Survey: Economic Conditions Hurting Revenue Goals

Cygnus reports that the majority of U.S. companies in the industrial sector are on target to meet or exceed their revenue goals, but many indicate that they are reducing overall spending in 2008, according to the Industrial Indicator Survey conducted by GlobalSpec, a specialized search engine, information services company.

Responding to the survey, 81% of companies said they are on or ahead of revenue targets for 2008. Additionally, 60% indicated that their 2008 revenue will be ahead of 2007 revenue. Companies remain committed to growing their businesses with 41% saying their company has expanded sales into new markets in 2008, up from the previous year. Thirty-two percent said they are increasing their sales and marketing spending.

Nonetheless, current economic conditions are beginning to take a toll on companies within the industrial sector as 41% said they are reducing overall spending in 2008.

Rising energy costs, for 49% of respondents is a big concern, with 10% of them saying it’s the biggest issue facing their company this year. In addition, healthcare and transportation costs are a concern, with 44% of respondents stating healthcare costs are an issue and 41% stating transportation costs are an issue.