shortages, and supply chain issues.
“While our region’s manufacturers and distributors seem generally positive about the current state of their businesses, they are aware that our business climate remains challenging,” said Steven P. Feimster, Director, Audit & Accounting and head of Kreischer Miller’s Manufacturing & Distribution Industry Group. “However, they remain fairly optimistic about their growth prospects and are planning ahead for future opportunities.”
Methodology
Kreischer Miller conducted the Greater Philadelphia Manufacturing & Distribution Survey in July 2022. Respondents included middle market manufacturers and distributors from across the Greater Philadelphia region, including southeastern Pennsylvania, southern New Jersey, and northern Delaware.
Download a copy of the full survey results.
Contact: Melanie L. Vivian, Marketing Director
(215) 441-4600, ext. 146
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About Kreischer Miller’s Manufacturing & Distribution Industry Group
With a significant portion of the firm’s revenue derived from clients in the manufacturing and distribution industry, Kreischer Miller is one of the leading accounting firms serving manufacturers and distributors in the Greater Philadelphia and Lehigh Valley areas. The firm’s experience with a diverse range of organizations—from smaller, local organizations to large, Fortune 500 companies with national and international operations—gives it the background and depth to understand the challenges and opportunities that face the industry. Kreischer Miller is also a member of Manufacturing CPAs, a nationwide network of independent accounting firms specializing in serving the manufacturing industry.
About Kreischer Miller
Kreischer Miller is a leading independent accounting, tax, and advisory firm, serving the Greater Philadelphia and Lehigh Valley areas. The firm is built to respond to the unique needs of growth-oriented private companies, helping them smoothly transition through growth phases, business cycles, and ownership changes. Kreischer Miller offers a wide range of services, including Audit & Accounting, Tax Strategies, Business Advisory, Human Capital Resources, and Technology Solutions across an array of industries, including manufacturing, distribution, construction, real estate, not-for-profits, media, government contracting, professional services, family-owned businesses, and investment firms. The firm provides insight and creative services to organizations that need to be able to quickly adapt and respond to changing market opportunities and challenges. Learn more.