By George Taninecz
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.
Do you anticipate a planned succession of leadership in the next five years?
(% of companies)
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 2011 NGM Study numbers did not dramatically change from two years ago, when approximately 54% of reported a planned or possible succession of leadership.
The 2011 NGM Study data is consistent when cut by size of company (based on annual revenues):
- Less than $10 million revenues — 29% anticipate a planned succession and 29% report maybe.
- $10 million to $99 million revenues — 32% anticipate and 27% maybe.
- $100 million or more revenues — 31% anticipate and 33% maybe.
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?
Look for comprehensive release of 2011 NGM Study findings in the months ahead from The MPI Group.