Manufacturers’ Outlook Survey: Third Quarter 2020
The National Association of Manufacturers has released its third-quarter Manufacturers’ Outlook Survey, which shows strong use of liquidity programs like the Paycheck Protection Program and Main Street Lending Program.
Of the 82.7% of respondents who say COVID-19 had or will have a negative impact on their cash flow, 72.1% noted they had obtained funds through the Paycheck Protection Program, Main Street Lending Program or other liquidity programs, especially small manufacturers. More importantly, of those firms taking advantage of such programs, 91.6% reported that those funds helped keep their business afloat, retain their workforce or meet other necessary expenses. Knowing how critical this was for the industry the NAM called for these programs and subsequent expansions, in its “COVID-19 Policy Action Plan Recommendations” and “American Renewal Action Plan.”
Manufacturing optimism has also rebounded to 66% since the second quarter of 2020, where it hit the worst reading since the Great Depression. Still, the outlook remains below the historical average of 74.4%, and 62% of manufacturers expect their firm’s revenues will not get back to pre-COVID-19 levels until 2021 or later.