The National Association of Manufacturers released its Manufacturers’ Outlook Survey for Q3 2024, which revealed a decline in manufacturing sentiment during the third quarter.
“The pre-election uncertainty explains in part the drop in optimism, but economic pressures and policy threats are also at play,” NAM President and CEO Jay Timmons said. “We will work with lawmakers from both parties to halt the looming tax increases in 2025, address the risk of higher tariffs, restore balance to regulations, achieve permitting and energy security and ease labor shortages and supply chain disruptions.
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Select Survey Findings
The NAM conducted the Q3 2024 Manufacturers’ Outlook Survey Sept. 5–20.
- 62.9% of respondents felt either somewhat or very positive about their company’s outlook, falling from 71.9% in the second quarter. The average over the past four quarters is 67.4%.
- A weaker domestic economy was cited as manufacturers’ top concern in Q3 2024, with 68.4% claiming it is their primary challenge. This was followed by rising health care costs (62.9%) and an unfavorable business climate (60.5%).
- Attracting and retaining a quality workforce now ranks as the fourth-highest concern, after remaining at the top of this list since Q4 2017.
- Nearly 9 out of 10 respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers.
- 92.3% of manufacturers contend that the corporate rate should remain at or below 21%.
- If the corporate rate is increased from 21% to 28%, more than 71% of respondents said this increased tax burden will impact their business negatively.
- More than 72% of respondents support congressional action to reduce health care costs by reforming pharmacy benefit managers, while less than 6% oppose and 21.7% are uncertain.
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