The National Association of Manufacturers (NAM) has published its latest survey results, revealing an increase in optimism among U.S. manufacturers following the recent elections. This change is attributed to expectations of federal action on expiring tax provisions and regulatory burdens.
The Q4 edition of NAM's Manufacturers' Outlook Survey indicates that 70.9% of respondents are positive about their company's outlook, a rise from 62.9% in the previous quarter.
"Manufacturing is central to the strength of the U.S. economy, and nearly 8 out of 10 manufacturers state that restoring and protecting key provisions of the 2017 tax law will be extremely important to making manufacturers in the U.S. more competitive," stated NAM President and CEO Jay Timmons.
Timmons also emphasized the importance for manufacturers of "strengthening energy security and reining in the regulatory onslaught that has stymied the industry," as these measures could stimulate growth in the upcoming year.
"There are still economic headwinds that make it more difficult for manufacturers to create jobs, invest in their communities, develop new and improved products and grow the economy," he added. Timmons noted that "our industry will count on the next administration and Congress to prioritize policies that make America the most competitive business climate in the world."
The survey highlights several challenges facing manufacturers: rising healthcare/insurance costs topped concerns at 63.2%, followed by a weaker domestic economy impacting sales at 58%. Trade uncertainty rose significantly as a concern, reaching 56.1% from 36.8% in Q3, with large manufacturers particularly affected at 68.7%. Attracting and retaining a quality workforce was another significant issue at 55.8%.
With key federal tax reform provisions set to expire next year, increasing costs across manufacturing supply chains are anticipated unless Congress acts to prevent these tax hikes—an action deemed extremely important by 79% of respondents.
Further details on this survey can be accessed through NAM's resources.
