The National Association of Manufacturers’ third-quarter Manufacturers’ Outlook Survey showed strong use of liquidity programs like the Paycheck Protection Program and Main Street Lending Program.
Of the 83% of respondents who said COVID-19 had or will have a negative impact on their cash flow, 72%, especially small manufacturers, had obtained funds through the Paycheck Protection Program, Main Street Lending Program, or other liquidity programs.
Of firms taking advantage of such programs, 92% reported that those funds helped keep their business afloat, retain their workforce, or meet other necessary expenses.
Manufacturing optimism has also rebounded to 66% since the second quarter of 2020, where it hit the worst reading since the Great Depression. Still, the outlook remains below the historical average of 74%, and 62% of manufacturers expect their firm’s revenues will not get back to pre-COVID-19 levels until 2021 or later.
NAM called for continuation and expansion of the federal assistance programs in its COVID-19 Policy Action Plan Recommendations and American Renewal Action Plan statements.
The full survey is available here.