Up against stubborn headwinds like worker shortages and inflation, many of nation's manufacturers remain optimistic but cautious about what the future holds.
In its latest survey, the National Association of Manufacturers, which represents 14,000 member companies, found more than 78% of manufacturing leaders identified supply chain disruptions as a primary business challenge. Less than 11% think conditions will improve buy the end of this year. Attracting and retaining quality workers, increased raw material costs, and transportation and logistics costs were also listed as top challenges.
Though optimism has declined slightly from its last survey, a solid majority of manufacturers remain hopeful about the future.
That juxtaposition is playing out across industries as the labor market remains strong but the global economy is slowing. Moutray said it's likely some manufacturers begin to scale back hiring or capital investment.
On Monday, Ford told investors it expects to incur $1 billion in costs during the third quarter from rising prices and supply chain disruptions. The company said a shortage of parts means at least 40,000 trucks and SUVs won't arrive at dealerships until next quarter.
From businesses to consumers, members of the Federal Reserve have expressed worry about shifting expectations and behavior due to inflation, which Chair Jerome Powell has said would make their objective of price stability harder to achieve.
On Tuesday, the Fed began its two-day meeting that's expected to result in another 75-basis-point interest rate hike. Powell will announce details during a press conference at 2 p.m. on Wednesday.
Written by: AHTRA ELNASHAR, Author, for The National Desk.