It’s an exciting time to be in manufacturing. Revenues are on the rise, employment is up, and with potential for increased profits, today’s manufacturing CFOs understand that their role goes beyond the bottom line. A fall 2014 Grant Thornton LLP survey of 350 CFOs explored some of these burgeoning possibilities. This infographic identifies C-level insights about how to make the most of them. Find out more about our survey at grantthornton.com/valueaddCFO.

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1. Add value throughout the supply chain
have reduced supply chain costs by more
than 10% over the past 5 years
Lean manufacturing
Six Sigma
Agile manufacturing
think supply chain management is important or
85% highly important to the company’s strategic vision
18%
59%
47%
23%
Top 3 operations
improvement
methodologies
3 in 10 manufacturers used business analytics
to find supply savings and new suppliers
9 in 10 say innovation is important or highly
important to their company’s strategic vision
2. Leverage manufacturing economics
to improve IT capital and security
How business analytics has made a difference
Better strategic
decision-making
Top 3 perceived threats to IT security
Better operational
decisions
59% 56%
Identified new
markets, customers
43%
50%
50%
46%
Employee use of the Internet
External threats (i.e., hackers)
Employee remote access of
corporate systems
3. Take a fresh look at taxes
have been involved with their
company’s tax strategies
Most popular tax programs to incentivize innovation
32%
Federal
tax credits
State
tax credits
56% 45%
Direct federal funding
and incentives
31%
4. Fund the innovation engine
1 in 2 manufacturers invest more
than 6% of revenue in innovation
Top 5 sources of ideas for new products, services
R&D
77% 64% 63% 55% 35%
Marketing
& sales
Customers Manufacturing
function
Competitors
5. Get the company ready for
successful M&A
say M&A is important or
highly important to the
company’s strategic vision
say fewer than half of
their company’s M&A
deals were successful
Top reason for failed M&A deals: Difficult integration process
59% 49%
awaiting
OPPORTUNITIES
MAJOR
MANUFACTURERS AND THEIR CFOS
5
The Value-Added
CFO: Future growth
and what matters to
manufacturing CFOs
It’s an exciting time to be in manufacturing. Revenues are on the rise,
employment is up, and with potential for increased profits, today’s
manufacturing CFOs understand that their role goes beyond the bottom
line. A fall 2014 Grant Thornton LLP survey of 350 CFOs explored some of
these burgeoning possibilities. We gathered C-level insights on the benefits of
incorporating advanced analytics and creative strategies for growth, and how
to make the most of all the extraordinary opportunities on the horizon.
About the Value-Added CFO survey
The survey is based on answers from 350 respondents collected in September 2014. Respondents
were C-suite and senior executives from U.S. manufacturing companies. Anticipated revenues in
2014 for the respondents’ companies were more than $1 billion (40%), $751 million-$1 billion
(12%), $501 million-$750 million (10%), $251 million-$500 million (10%), $101 million-$250 million
(15%), $51 million-$100 million (12%), $10 million-$50 million (1%) and less than $10 million (1%).
Almost 9 in 10 have completed at least one merger or acquisition
in the past 5 years
Step back from incremental tax
positions that have accumulated
internally over the years. Instead,
seek a comprehensive tax
strategy that can enable your
company to adapt to changing
future circumstances.
REAL-WORLD TIP
Take advantage of the
Internet of Things and your
access to real-time operations
and performance data, in order
to create an analytical,
evidence-based approach
that can gauge success
and identify risks.
REAL-WORLD TIP
Hold the supply base
accountable for both the goods
they provide and how they
provide them, starting with how
vendor agreements are crafted
and enforced.
REAL-WORLD TIP
Use the information, resources
and employees you have at your
disposal to determine strategic,
profit-generating innovations
through R&D in a
cost-effective manner.
REAL-WORLD TIP
Work with a cross-functional
team on a thorough due
diligence plan that spells
out the process, tasks and
responsibilities — pre-and
post-M&A.
REAL-WORLD TIP