Report: Optimism remains low amongst manufacturers

According to a new report, optimism amongst manufacturing leaders remains low. The most recent Sikich Industry Pulse: Manufacturing and Distribution report found that 57% of respondents rated their optimism about the industry over the next six months at a seven out of ten or lower. Of the factors contributing to the low level of optimism, respondents cited high interest rates, poor economic conditions, and labor shortages. In an effort to hire and retain employees, 53% of those surveyed have increased wages by 5-8%, with 22% having increased wages by 9% or more. Not all of the news was negative, however. Customer demand is increasing or remaining consistent for 43% of survey respondents, and supply chain improvements are being felt by 34% of manufacturers surveyed.

In a recent quote, Jerry Murphy, partner-in-charge of manufacturing and distribution services at Sikich, said, "While manufacturers are working through turbulent economic conditions, customer demand remains consistent – putting an even bigger strain on labor challenges. Manufacturers that invest in talent strategy differentiators today will be able to meet customer demand and weather the economic storm, setting themselves up for long-term success."