Of the 256,000 US manufacturers included in the report,
here is how they compare on revenue:
Over $50MM $5MM-$50MM Under $5MM
1.60% 9.40% 89%
**Average revenue per employee is $435,000
**5 year forecasted growth rate is 4% for the US Industry, which makes up 18% of Global Revenue (Second only to China at 25%)
** Q2 2018: 17 of 18 Industry Sectors saw growth
**Accounts Receivables Averaged 50 days’ sales
Two key industry trends affecting competitive advantages that permeated the report were Automation & Outsourcing.
- “Increasing Automation—Automation production is becoming the dominant means for reducing labor costs as wages in the developing world.” This is not a new trend and it continues to evolve as technology and innovation spark new opportunities for manufacturers.
- “Outsourcing - Outsourcing noncore functions allows management to increase operational efficiency by concentrating resources on primary production and marketing functions, many companies have outsourced services they previously did themselves, such as parts manufacture, maintenance, computer and payroll services, and benefits management.” While outsourcing HR is a growing trend that is not exclusive to the manufacturing industry, it is critical that you evaluate your HR Partner for accreditation & performance. (ESAC & IRS)
While this is a US Industry Report, competition is global and so are the trends. In the last five years, the HR Outsourcing growth in China has been dramatic, with three new companies expanding into China this year.