The National Association of Manufacturers has released its latest survey which shows that despite ongoing economic challenges, U.S. manufacturers are more optimistic post-election about potential federal action on expiring tax provisions and overly burdensome regulations.
According to the results of NAM’s Manufacturers’ Outlook Survey for Q4, 70.9% of respondents are positive about their own company’s outlook, up from 62.9% in Q3.
“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,” said NAM President and CEO Jay Timmons on Tuesday.
“In this survey, manufacturers also stress the importance of strengthening energy security and reining in the regulatory onslaught that has stymied the industry, providing ample opportunity to stimulate growth in the new year,” Timmons said.
“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 said. “Our industry will count on the next administration and Congress to prioritize policies that make America the most competitive business climate in the world.”
Key Survey Findings:
- In Q4, the top business challenge was rising healthcare/insurance costs (63.2%).
- The top concern in Q3 2024, a weaker domestic economy and sales for manufacturers’ products to U.S. customers, was the second highest concern in Q4 (58.0%).
- Trade uncertainty was the third biggest challenge in Q4 at 56.1%, significantly higher than 36.8% in Q3. For large manufacturers, trade uncertainty was identified as the top challenge (68.7%).
- Attracting and retaining a quality workforce now ranks as the fourth highest concern (55.8%) after topping the list from Q4 2020 to Q2 2024.
Key provisions of federal tax reform are set to expire next year, driving up costs for businesses throughout the manufacturing supply chain. When asked how important it was that Congress and the new administration prevent these tax increases, 79% of respondents answered extremely important.
Further information on the survey is available here.
