Manufacturers More Optimistic About Their Business Outlook on Potential Action to Address Tax and Regulatory Policy

Washington, D.C. – The National Association of Manufacturers released its Manufacturers’ Outlook Survey for Q4 2024, which illustrates that even with ongoing economic challenges, manufacturers are more optimistic post-election about potential action on expiring tax provisions and efforts to curb the regulatory onslaught. According to the latest reading, 70.9% of respondents are positive about their 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. “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.

“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. 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 health care/insurance costs (63.2%).
The top concern in Q3 2024, a weaker domestic economy and sales for our 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%, soaring from the level of concern expressed in Q3 at 36.8%, and was the top challenge for large manufacturers at 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.
Next year, key provisions of tax reform are set to expire, 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.

The NAM releases these results to the public each quarter. Further information on the survey is available here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.