TMA News

NAM Survey Shows Over Half Companies Expect To Expand Businesses After Tax Reform

Manufacturers are not only excited about the tax reform proposal being considered this week in the nation’s capital, they’re excited about the future of sales and their own companies’ capital spending. Of those surveyed, almost 95% said they’re optimistic about the future – an all-time high.

In their latest survey, the National Association of Manufacturers found that 

Nearly 63 percent said comprehensive business tax reform would encourage their company to increase capital spending and more than half would expand their business (57.9 percent) and hire more workers (53.8 percent), while a significant proportion would increase employee wages and benefits (48.8 percent) and invest more in the community (34.7 percent).

Both sales and capital spending are anticipated to increase over the next 12 months at the fastest rates since mid-2011, and employment continues to trend strongly upward. Respondents predict sales growth of 5.2 percent over the next year, up from 4.5 percent in the previous release, with more than 56 percent saying their sales will rise by at least 5.0 percent over the next 12 months. At the same time, capital investments are anticipated to grow 3.4 percent over the next 12 months, up from 2.7 percent in September, reflecting business leaders’ increased confidence in the future.

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