NAM survey shows 2018 on pace for record-high year of manufacturer optimism

On the heels of another positive employment report showing 18,000 manufacturing jobs were created in September, the National Association of Manufacturers (NAM) has released the results of the "Manufacturers' Outlook Survey" for Q3 2018. According to the results, optimism among manufacturers remains exceedingly high (92.5 percent) following enactment of tax and regulatory reform and is on pace for the highest yearly reading in the survey's 20-year history. In addition, the four-quarter average from Q4 2017 through Q3 2018 rose to 93.9 percent, making it the highest one-year average on record.

The survey also shows that despite the sustained high level of optimism, the lack of enough skilled workers continues to pose significant challenges for manufacturers' ability to grow their business. According to the latest government data, there are more than 500,000 open manufacturing jobs in the U.S. The inability to attract a quality workforce has forced more than one in four manufacturers surveyed to turn down new business opportunities, while one-third noted that they held off on plans to hire more workers because of workforce constraints. Nearly half of manufacturers surveyed cited this workforce crisis as the No. 1 threat facing their business.