Iowa manufacturers expect increased sales and plan to invest in capital expenditures in the first quarter of 2022, according to the latest Iowa Association of Business and Industry (ABI) Quarterly Business Survey. ABI sent this survey to its board in late November.
- Seventy-six percent of respondents expect sales to expand in the first quarter of the new year. This is an increase from 70% for the last quarter of 2021.
- Fifty percent of respondents expect the number of employees in their business to grow, while another 50% expect their number of employees to stay the same. For the last quarter of 2021, 56% of respondents predicted the number of employees in their business to grow. This is down from 72% in the third quarter of 2021.
- Survey results also show 76% of respondents plan to make capital expenditures in the first quarter of 2022, which is the same as what respondents reported for the last quarter of 2021.
“The consistent reports from Iowa manufacturers about upcoming capital investments show strong optimism for this first quarter of the new year,” ABI President Mike Ralston said. “The increased expectation of sales to expand in this first quarter of 2022 also shows the demand on our manufacturers is not slowing down.”
But respondents are feeling the same economic concerns raised nationwide.
“ABI will continue to address the ongoing issues our manufacturing companies face, which include supply chain pricing and availability, lack of workforce, shifting our companies into the next generation of technology for increased productivity and business development opportunities,” Mr. Ralston said.
Manufacturing 4.0 initiatives in Iowa aim to help our businesses remain globally competitive through increased productivity and efficiency, while addressing workforce. ABI supports Manufacturing 4.0 initiatives, such as the grant program established in the tax and economic growth omnibus bill from the 2021 legislative session.
Approximately half of ABI’s 1,500-member companies are manufacturers. ABI represents nearly every industry in the state of Iowa.