6 months into the Trump tax law, manufacturing confidence is through the roof

  • The National Association of Manufacturers (NAM) released a survey of its 14,000 members on Wednesday, showing record levels of confidence among the group and an overall positive outlook.
  • NAM cites the Republican-led tax law as a driving force behind the boom in US manufacturing.
  • Projected wage growth is also expected to rise at the fastest pace in 17 years.

American Manufacturers are experiencing record levels of confidence for their businesses, according to a recent survey conducted by the largest trade association for manufacturers.

In the National Association of Manufacturers’ (NAM) quarterly outlook survey published on Wednesday, 95.1 per cent of manufacturers surveyed said they have a positive outlook for their companies, a record-high in the past 20 years.

The survey also found that among medium-sized manufacturers, 95.8 per cent of those surveyed have a positive outlook.

In addition to substantially increased confidence, projected employment growth and capital spending are at record levels. Manufacturers also project wage growth to rise at its fastest pace in 17 years.

NAM President Jay Timmons credited the survey results to the massive tax cuts for corporations that were part of the overall tax-reform law passed late last year.

“This record optimism is no accident,” Timmons said in a statement. “It is fuelled by the game-changing tax-reform passed six months ago.”

“Last year, manufacturers promised that we would deliver for our people and our communities if tax reform became law,” he added. “Congress and the president delivered, and now manufacturers are keeping our promise: hiring new workers, raising wages, improving benefits, buying equipment and expanding right here in the United States. And the best part is, with manufacturers’ record-setting confidence and plans to keep hiring and growing, more good news is yet to come.”

The survey is conducted among NAM’s members, which consists of 14,000 American manufacturers.

NAM is a trade association that has experienced lucrative relationships with the Trump administration and Republicans on Capitol Hill as of late. The group pushed for passage of the Republican tax law for much of 2017, which they now cite as a major component of the manufacturing sector’s success.

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