Although manufacturers say the business environment appears rosier today than it did a year ago during the deep, dark days of the Great Recession, many are taking a cautious approach, conserving capital in case the recovery wavers.
“We’re more optimistic, but it’s going to take another three months or so for us to conclude that our market will continue to grow,” says Phil Meister, IT manager at Quality Bolt and Screw, a $12 million maker of cold-formed parts and fasteners.
Since November, the Brecksville, OH, company has seen new bookings increase dramatically, particularly from construction and agriculture customers. Still, Quality Bolt and Screw is taking a cautious approach to hiring and technology investments. “We’re adding people cautiously, as opportunities present themselves,” Meister says.
Similarly, Next Intent, a small maker of fixtures and other components for aerospace and defense customers, is waiting to see whether the recovery continues before buying more equipment. Part of the reason for that, President Rodney Babcock says, is that Next Intent, a 2009 Progressive Manufacturing 100 Award winner, last year invested in new manufacturing space and software with the expectation that a recovery was on the way. The company expanded manufacturing space from 8,500 square feet to 28,000 and deployed new ERP software from ECi Software Solutions.