Recently, President Donald Trump hosted a “listening” session with the National Association of Manufacturers (NAM) at the White House. During the meeting, Trump took the time to acknowledge the positive outlook the manufacturing sector in America now enjoys.
It seems that manufacturers across America are now feeling optimistic more than ever. “Manufacturers of all sizes are now less concerned about the business climate going forward because they are counting on President Trump to deliver results,” NAM President and CEO Jay Timmons explained. The NAM Manufacturing Outlook Index is now up to 63.7 percent from just 53.1 percent last December.
Manufacturers are feeling particularly positive.
At the same time, the NAM Manufacturers Outlook Survey revealed that manufacturers are feeling particularly positive about their own company’s future. In fact, such outlook is now up to 93.3 percent compared to 77.8 percent last December. When broken down, small manufacturers are feeling a 91.5 percent positivity versus 69.6 percent in December. Meanwhile, medium-sized manufacturers are 93.8 percent positive about the outlook versus the 84.1 percent in December. Lastly, large manufacturers are feeling 93.9 percent in their outlook versus 73.5 percent in December.
“It’s a new surge in optimism, which is sweeping all across our land,” the president remarked during the session. According to the NAM, a great deal of the optimism is due to Trump’s actions in “rethinking red tape to address regulatory reform.” For instance, small manufacturers were at a significant disadvantage due to previous “regulatory obstacles.” This is because the regulatory costs for manufacturers with 50 employees or less amounted to nearly $35,000 per employee per year. The said money could have gone to creating more jobs.
Today, the NAM has stated that Trump’s push for reform made corporation leaders “cautiously hopeful” that business will expand further than it had since the Great Recession. Nonetheless, manufacturers around the country have expressed concerns regarding “political uncertainties” today. These include the rising cost of health insurance, the ability to retain quality employees and the possibility of dealing with an unfavorable business climate.
Nonetheless, manufacturers are now less cautious about capital and hiring spending. They are expecting their inventories to grow over next 12 months. Indeed, they believe things may just turn out right.