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(Des Moines, IA) -- An Iowa manufacturing survey finds more than 80 percent plan to make big capital expenditures during the second quarter of the year. Mike Ralston, Iowa Association of Business and Industry says that's a very positive bellwether because business people do not do that unless they're very optimistic about the future.
The survey also finds nearly half expect sales growth and the workforce should remain stable. Ralston says the findings also show many manufacturers are still reporting supply chain challenges. He says in speaking with members of the organization, there's been some progress on supply chain issues, but business people are still having to wait longer than they'd like to to get materials and/or supplies they need.
“Making capital expenditures is an important part of running a successful business – something Iowa manufactures know well,” said ABI President, Mike Ralston. “These expenditures allow companies to invest in their future growth, maintain their existing assets, and gain a competitive edge.”
Ralston says optimism for the remainder of 2023 remains high.
- Survey results show 81 percent of respondents plan to make capital expenditures in the second quarter of 2023. This is a significant increase from the 2023 Q1 outlook.
- Fifty-one (51) percent expect sales to expand, which is an increase from 23 percent in Q1.
- Sixty-seven (67) percent of respondents foresee their workforce to remain stable, with the number of employees expected to stay the same.