Insight on Manufacturing

May 2014

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24 | /insight on manufacturing • May 2014 w w w.in s i g h t o n m f g . c o m By the Numbers Smaller, local deals drove industrial products merger and acquisition activity in the first quarter of 2014, according to the Pricewaterhouse Coopers IP M&A analysis. While the increase in value was driven by mega deals, or transactions worth more than $1 billion, most of the deal volume was a result of smaller transactions. "As the overall global economic recovery continues to take hold and more established markets gain their footing, we believe the IP space will see an increase in deal activity as companies ultimately recognize the need to participate in faster-growing markets globally," says Robert McCutcheon, U.S. industrial products leader for PwC. Optimism regarding the direction of the domestic economy rose among U.S. industrial manufacturers during the first quarter of 2014, according to the Q1 2014 Manufacturing Barometer. Positive sentiment about the prospects of U.S. commerce in the next 12 months reached the highest level since the fourth quarter of 2005. The impact of small businesses » Wisconsin employment increased by 0.09% in April, and small business employment increased 0.12%. » Hourly small business employees saw monthly compensation increase by 0.06% with average monthly pay reaching the equivalent of $2,741, up $2 from March. » Average monthly hours worked by hourly employees decreased by 0.05% in April, which is equivalent to 108.6 hours, down approximately 3 minutes from March. » Small business revenues overall saw a decrease of 0.7% in March on a per-business basis. "Professional and technical services" showed the largest, and only, increase of 0.07%, while the "real estate" industry saw the largest decline of 1.2%. Source: Intuit's April Small Business Indexes mOVING uP » On average, companies relocated 10 to 19 employees in 2013. » The greatest relocation volume growth occurred for national and international firms, with around half reporting increases in 2013. About a third of these firms saw increases in budgets as well. » 46% of companies say the growth of the company had the most significant impact on the number of employee relocations in 2013. For the first time in seven years, growth was ahead of all other internal and external factors as the top reason for relocations last year. » More than half of all relocations last year were new hires (57%). » Employees ages 36 to 40 remain the most frequently relocated salaried employee (38%). » 42% of all firms offer employment assistance to the spouse or partner, similar to levels charted over the past decade. » 80% of companies pay transportation expenses directly for transferees and 73% do so for new hires. The Midwest (35%) remains the most popular relocation destination within the U.S., but the South (30%) and Northeast (28%) are not far behind. The U.S. ranks third (18%) behind Western Europe (22%) and Asia (27%) for the most relocations in 2013. Asia remains the most frequent relocation destination (32%) for transferees relocating outside the U.S. More than half of firms (52%) saw employees decline relocation. Of employees who were offered relocation, 13% declined, a drop from the peaks of 2008 and 2009, which were 28% and 29% respectively. Housing/mortgage concerns fell dramatically and are no longer the primary reasoning cited for declining relocation. Family issues/ties reclaimed the number one reason for reluctance among all firm sizes, with spouse and/or partner employment coming in second. Source: Atlas Van Lines' 47th Annual Corporate Relocation Survey

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