Who’s the Boss?
Three out of five manufacturers could have a new chief executive in five years. According to new findings from the just-completed 2011 Next Generation Manufacturing (NGM) Study, 30% of companies anticipate a planned succession of leadership in the next five years, and another 29% report that a succession may occur. The NGM Study data are consistent when cut by size of company:
- Less than $10 million revenues — 29% anticipate and 29% maybe.
- $10 million to $99 million revenues — 32% anticipate and 27% maybe.
- $100 million or more revenues — 31% anticipate and 33% maybe.
Given the pressures of a recession and spotty economic recovery, one could have expected an increase in executives looking to sail off into the sunset. But the NGM Study numbers did not dramatically change from two years ago, when approximately 54% reported a planned or possible succession of leadership.
Will new leadership at so many manufacturers in coming years affect the overall industry in the United States? If your company is anticipating a new boss, will it affect the fortunes of your company?
by George Taninecz, VP of Research, The MPI Group