The new IMB survey reveals a set of specific strategies that fueled this growth, from customer retention efforts to movement into new markets and product development. Bolstered by the results of these strategies, respondents are investing more in their companies and recruiting talent in anticipation of increased customer demand.
Nearly 3,400 professionals participated in the latest IMB, a survey of buyers and sellers of industrial products and services, most of whom represent small and midsize businesses. The research looks at their performance, outlook, and strategies for success. Respondents include business owners and managers, sales and marketing executives, engineers, and purchasing agents from manufacturers, distributors, and service companies in North America.
The top challenge (cited by 68% of respondents) is customers cutting back or going out of business, and they are addressing it by focusing on customer retention and service. Domestic competition is another challenge that respondents are tackling by competing more aggressively in core markets, and pursuing business in new industries and U.S. geographies.
The top respondent priorities include increasing production capacity, adding new lines of products and services, upgrading facilities, and managing costs. Their investments map to these strategies. For example, most are spending on technology, such as software, for areas such as cost management. To ratchet up production capacity or develop more products/services, they are investing in capital equipment.
The companies surveyed are also hiring in anticipation of growth; 37% plan to hire through the first half of 2011. The most common job openings align with their priorities and include skilled trade workers (43%), line workers (36%), and engineering professionals (35%), in addition to customer service and sales/marketing staff.
Full results of the latest IMB are available online.
TAPPI
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