- December 7, 2024
Loading
Some economists and reports cite 2018 as the year of the manufacturer, with partial credit to the Trump administration’s pro-business policies. For 2019, President Donald Trump again factors into the state of manufacturing — only this time it’s far less positive.
To wit: Optimism reached an all-time high in the four 2018 National Association of Manufacturers outlook surveys. Including the first quarter of 2019, at least 88.7% of respondents to NAM’s quarterly survey characterized the current business outlook as somewhat or very positive for five straight periods.
That percentage fell markedly to 79.8% in the 2019 second quarter.
Although nearly 80% being optimistic is a high mark, it’s the speed of the fall that has the industry anxious. That’s where Trump — specifically the tariff wars with China, Mexico and other countries — come into play. “So far, 2019 has shaped up to be a more challenging year than last,” the NAM report states, published June 21. “Most notably, slowing global growth and trade uncertainties have softened demand, production and employment growth in a number of measures … mixed signals out of Washington and escalating tariffs, most recently threats of tariffs on one of manufacturers’ most important trading partners — Mexico — during the time this survey was in the field, puts at risk the industry’s continued success.”
The survey of manufacturing companies, in a variety of sizes, was conducted May 22 to June 5.
Further intensifying the issue is the survey didn’t even include trade uncertainties as a possible response to business challenges question until the fourth quarter of 2018. At 56% in the second quarter, that worry beat out stalwarts including rising health care costs/insurance costs and increased raw material costs.
Read all of the Business Observer's Made on the Gulf Coast articles:
At fire truck plant, attention to detail reigns — right down to shiny red paint
Following career in political fundraising, entrepreneur enters bright world of lampshades
Cabinetmaker, staying nimble, builds solid business
Pinball wizard targets industry revival
Danish draft beer equipment maker drinks up growth