The NAM/IndustryWeek Survey of Manufacturers has been conducted quarterly since 1997. This survey was conducted among NAM membership between February 15 and 29, 2012, with 479 manufacturers responding. Responses were from all parts of the country, in a wide variety of manufacturing sectors and in varying size classifications. Aggregated survey responses appear on the following pages. The next survey is expected to be released in June 2012.
NAM/IndustryWeek Q1 Survey: Selected comments on the biggest challenges facing manufacturing right now:
- "Demand by our customer base to reduce selling price due to international competition." (primary metals or fabricated metal products)
- "No talent available. We are all going after the same people." (machinery)
- "Threat of war with Iran; European debt crisis; general uncertainty throughout the world with regard to political issues." (computer and electronic products)
- "EPA, EPA, EPA." (chemicals)
- "Lack of clarity regarding future federal tax policy, regulation and health care mandates." (miscellaneous manufacturing)
- "Health insurance costs and mandates (up 100% in the last two years)." (food manufacturing)
- "Can't go over 50 employees because then medical insurance will be unaffordable. We are at 49 employees now." (primary metals or fabricated metal products)
- "Reducing training costs by drawing from a trained pool of people. Currently we have hired 140 people since 2009 and another 25 people will be added in 2012. We will interview 150 to get 25. Most do not have the basic foundation to enter the manufacturing workforce nor can they pass a drug screen." (primary metals or fabricated metal products)
- "European economic crisis and its possible domino effect." (electrical equipment and appliances)
- "General inflation in cost of virtually all overhead items." (wood products)
- "Cuts in Defense Dept. budgets." (apparel and allied products)
- "Health insurance costs are a huge issue for profitability." (transportation equipment)
Survey Responses
1. How would you characterize the business outlook for your firm right now?
a. Very positive 20.3%
b. Somewhat positive 68.3%
c. Somewhat negative 10.5%
d. Very negative 0.8%
2. Over the next year, what do you expect to happen with your company's sales?
a. Increase more than 10% 20.9%
b. Increase 5 to 10% 32.6%
c. Increase up to 5% 23.4%
d. Stay about the same 15.9%
e. Decrease up to 5% 3.8%
f. Decrease 5 to 10% 1.5%
g. Decrease more than 10% 1.9%
Average expected increase in sales consistent with these responses = 5.3%
3. Over the next year, what do you expect to happen with prices on your company's overall product line?
a. Increase more than 10% 1.5%
b. Increase 5 to 10% 13.4%
c. Increase up to 5% 43.9%
d. Stay about the same 37.8%
e. Decrease up to 5% 2.9%
f. Decrease 5 to 10% 0.4%
g. Decrease more than 10% no responses
Average expected increase in prices consistent with these responses = 2.2%
4. Over the next year, what are your company's capital investment plans?
a. Increase more than 10% 19.7%
b. Increase 5 to 10% 14.5%
c. Increase up to 5% 14.9%
d. Stay about the same 38.4%
e. Decrease up to 5% 4.4%
f. Decrease 5 to 10% 2.7%
g. Decrease more than 10% 5.5%
Average expected increase in investment consistent with these responses = 4.1%
5. Over the next year, what are your plans for inventories?
a. Increase more than 10% 4.4%
b. Increase 5 to 10% 8.6%
c. Increase up to 5% 16.1%
d. Stay about the same 51.8%
e. Decrease up to 5% 11.5%
f. Decrease 5 to 10% 4.2%
g. Decrease more than 10% 3.4%
Average expected increase in inventories consistent with these responses = 1.85%
6. Over the next year, what do you expect in terms of full-time employment in your company?
a. Increase more than 10% 3.0%
b. Increase 5 to 10% 15.2%
c. Increase up to 5% 30.7%
d. Stay about the same 45.7%
e. Decrease up to 5% 4.2%
f. Decrease 5 to 10% 0.8%
g. Decrease more than 10% 0.4%
Average expected increase in full-time employment consistent with these responses = 2.2%
7. Over the next year, what do you expect to happen to employee wages (excluding non-wage compensation such as benefits) in your company?
a. Increase more than 5% 1.3%
b. Increase 3 to 5% 23.7%
c. Increase up to 3% 56.4%
d. Stay about the same 18.4%
e. Decrease up to 3% no responses
f. Decrease 3 to 5% 0.2%
g. Decrease more than 5% no responses
Average expected increase in wages consistent with these responses = 1.9%
8. Over the next year, what do you expect to happen with the level of exports from your company?
a. Increase more than 5% 14.5%
b. Increase 3 to 5% 13.9%
c. Increase up to 3% 12.6%
d. Stay about the same 55.3%
e. Decrease up to 3% 2.1%
f. Decrease 3 to 5% 0.4%
g. Decrease more than 5% 1.1%
Average expected increase in exports consistent with these responses = 1.6%
9. What are the primary drivers of your company's future growth strategies?
(Respondents were able to check only one response; therefore, responses will exceed 100%.)
a. Increased efficiencies in the production process 46.5%
b. Increased international sales 41.0%
c. New product development 48.8%
d. Recent mergers or acquisitions 9.7%
e. Stronger domestic economy, sales of our products 72.9%
f. Other 6.5%
10. What are the biggest challenges you are facing right now?
(Respondents were able to check only one response.)
a. Attracting and retaining a quality workforce 39.1%
b. Challenges with access to capital or other forms of financing 8.2%
c. Increased international competition 23.7%
d. Rising energy and raw material costs for our products 60.0%
e. Rising insurance costs 42.5%
f. Unfavorable business climate (e.g., taxes, regulation, etc.) 62.2%
g. Weaker domestic economy, sales of our products 41.9%
h. Other 7.2%
11. What is your company's primary industrial classification?
a. Apparel and allied products 0.2%
b. Beverages and tobacco products no responses
c. Chemicals 5.7%
d. Computer and electronic products 4.0%
e. Electrical equipment and appliances 5.6%
f. Food manufacturing 1.9%
g. Furniture and related products 1.5%
h. Leather and allied products 0.2%
i. Machinery 11.7%
j. Miscellaneous manufacturing 16.6%
k. Nonmetallic mineral products 2.5%
l. Paper and paper products 1.5%
m. Petroleum and coal products 0.8%
n. Plastics and rubber products 7.8%
o. Primary metals, or fabricated metal products 34.4%
p. Printing and related activities 1.5%
q. Textile mills or textile products 1.3%
r. Transportation equipment 3.4%
s. Wood products 3.4%
12. What is the size of your firm (e.g., the parent company, not your establishment)?
a. Less than 50 employees 26.7%
b. 50 to 499 employees 53.0%
c. 500 or more employees 20.3%