From workforce constraints and supply chain struggles to rising costs and market volatility, many of manufacturing's challenges of 2021 are continuing in 2022. During the January installment of DHG's Manufacturing & Distribution Quarterly Webinar Series, Chief Economist of the National Association of Manufacturers (NAM), Dr. Chad Moutray, provided a manufacturing 2022 economic outlook. While you may access the webinar here, below are some key takeaways from his presentation.
||Overall, manufacturers are optimistic about the economic outlook going forward. In the Q4 of 2021, 86.8 percent of NAM manufacturers felt good about business. "Demand is not the problem," Dr. Moutray said. "The challenge has been being able to meet that demand with the supply chain, rising cost and workforce shortages."
||The expected growth rate for manufacturing sales in 2022 is about 5 percent.
||The primary roadblock is rising costs of raw materials (87 percent). Supply chain disruption is a close second (84.5 percent).
||Record high level of wage growth 3.8 percent – though antidotally it is closer to 5 percent.
||6 percent of manufacturers surveyed expect the supply chain to improve in the second half of 2022.
Dr. Moutray went on to detail insights from data outside the survey, including the Institute for Supply Management, the Federal Reserve Board, the US Commerce Department and the Bureau of Labor Statistics. Together, Dr. Moutray and DHG are able to offer the manufacturing industry information that will help you adapt your business strategy throughout 2022 and beyond, so please view the webinar recording when you are able.
How DHG can help
As opportunities and challenges for manufacturers continue to evolve, look to the professionals at DHG to help develop proactive strategies to keep your organization on pace. By teaming consultants from the manufacturing industry with our tax, advisory and assurance professionals, DHG is uniquely able to collaborate with your business to address elements specific to your goals.