MFGWatch Survey Takes Pulse of North American Sourcing Community
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MFGWatch Survey Takes Pulse of North American Sourcing Community

Companies are still looking to grow while putting big initiatives on hold, streamlining operations, and scrutinizing buying decisions

Atlanta, GA - May 27, 2009 –, the largest global online marketplace for the manufacturing community, today announced the results of their latest MFGWatch Survey. More than 200 purchasing professionals and engineers from the manufacturing industry participated in the survey. Survey questions focused on the state of sourcing, sourcing preferences, company growth projections, reactions to economic conditions, and more.

The majority of survey participants (55%) described their company as a product designer/OEM, 18% worked for outsourced manufacturers, 11% specified their company as a mixture of product design and manufacturer, and the remaining 16% described their companies as suppliers, research and development companies, and engineering support. Respondents hailed from all corners of the manufacturing industry: medical, energy, government/military, oil and gas, power generation, aerospace, agricultural, automotive, food processing, mining, textiles, woodworking, sports equipment, electronics, consumer products, and more.

Current Landscape of Sourcing

The MFGWatch survey asked the community if their sourcing needs had changed in the past year. 69% said they had maintained or grown their sourcing needs, while 31% stated their sourcing needs had decreased during this period. Nearly half of the buyers said they were currently in the process of looking for new suppliers, while the other half stated they were not augmenting their supply chain.

Questioned about geographical sourcing preferences, 64% preferred to source with North American manufacturers, 19% favored China for their sourcing needs, and 7% conducted their sourcing business in Europe. The remaining 10% were sourcing in South America, Africa, and other countries.

Respondents were asked if the volume (both value and quantity) of their orders for sourcing had changed in the past year. 60% of respondents stated their volume had increased or remained the same. 40% reported a decrease in sourcing volume. Those responding affirmatively to the question were asked why there was an increase in sourcing activity. 45% of the respondents stated the increase was due to natural company growth, while another 27% found better opportunities for savings. 2% replied their underlying costs have decreased.

Asked why their sourcing needs had decreased, 58% responded that overall demand had declined, and 18% had experienced budget cuts. Another 13% were re-strategizing their sourcing needs, and 6% have halted new product development. Surveyees were also asked if their sourcing volume had decreased, did they increase the frequency of order? 67% responded No, 5% replied Yes, and 28% were not sure.

Fine Tuning for Tomorrow

Survey participants were asked to forecast company growth in 2009, 82% expected to maintain or grow their business, while 13% expected a decrease and 5% were unsure.

Surveyees were asked if they had postponed or canceled any major purchases due to the current state of the economy. 11% have not canceled nor postponed any purchases, while:

* 35% stopped hiring new or replacement employees
* 15% canceled software or upgrade purchases
* 12% suspended facility expansion in 2009
* 15% cut business travel
* 8% did not renew memberships in professional societies or industry associations

Respondents were also asked what actions their companies had taken to weather current economic conditions:

* 22% resorted to layoffs
* 21% initiated a hiring freeze
* 18% shortened shifts and work hours
* 10% reduced the amount sourced at one time
* 9% reduced the frequency of items sourced
* 6% reported no changes - business as usual
* 5% closed facilities
* 4% added automation to reduce payroll

MFGWatch is a service provided by, the largest global online marketplace for the manufacturing industry. For more information about MFGWatch, please contact Lindsay Bradshaw @ Email Contact.

About is the Internet based platform upon which the global manufacturing industry conducts business.’s open platform enables companies of all sizes from around the globe to intelligently connect, source, collaborate and perform due diligence with transparency and intellectual property protection. The platform supports virtually all manufacturing process and industrial components, is in 10 languages, 12 currencies and has over 100,000 users on five continents. has offices in North America, Europe and Asia. For more information about, please visit,

Press Contact: Belinda Jones, HiTech Marketing llc, (860) 399-1147, Email Contact
Marketing Contact: Lindsay Bradshaw,, 678-556-2973, Email Contact

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