Xometry today released its Q1 Small Manufacturing Index report. The report showed that just 25% of manufacturers are optimistic about anticipated future business, vs. 45% in the 2H’19 report. Over 80% of small manufacturers reported that COVID-19 is having an impact on their revenue.
The report also reveals that:
- 55% of small manufacturers anticipated a decline in their business in Q1, compared to just 24% who reported a decline in the 2H’19 report.
- 25% of small manufacturers plan on hiring this quarter, with 63% of manufacturers reporting that COVID-19 had an impact on hiring plans during the first quarter.
Xometry Partners are, however, more optimistic than the rest of the small manufacturing industry. 33% anticipated an increase in their business, and 43% of partners have recorded an improvement in business compared to the same time last year. 25% of external manufacturers anticipated an increase in their business, and 38% of the surveyed external manufacturers recorded an improvement in their business compared to the same time last year.
“The small and medium manufacturers are undoubtedly being affected by COVID-19,” said Randy Altschuler, CEO of Xometry. “We’ve been inspired to see the efforts of manufacturers to help the nation through this challenge producing a wide range of critical projects. We are pleased to be bringing much-needed work to our partner manufacturers with additional helpful benefits such as delayed payments on tools and materials during this key time.”
COVID has also impacted the industries that made up the largest share of Xometry partners’ revenue in Q1. Those reporting Industrial Machinery and Automotive making up a large share of their business fell -51% and -50% respectively vs. Q3. Those reporting the Medical industry made up a large share of business increased by 39%, with Government and Defense up 32% vs. Q3 2019.
About the Small Manufacturing Index
The Small Manufacturing Index, released quarterly by Xometry, takes the pulse of American manufacturing by analyzing and quantifying the performance of small- to mid-sized manufacturers. The index is developed through a survey that asks participants whether they expect to see growth and hiring in business plans compared to previous months and prior years. The index aims to highlight trends over time to provide analysis and predictions on the national outlook for small- to mid-size manufacturers.
Download a handy infographic of the Q1 2020 SMI insights: