The National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey for the first quarter of 2021 reported that 87.6% of respondents felt either somewhat or very positive about their company outlook.  This is the third straight quarter reporting an increase in optimism, suggesting the most robust view by manufacturers since the first quarter of 2019.

Respondents are expecting sales to rise 4.9% over the next 12 months.  They also hope to see production increase 4.9% over the next 12 months.  Respondents expect full-time employment to rise to 2.7% in the next 12 months and employee wages to increase 2.5%.

The survey also asked manufacturers to cite their primary business challenges in the 2021 first quarter.  Here are their top concer5ns:

• Rising raw material costs were reported as the number one (1) concern and cited by 76.2% of the respondents. “Respondents expected product prices to rise 3.9% between now and this time next year.”
• The inability to attract and retain talent reported as a top challenge by 65.8% of the respondents remains a top challenge.  “This issue was the primary concern in 11 of the past 13 quarters prior to this release, speaking to the structural skills mismatches that many manufacturers face regarding employment. In a special question, 73.5% of manufacturers said that passage of a major workforce training investment bill would positively impact their company’s business plans and outlook.”
• 50.9% cite rising health care and insurance as a challenge, and 50.2% are concerned with transportation and logistics.

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