There are some key statistics noted in Bank of America’s annual Manufacturing Sector survey. If you are in that sector, it’s a great read to understand what skills will be in demand in the upcoming year. A caveat ... 78% of the respondents were privately-owned companies.
More than 62% of the CFOs surveyed indicated they plan to maintain their current workforce size. Of the remaining respondents, 28% will be hiring and 9% will be downsizing. If you’re a high-value target and seeking an opportunity ... none of these numbers really matter. There are always opportunities when you can take away a company’s pain/problems/challenges and help them grow.
So what skill sets, along with measurable proof of positive impact, will manufacturing companies be seeking in their finance executives? Here’s my take.
--M&A. Twenty-five (25%) percent of the private companies expect to participate in a merger or acquisition, while 37% of public companies anticipate M&A activities.
--Strong financing acumen within cash management, letters of credit, and asset management (as the top 3). Other financial product knowledge includes asset-based financing, cash flow financing, foreign exchange, and retirement plan services.
--Working capital and capital expenditure are the top two needs cited.
--Revenue growth and cash flow are the two primary financial concerns of manufacturing CFOs.
Who’s hiring? According to the survey, it is those companies who are expecting M&A activity, primarily in the west, with revenues between $500 million and $2 billion.
