Input Stories

Input Stories

NAM Survey: Overregulation, Taxes Dampen Manufacturer Optimism

As President Biden prepares to deliver his State of the Union address tomorrow, the findings of the NAM’s Q1 2024 Manufacturers’ Outlook Survey should “provide a stark warning to both parties,” according to the NAM.

What’s going on: The survey findings, released Tuesday, show modest increases among manufacturers regarding their companies’ outlooks and expected business, sales and employment growth—but they also reveal increasing concern about the cost of health insurance and continued worry about attracting and retaining employees.

By the numbers: Among the survey’s key findings of the survey, which was conducted from Feb. 9 to 23:

  • Some 65.5% of manufacturers said the barrage of federal rules being handed down will be costly to implement.
  • Nearly 94% said it is important for the federal tax code to help reduce manufacturers’ research-and-development costs.
  • More than 65% cited an inability to hire and keep workers as a top business challenge, followed by an unfavorable business climate (58.9%) and rising health care and insurance costs (58.2%).
  • The expiration of several important tax provisions—immediate R&D expensing, full expensing for capital investments and a pro-growth interest deductibility standard—has already caused nearly 40% of respondents to decrease their hiring and investment activities.

What should be done: “If you want to continue America’s manufacturing resurgence, focus on constructive policies to strengthen our industry,” NAM President and CEO Jay Timmons said, addressing the Biden administration and Congress.

  • “Our commitment is to work with anyone who will put policy—policy that supports people—ahead of politics, personality or process.”
View More