CHICAGO–(BUSINESS WIRE)–Please replace the release issued February 26, 2025, with the following corrected version that has been updated following tariffs and recent market movements.
The updated release reads:
SIKICH MANUFACTURING INDUSTRY SURVEY YIELDS INSIGHT INTO CHALLENGES AND YEAR AHEAD
Sikich, a Chicago-based leading global technology-enabled professional services company, released its latest findings on the manufacturing industry compiled from a recent Sikich Industry Pulse survey. The Pulse, which surveys manufacturing and distribution executives from across sectors and the nation multiple times throughout the year, provides real-time competitive intel to apply to their business strategies, highlighting and responding to top trends as they arise.
Results from the November 2024 survey highlighted top challenges executives experienced in the prior year. Inflation (26%) ranked as the top challenge for the majority of the manufacturing executives with the rising cost of materials (14%) coming in second and increased competition in the market (13%) third.
“While many executives may be heading into the new year optimistically, we’d be remised not to recognize the challenges faced in 2024 and prepare for potential industry disruptions this year,” said Jerry Murphy, principal, Sikich. “Manufacturing companies have had to stay agile in combating rising inflation and the costs of materials with the shortage of labor. Optimizing automation to reduce dependency on labor and upskilling existing employees to mitigate workforce gaps should be explored as potential strategies. Further, executives must look to diversify their supplier base and negotiate better terms to assist in overcoming challenges posed by rising inflation.”
Sikich also asked survey participants to gauge their confidence in their organization’s internal controls and fraud prevention measures. When polled, 86% of respondents were somewhat or very confident in their internal control environment’s ability to identify fraud. Only 17% of respondents said they have an internal audit department.
According to the Association of Certified Fraud Examiners’ (ACFE) “Occupational Fraud 2024: A Report to the Nations,” it is estimated that organizations lose 5% of revenue to fraud each year. In the study, the manufacturing industry had the second most fraud cases behind banking and financial services. Executives’ confidence in their internal controls is high, but with so few having an internal audit department, there are discrepancies among the results. In addition, just 16% of respondents only have a code of conduct as internal controls.
“There are no industries or companies immune to fraud. Manufacturing, in fact, is one of the most susceptible,” said Steve Randall, principal, Sikich. “While executives’ confidence remains positive, fraud is happening at a higher rate today than we’ve historically seen. Executives should critically evaluate their internal controls to ensure their business is protected from threats both internally and externally.”
To view the results from the November Pulse survey, click here.
About Sikich
Sikich is a Chicago-based global company specializing in technology-enabled professional services. With more than 1,900 employees, Sikich draws on a diverse portfolio of technology solutions to deliver transformative digital strategies. From corporations and not-for-profits to state and local governments and federal agencies, Sikich clients utilize a broad spectrum of services and products to help them improve performance and achieve long-term, strategic goals.
Sikich practices in an alternative practice structure in accordance with the AICPA Professional Code of Conduct and applicable law, regulations, and professional standards. Sikich CPA LLC is a licensed CPA firm that provides audit and attest services to its clients, and Sikich LLC and its subsidiaries provide tax and business advisory services to its clients. Sikich CPA LLC has a contractual arrangement with Sikich LLC under which Sikich LLC supports Sikich CPA LLC’s performance of its professional services. Sikich LLC and its subsidiaries are not licensed CPA firms.
“Sikich” is the brand name under which Sikich CPA LLC and Sikich LLC provide professional services. The entities under the Sikich brand are independently owned and are not liable for the services provided by any other entity providing services under the Sikich brand. The use of the terms “our company”, “we” and “us” and other similar terms denote the alternative practice structure of Sikich CPA LLC and Sikich LLC.
Contacts
Media Contacts:
Melanie Strah
Global PR Director
(847) 478-9000
[email protected]
MaryCate Markey
Communications Coordinator
(609) 690-8650
[email protected]
