2021 Marcum National Manufacturing Survey

08

THE 2021 MARCUM NATIONAL MANUFACTURING SURVEY

BUSINESS STRATEGIES (continued)

PRODUCT R&D Companies Devote Considerable Resources to R&D

NEW PROJECTS Establishing New Offerings

Thirty-six percent of respondents launched a new product or service in the past 12 months. Some of these were in response to the pandemic, with manufacturers pivoting to make personal protective equipment (PPE) or other high-demand items. And 14% of these companies intend to permanently offer those new COVID-related products.

Growth-oriented manufacturers are always striving to find better solutions. Respondents indicated that they spend anywhere from half a percent to a high of 20% of revenue researching and developing new products, with most saying they are in the range of 5%. A variety of activities, including improving existing processes, developing new processes or systems, and creating new products or services all qualify as R&D expenses eligible for tax credits.

EXPORT/IMPORT Global Marketplace

Globalization continued to increase among manufacturers, with 64% of respondents saying they export (up 6% from our last survey) and 39% saying they import some of their goods. Among the exporters, 68% expect to increase or remain steady on exports in the coming year.

100%

Q20 Over the next 12 months do you expect to?

90%

80%

70%

60%

Increase your exports 38.89% (14)

50%

None of the above 27.78% (10)

Hold your exports steady 27.78% (10)

40%

Increase your imports 19.44% (7)

30%

Decrease your imports 5.56% (2)

20%

Decrease your exports 5.56% (2)

Hold your imports steady 5.56% (2)

10%

0%