NAM: Small Manufacturers Optimistic About Growth

According to a survey by the National Association of Manufacturers, small manufacturers expect increases in sales, exports and employment this year.

WASHINGTON -- According to the National Association of Manufacturers Small Manufacturers Operating Survey for 2008, 56 percent of respondents expect sales to rise at least 5 percent this year, and 16.2 percent expect increases of over 10 percent.

Less than 27 percent expect sales to decline at least 5 percent, and 12.4 percent expect a decline over 10 percent.

Over 80 percent of respondents expect capital investment to increase or at least stay the same, with 17.2 percent expecting a decrease. There were 28.5 percent expecting capital investment to rise by more than 10 percent. The average capital investment for 2008 among respondents was $1,585,641. More than half of the respondents said the reduction of the tax rate for S-corporations is 'important.' All of the above suggests continued expansion in manufacturing.

Average sales attributed to exports was up 10.73 percent to 12.38 percent. Additionally, 58.5 percent of respondents expect exports to rise at least 5 percent this year, and more than half of those expect increases of 11 percent or more. Only 20.8 percent expect no export sales this year.

Eighty-nine percent of respondents expect to increase employment in 2008 and 91 percent expect it to increase in 2009, contingent on their ability to find qualified job applicants. Almost half of the respondents say they have jobs that are empty because they cannot find qualified applicants.

For more information, click here.

More in Operations