Despite rising energy costs and increased foreign competition, U.S. manufacturers are poised to make significant investments in assembly technology in 2006.

What kind of poker player are you? Do you bet aggressively with a few good cards in your hand, or do you take a wait-and-see attitude? Either way, the results of ASSEMBLY magazine's 10th annual capital equipment spending survey should give assemblers and their technology suppliers plenty to think about as they consider how much to throw into the manufacturing kitty next year.

According to our survey, U.S. assembly plants will spend $2.73 billion on new equipment in 2006. Aggressive bettors will note that $2.73 billion is the highest total in the history of our survey, and it's 5 percent more than the $2.6 billion projected to be spent during 2005.

What's more, 34 percent of respondents will spend more on assembly technology in 2006 than they did in 2005. That's the highest percentage since 2001. At the same time, only 19 percent of plants will spend less on equipment next year than they did this year. That's the lowest figure since 1998.

Additional evidence for an increase in spending can be found in manufacturers' motives for buying assembly technology. Some 38 percent will buy equipment next year to increase capacity. Although that figure is not nearly as high as it was in the 1990s, it's the highest percentage since 2002.

On the other hand, conservative bettors will note that $2.73 billion is just slightly more than the $2.71 billion total projected to be spent in 1998. They'll also observe that only 30 percent of plants are buying equipment to assemble a new product. That's the lowest figure in our survey's history, and it's barely more than half what it was in 1998, when 55 percent of plants purchased equipment to produce something new.

Finally, conservative bettors will note that the amount of plants with budgets over $1 million will essentially be the same in 2006 as it was this year (8 percent in 2005 vs. 7 percent in 2006). At the same time, the percentage of plants with budgets between $250,000 and $1 million will decrease, from 17 percent in 2005 to 13 percent in 2006, while the percentage of plants with budgets under $250,000 will increase, from 75 percent in 2005 to 80 percent in 2006.

Actual budget figures provide fuel for either type of player. The median equipment budget for 2006 is the same as it was in 2005: $50,000. However, the average budget for 2006, $239,988, is significantly less than the average budget for 2005, $739,175.

One explanation for the smaller average budget figure is an increase in the number of facilities with fewer than 50 employees, and a corresponding decrease in the number of plants with more than 500 workers. During the past 5 years, the percentage of plants with fewer than 50 employees has gradually increased, from 27 percent in 2001 to 50 percent in 2005. At the same time, the percentage of plants with more than 500 employees has gradually decreased, from 15 percent in 2001 to just 5 percent in 2005.

Over that same time period, small plants have more than doubled their share of total equipment spending, while the largest companies are contributing half what they once did. In 2001, companies with fewer than 100 employees accounted for 10 percent of total spending, while companies with more than 500 employees represented 57 percent. In 2006, those percentages will be 22 percent and 30 percent, respectively.

It's also possible that the lower average budget figure may be less an indication of a spending decrease than a more realistic approach to budgeting. That's because for the second straight year, assemblers haven't spent nearly as much on capital equipment as they originally planned. On average, assemblers have spent just 61 percent of their 2005 equipment budgets, and only half of our respondents spent at least 70 percent of their budgets for the year. To put that in perspective, just 2 years ago, assemblers spent an average of 79 percent of their equipment budgets, and three-fourths of our respondents spent at least 70 percent of their budgets for the year.



What Assemblers Want-and Why

The No. 1 target for cost reduction in 2006 is the same as it has been for the past 9 years: direct labor. However, other cost elements have become less important to assemblers during the past 3 years, perhaps as the result of implementing lean manufacturing practices. Significantly fewer companies are buying equipment to reduce the costs of scrap, in-process inventory, and indirect labor (setup, maintenance and material handling)-three of the "wastes" targeted by lean manufacturing. In 2003, for example, 47 percent of assemblers bought equipment to reduce the cost of indirect labor and 26 percent bought equipment to reduce the cost of in-process inventory. In 2006, 40 percent will buy equipment to lower indirect labor costs, and just 19 percent will buy equipment to cut the cost of in-process inventory.

Assemblers are also finding alternative ways of adding equipment to their lines. For example, assembly plants are meeting more and more of their automation needs with equipment they build in-house. Next year, manufacturers will fulfill, on average, 44 percent of their assembly system needs with equipment that they build internally. That's the highest ratio in the history of the survey. In contrast, in 1998, manufacturers fulfilled, on average, 38 percent of their assembly system needs with in-house equipment.

Assembly plants are also purchasing larger amounts of used equipment than ever before. The spate of plant closings over the past few years has put a lot of "previously owned" equipment on the market, and assemblers are taking advantage of the bargains. In 2006, assemblers will spend, on average, 34 percent of their capital budgets on used or rebuilt equipment. That's the highest ratio in the survey's history.

In terms of specific assembly technologies, suppliers can expect increased demand next year for single-station assembly machines; conveyors and material handling equipment; electronics assembly systems; computers and software; wire processing equipment; packaging machines; and welding, brazing and soldering equipment.

The biggest increase in demand could be for conveyors and other material handling equipment. Some 28 percent of plants will buy conveyors in 2006. That's still less than historical norms for this technology, which have ranged from 30 percent to 40 percent. However, it's better than demand in 2005, when only 22 percent of plants planned to buy conveyors, an all-time low for that equipment category. All totaled, spending on conveyors and material handling equipment is expected to increase from $70 million in 2005 to $98 million in 2006.

Demand for welding, brazing and soldering equipment is also expected to increase significantly. Some 57 percent of plants will invest in that technology next year, up from 53 percent in 2005. Demand will be particularly strong for soldering equipment and metal-welding equipment. All totaled, spending on welding, brazing and soldering equipment will reach $300 million next year, an increase of 21 percent compared with 2005. In fact, spending on welding, brazing and soldering equipment will account for 11 percent of all expenditures on assembly technology in 2006, which ranks the technology second only to multistation automated assembly systems in market size.

Among single-station assembly machines, demand will be especially good for assembly presses. One-third of assembly plants will buy pneumatic, hydraulic or electromechanical presses in 2006, the highest percentage in 10 years.



Machinery Manufacturing

Next year should be a good one for machinery manufacturers (NAIC 333). Consider just two segments of this broad industry: construction equipment and machine tools.

According to the Association of Equipment Manufacturers, sales of earthmoving equipment, paving machinery, cranes and other construction equipment increased 14 percent in 2005, and sales are expected to increase an additional 9 percent in 2006.

According to the American Machine Tool Distributors' Association, U.S. sales of machine tools totaled $286.86 million in August. That's a 26 percent increase compared with July sales and a 38 percent increase compared with August 2004 sales. Overall, sales of machine tools for the first 8 months of the year amount to more than $1.97 billion, an increase of 16 percent compared with same period in 2004.

To meet such strong demand, machinery manufacturers will pour $764 million into assembly technology next year, a 73 percent increase compared with 2005 spending. Overall, NAIC 333 will account for 28 percent of total U.S. spending in 2006. That's up from 17 percent in 2005, and it's the largest percentage for this industry since 2003.

Plants that spent $250,000 to $1 million on equipment in 2005 will boost their budgets into the million-dollar range in 2006. The percentage of plants spending more than $1 million on assembly technology will more than double, from 5 percent in 2005 to 12 percent in 2006. At the same time, the percentage of plants spending $250,000 to $1 million will shrink from 13 percent in 2005 to 8 percent in 2006. The percentage of plants spending less than $250,000 will hold steady: 82 percent in 2005 vs. 80 percent in 2006.

Nationwide, some 64 percent of all plants with million-dollar equipment budgets are in the machinery manufacturing industry. That's the most for this industry in the history of the survey, and it's the third time in the past 4 years that machinery manufacturers have held that distinction. (From 1997 to 2002, the vast majority of all plants with million-dollar equipment budgets were in the transportation equipment industry.)

On average, assemblers of lawn tractors, photocopiers, compressors, elevators and other machinery will spend $312,730 on equipment next year. That's the highest average of any industry, and it's 30 percent more than the average for all U.S. assembly plants.

If there's one caveat to this rosy forecast, it may be that machinery manufacturers are slightly overrepresented in this year's survey. Some 38 percent of respondents this year are in NAIC 333, though the industry actually accounts for 33 percent of our total circulation.

Nevertheless, 43 percent of plants in NAIC 333 are buying equipment to increase capacity. That compares with 32 percent in 2005 and 38 percent for the nation as a whole in 2006. In addition, it marks the third straight year that machinery manufacturers have been at or above the national percentage. From 1999 to 2003, machinery manufacturers were below the national percentage of plants that were expanding capacity.

NAIC 333 also leads the nation in the amount of plants that are looking to replace worn-out equipment. Half the plants in this industry (51 percent) are buying equipment next year to replace old or worn-out machinery. That's more than any industry, and it's the second straight year that machinery makers have held that distinction.



Fabricated Metal Products

After accounting for just 9 percent of total spending in 2002, the fabricated metal products industry (NAIC 332) has gradually increased its share of the pie. In 2006, NAIC 332 will represent 26 percent of total spending, up from 20 percent in 2005 and a new high-water mark for the industry.

Manufacturers of windows, cans, fasteners, valves, bearings, guns and other fabricated metal products will spend $710 million on assembly technology next year, a 36 percent increase from 2005 outlays.

Just 3 percent of plants in NAIC 332 will have budgets over $1 million in 2006. That's down from 10 percent in 2005, and it's less than half the percentage for all U.S. plants next year. On the plus side, 19 percent of plants in NAIC 332 will have budgets ranging from $250,000 to $1 million in 2006, compared with 13 percent for the nation as a whole. On average, manufacturers of fabricated metal products will spend $199,541 on new equipment next year.

If there's cause for concern in NAIC 332, it's that a larger number of plants expect to spend less on equipment next year. One-fourth of respondents in this industry will spend less in 2006 than they did in 2005. In comparison, just 16 percent of plants spent less in 2005 than they did in 2004.

Another worry is that, during the past 2 years, manufacturers haven't spent as much as they originally planned. Twenty-nine percent of plants spent less than 40 percent of their 2005 equipment budgets. In contrast, only 9 percent of plants spent less than 40 percent of their equipment budgets in 2003.

On the plus side, the industry appears to be getting its labor costs under control. From 1997 to 2003, NAIC 332 was consistently at or above the national percentage for plants that are looking to lower the cost of direct labor. Since then, however, the industry has been below the national figure. Next year, for example, only 77 percent of plants in NAIC 332 will buy equipment to reduce direct-labor costs. That compares with 82 percent for the nation as a whole, and it's an all-time low for the industry.



Computers and Electronics

In November 2004, Dell Inc. announced plans to open a state-of-the-art assembly plant in North Carolina. A year later, the facility employs approximately 500 people and is assembling some 15,000 units per day, or one desktop computer every 2 to 3 seconds. The facility is "at least 15 percent more productive than any other Dell plant worldwide," says Richard Hunter, Dell's vice president of manufacturing and distribution operations for the Americas.

Success like that may explain why so many manufacturers of computers and electronic products (NAIC 334) plan to increase spending on assembly technology next year. According to our survey, 45 percent of plants in NAIC 334 will spend more on equipment in 2006 than they did in 2005. That's more than any other industry, and it's 11 points more than the percentage for the nation as a whole.

The average equipment budget for 2006 is $209,500, more than double the 2005 figure. Six percent of plants will spend more than $1 million on new equipment, a marked improvement over 2005, when there weren't any plants willing to spend that much.

Overall, assemblers of clocks, disk drives, video cameras, telephones, radar equipment, thermostats, microchips and other electronic products will spend $246 million on assembly technology in 2006, or 27 percent less than the industry spent in 2005. NAIC 334 will account for 9 percent of total spending next year, down from 13 percent in 2005.

The efficiency of the new Dell plant is nothing new in this industry. Only 15 percent of plants in NAIC 334 will buy equipment next year to lower the cost of work-in-process inventory. That's the lowest percentage of any industry, and it's the second straight year that NAIC 334 has held that distinction.



Electrical Equipment and Appliances

Is there trouble ahead for manufacturers of electrical equipment and appliances (NAIC 335)? In 2005, this industry accounted for 17 percent of total spending on assembly technology. Next year, NAIC 335 will represent just 7 percent of spending.

All totaled, assemblers of lamps, stoves, mixers, electric motors, batteries and other electrical equipment will spend $191 million on equipment in 2006, or 57 percent less than the industry spent in 2005.

Although just 13 percent of appliance manufacturers will spend less in 2006 than they did in 2005, only 27 percent will spend more. Appliance assemblers will spend an average of $205,917 on equipment next year, 36 percent less than the average for 2005.

Only 8 percent of assemblers in NAIC 335 boast equipment budgets exceeding $1 million, down from 11 percent in 2005. However, 25 percent of plants will spend between $250,000 and $1 million. That's up from 16 percent in 2005, and it's the highest percentage since 1999.

A cause for concern among appliance assemblers could be a lack of new products. Just 23 percent of plants in NAIC 335 will buy equipment next year to assemble a new product. That's the lowest percentage for this industry in the 10-year history of our survey, and it marks the first time that this industry will have fewer plants assembling new products than any other industry.

Quality could also be a problem in this industry. During the past 3 years, the electrical equipment and appliance industry has led all other industries in the amount of plants that are concerned about quality. Some 31 percent of plants in NAIC 335 will buy equipment next year to increase product quality. That's twice the percentage for the nation as a whole, and it's the most for the industry since 1997.

Before engineers in this industry begin polishing their resumes, it should be noted that NAIC 335 was a bit underrepresented in this year's survey. Although 6 percent of respondents to this year's survey are in NAIC 335, the industry actually accounts for 11 percent of ASSEMBLY magazine's total circulation.



Transportation Equipment

There's little doubt that 2005 has been a tough year for many manufacturers in the transportation equipment industry (NAIC 336), or at least it has been for the automotive industry. The struggles at Delphi, Visteon, GM and Ford have dominated the business headlines all year.

Still, it's not all doom and gloom. The U.S. plants of Toyota, Nissan, Honda and Hyundai are doing quite well. And, other segments of NAIC 336, which includes trucks, aircraft, boats, motorcycles, missiles, military vehicles and locomotives, are enjoying banner years.

So perhaps it's not a surprise that the transportation equipment industry will spend 24 percent more on assembly technology next year than it did this year, from $572 million in 2005 to $710 million in 2006.

NAIC 336 will account for 26 percent of total spending next year. That compares with 22 percent in 2005, and it's the highest share for this industry since 2000.

Transportation equipment manufacturers will spend, on average, $221,821 on assembly technology in 2006, or 58 percent less than the 2005 average. However, a look at the bigger picture shows that the industry's biggest spenders aren't cutting their budgets by much. The fraction of plants with budgets over $1 million will decrease from 16 percent in 2005 to 4 percent in 2006. However, the percentage of plants spending $250,000 to $1 million will nearly double, from 14 percent in 2005 to 25 percent in 2006.

A bright spot is that manufacturers in this industry have become adept at setup, maintenance and other activities that are indirectly related to assembling product. In 1999, 58 percent of plants bought equipment to reduce the cost of indirect labor. Since then, that percentage has gradually decreased, and next year, only 36 percent of plants will buy equipment to lower indirect labor costs. That compares with 46 percent of plants in the electronics industry and 40 percent of all U.S. plants.



Miscellaneous Manufacturing

The federal government's "Miscellaneous Manufacturing" category (NAIC 339) includes companies that make sporting goods, jewelry, toys, pens, mops, musical instruments and caskets. However, the largest segment, by far, is medical and dental device manufacturers. And, given the tremendous growth enjoyed by medical device manufacturers over the past few years, it's a bit surprising that our survey indicates that NAIC 339 will spend less on assembly technology next year.

Nevertheless, assemblers of forceps, fishing reels, pacemakers, trumpets and syringes will spend $109 million on new equipment in 2006, or 62 percent less than what NAIC 339 spent in 2005. Overall, the industry will account for just 4 percent of total spending next year, down from 11 percent in 2005.

Although a healthy 42 percent of plants say they'll spend more on equipment next year than they did in 2005, actual budget figures tell a different story. The average budget in NAIC 339 is just $101,467, the lowest figure of any industry and 42 percent less than the national average. The percentage of plants with budgets under $250,000 will double, from 42 percent in 2005 to 87 percent in 2006.

Another cause for concern in this industry is that few facilities actually spent what they allotted for equipment in 2005. Only 12 percent of plants in NAIC 339 spent at least 90 percent of their equipment budgets for the year, the lowest such percentage of any industry. In comparison, 43 percent of electrical equipment manufacturers and 22 percent of all U.S. plants spent nearly all of their equipment funds for the year.



Spending Drops in the Northeast

In 2005, the Northeast accounted for 18 percent of total equipment spending in the United States. In 2006, Massachusetts, Pennsylvania, New York and the six other states that make up this region will represent just 12 percent of total spending. All totaled, Northeast assemblers will spend $328 million on assembly technology in 2006, or 30 percent less than what the region spent this year.

In 2005, assembly plants in the Northeast spent an average of $370,653 on equipment, the highest average of any region. In 2006, Northeast plants will spend an average of just $74,015, the lowest average of any region.

One reason for this fall-off is a dearth of facilities with very large budgets. The Northeast has never had a large number of plants with million-dollar equipment budgets, but big-spenders will be particularly rare in 2006. Just 1 percent of facilities in the Northeast will spend more than $1 million on assembly technology in 2006. That's the lowest percentage of any region in the history of the survey. In contrast, 17 percent of plants had million-dollar budgets in 2004 and 13 percent had million-dollar budgets in 2005.

In addition, 35 percent of plants in the Northeast will spend less on assembly technology in 2006 than they did in 2005. That's the highest percentage for this region since 1998, and it's twice the percentage for any other region or the nation as a whole. Only 27 percent of Northeast facilities will spend more on equipment in 2006 than they did in 2005.

Given their proximity to MIT, Rensselaer Polytechnic, Carnegie Mellon and other high-profile academic institutions, Northeast assemblers should lead the nation in the percentage of plants that are buying equipment to assemble a new product. In fact, during the past 3 years, the South has led the nation in the amount of plants that are assembling new products, while the Northeast has been consistently below the national norm. Only 19 percent of plants in the Northeast will buy equipment next year to assemble a new product. That compares with 35 percent for plants in the South and 28 percent of plants for the nation as a whole.

Topping the wish lists of assemblers in the Northeast are electronics test equipment; packaging machinery; workstations and ergonomic accessories; soldering equipment; bar coding and automatic identification equipment; leak testers; and manual and automatic screwdriving equipment.



The South Rises Again

November was a very good month for manufacturing in the South. In just the first week alone, several manufacturers announced major investments in the region, including:

  • Japanese truck maker Hino Motors Ltd. will open a new assembly plant in Marion, AR, in 2007. The plant is expected to produce 3,000 to 4,000 trucks annually.
  • The Timken Co. will invest $27 million to expand its bearing factory in Randleman, NC.
  • General Motors Corp. will spend $20 million on its Shreveport, LA, assembly plant to increase production of the Hummer H3, Chevrolet Colorado and GMC Canyon.
  • Nikki American Fuel Systems will build an assembly plant in Auburn, AL, to supply parts to small-engine manufacturer Briggs and Stratton.

It's little wonder, then, that the South will account for more than a quarter of total equipment spending in the United States next year. All totaled, assembly plants in Texas, Tennessee, Maryland and the 13 other states in this region will spend $764 million on new technology in 2006, a 40 percent increase compared with 2005 spending.

Only 13 percent of Southern plants will spend less on assembly technology in 2006 than they did in 2005. Average spending per plant will increase 5 percent from $272,563 in 2005 to $286,453 in 2006, and 9 percent of plants in the South will spend more than $1 million on technology next year. In fact, over the past 4 years, the South has hosted a steadily increasing share of all U.S. plants with million-dollar equipment budgets. In 2003, 21 percent of all plants with million-dollar equipment budgets were located in the South. In 2006, one-third of all plants with million-dollar budgets will be located in the region.

These numbers are even more impressive given the fact that the South is slightly underrepresented in this year's survey. Nineteen percent of respondents to this year's survey are from the South, though the region accounts for a quarter of ASSEMBLY magazine's total circulation.

Further evidence of strong manufacturing activity in the South can be seen in the reasons why factories there are investing in assembly technology. During the past 3 years, the South has outpaced the nation in the percentage of plants that are buying equipment to expand manufacturing capacity or to assemble a new product.

Demand for all types of assembly technology is expected to increase virtually across the board next year. The lone exception might be power tools. Though a healthy 43 percent of plants in the region will buy electric or pneumatic tools for screwdriving, nutrunning or riveting next year, that's a considerably smaller percentage than in previous years. For example, 64 percent of plants planned to buy power tools in 2005, and 73 percent expected to buy tools in 2004.



The Midwest Stays Ahead

For the 10th straight year, the lion's share of equipment spending in the United States will occur in Illinois, Michigan, Ohio and the nine other states that make up the Midwest. The Midwest will represent 39 percent of all spending on assembly technology in 2006. That's more than the region contributed to total spending in 2004 and 2005. However, it's still less than the region's annual share of spending during the first 5 years of our survey, when the Midwest accounted for as much as half of all U.S. equipment spending.

Even though just 7 percent of plants in the Midwest will spend at least $1 million on assembly technology in 2006, 44 percent of all U.S. plants with million-dollar budgets are located in this region. In comparison, the Midwest hosted 40 percent of all plants with million-dollar budgets in 2005 and 37 percent of all plants with million-dollar budgets in 2004. All totaled, Midwestern assembly plants will dedicate more than $1 billion to new equipment next year, a 14 percent increase compared with 2005 spending.

Eighty-five percent of Midwestern plants will spend at least as much on assembly technology in 2006 as they did in 2005. Midwestern facilities will spend an average of $240,817 on new equipment in 2006, or 26 percent less than the average in 2005.

Only 31 percent of plants in the Midwest will buy equipment next year to increase capacity. That's the lowest percentage of any region, and it marks the third straight year the Midwest has trailed the national percentage of plants that are boosting capacity.

Labor costs continue to be an issue in the region. During the past 10 years, plants in the Midwest have been more concerned about labor costs than plants in other regions. For example, 83 percent of Midwestern plants will buy equipment next year to reduce the cost of direct labor. That compares with 81 percent for all U.S. plants and 77 percent for plants in the West. Similarly, 44 percent of Midwestern plants will buy equipment next year to reduce the cost of indirect labor, such as setup and maintenance. That compares with 42 percent for all U.S. plants and 38 percent for plants in the West.

Demand for metal-welding equipment, conveyors, soldering equipment, wire processors and robots should increase significantly in the Midwest next year.



Setting in the West

In 2004, California, Utah, New Mexico and the 10 other states that make up the West region accounted for 26 percent of total equipment spending in the United States. That may have been a high water mark for the region. In 2005, Western assembly plants accounted for 25 percent of total spending, and next year, the region will represent 21 percent. All totaled, Western assembly plants will spend $573 million on equipment next year, or 12 percent less than what they spent in 2005.

In 2005, 9 percent of plants in the West had budgets over $1 million. In 2006, only 5 percent will have budgets that large. Even with that decrease, however, the West will still have a significant portion of the nation's million-dollar facilities. Twenty-two percent of all plants with budgets of $1 million or more are located in the West. That's twice this region's percentage in 2003.

Of greater concern in the West is the decrease in the percentage of plants with budgets between $250,000 and $1 million. In 2005, 21 percent of plants in the West had budgets that large. In 2006, less than half-10 percent-will spend that much. At the same time, the percentage of plants with budgets under $250,000 increased from 70 percent in 2005 to 85 percent in 2006. The average budget figure decreased 31 percent, from $285,100 in 2005 to $181,244 in 2006.

The West is the only region in the United States where demand for power tools is expected to increase next year. The percentage of plants that will buy screwdrivers will increase from 35 percent in 2005 to 51 percent in 2006, while the percentage of plants that will purchase nutrunners will double, from 13 percent in 2005 to 26 percent in 2006.

Demand is also expected to increase next year for presses, motion control equipment, plastic welders, computers and software, torque testing equipment, wire processors, workstations, and packaging machinery.



Survey Method and Demographics

ASSEMBLY magazine would like to thank all the respondents who participated in its 10th annual capital equipment spending survey.

ASSEMBLY magazine is sent to 60,220 assembly professionals in more than 35,600 locations. Questionnaires were mailed July 22 to manufacturing managers and other professionals in similar positions, who hold the highest degree of equipment purchasing influence in a representative group of 2,500 plants. Sixty-six percent of respondents were corporate management, 26 percent were manufacturing management, and 8 percent were design management.

The cutoff date for returning the surveys was Aug 26. Some 241 surveys were returned for a response rate of 10 percent.

For statistical reliability, the survey was only sent to manufacturers in NAIC 339 and 332 through 336, which represent 94 percent of ASSEMBLY's readership. Manufacturers of wood products, plastic and rubber products, and furniture were excluded. By industry, 18 percent of respondents were in NAIC 332, 38 percent were in NAIC 333, 16 percent were in NAIC 334, 6 percent were in NAIC 335, 14 percent were in NAIC 336, and 8 percent were in NAIC 339.

Geographically, 21 percent of respondents were located in the Northeast, 37 percent were in the Midwest, 19 percent were in the South, and 23 percent were in the West.

Thirty-seven percent of respondents had 25 employees or less. In addition, 13 percent had 26 to 50 employees, 16 percent had 51 to 100 employees, 20 percent had 101 to 250 employees, 9 percent had 251 to 500 employees, and 5 percent had more than 500 employees.

Thirty-four percent of respondents assemble products that can fit inside a 12-inch cube, 16 percent make products that can fit inside a 24-inch cube, 13 percent make products that fit inside a 36-inch cube, 17 percent make products that fit inside a 6-foot cube, and 20 percent make products that are larger than a 6-foot cube.

Some 15 percent of respondents were high-volume manufacturers, 41 percent were mid-volume manufacturers, and 44 percent were low-volume manufacturers. Thirty percent of respondents were high-variety manufacturers, 39 percent were mid-variety manufacturers, and 31 percent were low-variety manufacturers.

Overall, the survey results have a sampling error of ±6 percent.