In a national survey of U.S. manufacturing chief financial officers (CFOs) and senior comptrollers conducted by Grant Thornton LLP, only 18% plan to increase hiring in the next six months, while 22% plan to decrease hiring. In addition, a large majority believe that the best way to create jobs is to cut corporate and personal tax rates, and that the U.S. economy will not recover until the second half of 2011 or later.
“These findings are consistent with what we have been hearing from our manufacturing clients,” said Grant Thornton manufacturing practice leader Walter Gruenes. “It is clear that the strong production gains experienced through the first half of 2010 have slowed significantly (only 2% growth in Q3) now that inventory re-stocking is complete and government incentive programs have expired (i.e. cash for clunkers, new homebuyer credit etc.). In addition, the indecision stemming from a weak economy and the unknown impact of governmental tax policy and new healthcare, labor and environmental regulation on business and individuals is causing paralysis as it relates to major business decisions such as expansion, expenditures and hiring. Export growth is the one bright spot for manufacturers — growth of 9.5% in 2010 which is expected to reach 10% in 2011.”
Over the next six months, do you expect the U.S. economy to:
|Remain the same||58%||56%|
Over the next six months, do you expect your company’s financial prospects to:
|Remain the same||54%||45%|
Over the next six months, do you expect prices or fees charged by your company to:
|Remain the same||60%||62%|
Over the next six months, do you expect your headcount to:
|Remain the same||60%||51%|
Are you concerned about a double-dip recession?
When do you believe the U.S. economy will recover?
|Later than 2011||43%||42%|
|Second half of 2011||36%||37%|
|First half of 2011||17%||18%|
|Second half of 2010||3%||3%|
The best way to create jobs is:
|Cut corporate tax rate||40%||35%|
|Cut personal income tax rates||27%||29%|
|Tax credit for new hires||15%||22%|
|Government stimulus programs||9%||9%|
About which type(s) of pricing pressure are you most concerned? (You may select more than one.)
|Raw materials (e.g., food, metals)||62%||27%|
(not including healthcare)