New Survey - News

9/8/2010

MAPI Publishes Benchmark Survey of the Corporate Risk Management Function

A new benchmarking survey focuses on key aspects of the organization and operation of, and the challenges facing, the corporate risk management function today. The 76-page Manufacturers Alliance/MAPI Survey of the Corporate Risk Management Function (S-132) is a refinement and extension of a similar effort performed in 2006, and tracks the evolution of this increasingly important corporate responsibility. Information is based on survey responses from 91 companies.

Information is presented on the function’s structure, staffing, and budget as well as on related topics such as the involvement of the board of directors in risk management matters, risk analysis and qualification techniques, and the use of technology in the risk management department. In addition, the survey addresses the emerging topic of enterprise risk management program design and implementation. Finally, the report details respondent views on outsourcing certain aspects of the risk management function, the development and use of risk management metrics to evaluate function performance, and the hurdles facing such performance at present.

The survey is available (hard copy only) to MAPI member company executives for $75 each and to other purchasers for $150. To order, click on the link above or contact Jasmine Hopwood, Administrative Assistant, at 703.647.5132 (jhopwood@mapi.net).

Posted at 10:57 AM by 37584 | Category: New Survey | Permalink | Email this Post | Comments ()

7/15/2010

MAPI Survey on the Business Outlook: Index Sets Record as Recovery Continues in Industrial Sector

The manufacturing recovery continues to trend upward and has rebounded from severely depressed levels in 2009, according to the quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook—June 2010 (ER-702e), a leading indicator for the industrial sector. The June 2010 composite index rose to a record high 81 percent from 78 percent reported in the March 2010 report. It breaks the previous high of 80 percent set in June 2004 and marks the third straight quarter it has reached 50 percent or above. The index started as a quarterly series in 1991.

The new benchmark for the index represents a significant turnaround from March 2009 when the index registered an historic low 21 percent.

“The overall composite index and several forward-looking individual indexes (orders, export orders, and U.S. prospective shipments) achieved new heights and indicate continued recovery in manufacturing,” said Donald A. Norman, Ph.D., MAPI Economist and survey coordinator. “We should remain cautious, however, because many of the individual indexes are based on year-over-year comparisons. Manufacturing sector production fell sharply during the second quarter of 2009; a broad-based increase in production from the production trough reached at the end of the second quarter of 2009 would naturally lead to an increase in these indexes. Still, the broad-based strength in the composite index and the individual indexes point to further expansion in the next three to six months.”

While a variety of individual indexes are included in the survey, the business outlook index is a weighted sum of U.S. shipments, backlogs, inventories, and profit margin indexes. Eleven of 12 individual indexes showed improvement.

The backlog orders index, which compares the second quarter 2010 backlog of orders with the backlog of orders one year earlier, rose to 87 percent in June from 63 percent in the March survey. An accumulation of backlogs usually occurs when new orders exceed shipments and thus indicates growing strength in manufacturing.

The inventory index is based on a comparison of inventory levels in the second quarter of 2010 with those of one year earlier. It increased to 44 percent in June from 23 percent in March, still below 50 percent. This indicates inventories were lower on a year-over-year basis but that inventory destocking is nearing its end. The quarterly orders index, based on a comparison of expected orders in the second quarter of 2010 with those in the same quarter one year ago, rose to a record high 97 percent from 85 percent in the previous survey.

The capacity utilization index, based on the percentage of firms operating above 85 percent of capacity, improved to 20 percent in the current survey from 9.8 percent in the previous survey. While still far below the long-term average utilization rate of 32 percent, this is the first significant improvement for an index that had been stuck at very low levels since the fourth quarter of 2008.

The export orders index, which compares second quarter 2010 exports with those of second quarter 2009, set a new high of 85 percent in June from 76 percent in March. Likewise, the U.S. prospective shipments index, which reflects expectations for third quarter 2010 shipments compared with the third quarter of 2009, also set a record, improving to 93 percent in the June survey compared to 88 percent in the March report.

The non-U.S. prospective shipments index, which measures expectations for shipments abroad by foreign affiliates of U.S. firms in the third quarter of 2010 compared to the same quarter of 2009, increased to 85 percent from 80 percent. The U.S. investment index, based on expectations of executives regarding capital investment for all of 2010, was 74 percent, up from 69 percent, indicating increased domestic investment this year.

The profit margin index increased to 78 percent in June from 74 percent in the March report. The research and development (R&D) index reflects the views of survey participants regarding R&D spending in 2010 compared to 2009. The R&D index was 72 percent, slightly above the 70 percent recorded in the previous survey.

The annual orders index, based on a comparison of expected orders for all of 2010 with orders in 2009, continued to be impressive at 95 percent in June compared to 94 percent in March.

The non-U.S. investment index provides insight into expectations regarding capital expenditures abroad and was the lone component to drop. The June 2010 index was 67 percent, falling slightly from the 70 percent recorded in March. The fact that this index remains at a high level, however, implies that a significant number of respondent companies are anticipating capital spending growth outside the United States.

In a supplemental component of the survey, respondents were queried regarding their confidence in the recovery and their companies’ plans for hiring and capital spending.

Most executives (68 percent) related that they are “confident” or “very confident” that a normal recovery for their businesses is under way, with the primary drivers being increased orders and the upswing in activity in cyclical industries like the automobile industry.

Almost half (48.4 percent) of the respondents indicated that their company is planning to hire more permanent workers in the United States in the latter half of 2010. Most companies, though, are not planning to change capital spending as a result of the recovery. Still, 31.7 percent of the survey participants indicated U.S. capital spending will increase either slightly or moderately and 18.9 percent said capital spending abroad will increase over the next twelve months.

Despite the general level of confidence in the recovery, respondents identified a number of speed bumps that could undermine the recovery. The two most serious threats, each cited by 67.2 percent of the respondents, are continued high unemployment/low income growth, and the growing federal deficit and its impact on interest rates, inflation, and the dollar.

The survey reflects the views on current and future business conditions of 62 senior financial executives representing a broad range of manufacturing industries.

MAPI’s Composite Business Outlook is an historically accurate near-term preview of business prospects for the manufacturing sector and is a leading indicator of the industrial production index.

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6/28/2010

Timely MAPI Survey on Sarbanes-Oxley Costs Now Available

A new survey from the Manufacturers Alliance/MAPI contains valuable data on audit fees, average hourly fees, the cost of internal and external assistance associated with the Sarbanes-Oxley Act of 2002 (SOX) compliance process. The survey is based on responses from 68 separate companies.

Audit Fees and SOX Compliance FY2009 (S-131) provides data on the Section 404 compliance and covers a broad range of issues, including the impact of Accounting Standard (AS) No. 5 on the audit process.

The report is presented in five parts. Part I is The Audit and SOX Compliance Process; Part II is Audit Costs; Part III is Benchmarking Audit Fees; Part IV is Stratified Results for Selected Questions; and Part V is the Profile of Responding Companies.

Among the information available is:

• The trend in average audit fees between 2008 and 2009.
• The average audit fee/revenue ratio for 2008 and 2009.
• The estimated impact of changes in revenue on audit fees.
• Average hourly audit fees in 2008 and 2009.
• The cost and number hours for internal hours devoted to 404 attestation.
• The average cost of external assistance for 404 attestation.
• The magnitudes of SOX compliance efforts.
• The impact of AS No. 5 on the number of external audit hours.

The report also discusses the trend in the audit fee/revenue ratio and the considerable variation of these ratios across companies. Differences in average audit fees and the audit fee/revenue ratios of public and privately-held companies are presented. Many of the survey results—including average audit fees, the ratio of audit fees to revenue, average hourly fees and internal and external costs for 404 attestation--are stratified by company size and/or auditor.

The cost is $75 for MAPI member company executives and $150 for all other purchasers. To purchase the survey click on the link above or call Jasmine Hopwood at 703.647.5132 (jhopwood@mapi.net).

Posted at 3:42 PM by 37584 | Category: New Survey | Permalink | Email this Post | Comments ()

5/25/2010

MAPI Releases Survey of the Corporate Audit Function—4th Edition

The Manufacturers Alliance/MAPI Survey of the Corporate Internal Audit Function—4th Edition (S-130) provides an up-to-date analysis of the organization, operation, and challenges of the corporate internal audit (IA) function at MAPI member companies. The survey covers the functions and structure of the senior audit professional, the department’s budget, organization and staffing, as well as related topics such as the relationship with the audit committee and external auditors, and the reporting structure.

Over 80 respondents, representing a wide range of company sizes, participated in the survey. For easy comparison, responses are sub-divided by corporate revenue category to provide a more focused picture of how individual answers relating to a particular question vary by size of respondent companies. Also, comparison is made with the 2007 survey results (and in some instances with the 2000 survey results), when appropriate, to indicate how the IA function has changed—or maintained the status quo.

Copies are $100 each for MAPI member company executives and $195 for all other purchasers. The survey may be ordered at www.mapi.net or by contacting Jasmine Hopwood (jhopwood@mapi.net), Administrative Assistant, at 703.647.5132.

Posted at 3:32 PM by 37584 | Category: New Survey | Permalink | Email this Post | Comments ()

5/13/2010

MAPI 2010 Survey on Insurance Coverage Limits Now Available

The Manufacturers Alliance/MAPI recently published the 2010 Survey on Insurance Coverage Limits (S-129). Survey respondents were drawn from senior executives with corporate responsibility for risk management at 119 leading industrial companies. The survey provides invaluable benchmarking data on appropriate limits of coverage and retentions/deductibles for key lines of liability insurance coverage. Moreover, the respondents offer significant insights into today’s commercial insurance market and provide candid, first-hand assessments on insurer performance, premium requirements, terms of coverage, etc.

The lines of coverage included in the survey are general liability, directors’ and officers’ liability, employment practices liability, aircraft products liability, crime/fidelity/employee theft liability, and fiduciary liability insurance programs.

Responses are tabulated according to company size to give readers a more accurate benchmark for their own companies. Perhaps most importantly, the responses featured in the report identify strategies being employed by sophisticated corporate insurance buyers to overcome today’s commercial insurance challenges.

Copies are available for $75 each for member company executives and $125 each for all other purchasers. To order the survey, click here or contact Jasmine Hopwood, Administrative Assistant, at jhopwood@mapi.net or at 703.647.5132.

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3/2/2010

MAPI Survey Benchmarks Selling, General & Administrative (SG&A) Expenses

A Manufacturers Alliance/MAPI report, Benchmarking SG&A Expenses (S-128), presents detailed data relating to SG&A costs associated with finance and a number of specific functions within finance; information technology; human resources; legal; sales and marketing, research and development; and selected administrative functions.

Survey participants included members of MAPI’s CFO and Financial Councils and provide information and more narrowly defined benchmarks related to SG&A costs than are generally available.

The 32-page report, based on responses from 21 companies, includes charts, tables, and anecdotal comments of participants. The survey can be a valuable resource and reference for companies desiring insight on overhead expenses.

The survey is available to MAPI member company executives for $75 each and to other purchasers for $150.

To order, click here or contact Iesha Ward at 703.647.5119.

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11/9/2009

MAPI Survey Benchmarks How Companies Are Managing Risks Associated With Influenza Pandemic

A Manufacturers Alliance/MAPI report, Survey on Pandemic Risk Management for Swine and Avian Flu (S-126), provides valuable information about any formal risk mitigation plans companies may have adopted, operational actions such as revisions made to sick leave policies, and communications protocols that may they have established in the event of a flu outbreak.

In addition, the survey provides assessments on liability exposure and costs of an outbreak, and the inclusion of flu pandemic risk in business continuity plans. The survey results reveal that most companies have taken some steps to prepare for a severe flu outbreak, although many are not yet in a position to assess the risk of, or respond to, a pandemic that results in an operational disruption.

To order, click on the title above or contact Iesha Ward at 703.647.5119.

Posted at 3:32 PM by 37584 | Category: New Survey | Permalink | Email this Post | Comments ()

5/7/2009

MAPI Report Estimates Impact of Selected Variables on Audit Fees

Over each of the last four years, the Manufacturers Alliance/MAPI has conducted a survey on the cost of complying with the Sarbanes-Oxley Act and on the compliance process. The survey results included information on audit fees and an audit fee benchmark based on the ratio of audit fees to total revenue.

Benchmarking Audit Fees (ER-677) represents an initial effort to develop a model of audit fee determination that takes into account factors other company size. A questionnaire to collect data on audit fees in fiscal year 2007 and on variables that potentially affect audit fees was sent to members of MAPI’s CFO, Financial and Internal Audit Council. The analysis is based on data from 78 respondent companies and includes summary statistics on audit fee ratios and a breakdown of audit fee ratios by revenue categories.

The report also estimates the size of impact of selected variables on a company’s audit fee. It finds that in addition to company size (as measured by a company’s assets in the previous year) factors such as the change in assets from the previous year, company complexity, and the extent to which a company’s sales are outside the United States, affects a company’s audit fee.

Posted at 10:39 AM by 37584 | Category: New Survey | Permalink | Email this Post | Comments ()

1/7/2009

East Asian Production Strategies Survey

Over the last few months, several news outlets have featured stories about companies onshoring, or bringing processes previously offshored back to the U.S. Our conversations have not borne this out, however. To gather more data, the MAPI General Managers and Manufacturing Councils participated in a survey to gain insight into members’ East Asian sourcing and production strategies. Highlights from the 50 responses include:

Few members indicated that they’ve slowed the growth of their East Asian sourcing or production development presence. 79% have not slowed down at all, while 17% have slowed moderately and 4% have slowed significantly.

Similarly, over the past 2 years, 15% of respondents have relocated products and/or processes from East Asia back to the U.S. and/or northern Mexico.

For those respondents who have moved some production or sourcing from East Asia back to North America, logistics costs were only a minor factor, and for the majority customer pressure was not a factor at all.

When asked if members expected to delay or redirect any projects that were planned for East Asia in 2008 or 2009 as a result of changing economic conditions, 60% said yes. Write-in responses were telling, with several members adopting a wait-and-see approach given the rapidly deteriorating global economic environment. According to one member, an operations executive from a large equipment manufacturer, "East Asia has not been singled out. We are examining all global activities as a result of the economic situation."

For more information, please contact MAPI.

Posted at 11:48 AM by 42071 | Category: New Survey | Permalink | Email this Post | Comments ()