Reader Comments (0)

Rating (0):

Manufacturers See Legislative/Regulator Pressures as Barriers to Growth; Hiring Plans Jump

July 30, 2010 — Legislative and regulatory pressures ranked highest among perceived barriers to growth in the next 12 months for the second quarter in a row, with 63% of panelists surveyed by PricewaterhouseCoopers naming it as a concern. Taxation policies were cited by 57% of respondents.

These results came from PricewaterhouseCoopers' "Manufacturing Barometer," a quarterly survey based on interviews with 60 senior executives of large, multinational U.S. industrial manufacturing companies about their current business performance, the state of the economy, and their expectations for growth in the next 12 months. This most recent report summarizes results for second quarter 2010 and was conducted from April 7, 2010 through July 7, 2010.

Hiring plans made a significant jump in second quarter 2010. In the next 12 months, 47% of panelists plan to add employees to their workforces, up 20 points from first quarter. 7% plan to reduce the number of full-time equivalent employees, and 46% expect to stay the same. Composite workforce hiring in the next 12 months was projected at a notably higher 1.8%, well above last quarter's 0.5% and the highest since fourth quarter 2005. Of the 47% of respondents planning to hire, the most sought-after employees will be production workers and professionals/technicians, along with skilled labor.

Overall optimism about the U.S. economy is down slightly from first quarter, but still shows strength with 45% of U.S. industrial manufacturers optimistic about the next 12months. 12% of industrial manufacturers are pessimistic about the U.S. economy's prospects in the next 12 months, while 43% are uncertain. Of those marketing abroad, 38% are optimistic about the world economy in the next 12 months, down 15 points from first quarter. More respondents are uncertain, at 46%, but only 16% are pessimistic.

Contents © 2010 WorldatWork. No part of this article may be reproduced, excerpted or redistributed in any form without express written permission from WorldatWork.