NAM/IndustryWeek 3Q 2014 Survey of Manufacturers: Survey Responses

1. How would you characterize the business outlook for your firm right now?
   1. Very positive – 17.0%
   2. Somewhat positive – 70.3%
   3. Somewhat negative – 12.7%
   4. Very negative – none

Percentage that is either somewhat or very positive in their outlook = 87.3%

2. Over the next year, what do you expect to happen with your company’s sales?
   1. Increase more than 10 percent – 13.5%
   2. Increase 5 to 10 percent – 34.1%
   3. Increase up to 5 percent – 30.1%
   4. Stay about the same – 17.9%
   5. Decrease up to 5 percent – 1.7%
   6. Decrease 5 to 10 percent – 1.7%
   7. Decrease more than 10 percent – 0.9%

Average expected increase in sales consistent with these responses = 4.4%

3. Over the next year, what do you expect to happen with prices on your company’s overall product line?
   1. Increase more than 10 percent – 3.0%
   2. Increase 5 to 10 percent – 7.8%
   3. Increase up to 5 percent – 48.3%
   4. Stay about the same – 37.8%
   5. Decrease up to 5 percent – 2.2%
   6. Decrease 5 to 10 percent – 0.9%
   7. Decrease more than 10 percent – 0.9%

Average expected increase in prices consistent with these responses = 2.0%

4. Over the next year, what are your company’s capital investment plans?
   1. Increase more than 10 percent – 13.9%
   2. Increase 5 to 10 percent – 15.7%
   3. Increase up to 5 percent – 17.0%
   4. Stay about the same – 45.7%
   5. Decrease up to 5 percent – 3.5%
   6. Decrease 5 to 10 percent – 1.3%
   7. Decrease more than 10 percent – 3.0%

Average expected increase in investment plans consistent with these responses = 2.5%

5. Over the next year, what are your plans for inventories?
   1. Increase more than 10 percent – 3.9%
   2. Increase 5 to 10 percent – 7.9%
   3. Increase up to 5 percent – 19.7%
   4. Stay about the same – 50.2%
   5. Decrease up to 5 percent – 13.5%
   6. Decrease 5 to 10 percent – 3.9%
   7. Decrease more than 10 percent – 0.9%

Average expected increase in inventories consistent with these responses = 0.8%

6. Over the next year, what do you expect in terms of full-time employment in your company?
   1. Increase more than 10 percent – 3.9%
   2. Increase 5 to 10 percent – 13.5%
   3. Increase up to 5 percent – 28.7%
   4. Stay about the same – 47.0%
   5. Decrease up to 5 percent – 5.7%
   6. Decrease 5 to 10 percent – none
   7. Decrease more than 10 percent – 1.3%

Average expected increase in full-time employment consistent with these responses = 1.8%

7. Over the next year, what do you expect to happen to employee wages (excluding nonwage compensation such as benefits) in your company?
   1. Increase more than 5 percent – 2.2%
   2. Increase 3 to 5 percent – 23.9%
   3. Increase up to 3 percent – 64.3%
   4. Stay about the same – 9.6%
   5. Decrease up to 3 percent – none
   6. Decrease 3 to 5 percent – none
   7. Decrease more than 5 percent – none

Average expected increase in wages consistent with these responses = 2.0%

8. Over the next year, what do you expect to happen to employee benefit costs?
   1. Increase more than 10 percent – 27.0%
   2. Increase 5 to 10 percent – 39.6%
   3. Increase up to 5 percent – 27.0%
   4. Stay about the same – 6.5%
   5. Decrease up to 5 percent – none
   6. Decrease 5 to 10 percent – none
   7. Decrease more than 10 percent – none

Average expected increase in benefit costs consistent with these responses = 6.3%

9. Over the next year, what do you expect to happen with the level of exports from your company?
   1. Increase more than 5 percent – 13.2%
   2. Increase 3 to 5 percent – 15.1%
   3. Increase up to 3 percent – 15.1%
   4. Stay about the same – 52.5%
   5. Decrease up to 3 percent – 1.4%
   6. Decrease 3 to 5 percent – 1.4%
   7. Decrease more than 5 percent – 1.4%

Average expected increase in exports consistent with these responses = 1.3%

10. What are the biggest challenges you are facing right now?

(Respondents were able to check more than one response; therefore, responses exceed 100%.)

1. Attracting and retaining a quality workforce – 49.8%
2. Challenges with access to capital or other forms of financing – 4.4%
3. Rising energy and raw material costs for our products – 41.4%
4. Rising health care/insurance costs – 77.1%
5. Unfavorable business climate (e.g., taxes, regulations, government uncertainties) – 73.1%
6. Weaker domestic economy and sales for our products – 36.1%
7. Weaker global growth and slower export sales – 24.7%

11. What is your company’s primary industrial classification?
    1. Apparel and allied products – none
    2. Beverages and tobacco products – none
    3. Chemicals – 6.6%
    4. Computer and electronic products – 3.1%
    5. Electrical equipment and appliances – 8.7%
    6. Food manufacturing – 2.2%
    7. Furniture and related products – 0.9%
    8. Leather and allied products – none
    9. Machinery – 14.8%
    10. Miscellaneous manufacturing – 14.4%
    11. Nonmetallic mineral products – 2.2%
    12. Paper and paper products – 2.6%
    13. Petroleum and coal products – none
    14. Plastics and rubber products – 8.7%
    15. Primary metals or fabricated metal products – 27.1%
    16. Printing and related activities – 1.3%
    17. Textile mills or textile products – 0.4%
    18. Transportation equipment – 4.4%
    19. Wood products – 2.6%
12. What is the size of your firm (e.g., the parent company, not your establishment)?
    1. Fewer than 50 employees – 22.6%
    2. 50 to 499 employees – 50.9%
    3. 500 or more employees – 26.5%