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Advanced Manufacturing Techniques Drive Growth for Middle Market Manufacturers

July 18, 2013, 06:57 AM
Filed Under: Manufacturing

The nation's 33,000 middle market manufacturing companies are increasingly leveraging advanced manufacturing techniques to generate increased revenue and productivity growth.  A new report released by the National Center for the Middle Market (NCMM) and the National Association of Manufacturers (NAM) indicates that the 47 percent of mid-market manufacturers currently using advanced manufacturing techniques have experienced a 20 percent profitability increase over the last five years.  These companies are most frequently leveraging automation, computer technologies, process technologies and information technologies.

In the past year, mid-market manufacturers using advanced manufacturing techniques report a 3.4 percent increase in job growth and project employment growth at 4.7 percent in the next 12 months.  According to the research, advanced techniques are most commonly leveraged by middle market companies with annual revenues between $100 million and $1 billion.

The report also highlights that vast opportunities to generate further growth remain.  According to the 53 percent of companies who have not yet adopted advanced manufacturing techniques, 78 percent indicate they plan to do so in the next three to five years.

The National Center for the Middle Market, a partnership of GE Capital and the Ohio State University's Fisher College of Business, defines the U.S. middle market as companies with annual revenues between $10 million and $1 billion.  This sector encompasses nearly 200,000 companies -- including Jamba Juice, K-Swiss, Fat Burger and Tootsie Roll-- and accounts for nearly one-third of U.S. GDP.

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