Outlook Survey Indicates Manufacturers’ Concerns
Randy Wolken, President & CEO

According to the Q1 2025 National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey uncertainties surrounding trade moved to the top of manufacturers’ concerns—with 76.2% of respondents citing it as their primary worry. Increased raw material costs came in second, cited by 62.3% of those surveyed. Manufacturers are also calling for the tax reform needed to grow their businesses.

• Manufacturers expect prices on their product lines to be the highest since Q3 2022, when inflation was up more than 8%. Prices are expected to increase by 3.6% next year, up from 2.3% in Q4 2024.
• Manufacturers also anticipate the cost of raw materials and other inputs to rise 5.5% in the next year, the highest expected rate of increase since Q2 2022, when inflation was between 8% and 9%.
• Manufacturers foresee export sales increasing by just 0.1% in the next year. That’s the lowest anticipated rise since Q2 2020 when the COVID-19 pandemic was at its’ height.
• In addition, the percentage of manufacturers with a positive outlook for their company inched down compared to last quarter moving from 70.9% to 69.7%.

Manufacturers feel strongly that their businesses rely on the “rocket fuel” of the tax reform extension. NAM asked what manufacturers would do if Congress failed to extend the pro-manufacturing provisions of the Tax Cuts and Jobs Act of 2017:

• 69.35% of respondents said they would delay capital equipment purchases
• 45.23% would delay hiring
• 44.72% would pause operations expansions
• 41.71% would limit R&D investment
• 40.20% would curb employee wages or benefits increases

MACNY’s monitoring the impact of the economic environment on manufacturers. We’re always interested in your feedback on what can be done to help you grow your business. You’re always welcome to discuss your insights with any of our team members or contact me at [email protected].