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Released March 10, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. manufacturers' capital-spending expectations over the next 12 months dipped compared with last month, based on the latest outlook survey by the National Association of Manufacturers (NAM). Respondents indicated that failure to extend the 2017 Tax Cuts and Jobs Act (TCJA) by the end of the year will hinder capital investment in equipment.
The NAM survey ran from February 11 to February 28 and received 254 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 summary of findings, released March 6, respondents anticipate an increase of 1.2% in capital spending over the next 12 months--compared with 1.6%, 0.7%, 1.3% and 1.4% in the four previous quarters, respectively; 36.6% expect additional capital spending in the next year--which is down from 42.4% last quarter--with 45.8% predicting no change and 17.7% expecting reduced capital expenditures (which is flat compared with last quarter).
But for the second straight quarter, survey respondents indicated the expiration of key provisions that are part of the 2017 TCJA by the end of the year, in addition to those provisions that are already expired, increase costs for businesses throughout the manufacturing supply chain.
According to the Internal Revenue Service (IRS) website, the TCJA "changed deductions, depreciation, expensing, tax credits and other tax items that affect businesses."
"When asked what business decisions respondents were considering if Congress fails to act quickly to extend the TCJA, nearly 7 out of 10 respondents said they will wait to purchase capital equipment," according to the survey report. "Additionally, 45.2% would hold off on hiring, 44.7% would stall expansion of operations, 41.7% would limit R&D [research and development] investments and 40.2% would curb increases in employee wages or benefits."
In his recent address to the joint session of Congress, President Donald Trump implied his administration would act: "[T]he next phase of our plan to deliver the greatest economy is for this Congress to pass tax cuts for everybody ... "They're in there. They're waiting for you to vote."
Shortly after the speech, NAM executives spoke on the need to preserve the existing tax reform. President and Chief Executive Officer Jay Timmons said the tax cuts were "rocket fuel for manufacturing in America and made the U.S. economy more competitive on a global scale." Executive Vice President Erin Streeter said, "Manufacturers need a deal now as they make decisions for investments in 2026 and beyond."
One such provision from the 2017 Tax Cuts and Jobs Act, according to the IRS, is the pass-through deduction, also known as the qualified business income deduction (QBID). This allows a deduction of up to 20% of qualified business income (QBI) for owners of some businesses.
The NAM's outlook survey report notes that small manufacturers in particular use the pass-through deduction to purchase equipment and increase employe wages/benefits; 74% of respondents with fewer than 100 employees that are pass-through entities indicated they used it to purchase equipment in the fourth quarter.
After meeting with U.S. Treasury Secretary Scott Bessent and Trump, two key figures in crafting the TCJA recently founded the Tax Cut Victory Alliance (TCVA)--which plans to promote a national campaign aimed at securing "renewal, passage, and permanency of the Trump Tax Cuts 'as is' and other potential tax reforms in the first 100 days of the Trump administration," according to the group's website. The TCVA is a coalition of free-market and conservative leaders, business and employer groups, and other stakeholders. Steve Forbes, editor-in-chief of Forbes Media, along with economists Arthur B. Laffer and Stephen Moore, co-founded the TCVA.
Industrial Info is tracking tens of billions' worth of active and planned capital equipment additions in the U.S. Industrial Manufacturing Industry. CelLink Corporation (Georgetown, Texas) is spending $280 million to add 25 new manufacturing lines at its Georgetown Flexible Wire Harnesses plant, where the company produces circuit wiring harnesses for automotive and other industries.
The new lines will support the manufacturing of 2.7 million electric vehicles (EVs). Completion is expected in May 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read a detailed project report.
GE Vernova Incorporated (NYSE:GEV) (Boston, Massachusetts) expects a $160 million equipment addition at its gas turbine plant in Greenville, South Carolina will kick off later this year and wrap up by the end of 2026. Click here to read detailed information on the project.
The recent NAM survey measuring U.S. manufacturers' capital spending over the next 12 months was conducted before Trump's tariffs went into effect March 4.
Respondents cited "trade uncertainties" such as tariffs and trade negotiations as their top business challenge (76.2%), followed by increased raw material costs (62.3%).
Respondents also expect raw material prices and other input costs to increase 5.5% on average over the next 12 months, the highest rate of increase since second-quarter 2022.
For more information on the effect tariffs are having or could have on U.S. manufacturing businesses, see March 7, 2025, article - Trump Tariffs Impact U.S. Manufacturers.
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 February 11 to February 28 and received 254 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 summary of findings, released March 6, respondents anticipate an increase of 1.2% in capital spending over the next 12 months--compared with 1.6%, 0.7%, 1.3% and 1.4% in the four previous quarters, respectively; 36.6% expect additional capital spending in the next year--which is down from 42.4% last quarter--with 45.8% predicting no change and 17.7% expecting reduced capital expenditures (which is flat compared with last quarter).
But for the second straight quarter, survey respondents indicated the expiration of key provisions that are part of the 2017 TCJA by the end of the year, in addition to those provisions that are already expired, increase costs for businesses throughout the manufacturing supply chain.
According to the Internal Revenue Service (IRS) website, the TCJA "changed deductions, depreciation, expensing, tax credits and other tax items that affect businesses."
"When asked what business decisions respondents were considering if Congress fails to act quickly to extend the TCJA, nearly 7 out of 10 respondents said they will wait to purchase capital equipment," according to the survey report. "Additionally, 45.2% would hold off on hiring, 44.7% would stall expansion of operations, 41.7% would limit R&D [research and development] investments and 40.2% would curb increases in employee wages or benefits."
In his recent address to the joint session of Congress, President Donald Trump implied his administration would act: "[T]he next phase of our plan to deliver the greatest economy is for this Congress to pass tax cuts for everybody ... "They're in there. They're waiting for you to vote."
Shortly after the speech, NAM executives spoke on the need to preserve the existing tax reform. President and Chief Executive Officer Jay Timmons said the tax cuts were "rocket fuel for manufacturing in America and made the U.S. economy more competitive on a global scale." Executive Vice President Erin Streeter said, "Manufacturers need a deal now as they make decisions for investments in 2026 and beyond."
One such provision from the 2017 Tax Cuts and Jobs Act, according to the IRS, is the pass-through deduction, also known as the qualified business income deduction (QBID). This allows a deduction of up to 20% of qualified business income (QBI) for owners of some businesses.
The NAM's outlook survey report notes that small manufacturers in particular use the pass-through deduction to purchase equipment and increase employe wages/benefits; 74% of respondents with fewer than 100 employees that are pass-through entities indicated they used it to purchase equipment in the fourth quarter.
After meeting with U.S. Treasury Secretary Scott Bessent and Trump, two key figures in crafting the TCJA recently founded the Tax Cut Victory Alliance (TCVA)--which plans to promote a national campaign aimed at securing "renewal, passage, and permanency of the Trump Tax Cuts 'as is' and other potential tax reforms in the first 100 days of the Trump administration," according to the group's website. The TCVA is a coalition of free-market and conservative leaders, business and employer groups, and other stakeholders. Steve Forbes, editor-in-chief of Forbes Media, along with economists Arthur B. Laffer and Stephen Moore, co-founded the TCVA.
Industrial Info is tracking tens of billions' worth of active and planned capital equipment additions in the U.S. Industrial Manufacturing Industry. CelLink Corporation (Georgetown, Texas) is spending $280 million to add 25 new manufacturing lines at its Georgetown Flexible Wire Harnesses plant, where the company produces circuit wiring harnesses for automotive and other industries.
The new lines will support the manufacturing of 2.7 million electric vehicles (EVs). Completion is expected in May 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read a detailed project report.
GE Vernova Incorporated (NYSE:GEV) (Boston, Massachusetts) expects a $160 million equipment addition at its gas turbine plant in Greenville, South Carolina will kick off later this year and wrap up by the end of 2026. Click here to read detailed information on the project.
The recent NAM survey measuring U.S. manufacturers' capital spending over the next 12 months was conducted before Trump's tariffs went into effect March 4.
Respondents cited "trade uncertainties" such as tariffs and trade negotiations as their top business challenge (76.2%), followed by increased raw material costs (62.3%).
Respondents also expect raw material prices and other input costs to increase 5.5% on average over the next 12 months, the highest rate of increase since second-quarter 2022.
For more information on the effect tariffs are having or could have on U.S. manufacturing businesses, see March 7, 2025, article - Trump Tariffs Impact U.S. Manufacturers.
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).
