Grant Thornton says health care, 401(k) and bonuses going down

October 25, 2009
News

Summary

In a survey of manufacturing CFOs and senior comptrollers, one-third are reducing health care benefits, more than a quarter are reducing 401(k) matches, and more than half plan to reduce bonuses.

October 25, 2009 – In a survey of manufacturing CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, only 25 percent say their company will increase hiring in the next six months and more than half (57%) plan to reduce bonuses. At the same time, more than half (54%) believe the U.S. economy will improve during the same time period, making manufacturing slightly more optimistic than other industries.One-third (34%) are reducing health care benefits and more than a quarter (28%) are reducing 401(k) matches. In terms of pricing pressure, they are most concerned about the cost of employee benefits (74%), such as health care and pension costs. Not surprisingly, the second greatest concern is the cost of raw materials. “Most of our clients are telling us that they have hit bottom and are now seeing an uptick in their orders,” said Walter Gruenes, Grant Thornton LLP National Managing Partner of Consumer and Industrial Products. “In the short term, those manufacturers serving the food/beverage, aerospace and chemical sectors are most optimistic, while those serving the automotive, industrial equipment and housing/construction sectors are least optimistic. Over the next five years the machinery, chemicals, aerospace, food/beverage and metals sectors are expected to experience the largest employment gains.”About the SurveyGrant Thornton LLP conducted the biannual national survey from Sept. 21 through Oct. 2, 2009, with 846 CFOs and senior comptrollers from public and private companies, of which 154 were from manufacturing. About Grant Thornton LLPThe people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity. Learn More

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