Manufacturers continue to be upbeat about prospects for their companies in 2005, according to a recent National Association of Manufacturers (NAM) survey of its membership.
The results of the survey—released during the March 7-10 National Manufacturing Week trade show and exhibition in Chicago—revealed that a growing number of manufacturers are not only optimistic, but are planning to back up that optimism by opening their wallets.
Out of 976 respondents, 40 percent said they expect to add new workers this year, up from 31 percent in last year’s survey. Further, more than half of this year’s respondents, at 53 percent, said they plan to increase capital spending in 2005. Of that group, 64 percent said the increase will be primarily to modernize and increase efficiency, while the other 46 percent earmarked the dollars for expanded production capacity.
Astonishing exports
Among other notable results, two-thirds of respondents said they expect manufacturing to grow as fast or faster than the overall economy this year. And 65 percent said they are already exporting their products to foreign markets, a level that NAM President John Engler called “astonishing.
“The Department of Commerce and the NAM have been working together to help more small and medium-sized manufacturers take advantage of the opportunities for exports created by new free trade agreements and the movement of the dollar back toward its historical level,” Engler said. “It appears that our efforts are beginning to pay off.”
On the down side, despite the fact that 40 percent of respondents expect to be hiring this year, 36 percent said they currently have employment positions unfilled because they cannot find qualified candidates.
When asked to rank factors that have had a negative impact on their operations, respondents put cost of non-wage compensation at the top of the list, followed by cost of materials and energy prices.
