SME survey finds 58 per cent of manufacturers are increasing their budgets this year
TORONTO—About three-quarters of Canadian manufacturers will shell out more money on equipment this year than they did in 2010, according to a new survey by the Society of Manufacturing Engineers (SME).
Of the nearly 75 per cent of respondents planning to invest in manufacturing equipment this year, budgets ranged from $1 million and more (10.5 per cent); $250,000 to $999,999 (16.3 per cent); $50,000 to $249,999 (25.4 per cent); and, under $50,000 (21.8 per cent).
While manufacturers are looking to invest, about half of also cited “keeping production costs under control” and “improving workforce productivity” as their biggest challenges.
When asked to name the most pressing challenges they face today, one-third of respondents said either expanding into new markets, finding and retaining qualified personnel, or updating equipment and processes.
The survey found 60 per cent are exploring areas for diversification, with 62 per cent planning to upgrade their machining and equipment as part of that strategy.
Other areas where companies are planning to upgrade or diversify include design and engineering (45 per cent), processing equipment (38 per cent), quality (38 per cent) and materials (35 per cent).
“Manufacturers know they need to integrate the latest advances into their daily operations but the challenge is always how to go about doing so,” said Nick Samain, Event Manager with SME, which is currently organizing the Canadian Manufacturing Technology Show 2011.
Samain notes that two-thirds of respondents said trade shows play a role in their purchasing strategies.
Meanwhile, 81.3 per cent use trade shows to see equipment in action; 70.3 per cent to learn about new applications; 72.5 per cent to see new products; and, 52.7 per cent to meet with technical staff.