Global manufacturers predict tough times ahead - PwC survey

Asked for their perceptions, aspirations and concerns for the industry, manufacturing leaders were particularly sceptical about the economic outlook. China remains the top market to watch out for, followed by the US and Germany. Manufacturing executives are also concerned about operating costs and skill shortages. This year, 82% of CEOs said they were planning on a cost-cutting exercise, although investment in R&D will be protected as 45% are making it one of their top three investment priorities. The majority of CEOs, 60%, are also increasing their investment in building and nurturing a skilled workforce. Barry Misthal (pictured), global industrial manufacturing leader at PwC, said: "CEOs have some really challenging and tough decisions to safeguard the future success of their businesses. We know that implementing or continuing cost-cutting initiatives disrupts operations and morale, but during these times, is a painstaking necessity. Longer term, there is optimism about investing in R&D schemes that will contribute to business growth and give manufacturers a global platform to compete on. "Accessing natural resources that the industry needs for producing many of the products customers are demanding is another concern for the vast majority we surveyed," Misthal added. "Restriction of these critical resources will undoubtedly place pressure not just on the immediate manufacturing supply chain, but those in other sectors such as metals, chemicals and the automotive sector."