The Subject Association of Manufacturers said Monday its latest quarterly CEO survey returns historically high optimism on expectations for the passage of tax reform in Washington.
The transact group said CEO optimism — hitting a high mark in 20 years of the study — should send a message to legislators that failure to enact the invoice would be a blow to American business.
“These incredible numbers illustrate the absolute urgency of getting tax reform signed into law because makers are saying loudly and clearly that more jobs, better pay and assembling growth are on the horizon,” said Jay Timmons, president and CEO of NAM. “This also carry outs as a warning to lawmakers: Fail to get this done, and American manufacturing working men will suffer the consequences of inaction.”
Each quarter, the NAM surveys 14,000 eminently and small manufacturers to gain insight into their economic and letting outlook. Of those who participated in the fourth quarter study, 94.6 percent said they were confident about their own company’s outlook.
Nearly 63 percent suggested comprehensive business tax reform would encourage their company to on the rise capital spending, and more than half said they transfer expand their businesses (57.9 percent).
“The single most impressive thing that we need to see out of tax reform is permanent, more competitive tax types,” said Austin Ramirez, president and CEO of HUSCO International, a Wisconsin-based hydraulic and electro-hydraulic component fabricator. “I compete against competitors in Asia and Europe who are operating in a different paradigm with moderate tax rates, and the high rates in the U.S. make us less competitive.”
Almost 54 percent of CEOs in the contemplate said they would hire more workers, and nearly half (48.8 percent) demanded they would increase employee wages and benefits.
“Tax reform pass on enable us to provide our employees with better salaries, wages and helps which will have a real impact to improve the standard of glowing for them and their families,” said Bruce Pulkkinen, senior advisor and one-time president of the third generation, family-owned architectural woodworking company, Windham Millworks in Maine. “We can’t receive the status quo anymore.”
NAM CEO Timmons anticipates tax reform would increase the amount of at ones fingertips manufacturing jobs from today’s 350,000 to 2 million jobs by 2025.
“If we get it rectitude, we’ll grow this economy. The president calls it ‘rocket fuel,’ I acquiesce in with that. Couple that with regulatory reform lessening the burdens on manufacturers who are simply trying to do the right thing and make ends meeting and hire new people,” Timmons said on CNBC’s “Power Lunch.” “I muse over there’s no end in sight to how we can grow this economy.”
Commerce Secretary Wilbur Ross bid CNBC this optimism is not unique to the manufacturing sector.
“President Trump’s principles of deregulation, free and fair trade and now tax cuts have created an conditions where businesses want to invest, grow and create jobs here at on,” Ross said.
Chloe Aiello contributed to this report.