Nearly 90% of companies responding to the RSM McGladrey’s 2009 Manufacturing and Wholesale Distribution Survey said that information technology was a critical component of business operations.

Conducted this spring, RSM McGladrey’s 2009 MWD National Survey includes feedback from 923 leaders of U.S. manufacturing and wholesale distribution companies on their perspectives on the current state of their company and industry, and the strategies they are implementing to sustain profitability.

 

Further analysis of survey results shows that, to obtain maximum value from IT investments, those investments must be linked to the company’s strategies and business plan. Eight percent of companies in the survey indicate such linkages are present.

 

While the majority of MWD Survey respondents agree that IT is a critical component, survey results show that comprehensive coverage is an issue for a number of companies. About 1 in 5 respondents indicated current systems are not meeting operational and process improvement needs; the same indicated current systems are not meeting reporting and data analysis needs; and, almost 1 in 4 companies indicated lack of effective systems to communicate with customers and vendors.

 

Among companies that report IT is a critical component of their business, 1 in 3 still reports at least one unmet need.

 

From a risk management standpoint, 70% of respondents reported having information technology disaster recovery plans in place, but only 47% reported having tested those plans on an annual basis. This leaves nearly a third of the companies exposed to such a disaster, and another portion which might believe they are protected but have plans that might not provide the protection expected.

 

Expanding the functionality of existing IT systems is viewed as a way to exponentially increase the value and utility of the system to the company. Eighty percent of companies responding to the survey indicated they have near-term IT expansion strategies in place. Ninety-three percent plan IT maintenance expenditures. 

 

While the current economic downturn has resulted in levels of unemployment not seen since the 1980s, the demand for skilled IT personnel has increased since the 2008 MWD Survey. About 25% of 2009 survey respondents identify IT personnel as a hiring need, up 7 percentage points from 2008.

 

 

RSM McGladrey is a professional services firm providing accounting, tax and business consulting.