FRAMINGHAM, Mass. -- IDC of Framingham, Mass., said U.S. manufacturers will spend $77.1 billion on information technology in 2004, a 5 percent increase over 2003.
"Recovery is finally under way in the manufacturing sector across virtually all sub industries," said Jessica Goepfert, director of U.S. IT Opportunity: Manufacturing.
"There are certainly still concerns around the unpredictable economic climate, the price of oil, and the situation in the Middle East, but assuming these factors do not worsen, IDC forecasts IT spending growth to be considerably healthier than it has been in the past few years," Goepfert said.
IDC's research indicates manufacturers are watching their bottom lines and struggling to grow their top, and IT investments must deliver significant business benefits and address their most pressing pain points.
IDC said high-tech manufacturers are expected to benefit from the pent-up demand for sorely needed infrastructure. However, economic indicators suggest the rebound may be stalling a bit.
The automotive manufacturing sub industry continues to struggle with dismal profits and intense foreign competition. As such, this sub industry has the dubious honor of being the slowest-growing area of IT spending in IDC's forecast.
IDC is an advisory firm for the information technology and telecommunications industries.
Copyright 2004 by United Press International
