The manufacturing sector in the United States consists of about 300,000 companies, with combined annual sales of $4 trillion. Of these, 64% are small businesses with annual sales under $1 million. In fact, only 6,000 companies have annual sales of over $50 million.

This industry is highly fragmented, with a wide variety of different types of business segments, such as transportation equipment, computers and electronics, foods, chemicals, machinery, metal products, plastics, and paper. The top 200 companies produce more than 40% of the total sales every year.

Manufacturers typically own a single production plant, machinery and other equipment, a warehouse, and sometimes delivery trucks. Labor management and relations are often important keys to efficient operations, as are research and development, quality control, process and product improvement, and adherence to government regulations.

Trends/Threats and Challenges/Opportunities

Those who are working within this niche recognize these opportunities today:

• Technological Innovation

• Arbitration Victory

• Exports

• Development of Improved Logistics

• Business-to-Business Internet Developments

On the other hand, threats exist as well:

• Higher Cost of Goods

• Imports and International Competition, especially from Low Cost Countries

• Cyclical Profits

• Government Regulations

Most experts working with manufacturing clients recognize the following trends which impact business owners today:

• Consumer Spending Trends

• More Automation, Less Labor

• Industry Growth and Decline

• Outsourcing Materials and Functions

• More Service Required for Complicated Products

• Manufacturing and Marketing Globalization

• Alliances, Strategic Investments

PKF North American Network members enjoy many educational, networking, and marketing resources through their membership in the PKF North American Network association:

• An annual niche program focusing on hot topics, industry updates, and skill building

• Regularly scheduled conference calls focusing on key manufacturing issues of concern to members and their clients

• An exclusive quarterly client newsletter, Manufacturing and Distribution, available in hard copy as well as an electronic version

• A Manufacturing and Distribution Turnkey Marketing Guide designed exclusively for PKF NAN members to assist them in effectively focusing their marketing within this niche

• Key alliances to bring greater expertise, including The Manufacturing Institute and Media3

• Access to a library of extensive research and white papers on a variety of topics of concern to manufacturers

• Access to a library of PowerPoint programs to enhance every member's seminars and presentations

• Industry profiles through First Research

• The International Resource Guide developed exclusively for PKF NAN members to assist their clients who are interested in exporting

• Quick access to the Department of Commerce Country Commercial Guides database with a storehouse of international information, regulations, cultural issues, and marketing assistance

• Niche specific text for use in proposals, brochures, or on the members’ websites