The announcements were made within days of each other, by different companies, making different products. They occurred on opposite ends of the country, and produced opposite effects on the communities involved. In one, the news brought depression and outrage. In the other, elation and anticipation.
On Oct. 6, Carrier Corp. announced it would close two assembly plants in Syracuse, NY, next year and shift most of the work to a plant in Singapore. In operation since 1937, the plants assemble compressors and refrigeration equipment used on shipping containers, truck trailers and rooftop air-conditioners. Some 1,200 workers will lose their jobs.
Two days later, Toppan Optical Products Inc. (Tokyo) opened a new 94,000-square-foot assembly plant in Poway, CA, a suburb of San Diego. The plant will make high-definition flat screens for rear-projection televisions. The highly automated plant will run four production lines, 24 hours a day, 7 days a week. Initially, it will employ 20 people, but that number is expected to increase to 200 by 2005.
Ironically, both Toppan's decision to open a U.S. plant and Carrier's decision to close two plants were made for the same reason: to locate production closer to the people who are buying their products. "More than 80 percent of our container refrigeration units are shipped to Asia," says Ted Amyuni, Carrier's senior vice president for operations. "We must be located nearer our markets." Approximately 80 percent of all rear-projection televisions are sold in the United States, adds David Jackson, Toppan's manufacturing manager.
In many ways, the stories in Syracuse and Poway are emblematic of the results of ASSEMBLY magazine's eighth annual capital equipment spending survey. The coming year will see increased equipment spending in some industries and regions of the country, while other industries and regions will tighten their belts.
Overall, U.S. assembly plants will spend a little less than $2.1 billion on new equipment during 2004, or about 2.3 percent less than the $2.15 billion projected to be spent during 2003. The average budget figure decreased from $1,086,161 per plant in 2003 to $762,539 per plant in 2004.
It should be noted, however, that this year's survey received an above-average response rate from plants with 50 or fewer employees (40 percent in 2003 vs. 34 percent in 2002). This may have unduly lowered the average budget figure for 2004, and thus skewed our projection for total equipment spending next year. Forty-three percent of all respondents to this year's survey said they will spend $50,000 or less on assembly technology in 2004. That's the largest percentage in the 8-year history of the survey. Only 12 percent of plants have 2004 equipment budgets over $1 million-the lowest percentage since 1997.
Spending expectations for 2004 also point to a more moderate spending decrease than might be indicated by the average budget figure. Fifty-four percent of respondents expect to spend just as much on assembly technology in 2004 as they did in 2003. That's the highest figure in the 8-year history of the survey. Though just 24 percent of plants will spend more on equipment in 2004 than they did in 2003, only 22 percent plan to spend less.
On the other hand, the reasons why assemblers are investing in new equipment have shifted. During the past 7 years, cost reduction has always been the No. 1 reason for buying assembly technology, and it remains the No. 1 reason for 2004. However, just 36 percent of plants will buy equipment to increase capacity next year, and 38 percent of plants will buy equipment to assemble a new product. Both percentages are historic lows. In fact, for only the second time in 8 years, more assemblers will buy equipment to reduce cycle time (38 percent) than will buy equipment to increase capacity.
Another reason companies may not spend as much on assembly technology in 2004 as they did in 2003 could be that they are buying more used equipment. The wave of plant closings during the past few years has flooded the market with high-quality used equipment, and assemblers are taking advantage of the bargains. According to our survey, 33 percent of the equipment purchased by assemblers next year will be "previously owned." That's the highest percentage in the history of the survey.
SIC 37: Mixed Messages
In an industry that encompasses products ranging from jumbo jets to motorized scooters, it's not surprising to see conflicting data in SIC 37. Consider the contrasting expectations for equipment spending next year. Thirty percent of plants in SIC 37 will spend more on assembly technology in 2004 than they did in 2003. That's more than any other industry and 6 percentage points higher than the figure for the nation as a whole. On the other hand, 37 percent of plants in SIC 37 expect to spend less next year than they did this year. That, too, is the highest percentage of any industry.
Overall, transportation equipment assemblers will account for 19 percent of all technology spending next year. That's the most for this industry since 2001. Assemblers of cars, boats, trucks and planes will spend $398.2 million on assembly equipment next year, a 32 percent increase from the $301.5 million projected to be spent during 2003.
The average budget figure increased from $1,289,025 per plant in 2003 to $1,649,946 per plant in 2004. Twenty-nine percent of plants in SIC 37 will spend more than $1 million on assembly technology next year. That's twice the amount for all U.S. plants, and it's 9 percentage points more than the 2003 figure for SIC 37.
One reason for the increase in spending next year could be that assemblers did not spend as much on equipment this year as they had hoped. Half of all U.S. plants spent at least 90 percent of their 2003 equipment budgets during the past year. In contrast, a mere 38 percent of plants in SIC 37 spent that much. That's the lowest figure for any industry this year. In fact, it's the third lowest percentage for any industry in the survey's history.
The continuing price war in the U.S. auto market could be one reason for the holdback in equipment spending this year. Price cuts have eaten into automakers' profits-money that can, in turn, be spent on new assembly equipment. For example, in the third quarter of this year, General Motors Corp. (Detroit) earned just $34 million on global auto operations on revenue of $38.4 billion. A year earlier, GM's auto operations earned $368 million on revenue of $36.7 billion.
SIC 37 appears to have more than enough capacity to meet demand. During the past 4 years, this industry has had the fewest number of plants that are buying equipment to increase capacity. In fact, just 30 percent of plants in SIC 37 will buy equipment to increase capacity next year. That's the lowest percentage for any industry in the survey's history, and it's the second time that SIC 37 has hit that low.
The cost of warranties and field service has always been a key concern for assemblers of transportation equipment. Over the past 8 years, plants in SIC 37 have been significantly more likely to buy equipment to combat warranty costs than plants in other industries. Next year, for example, 17 percent of plants in SIC 37 will purchase equipment to lower warranty costs, compared with 14 percent for all U.S. plants.
Honda Motor Co. (Tokyo) blamed rising warranty costs in the United States for a 5.4 percent decline in net profit for the second quarter of 2003. Japan's second-largest automaker decided to further extend warranties on automatic transmissions in Honda Odyssey minivans and Acura TL sedans. The company had already extended warranties on some 1.2 million vehicles last year, after a rash of customer complaints about problems with transmissions.
Scrap costs are another major concern among transportation equipment manufacturers. Sixty-three percent of plants in SIC 37 are buying equipment to reduce the cost of scrap and rework, the most of any industry. In fact, in 5 of the past 8 years, SIC 37 has led the nation in the number of plants that are targeting scrap and rework costs for equipment investment.
SIC 37 has long embraced the concepts of lean manufacturing, and those efforts appear to be paying off. Just 17 percent of plants in SIC 37 are concerned about the cost of work in process, and 43 percent of plants are concerned about setup, maintenance and other indirect labor costs. Both percentages are industry lows.
If there's trouble ahead for domestic transportation equipment manufacturers, it could be that this industry has the most operations outside the United States of any industry. According to our survey, 63 percent of respondents in SIC 37 have plants outside this country. That's well above the 39 percent figure for all U.S. companies. In addition, manufacturers in SIC 37 will spend an average of 32 percent of their 2004 equipment budgets outside the United States. That's the highest percentage of any industry.
Asia-especially China-is by far the preferred location for this industry's offshore operations. Sixty-seven percent of companies with offshore operations have facilities in Asia. For example, Ford Motor Co. (Dearborn, MI) is expected to sign an agreement with China that would allow the carmaker to boost its manufacturing capacity in that country from 20,000 vehicles per year to 150,000 vehicles per year. In addition, over the next several years, Ford and its Japanese affiliate, Mazda Motor Corp., will invest $500 million in a joint-venture plant in Thailand. The plant will eventually produce more than 200,000 vehicles per year.
SIC 36 Continues Slump
The past year was a watershed for manufacturers of electrical and electronic products (SIC 36). For the first time, they did not spend more on assembly technology than other industries. In 2004, SIC 36 will regain the top spot in equipment spending, sharing the lead with machinery manufacturers (SIC 35). However, the victory may be a hollow one.
All totaled, assemblers of appliances, batteries, motors, telephones, printed circuit boards and other products will spend $524 million on assembly technology next year. That's 10 percent less than what the industry spent in 2003. Moreover, it's nearly half what it spent in 2001, when SIC 36 set a survey record for equipment spending by any industry.
The average budget figure increased from $533,986 per plant in 2003 to $644,175 per plant in 2004. However, just 10 percent of plants in SIC 36 will spend more than $1 million on equipment next year, and only 15 percent will spend between $250,000 and $1 million. Both figures are the lowest for this industry in the survey's history.
These budget decreases are reflected in assemblers' spending plans. Just 17 percent of assemblers in SIC 36 will spend more on assembly technology in 2004 than they did in 2003. That's lower than any other industry, and it's the lowest percentage for SIC 36 in 8 years.
No one segment of SIC 36 is doing better than another. In October, appliance manufacturer Maytag Corp. (Newton, IA) reported a third-quarter net income of $36.6 million, down from $60.8 million a year earlier. Telecom-equipment manufacturer Motorola Inc. (Schaumburg, IL) reported that third-quarter revenue in its cell phone division rose 8 percent to $2.9 billion, and unit sales were up 19 percent. However, falling prices sank the division's operating profit for the quarter to $147 million, compared with $241 million a year earlier.
Motorola also said it expects to launch at least 18 new handset models in the fourth quarter of 2003, after introducing 17 models in the third quarter. That kind of output is nothing new to manufacturers in SIC 36, where constant change is a way of life. In every year of our survey, this industry has had more plants purchasing equipment to assemble new products than the figure for the nation as a whole. This year is no exception. Forty-three percent of plants in SIC 36 will buy equipment to assemble a new product next year, compared with 38 percent for all U.S. plants.
Similarly, manufacturers in SIC 36 are much more likely to be "high-mix" shops than manufacturers in other industries. In 2003, for example, 33 percent of plants in SIC 36 assembled 100 or more different product models. That compares with 27 percent for all U.S. plants.
Quality continues to be a major issue in SIC 36. In the 8-year history of the survey, assemblers in SIC 36 have been much more likely to buy equipment to increase product quality than other industries. Next year, for example, 24 percent of plants in SIC 36 will buy equipment to increase quality. That's the most of any industry, and it's 4 percentage points higher than the total for all U.S. plants.
Many electrical and electronic products require expensive parts and materials, including silver-filled epoxy, lead-free solder, gold-plated connectors and fine-pitch components. As a result, manufacturers in SIC 36 have traditionally been more concerned about the costs of materials than other industries. In 2004, for example, 29 percent of plants in SIC 36 will buy equipment to reduce material costs. That compares with 22 percent for all industries.
Spending Increases in SIC 38
The sharpest increase in spending this year will come from manufacturers of instruments and related products (SIC 38). Assemblers of medical devices, analytical instruments, photographic equipment and other products will account for 14 percent of all equipment spending next year, up from 8 percent in 2003. All totaled, SIC 38 will spend $293.5 million on assembly technology in 2004, a 70 percent increase from 2003 outlays.
Twenty-seven percent of plants in SIC 38 will spend more on equipment next year than this year. Just 16 percent will spend less, which is the lowest percentage of any industry. The average budget figure increased from $375,905 per plant in 2003 to $444,983 per plant in 2004.
Seventeen percent of plants in SIC 38 will spend between $250,000 and $1 million on assembly technology next year. In 2003, that figure was 12 percent. At the same time, the number of plants with budgets under $250,000 will decrease from 76 percent in 2003 to 69 percent in 2004. What's more, 13 percent of all plants with 2004 equipment budgets over $1 million are in SIC 38. That's still the lowest amount of any industry, but it's the highest percentage for SIC 38 in 8 years.
One reason for the increase could be an upcoming wave of new product introductions. Nearly half (47 percent) of the plants in SIC 38 are buying equipment to assemble new products. That's 11 percentage points more than for all U.S. plants, and it's the highest figure for any industry this year.
SIC 35 Tightens Belt
The sharpest decrease in spending this year will come from machinery manufacturers (SIC 35). Assemblers of cranes, conveyors, compressors, computers and other products will shell out $524 million on assembly technology in 2004, a 30 percent decrease from 2003 expenditures. In all, SIC 35 will represent 25 percent of total equipment spending next year, down from 35 percent in 2003.
Although 58 percent of respondents in SIC 35 expect to spend about the same on equipment as they did in 2003, actual budget figures tell a different story. The average budget figure decreased from $787,995 per plant in 2003 to $706,045 per plant in 2004.
Eighty-four percent of plants in SIC 35 will spend less than $250,000 on assembly technology in 2004. In 2003, just 71 percent planned to spend that much. Moreover, only 8 percent of plants in SIC 35 will spend more than $1 million on equipment next year-almost half the amount that spent as much in 2003. Even so, 26 percent of all plants with million-dollar budgets will come from SIC 35, the most of any industry.
Some of the decrease in spending can be attributed to the computer industry. For example, in October, Sun Microsystems Inc. (Santa Clara, CA) posted a net loss in the third quarter of $286 million, compared with a net loss of $111 million a year earlier. The computer manufacturer has posted losses in 8 of the past 10 quarters. A month earlier, Gateway Inc. (Poway, CA) announced that it would close its assembly plant in Hampton, VA, and begin outsourcing some computer manufacturing.
Sixty-seven percent of respondents in SIC 35 are buying equipment to reduce manufacturing costs. That's six percentage points higher than for all U.S. plants, and it's the third time in 8 years that SIC 35 has led the nation in the amount of plants seeking equipment to cut operating costs. At the same time, just 30 percent of plants are purchasing equipment to assemble new products. That's the lowest percentage for any industry in the survey's history, and it marks the fourth time in 8 years that SIC 35 has posted such a low percentage.
One reason operating costs are a concern in this industry may be its overall lack of automation. In 7 of the past 8 years, SIC 35 has ranked last in the amount of plants with semiautomated and fully automated processes. At the same time, this year's survey shows that 95 percent of machinery manufacturers use manual processes. That's the highest percentage of any industry, and it marks the fifth time in 8 years that SIC 35 has been above the national figure for use of manual assembly methods.
Of course, plants in this industry may not have much opportunity to automate. More than any other industry, plants in SIC 35 tend to be low-volume, low-mix shops. Fifty-five percent of plants in SIC 35 produced less than 1,000 assemblies in 2003. That's the highest amount for any industry. In fact, SIC 35 has led the nation in that percentage for 5 consecutive years. Just 6 percent of plants in SIC 35 produced more than 1 million assemblies in the past year.
Similarly, 44 percent of plants in SIC 35 assembled less than 10 different product models in 2003. That's the most of any industry this year, and it marks the fifth straight time that SIC 35 has been above the nationwide level for low-variety shops.
Interestingly, machinery manufacturers are more likely than other assemblers to build their own assembly equipment. Over the past 7 years, assemblers in SIC 35 have supplied an average of 42 percent of their assembly system needs with in-house equipment, which is more than any other industry.
A Slight Increase for SIC 34
Spending by manufacturers of fabricated metal products (SIC 34) is projected to increase 3 percent, from $344.5 million in 2003 to $356.3 million in 2004. Assemblers of saws, faucets, barrels and ammunition will contribute 17 percent of total spending on assembly technology next year, or about the same percentage as in 2003.
Twenty-six percent of plants expect to spend more on assembly equipment in 2004 than they did this year. That's slightly more than the percentage for all U.S. plants, and it's the most for SIC 34 since 2001.
Fifteen percent of plants in SIC 34 will spend more than $1 million on new equipment in 2004, and another 15 percent will spend between $250,000 and $1 million. In 2003, those figures were 20 percent and 14 percent, respectively. The average budget figure decreased from $894,581 per plant in 2003 to $720,972 per plant in 2004.
Most of the increase in spending by this industry can be attributed to new projects. A remarkable 69 percent of assemblers in SIC 34 spent 90 percent or more of their 2003 equipment budgets. It's the second time in 3 years that SIC 34 has led all industries in this percentage, and it's the highest percentage of any industry in the survey's history. The previous high-water mark-62 percent-was set by the transportation equipment industry in 2000.
Quality is not much of a concern among assemblers of locks, knives, guns and other products. Just 13 percent of plants in SIC 34 will buy equipment next year to increase product quality. That's the least for any industry. In fact, SIC 34 has held that position in 6 of the past 8 years.
Perhaps because quality is under control in SIC 34, warranty costs are not an issue. Just 5 percent of plants in SIC 34 are concerned about warranty and service costs. That's the lowest quantity for any industry, and it's the sixth time that SIC 34 has held that distinction.
What does appear to be a concern in SIC 34 is cycle time. Almost half (47 percent) of plants in this industry will purchase equipment next year to reduce cycle time or eliminate a bottleneck. That's more than any industry this year, and it's the second straight year that SIC 34 has led the nation in this percentage. In addition, 29 percent of plants-the most of any industry this year-are concerned about the cost of work in process inventory.
Plants in SIC 34 tend to be high-volume operations, with a low to moderate product mix. One in three plants in SIC 34 produced more than 1 million assemblies in 2003. In contrast, just 16 percent of all U.S. plants can make that claim. In fact, this industry has been above the national percentage for high-volume assembly for the past 8 years.
That could explain why plants in SIC 34 have a marked preference for fixed, or "hard," automation. According to this year's survey, 42 percent of plants in this industry use fixed automated assembly systems, which are usually synchronous and relatively inflexible. That's 20 percentage points higher than the amount for all U.S. plants, and it marks the fifth time in 6 years that SIC 34 has led the nation in this percentage.
Companies in SIC 34 do not have any more plants outside the United States than other industries. However, those companies that do have offshore facilities have a distinct preference for choice of country: Mexico. Fifty-eight percent of companies in SIC 34 with foreign facilities have plants in Mexico. That compares with 44 percent for all U.S. companies with offshore operations, and it's more than any other industry.
Go West, Assembler!
Surprisingly, the biggest increase in regional spending will be in the West. This 13-state region, which includes California, Colorado and Washington, will account for 26 percent of total equipment spending next year. That's the largest portion of total spending this region has reached in the survey's history, and it marks the fourth straight year that the West's share of total spending has increased.
Overall, the West will spend $544.9 million on assembly technology next year, a 26 percent increase from 2003 expenditures. The average budget figure increased from $414,560 per plant in 2003 to $591,655 per plant in 2004. Twelve percent of Western plants will spend more than $1 million on new equipment in 2004, and another 21 percent will spend between $250,000 and $1 million. In 2003, those figures were 10 percent and 19 percent, respectively.
Thirty-one percent of plants in the West will spend more on assembly technology next year than they did this year. That's the smallest percentage for this region in 8 years, but it's still 7 percentage points higher than the amount for the nation as a whole.
Increased spending by defense contractors and electronics assemblers may be fueling the higher capital outlays in the West. In California alone, 2002 defense spending totaled a whopping $36 billion. In September, electronics assembler Solectron Corp. (Milpitas, CA) signed a manufacturing contract with Nortel Networks (Ottawa) worth $7.5 billion through 2009. In October, Harman International Industries Inc. (Northridge, CA) reported that first quarter profits increased by $10 million, from $9.8 million in 2002 to $19.8 million in 2003. Sales increased 22 percent, from $490.8 million in 2002 to $597.3 million in 2003. Both sales and profits were first-quarter records for the company, which assembles audio components and other electronic products. As for the region's crucial chip sector, the Semiconductor Industry Association confirmed that global chip sales surged 4 percent to $13.4 billion in August, a 12.5 percent increase from August 2002 sales.
Another reason for the West's rosy outlook next year is the availability of low-cost labor. Although the highest salaries for manufacturing engineers and managers can be found in the West, assembly line personnel may not be enjoying the same rewards. In fact, over the past 7 years, Western assembly plants have been less concerned about direct labor costs than plants in the rest of the country. In 2004, for example, 82 percent of Western plants will buy equipment to lower labor costs. That compares with 85 percent for all U.S. plants and 89 percent for plants in the Midwest.
The South Shall Rise Again
The 16 states that make up the South will account for 28 percent of equipment spending next year, the highest amount for this region since 1998.
In all, plants in Virginia, Alabama, Texas and the rest of the South will spend $586.9 million on assembly technology in 2004, a 1 percent increase from 2003 spending. The average budget figure increased from $562,573 per plant in 2003 to $579,660 per plant in 2004.
Fourteen percent of Southern plants will spend more than $1 million on new equipment in 2004, which is significantly less than the 2003 figure of 20 percent. In addition, just 7 percent will spend between $250,000 and $1 million, which is almost half the amount that planned to spend that much in 2003. On the positive side, 25 percent of all plants with $1 million budgets are located in the South. That figure is second only to the Midwest, and it's the highest percentage for the South since the boom year of 2001.
Unlike the Midwest, the South is benefiting from increased spending in SIC 37. In July, American Eurocopter Corp. opened a new helicopter assembly plant in Columbus, MS. Also in July, General Dynamics Armament and Technical Products Inc. announced that it would move its headquarters from Burlington, VT, to Charlotte, NC. And in August, Caterpillar Inc. (Peoria, IL) opened a new 75,000-square-foot logistics and assembly plant in Sanford, NC.
The Midwest Slips
The sharpest decrease in regional equipment spending next year will occur in Illinois, Michigan, Ohio and the rest of the Midwest. The 12-state region will spend $733.6 million on assembly technology in 2004, or 19 percent less than it spent in 2003. Of course, that's still the most of any region, amounting to 35 percent of total equipment spending nationwide.
The average budget figure decreased from $972,206 per plant in 2003 to $605,335 per plant in 2004. Eleven percent of Midwestern plants will spend more than $1 million on equipment next year, and only 9 percent will spend between $250,000 and $1 million. Both percentages are 8-year lows for this region.
Just 22 percent of plants in this region expect to spend more on assembly technology next year than they did this year. That's the lowest percentage for this region in 8 years. However, that figure should be tempered by the fact that 55 percent of plants will spend in 2004 about what they did in 2003. That amount is the highest for this region in 8 years.
Whatever dollars that are spent next year will mostly be new projects. Fifty-four percent of Midwestern plants spent at least 90 percent of their 2003 equipment budgets during the past year, the most of any industry. In fact, it's the second straight year that this region has led the nation in this percentage.
Labor costs are a major issue in the Midwest. Eighty-nine percent of plants are buying equipment to reduce direct labor costs, while 53 percent are buying equipment to cut indirect labor costs. In comparison, 85 percent of all U.S. plants are buying equipment to reduce direct labor costs, and 48 percent are gearing up to cut indirect labor costs. In fact, the Midwest has been above the national figures in these two percentages in 7 of the past 8 years.
The news isn't all bad in the Midwest. For example, many automotive suppliers are having banner years. Lear Corp. (Southfield, MI), the No. 3 auto parts supplier, reported third-quarter net income of $76.1 million, up from $61.6 million a year ago. And, Bridgewater Interiors LLC (Detroit), which assembles seats for Ford trucks, will open a new plant in Warren, MI, next year. The facility will employ 600 workers.
The Northeast Slips
Equipment spending in the Northeast will decrease for the third straight year. Assemblers in this region encompassing Pennsylvania, New York, Massachusetts and six other states will spend $230.6 million on new equipment next year, a 3 percent decrease from 2003 spending. All totaled, the Northeast will represent 11 percent of U.S. equipment spending next year, or just what the region contributed in 2003.
The average budget figure decreased from $740,602 per plant in 2003 to $519,955 per plant in 2004. Just 3 percent of Northeastern plants will spend between $250,000 and $1 million on equipment next year. In contrast, almost four times as many plants in the region spent that much in 2003, and 13 percent of all U.S. plants will spend that much in 2004. At the same time, 85 percent of Northeastern plants will spend less than $250,000, an all-time high percentage for this region.
Only 17 percent of all U.S. plants with $1 million budgets are in the Northeast, the lowest of any region. It's the first time in survey history that the Northeast has produced the fewest plants with million-dollar budgets.
One reason for the lack of investment may be that plants in the Northeast aren't designing new products. Just one out of three plants in the Northeast will buy equipment next year to assemble a new product. That's the lowest percentage for any region, and it's the third time in 5 years that the region has held that distinction.
Survey Method and Demographics
ASSEMBLY magazine would like to thank all the respondents who participated in its eighth annual capital equipment spending survey.
ASSEMBLY magazine is sent to 60,209 assembly professionals in more than 35,600 locations. Questionnaires were mailed July 30 to manufacturing managers and other professionals in similar positions, who hold the highest degree of equipment purchasing influence in a representative group of 2,500 plants. The cutoff date for returning the surveys was Sept. 3.
Some 277 surveys were returned for a response rate of 11 percent.
For statistical reliability, the survey was only sent to manufacturers in SICs 34 through 38, which represent 90 percent of ASSEMBLY's readership. By industry, 14 percent of respondents were in SIC 34, 41 percent were in SIC 35, 23 percent were in SIC 36, 11 percent were in SIC 37, and 11 percent were in SIC 38.
Geographically, 16 percent of respondents were located in the Northeast, 41 percent were in the Midwest, 22 percent were in the South, and 21 percent were in the West.
Twenty-seven percent of respondents had 25 employees or less, which is slightly higher than historical norms for the survey. In addition, 13 percent had 26 to 50 employees, 15 percent had 51 to 100 employees, 22 percent had 101 to 250 employees, 10 percent had 251 to 500 employees, and 13 percent had more than 500 employees.
Some 17 percent of respondents were high-volume manufacturers, 44 percent were mid-volume manufacturers, and 39 percent were low-volume manufacturers. Overall, the survey results have a sampling error of ±5.9 percent.
You can purchase the complete results of this study on-line at www.assemblymag.com. Results are presented by region, industry, company size, and size of product assembled.
In addition, you can purchase the results of the past two capital spending surveys, as well as our past three State of the Profession surveys. The State of the Profession survey provides in-depth information on compensation, training and other employment issues related to engineers and managers who are responsible for product assembly.
A variety of market research studies are also available for purchase on-line. These studies provide a detailed look at how our readers use and buy specific assembly technologies, such as adhesives and dispensing equipment, automated assembly systems, and motion control equipment.
