American manufacturers are showing signs of optimism about growth and prosperity. The National Association of Manufacturers released their Outlook survey results and it shows hopes are high for the future. The results reached an all-time high, breaking all records throughout the survey’s nearly 20-year history. Confidence is associated with the new administration in Washington, D.C. as well as regulatory relief. Furthermore, tax code reforms and hopes of an infrastructure package have the potential to dramatically impact business throughout the United States.
Out of the large and small manufacturers that took part in the survey, 93.3% reported a positive outlook about the economy and business. “As the survey shows, manufacturers of all sizes are now less concerned about the business climate going forward because they are counting on President Trump to deliver results. Small manufacturers – more than 90 percent of our membership – are among the hardest hit by regulatory obstacles.” http://bit.ly/1f30r8z
Small manufacturers came in at 91.5% up from 69.6% in December. A huge gain but the lowest positive outlook when compared to medium and large manufacturers. Small manufacturers struggle to comply with restrictions and are hit by regulatory issues the hardest. Medium and large manufacturers have an easier time dealing with those added expenses. 93.8% of medium sized manufacturers are positive about their future, up from 84.1% in December. NAM recorded that 93.9% of large manufacturers feel positive about their future from 73.5% surveyed in December. http://bit.ly/1f30r8z
“Regulatory costs for small manufacturers with fewer than 50 employees total almost $35,000 per employee per year- money that could otherwise go to creating jobs. It’s encouraging to see an administration so focused on providing regulatory relief to spur manufacturing growth.” http://bit.ly/1f30r8z
Growth rate estimates for production, sales and health insurance costs are all above 4%. Expected growth for capital investments, full-time employment and employee wages reached 2% or higher. Exports and prices growth rate are above 1% and inventories at .8%.
With the ISM Manufacturing Report on Business maintaining a level above 50%, growth is apparent. Even with the minute decrease to 57.2% from 57.6%, optimism is still strong about the future. To find out more about the ISM report, listen in as hosts Tim Grady and Lew Weiss speak with Brad Holcomb and Chris Kuehl to discuss the ISM’s latest Report on Business.
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