Manufacturers Remain Optimistic
Despite continued impacts across industries (see chart), approximately 91% of manufacturers believe that North American manufacturing can recover from the COVID-19 pandemic, according to a survey by Thomas Insights. The report also highlights the following key findings:
A significant jump in COVID-19-related impacts occurred—89% of manufacturers surveyed say they felt impacts from COVID-19 in April 2020 compared to 45% in March 2020, and 41% expect a decrease in demand for their products and services.
Their two biggest concerns are reduced market demand and disrupted cash flow. Many manufacturers say they are also concerned about staffing issues due to challenges in maintaining social distancing and personal protective equipment supply.
Manufacturers are restructuring—44% say they have already experienced or are planning layoffs, and 31% say they are hiring. One in seven report that they pivoted to COVID-19-related manufacturing.
Two-thirds of respondents say they are likely to reshore. Of those, 20% say they are extremely likely to reshore, compared to 9% in March 2020.