NPI (Network Performance Inc) a South Burlington Technology Management firm, has completed a survey gauging the use of technology at 178 Vermont based manufacturers. The results projected that the overall state of the Vermont manufacturing economy will be slightly above average in the coming year. However, the respondents indicated that their own businesses will perform well above average in the next 12 months due in part to the contribution of their technology investments. The survey indicated that technology will contribute significantly to their success; many anticipate significant capital investments in technology for the next 12 months. Most of the Vermont manufacturers also indicated their existing technology investments are not yet utilized to the full extent possible.
Detailed Survey Results
very well – 14% good – 44% average – 30% fair – 10% poor – 2% 2. How will your business perform in the next 12 months? very well – 34% good – 51% average – 10% fair – 3% poor – 2% 3. How much will technology contribute to your success in the next year? very significantly – 26% significantly – 61% neutral – 11% insignificantly – 2% very insignificantly – 0% 4. How large an investment in business technology do you project for the next 12 months? very large – 7% large – 43% average – 36% small – 13% very small – 2% 5. How optimized is your technology? fully optimized – 9% somewhat optimized – 38% average – 37% sub-optimal – 14% poorly optimized – 2% |
There was a 39 percent response rate to the survey that was conducted between September 11, 2014 and September 25, 2014. The survey period ended at the Vermont Chamber of Commerce Manufactured in Vermont supply chain trade show at the Champlain Valley Expo in Essex Junction on September 25.
When asked to characterize the results of the survey, NPI President John Burton said, “We are optimistic that the Vermont manufacturing sector is strong and will continue to make the capital investments needed to keep on the cutting edge of world-class manufacturing, but there is concern that existing technology investments need further optimization.” He added, “Fortunately the recent Vermont Chamber Manufacturing trade show demonstrated there is a vigorous community of public and private groups assisting with these challenges.“
Survey Details
When asked to describe the performance of Vermont manufacturing sector in the next 12 months, 44 percent of respondents feel that Vermont’s manufacturing economy will perform well and 30 percent indicated that it will be average while 14 percent feel that it will do very well. Only 12 percent think it will be fair or poor.
51 percent of those surveyed projected good performance for their own business, while 34 percent indicated it will perform very well. Only 15 percent of Vermont manufacturers indicated their business will perform average or below.
The survey shows 61 percent of the businesses see that technology will provide a significant contribution to their business success and 26 percent believe it will play a very significant role going forward. Only 13 percent indicated that technology will not be significant in their business success in the next 12 months.
43 percent of Vermont manufacturers indicate that technology investments will be large while 7 percent will make a very large investment in the next year. 36 percent project average technology investments and 15 percent are making small or very small investments.
53 percent of Vermont manufacturers are only average or below with optimization of their past technology investments while 38 percent feel they were somewhat optimized and 9 percent indicated full optimization of previously purchased technology.
Survey Comments
The survey comments noted that the aerospace segment is growing rapidly while the semiconductor industry is uncertain. Respondents showed some concerns with both local and international factors that may impact the sector in the coming year. Some are concerned about such factors as terrorism while others may be impacted by the uncertain cost of medical insurance and the lack of a sustainable business climate in Vermont. A few of the respondents commented that they are shifting their growth to business locations outside of Vermont.
While technology investments are growing, several are having difficulty budgeting due to cash constraints and scarce resources. Some commented that they need to invest more in support and training to fully optimize their current technology investments. One respondent commented, “We are currently upgrading our accounting/manufacturing software to integrate with our non-Vermont operations and optimize the process flow.”
September 26, 2014 – NPI. PHOTO: Swan Valley cheese plant in Swanton.