Some sectors—particularly automotive, aerospace and construction materials—have had a record-breaking year. But economics are cyclical, and other sectors—energy, agriculture and general industrial manufacturing, among them—are experiencing a decrease in demand, limiting their profitability and growth. Many of these companies are experiencing flat or declining revenues.

 For companies to break out of a cycle of diminishing revenues—and for others to achieve their ambitious expectations for growth—a number of areas should be considered.

Growth: Buffeted by the headwinds of a strong U.S. dollar, sluggish global growth, weak economies in Europe and other regions, geopolitical uncertainty, and still-low commodity prices, manufacturers’ output has essentially been stagnant since May 2015 and capacity utilization has also declined over that time frame to its lowest level since February 2014. The going may be choppy at times for certain sectors; nevertheless, manufacturers overall are moving forward.

Global: U.S. companies, many of which are focusing primarily on domestic markets, may be missing out on global opportunities and are letting non-U.S. manufacturers take more initiative. Non-U.S. manufacturers generate nearly half of their sales outside of their home countries. These companies also have substantial production capacity—on average, more than 60 percent—located outside of their home countries.

Technology: Nearly 60 percent of Monitor participants expect to increase their investments in technology in the coming year; half of that cohort anticipate increases upwards of 6 percent or more. Addressing the needs of a company through technology takes rigorous planning and management. The stronger companies continue to invest in and leverage technology to drive revenues and profits.

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