Manufacturers Cautiously Optimistic About Economy in 2011, Survey Says

Oct. 1, 2010
Manufacturers are optimistic about the economy heading into 2011, but not quite as optimistic as they were heading into 2010, a recent survey of more

Manufacturers are optimistic about the economy heading into 2011, but not quite as optimistic as they were heading into 2010, a recent survey of more than 1,000 International Air-Conditioning, Heating, Refrigerating Exposition (AHR Expo) exhibitors worldwide reveals.

Fifty-seven percent of the respondents expect a “better year” in 2011, while 9 percent expect a “much better year.” This 66-percent positive response is slightly less than last year's 70 percent.

Twenty-seven percent think 2011 will be the “same as last year,” while 7 percent predict a “worse year.”

Eighty-three percent of this year's respondents said their business so far in 2010 is “much better” than, “better” than, or the “same as” it was last year.

Sixty-one percent of the respondents believe there is “pent-up industry demand” for new products. In 2009, 69 percent of respondents felt there was pent-up demand.

Sixty-two percent of the respondents plan to introduce new products during the 2011 AHR Expo (www.ahrexpo.com), which will be held Jan. 31 to Feb. 2 in Las Vegas. Nearly 70 percent of those products are considered “high-performance/sustainable.”

Although many companies expect sales increases of less than 6 percent in 2011, several expect sales increases of up to 20 percent.

According to the survey:

  • The industry segments in which respondents expect the strongest demand for their products in 2011 are commercial (66.4 percent), industrial (47.4 percent), and institutional (31.6 percent).

  • The industry category in which respondents expect the strongest demand for products is renovation/upgrade (39.3 percent), followed by replacement (30.7 percent) and new construction (30 percent).

  • Respondents expect greater demand for their products in the domestic marketplace (77 percent) than in the international marketplace (23 percent).

About the Author

Scott Arnold | Executive Editor

Described by a colleague as "a cyborg ... requir(ing) virtually no sleep, no time off, and bland nourishment that can be consumed while at his desk" who was sent "back from the future not to terminate anyone, but with the prime directive 'to edit dry technical copy' in order to save the world at a later date," Scott Arnold joined the editorial staff of HPAC Engineering in 1999. Prior to that, he worked as an editor for daily newspapers and a specialty-publications company. He has a bachelor's degree in journalism from Kent State University.