Manufacturing confidence in U.S. economy drops sharply

U.S. manufacturing leaders have turned pessimistic regarding the U.S. economy, according to Grant Thornton LLP’s most recent Business Optimism Index

By ·

U.S. manufacturing leaders have turned pessimistic regarding the U.S. economy, according to Grant Thornton LLP’s most recent Business Optimism Index, a quarterly survey of U.S. manufacturing business leaders. Only 40% believe the U.S. economy will improve in the next six months, down from 60% three months earlier.  At the same time, 26% believe the U.S. economy will get worse, up from 3%.

“There are many factors causing concern amongst U.S. manufacturing leaders,” said Wally Gruenes, Manufacturing Practice Leader at Grant Thornton LLP.  “Soaring energy and raw material costs and Japanese manufacturing supply chain disruptions are weighing heavily, as are unresolved U.S. debt reduction issues and a corporate tax rate that still puts the U.S. at a global competitive disadvantage.  Lower effective tax rates will encourage investment and business activity, spur job creation, and ultimately increase national wealth. Tax reform should benefit the dynamic manufacturing businesses that are the backbone of American economic growth and the driving force behind expanding employment. Included in this category are many privately held businesses, the Russell 2000 and similar groups.” 

The Grant Thornton Business Optimism Index was started in 2002 and is a quarterly survey of U.S. business leaders, comprising three key economic measures:
·      U.S. economy: Business leaders’ perceptions of whether the U.S. economy will improve, remain the same or deteriorate in the next six months.
·      Business growth: Business leaders’ perceptions about the growth of their own business over the next six months
·      Hiring expectations: Whether business leaders expect the number of people their company employs to increase, remain the same or decrease in the next six months

The survey was conducted May 19-June 3, 2011 by an outside polling organization, with a total of 377 senior executives from various industries across the country responding. Of those, 50 were from manufacturing.  To see the complete survey findings, please visit http://www.GrantThornton.com/BOI.


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

· All Topics
Latest Whitepaper
Mobile Solutions: Improving Supply Chain Efficiencies
To meet customer's ever-increasing service expectations and improve their business efficiency, companies are looking to their supply chain operations – especially material handling and warehouse operations managers.
Download Today!
From the February 2017 Modern Materials Handling Issue
In warehouses and DCs, planning solutions tend to take a back seat to execution system functions. Vendors are working to boost the trust factor using tools that break down forecasts and blend with analytics.
Automated Storage on the Move
Receiving 101: Setting the Table for Success
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
Johnson & Johnson: A vision for automation
J&J Vision Care brings together a variety of automated technologies, including an innovative...
Using AGVs at LEDVANCE
The lighting manufacturer reaped savings by reducing maintenance costs and product damage, and using...

System Report: Sustainable Distribution at REI
Specialty outdoor retailer REI’s new distribution center brings together the next generation of...
System Report: Whirlpool puts mobile robots to work
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to...