HA&W, a nationally-recognized tax, accounting and business advisory firm headquartered in Atlanta, announced the results of the biennial Georgia Manufacturing Survey, conducted in partnership with the Georgia Institute of Technology, Kennesaw State University and the Georgia Department of Labor.

The 2016 Georgia Manufacturing Survey focused on how Georgia manufacturers deploy information, quality management and production technologies. It also dug into the benefits of competing on innovation rather than low cost and examined trends in research & development, outsourcing/insourcing, workforce and training practices.

Key findings from the 2016 survey include:

• Profits of Georgia manufacturers increased by 13 percent on average between 2014 and 2016

• Twelve percent of Georgia manufacturers were impacted by outsourcing, while 13 percent gained from insourcing

• Nearly half of Georgia manufacturers had export sales, with 16 percent increasing their export sales in 2015 over 2013 levels

• Thirty-seven percent of Georgia manufacturers conducted R&D in-house; however, only 16 percent took advantage of R&D tax credits

• Only five percent of manufacturers consider cyber security a problem, even though most have some production workers who use mobile devices and the internet on a daily basis as part of their job

“The results of this year’s survey indicate that the manufacturing industry as a whole is gaining strength after facing a few years of decline across the country, an encouraging sign,” said Adam Beckerman, partner-in-charge of Manufacturing & Distribution at HA&W. “The lack of Georgia manufacturers who are taking advantage of the lucrative federal and state R&D Tax Credits is concerning, however. These credits can save manufacturers thousands of dollars each year, just for doing what they already do. The problem is that many manufacturers don’t recognize that they qualify for the credit and are therefore leaving money on the table that could be reinvested into their business.”

Another finding of concern is the lack of attention being paid by Georgia manufacturers to cyber security. Manufacturers are becoming increasingly attractive targets for attackers whose motives range from short-term financial gain to espionage. In fact, manufacturing companies represent more than 27 percent of cyber-espionage attacks, making it the most targeted industry for that particular attack pattern, according to Verizon’s 2015 Data Breach Investigations Report.

“Georgia manufacturers need to put into place a comprehensive cyber risk management program that addresses the entire information security management system and elevates their security programs from a compliance-based approach to an ongoing risk management program. An ongoing risk management program will protect the integrity of their business and keep them ahead of the ever-changing threat environment,’ said Beckerman. “We’re working with manufacturers across the Southeast to develop comprehensive cyber security risk management programs tailored to meet their unique business needs.”