While 2020 has been challenging, the manufacturing industry continued to perform well in the third quarter of 2020.
According to an article released by Bloomberg, U.S. manufacturing output increased for a sixth consecutive month leading up to October 2020. The article also noted that “the October gains in factory output were broad-based with increased production of consumer goods, business equipment and construction supplies that indicates a solid start to the fourth quarter.” The question then becomes, what is driving this increased output, and are we likely to see this trend continue after the COVID-19 pandemic subsides? The answer to this question may be found within a recent survey of more than 200 manufacturing and distribution companies that was conducted during the summer of 2020.
As summarized in an article posted by the Boston Business Journal, Citrin Cooperman – Accountants and Advisors surveyed more than 200 manufacturing and distribution companies within the United States to gain an understanding of the state of the industry. Of those surveyed, 47% reported significant or modest growth during the months impacted by the pandemic. A common trend within this group of respondents was the increased focus on the importance of e-commerce performance as a necessity for future success. Throughout the pandemic, more consumers have purchased goods online than ever before. Sixty-eight percent of surveyed respondents within the Citrin Cooperman study alone noted that their online sales have grown between 11%–50% over the last year. Many noted that Amazon or other e-commerce platforms had aided in this growth. This statistic aligns with similar data conducted by Marketplace Pulse, which reported that Amazon has experienced an approximate 29% increase in traffic in the United States from February 2020 to August 2020.
As this data suggests, continued emphasis on e-commerce may be the key for many organizations to continue to grow, not only in the months ahead, but also within the post-pandemic economy. If you or your organization have questions regarding how we can help your business continue to adapt, please contact a member of the Schneider Downs Manufacturing Industry Group.
Sources:
- https://www.msn.com/en-us/money/markets/u-s-manufacturing-output-increased-for-sixth-month-in-october/ar-BB1b64ZI
- https://www.bizjournals.com/boston/news/2020/11/15/the-post-pandemic-pivot-for-manufacturing.html
- https://www.marketplacepulse.com/articles/amazons-fastest-growing-markets-during-the-pandemic#:~:text=Amazon%E2%80%99s%20Fastest%20Growing%20Markets%20During%20the%20Pandemic%20,%20%2025%25%20%2013%20more%20rows%20
