According to recent research from PricewaterhouseCoopers, the industrial manufacturing sector in the U.S. is looking to use its cash reserves to reinvigorate their operations. More specifically, the "Q2 2014 Manufacturing Barometer" highlighted a positive sentiment among U.S. manufacturers, leading to the decision to reinvest capital in their products, technology and payrolls.
Compared to the same time last year, optimism in the second quarter is up 7 points, reaching 38 percent. What's more, 77 percent of industrial manufacturers expect to see a boost in revenue over the next year. Notably, not a single respondent to the PwC study predicted a decline in cash flow.
Still, there are significant challenges facing manufacturers, according to Inside Supply Management Magazine. A recent article looking at the future of logistics raised a few areas of concern. The first is a rise in competition on a global level. Even domestic organizations are feeling the impact of foreign buyers, who can influence product availability, as well as supply and demand.
Another issue facing organizations is the state of the U.S. economy. Most manufacturers would accede the fact that it has improved, but it still has a ways to go. For instance, customers may still be reluctant to make large purchases, hoping to push prices down. Despite the conflicting ideas, it's important for organizations to maintain a transparent supply chain through data collection solutions.