Atlanta, Georgia (PRWEB) September 22, 2016
HA&W, a nationally-recognized tax, accounting and business advisory firm headquartered in Atlanta, announced today the results of the biennial Georgia Manufacturing Survey, conducted in partnership with the Georgia Institute of Technology, Kennesaw State University and the Georgia Department of Labor.
The 2016 Georgia Manufacturing Survey focused on how Georgia manufacturers deploy information, quality management and production technologies. It also dug into the benefits of competing on innovation rather than low cost and examined trends in research & development, outsourcing/insourcing, workforce and training practices.
Key findings from the 2016 survey include:
- Profits of Georgia manufacturers increased by 13 percent on average between 2014 and 2016
- Twelve percent of Georgia manufacturers were impacted by outsourcing, while 13 percent gained from insourcing
- Nearly half of Georgia manufacturers had export sales, with 16 percent increasing their export sales in 2015 over 2013 levels
- Thirty-seven percent of Georgia manufacturers conducted R&D in-house; however, only 16 percent took advantage of R&D tax credits
- Only five percent of manufacturers consider cyber security a problem, even though most have some production workers who use mobile devices and the internet on a daily basis as part of their job
“The results of this year’s survey indicate that the manufacturing industry as a whole is gaining strength after facing a few years of decline across the country, an encouraging sign,” said Adam Beckerman, partner-in-charge of Manufacturing & Distribution at HA&W. “The lack of Georgia manufacturers who are taking advantage of the lucrative federal and state R&D Tax Credits is concerning, however. These credits can save manufacturers thousands of dollars each year, just for doing what they already do. The problem is that many manufacturers don’t recognize that they qualify for the credit and are therefore leaving money on the table that could be reinvested into their business.”
Another finding of concern is the lack of attention being paid by Georgia manufacturers to cyber security. Manufacturers are becoming increasingly attractive targets for attackers whose motives range from short-term financial gain to espionage. In fact, manufacturing companies represent more than 27 percent of cyber-espionage attacks, making it the most targeted industry for that particular attack pattern, according to Verizon’s 2015 Data Breach Investigations Report.
“Georgia manufacturers need to put into place a comprehensive cyber risk management program that addresses the entire information security management system and elevates their security programs from a compliance-based approach to an ongoing risk management program. An ongoing risk management program will protect the integrity of their business and keep them ahead of the ever-changing threat environment,’ said Beckerman. “We’re working with manufacturers across the Southeast to develop comprehensive cyber security risk management programs tailored to meet their unique business needs.”
The Georgia Manufacturing Survey, begun in 1994 and conducted every two years, benchmarks the use of modern manufacturing technology, practices and techniques by industry statewide. The 2016 Georgia Manufacturing Survey was undertaken from January to May 2016, and 526 Georgia manufacturers with 10 or more employees participated in the survey. Results were weighted by industry and employment size to represent the population of manufacturers.
For more information about the 2016 Georgia Manufacturing Survey, or details on the services HA&W offers to Georgia manufacturers, contact Adam Beckerman, partner-in-charge of Manufacturing & Distribution, at adam.beckerman(at)hawcpa.com or 404-898-7542.
About HA&W, LLP:
HA&W, LLP has been recognized by Inside Public Accounting as a “Best of the Best Accounting Firm” in the United States. Since 1952, clients throughout the U.S. and in more than 40 countries have counted on HA&W to build value, manage risk and drive growth. As a nationally-recognized tax, audit and business advisory firm headquartered in Atlanta, our expertise across a broad range of services and industries provides clients with winning financial practices and insights to help them grow at every stage of their business lifecycle.
To learn more about HA&W, visit http://www.hawcpa.com.