This Industry Outlook is a portion of the 2018 Arizona CFO Spotlight Survey Report
The 2018 Arizona CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the manufacturing segment here in terms of growth, risk factors, strengths and trends.
About 33% of CFOs surveyed in manufacturing say pricing pressures are a tremendous concern in the coming year.Half of leaders are concerned about border security and immigration policy, and all of them have at least some concern about pricing pressures in their industry. Equipment costs and high utility costs are on their minds along with increased costs with minimum wage and sick leave policies. About one-third of manufacturers in the Survey have plans to reduce vacation time and likely reduce some full-time equivalent staffing, which contrasts the intense need for skilled labor across industries. Automation and artificial intelligence are perceived as long-term answers to labor shortages along with providing attractive benefits and compensation. The industry is delving into flexible schedules, but mainly focuses on traditional benefits like health care benefits, retirement funding, compensation and training.
"The biggest focus for my organization in the next 12 months is growth with global customers."
Average Number of Employees
Revenue in 2018
- 36% Will increase significantly 36%
- 64% Will increase slightly 64%
Top Areas of Focus
- Pricing structures
- New management teams
- Technology advancements
- Global customers/talent
55% very optimistic 45% somewhat optimistic
Access to Cash?
no concern, compared to 2017
50/50 concerned/not concerned
more concerned than 2017
increasing culture shift/new leadership tracks