• In the latest NAM Manufacturers’ Outlook Survey, 88.8% of respondents felt either somewhat or very positive about their company outlook, up from 86.8% in the fourth quarter, though it’s important to note that the survey was conducted Feb. 11–25, which was mostly before the Russian invasion of Ukraine and the resulting crisis and disruption.
  • Manufacturers expect full-time employment to rise 3.7% over the next 12 months, just shy of the record in September (3.8%). With that in mind, respondents also anticipate employee wages rising over the next year at 3.9% on average, the fastest pace in the survey’s history. Meanwhile, manufacturers expect raw material costs to rise 7.1%, not far from the 7.5% reading in June of last year. Manufacturing companies forecast 6.1% growth in prices for their products over the next 12 months, a record inflation rate for the survey.
  • Supply chain challenges topped the list of primary business challenges in the first quarter, cited by 88.1% of respondents. Other top challenges in the first quarter include increased raw material costs (85.7%), the inability to attract and retain a quality workforce (79.0%), transportation and logistics costs (72.7%) and rising health care and insurance costs (48.6%).
  • Just 2.6% anticipate supply chain disruptions to end in the first half of 2022, but 40.4% expect them to improve in the second half of this year. Overall, 72.8% of respondents predict that supply chain disruptions will abate by the end of the first half of 2023.
  • Following weaker data in December and January, manufacturing production grew by a solid 1.2% in February, the fastest monthly gain since October. These data speak to the resilience of the sector amid still-solid demand despite numerous challenges.
  • Manufacturing capacity utilization jumped to 78.0% in February, the strongest reading since September 2018. Overall, manufacturing production has risen 7.4% year-over-year, with 2.9% growth relative to February 2020’s pre-pandemic pace.