INDUSTRY CLIMATE SURVEY REPORT
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1 INDUSTRY CLIMATE SURVEY REPORT DECEMBER
2 Table of Contents Executive Summary... 3 Survey Participation... 4 Number of Participants by Region... 4 Percent of Participants by Region... 5 Participants by Manufacturing Facility Sales Volume... 5 Manufacturing Facility Sales Volume by Region... 5 Sales Outlook for Manufacturing Facility 2018 Sales Outlook... 6 Manufacturing Facility 2018 Sales Outlook by Region... 6 Manufacturing Facility 2018 Sales Outlook by Mfg Facility Sales Volume... 7 Estimated Change in Gross Sales between 2017 & Profitability Outlook for Manufacturing Facility 2018 Profitability Outlook... 8 Manufacturing Facility 2018 Profitability Outlook by Region... 8 Manufacturing Facility 2018 Profitability Outlook by Mfg Facility Sales Volume... 9 Estimated Change in Profitability between 2017 & Top Challenges in Percentage of all Participants Indicating Topic as Challenge in Top Identified Challenges by Region Top Identified Challenges by Manufacturing Facility Sales Volume Page 2 of 10
3 Executive Summary SBCA is pleased to provide a Business Climate Survey for In November of 2017, SBCA sent out an online questionnaire to all component manufacturing member locations. In all, 129 locations provided at least partially useable responses. Responses showed that the majority of members are optimistic about the coming year, while the largest concern across the country was production labor availability. Going forward, SBCA will conduct surveys regularly, focusing on different aspects of business operations, including financial, wages/benefits, operations and industry trends. Watch for a Financial Performance Survey in early January. Survey questions will be simplified from the past in order to allow for as much participation as possible from SBCA members. Thank you to subcommittee members Jeff Taake (Mead Lumber Co.), Jeff Smith (Trussway), John Herring (A-1 Roof Trusses) and Dave Green (Carolina Structural Systems) for their time and efforts on the SBCA surveys conducted in We look forward to continual improvement and increased participation in the years to come. Page 3 of 10
4 Survey Participation NUMBER OF PARTICIPANTS BY REGION Page 4 of 10
5 PERCENT OF PARTICIPANTS BY REGION Southeast 13% Northwest 7% Southwest 4% Northeast 19% Southcentral 18% Midwest 39% PARTICIPANTS BY MFG FACILITY SALES VOLUME <$1 $1-$5 $5-$10 $10-$20 $20-$30 >$30 MFG FACILITY SALES VOLUME BY REGION <$1 $1-$5 $5-$10 $10-$20 $20-$30 >$30 Page 5 of 10
6 Sales Outlook for 2018 MFG FACILITY 2018 SALES OUTLOOK Worse than % Same as % Better than % MFG FACILITY 2018 SALES OUTLOOK BY REGION Better than 2017 Same as 2017 Worse than 2017 Page 6 of 10
7 Median Increase/Decrease Structural Building Components Association MFG FACILITY 2018 SALES OUTLOOK BY MFG FACILITY SALES VOLUME <$1 $1-$5 $5-$10 $10-$20 $20-$30 >$30 Better than 2017 Same as 2017 Worse than % ESTIMATED CHANGE IN GROSS SALES BETWEEN 2017 & Responses 5% -5% -1 5 Responses -15% Page 7 of 10
8 Profitability Outlook for 2018 MFG FACILITY 2018 PROFITABILITY OUTLOOK Worse than % Same as % Better than % MFG FACILITY 2018 PROFITABILITY OUTLOOK BY REGION Better than 2017 Same as 2017 Worse than 2017 Page 8 of 10
9 Median Increase/Decrease Structural Building Components Association MFG FACILITY 2018 PROFITABILITY OUTLOOK BY MFG FACILITY SALES VOLUME <$1 $1-$5 $5-$10 $10-$20 $20-$30 >$30 Better than 2017 Same as 2017 Worse than 2017 ESTIMATED CHANGE IN PROFITABILITY BETWEEN 2017 & % 6% 4% 39 Responses 2% -2% -4% 6 Responses -6% Page 9 of 10
10 Top Challenges in 2018 PERCENTAGE OF ALL PARTICIPANTS INDICATING TOPIC AS CHALLENGE IN 2018 Material Costs Labor Costs Production Labor Availability Technical/Designer Labor Availability Workforce Training Risk Management Requests to Exceed Scope of Work Increasingly Competitive Market Healthcare Costs Customers' Financial Stability Governmental Regulation Other TOP IDENTIFIED CHALLENGES BY REGION Material Costs Production Labor Availability Labor Costs Technical/Designer Labor Availability TOP IDENTIFIED CHALLENGES BY MFG FACILITY SALES VOLUME <$1 $1-$5 $5-$10 $10-$20 $20-$30 >$30 Material Costs Production Labor Availability Labor Costs Technical/Designer Labor Availability Page 10 of 10
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