Have COVID Relief Programs Helped Manufacturers?
According to the National Association of Manufacturers’ (NAM) Outlook Survey, the answer is yes.
NAM’s third quarter Manufacturers’ Outlook Survey, 66 percent reported they are optimistic about the outlook for their company, up from 33.9 percent in the second quarter of 2020. (That reading was the lowest reading since the first quarter of 2009.) The survey also found significant use of many of the federal liquidity programs the NAM advanced early in this pandemic to support manufacturers.
Specifically, the data showed:
- 72 percent of manufacturers that faced negative cash flow impacts due to COVID-19 used the Paycheck Protection Program, Main Street Lending Program, or other liquidity program.
- Nearly 92 percent of manufacturers that used federal liquidity programs said those funds were helpful in keeping their business afloat, retaining workforce or meeting other necessary expenses.
- While manufacturers are more optimistic, 62 percent of manufacturers still expect their firm’s revenues will not get back to pre-COVID-19 levels until 2021 or later.
Click here to read the full survey.