The survey also found that 32% of industrial companies are increasing their sales and marketing budgets this year over last year.
The seventh annual Industrial Indicator Survey was based on an online survey conducted in June of 439 engineering, manufacturing, technical and industrial professionals.
While the majority of companies surveyed are on track to meet their revenue goals, 41% of respondents said they plan to reduce overall spending this year, citing rising energy, health care and transportation costs. The top areas in which they will cut back include travel and capital expenses.
The survey also found that 17% of companies have implemented reduced work schedules, and 10% outsource more than half of their engineering work.