NTMA, PMA Survey: Manufacturers Don't Expect Economic Recovery Until 2021
The survey of NTMA and PMA members revealed manufacturers’ experiences under the pandemic and desire for continued federal economic support.
A new survey of members of the National Tooling & Machining Association (NTMA) and Precision Metalforming Association (PMA) is said to show that manufacturers are facing continued economic challenges caused by the COVID-19 pandemic. The two trade associations claim that the results imply that Congress should continue to provide access to federal loan programs.
The survey of 126 NTMA and PMA manufacturing member companies was taken between July 9 and July 20, 2020. The survey highlights include:
- 86% of manufacturers reported revenues lower than pre-COVID levels, including 51% reporting revenues down more than 25%.
- 57% of respondents expect that revenues won’t return to pre-COVID levels for at least six months to one year.
- 47% of those surveyed report that they may be forced to furlough employees if revenues do not improve in the next 90 days.
- 79% of respondents said they would seek another Paycheck Protection Program (PPP) loan if available. Ninety percent of respondents reported that they have received a PPP loan and that it allowed them to retain employees.
Manufacturers’ top policy priorities for Congress, according to the survey’s authors, are to create long-term, low-interest loans to purchase raw materials and equipment; business liability protection as they follow government guidelines; and an immediate claim of General Business Credits and expanding the Employee Retention Credit to Small Business Administration’s PPP recipients to quickly free up cash for manufacturers.
Full survey results are available to download as a PDF.