Content in this publication is not intended to answer specific questions or suggest suitability of action in a particular case. For additional information on the issues discussed, consult a Grant Thornton LLP client service partner or another qualified professional.

© 2014 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd

1. Add value throughout the supply chain

have reduced supply chain costs by more than 10% over the past 5 years

Lean manufacturing Six Sigma Agile manufacturing

think supply chain management is important or highly important to the company’s strategic vision85%

18%

59%47%23%

Top 3 operations improvement methodologies

3 in 10 manufacturers used business analytics to find supply savings and new suppliers

9 in 10 say innovation is important or highly important to their company’s strategic vision

2. Leverage manufacturing economics to improve IT capital and securityHow business analytics has made a difference

Better strategic decision-making

Top 3 perceived threats to IT security

Better operational decisions

56%59%

Identified new markets, customers

43%

50%50%46%

Employee use of the InternetExternal threats (i.e., hackers)

Employee remote access of corporate systems

3. Take a fresh look at taxes

have been involved with their company’s tax strategies

Most popular tax programs to incentivize innovation

32%

Federal tax credits

State tax credits

45%56%

Direct federal funding and incentives

31%

4. Fund the innovation engine

1 in 2 manufacturers invest more than 6% of revenue in innovation

Top 5 sources of ideas for new products, services

R&D

77% 64% 63% 55% 35%

Marketing & sales

Customers Manufacturing function

Competitors

5. Get the company ready for successful M&A

say M&A is important or highly important to the company’s strategic vision

say fewer than half of their company’s M&A deals were successful

Top reason for failed M&A deals: Difficult integration process

59% 49%

awaitingOPPORTUNITIES MAJOR

MANUFACTURERS AND THEIR CFOS

5The Value-Added CFO: Future growth and what matters to manufacturing CFOs

It’s an exciting time to be in manufacturing. Revenues are on the rise, employment is up, and with potential for increased profits, today’s manufacturing CFOs understand that their role goes beyond the bottom line. A fall 2014 Grant Thornton LLP survey of 350 CFOs explored some of these burgeoning possibilities. We gathered C-level insights on the benefits of incorporating advanced analytics and creative strategies for growth, and how to make the most of all the extraordinary opportunities on the horizon.

About the Value-Added CFO survey The survey is based on answers from 350 respondents collected in September 2014. Respondents were C-suite and senior executives from U.S. manufacturing companies. Anticipated revenues in 2014 for the respondents’ companies were more than $1 billion (40%), $751 million-$1 billion (12%), $501 million-$750 million (10%), $251 million-$500 million (10%), $101 million-$250 million (15%), $51 million-$100 million (12%), $10 million-$50 million (1%) and less than $10 million (1%).

Almost 9 in 10 have completed at least one merger or acquisition in the past 5 years

Step back from incremental tax positions that have accumulated internally over the years. Instead,

seek a comprehensive tax strategy that can enable your company to adapt to changing

future circumstances.

REAL-WORLD TIP

Take advantage of the Internet of Things and your

access to real-time operations and performance data, in order

to create an analytical, evidence-based approach that can gauge success

and identify risks.

REAL-WORLD TIP

Hold the supply base accountable for both the goods

they provide and how they provide them, starting with how vendor agreements are crafted

and enforced.

REAL-WORLD TIP

Use the information, resources and employees you have at your disposal to determine strategic,

profit-generating innovations through R&D in a

cost-effective manner.

REAL-WORLD TIP

Work with a cross-functional team on a thorough due diligence plan that spells

out the process, tasks and responsibilities — pre-

and post-M&A.

REAL-WORLD TIP