DURHAM, N.C. -- General cost pressures continue to be the main challenge for manufacturers globally, but rising energy costs have reached a new level of concern, according to a TBM Consulting study.
TBM surveyed 1,406 executives from mid-sized to large firms in the U.S., UK, Germany, France, Mexico and Brazil, and found that anxiety over rising energy costs more than doubled since last year.
"Cost pressures" was cited by 53 percent of respondents as the biggest hurdle to success. "Rising energy costs" was cited by 33 percent as a source of angst, up from 11 percent last year.
Fifty-five percent of respondents admit feeling challenged by the current economic climate. To help keep their market share an gain a competitive edge, executives have taken steps including improving quality (46 percent), shortening lead times (45 percent), and increasing ways to better connect with customers (38 percent).
To help ease anxiety over cost pressures and rising energy prices, 59 percent of respondents are increasing efforts to eliminate waste.
"With a global recession looming, manufacturers are seeking creative ways to put their companies in a financial position to successfully weather this economic storm.” Says Anand Sharma, CEO of TBM Consulting. “Eliminating waste is the first step toward relief. Companies should be looking to convert assets into cash, reduce static inventories, eliminate unprofitable SKUs, and speed up receivables. Attacking processes that reduce working capital and improve cash flow will allow manufacturers to make investments, finance acquisitions, and grow when others are struggling to survive."
For more information, visit http://www.tbmcg.com