Reports related to this article:
Project(s): View 4 related projects in PECWeb
Plant(s): View 4 related plants in PECWeb
Released December 19, 2024 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. manufacturers' capital-spending expectations are up from last quarter, according to a quarterly survey by the National Association of Manufacturers (NAM). Respondents are significantly more optimistic about their companies' outlook, although they expressed concerns regarding potential tariffs under President-elect Donald Trump and tax increases set to go into effect next year.
The NAM survey ran from November 15 to December 4 and received 273 responses, featuring small (those with 49 or less employees), medium-sized (between 50 and 499 employees) and large manufacturers (500 or more employees).
According to the survey results, released December 17, respondents anticipate an increase of 1.6% in capital spending over the next 12 months--compared with 0.7%, 1.3% and 1.4% in the three previous quarters, respectively; 42.4% expect additional capital spending in the next year, with 39.9% predicting no change and 17.7% expecting reduced capital expenditures.
"Manufacturing sentiment rose substantially from the previous quarter," according to the survey report; 70.9% of respondents felt either somewhat or very positive about their own company's outlook, up from 62.9% in the third quarter. The average over the past four quarters is 68.6%.
Despite the positivity, 68.7% of large manufacturers "cite trade uncertainty (e.g., actual or proposed tariffs, trade negotiations uncertainty) as a top business challenge," up from 52.2% in the third quarter. For manufacturers of all sizes, trade uncertainty was the third greatest business challenge at 56.1%, soaring from the level of concern expressed in the third quarter at 36.8%.
Further, respondents want Congress to prevent the Biden administration's scheduled tax increases set to go into effect next year--which could happen when President-elect Donald Trump's administration and a Republican majority in Congress are in place. "In 2025, key provisions of tax reform are set to expire, driving up costs for businesses throughout the manufacturing supply chain." Almost 8 out of 10 overall respondents said it is "extremely important" that the issue is addressed.
"In addition to the already expired immediate expensing of R&D [research and development], pro-growth interest deductibility standard for business loans and 100% full expensing for capital purchases, other tax policies critical to the manufacturing sector, such as the 20% pass-through deduction, individual tax rates and the estate tax exemption threshold, will expire or become less favorable at the end of 2025."
Industrial Info's North American Industrial Project Spending Index for the U.S. Industrial Manufacturing Industry shows project spending in November (the latest data available) was $167.3 billion--up from $124.8 billion year-over-year.
Industrial Info is tracking billions' worth of projects across the U.S. Industrial Manufacturing Industry that are set to kick off in 2025. Data centers are a prominent driver of investment, with many projects valued at more than $100 million. Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) expects two projects will kick off in February and wrap up by the end of 2026: the $800 million Phase III expansion of its hyperscale data center in Temple, Texas, entails adding a data center building at the planned 900,000-square-foot campus, while an expansion at its data center in Mesa, Arizona, will add another building as part of a 2.5 million-square-foot, approximately $1.5 billion investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read more information on the Texas and Arizona projects.
In other sectors, Greenheck Fan Corporation (Schofield, Wisconsin), which supplies air movement, control and conditioning equipment for commercial, industrial and institutional buildings, expects Phase 1A of its grassroot ventilation equipment plant in Knoxville, Tennessee will begin in January. The project, which is part of a multi-phase, $300 million investment, entails constructing three buildings on a 336-acre site in order to expand Greenheck's production capacity and be nearer to its clients. Industrial Info is tracking the project with a completion date of December 2026. Click here to read the project report.
Manufacturing projects also involve technologies related to clean energy, and Shoals Technologies Group (Portland, Tennessee) will begin renovating a vacant building in Portland (638,000 square feet) in January to relocate its solar panel connectors and controls manufacturing operations. The project is expected to wrap up around the end of 2025. Click here to read the project report.
The recent NAM survey indicated more than nine in 10 manufacturers supported an all-of-the-above approach to energy that "encourages investment in a variety of energy sources and enables the development of infrastructure needed to ensure reliable access to energy."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The NAM survey ran from November 15 to December 4 and received 273 responses, featuring small (those with 49 or less employees), medium-sized (between 50 and 499 employees) and large manufacturers (500 or more employees).
According to the survey results, released December 17, respondents anticipate an increase of 1.6% in capital spending over the next 12 months--compared with 0.7%, 1.3% and 1.4% in the three previous quarters, respectively; 42.4% expect additional capital spending in the next year, with 39.9% predicting no change and 17.7% expecting reduced capital expenditures.
"Manufacturing sentiment rose substantially from the previous quarter," according to the survey report; 70.9% of respondents felt either somewhat or very positive about their own company's outlook, up from 62.9% in the third quarter. The average over the past four quarters is 68.6%.
Despite the positivity, 68.7% of large manufacturers "cite trade uncertainty (e.g., actual or proposed tariffs, trade negotiations uncertainty) as a top business challenge," up from 52.2% in the third quarter. For manufacturers of all sizes, trade uncertainty was the third greatest business challenge at 56.1%, soaring from the level of concern expressed in the third quarter at 36.8%.
Further, respondents want Congress to prevent the Biden administration's scheduled tax increases set to go into effect next year--which could happen when President-elect Donald Trump's administration and a Republican majority in Congress are in place. "In 2025, key provisions of tax reform are set to expire, driving up costs for businesses throughout the manufacturing supply chain." Almost 8 out of 10 overall respondents said it is "extremely important" that the issue is addressed.
"In addition to the already expired immediate expensing of R&D [research and development], pro-growth interest deductibility standard for business loans and 100% full expensing for capital purchases, other tax policies critical to the manufacturing sector, such as the 20% pass-through deduction, individual tax rates and the estate tax exemption threshold, will expire or become less favorable at the end of 2025."
Industrial Info's North American Industrial Project Spending Index for the U.S. Industrial Manufacturing Industry shows project spending in November (the latest data available) was $167.3 billion--up from $124.8 billion year-over-year.
Industrial Info is tracking billions' worth of projects across the U.S. Industrial Manufacturing Industry that are set to kick off in 2025. Data centers are a prominent driver of investment, with many projects valued at more than $100 million. Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) expects two projects will kick off in February and wrap up by the end of 2026: the $800 million Phase III expansion of its hyperscale data center in Temple, Texas, entails adding a data center building at the planned 900,000-square-foot campus, while an expansion at its data center in Mesa, Arizona, will add another building as part of a 2.5 million-square-foot, approximately $1.5 billion investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read more information on the Texas and Arizona projects.
In other sectors, Greenheck Fan Corporation (Schofield, Wisconsin), which supplies air movement, control and conditioning equipment for commercial, industrial and institutional buildings, expects Phase 1A of its grassroot ventilation equipment plant in Knoxville, Tennessee will begin in January. The project, which is part of a multi-phase, $300 million investment, entails constructing three buildings on a 336-acre site in order to expand Greenheck's production capacity and be nearer to its clients. Industrial Info is tracking the project with a completion date of December 2026. Click here to read the project report.
Manufacturing projects also involve technologies related to clean energy, and Shoals Technologies Group (Portland, Tennessee) will begin renovating a vacant building in Portland (638,000 square feet) in January to relocate its solar panel connectors and controls manufacturing operations. The project is expected to wrap up around the end of 2025. Click here to read the project report.
The recent NAM survey indicated more than nine in 10 manufacturers supported an all-of-the-above approach to energy that "encourages investment in a variety of energy sources and enables the development of infrastructure needed to ensure reliable access to energy."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
