Marine Manufacturing CEOs: Business is Expanding as Concerns Linger Over Labor, Tariffs
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For the third quarter of 2018, marine manufacturer CEOs and top level executives remain overwhelmingly upbeat in their assessment of current business conditions as they navigate headwinds, primarily from tariffs, rising raw materials costs, and the labor shortage. The report comes from NMMA's new Marine CEO Sentiment Survey, which officially launched this week, and includes insights on a quarterly basis from senior executives at NMMA member boat, engine and accessory manufacturers.
For Q3, 65% of executives report that business is expanding, and 31% report business is stable. The combination of strong sales and steady economic growth is bolstering business leaders’ positive outlooks. To meet demand, 71% of manufacturers reported modest to substantial investments in capital expenditures like equipment or plant space.
Looking ahead, CEO outlooks improved in the third quarter compared to what they reported for the second quarter, with more executives (54% compared to 45%) expecting business conditions to improve in the next six months and fewer executives (10% compared to 16%) expecting business conditions to worsen. Not surprisingly, growing concerns over labor availability, rising costs of raw materials, and tariffs are tempering expectations; all three of which are similarly impacting the larger manufacturing landscape and economy.
To view and download the full report on nmma.org, CLICK HERE.
Please contact NMMA's director of industry statistics and research, Vicky Yu, at [email protected] for more information.