Survey: U.S. economy will improve, but hirings on hold

Only 25% of manufacturing companies plan to increase hiring in the next six months and more than half (57%) plan to reduce bonuses, according to a recent survey by global audit, tax, and advisory firm Grant Thornton LLP (Chicago, IL). There is reason for hope, however: More than half (54%) of respondents think the U.S. economy will improve during the same time period, with 65% believing it will emerge from recession some time in 2010. Grant Thornton conducted the biannual national survey from Sept. 21-Oct. 2, 2009, with 846 CFOs and senior comptrollers from public and private companies, of which 154 were from manufacturing.

Depending on which market sectors they serve, plastics processors may need to take this news with a pinch of salt. Says Walter Gruenes, Grant Thornton LLP national managing partner of Consumer and Industrial Products, “In the short term, those manufacturers serving the food/beverage, aerospace, and chemical sectors are most optimistic, while those serving the automotive, industrial equipment, and housing/construction sectors are least optimistic.”

To reduce costs in these tough economic times, one-third (34%) of manufacturers are reducing healthcare benefits and more than a quarter (28%) are reducing 401(k) matches. In terms of pricing pressure, they are most concerned about the cost of employee benefits (74%), such as healthcare and pension costs. The second greatest concern is the cost of raw materials (63%), although around two-thirds of manufacturers expect to charge the same prices for their services going forward. —immeditorial@cancom.com