91% of manufacturers will spike prices in second half of 2023: Poll
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Forbes, Xometry, and Zogby polls of senior CEOs reveal a preference for Biden's manufacturing policy.
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A worker sorts products at EIP Manufacturing in Earlville, Iowa, United States on April 22, 2021. (AP)
A new poll by Forbes, Xometry, and Zogby shows that nine out of ten manufacturers plan to raise prices in the second half of this year. The price increases will be on top of previous increases since roughly 62% of respondents claimed they had already raised prices this year.
Even though Consumer Price Index grew at its weakest rate in two years in May, the manufacturing CEOs' survey responses may be a warning of more inflation to come as the US economy enters its second half. That said, 57% of those respondents claimed they'd raised prices by at least 5% by 2023.
The survey also indicated strong support for US President Joe Biden when respondents were asked to evaluate contenders' industrial plans. When asked if the current federal manufacturing policy has benefited their industry, 78% replied yes.
The survey of 150 US-based executives sought to assess how manufacturers are dealing with rising costs, supply-chain disruptions, and potential recession.
The CEOs favored Biden in a series of questions regarding which presidential candidate would do the greatest job on issues important to manufacturing. Nearly half (46%) said Biden would do the greatest job of building an atmosphere for small and medium-sized manufacturers to thrive, compared to fewer than one-third (31%).
A similar number (45%) supported Biden's plans for incentivizing reshoring versus Trump's (32%); for reducing inflation (43% Biden to 35% Trump); for establishing trade agreements to boost manufacturing (39% Biden to 35% Trump); and creating and regulating a presidential task force on artificial intelligence (49% Biden to 25% Trump).
Florida Governor Ron DeSantis on the Republican side and Robert F. Kennedy Jr. on the Democratic side garnered lower levels of support on the same issues.
Respondents disagreed on which party was more likely to revive manufacturing with 41% favoring Democrats and 39% favoring Republicans.
Regarding Artificial Intelligence, 95% believed AI was a crucial issue for voters and 83% were in favor of an AI presidential task force.
“AI is everywhere and will continue to be," while another stated that “It still cannot be fully trusted," according to one executive.
Since its last poll, there has been a considerable increase in optimism, as prospects for a recession have decreased, according to Forbes. While 63% believe a recession is likely this year more CEOs now feel the Federal Reserve should keep raising interest rates, with 48% now favoring an increase against 38% in our previous poll.
Read more: Two more interest rate hikes required to cool inflation: Fed's Bullard
Almost three-quarters of CEOs said that their sales and earnings exceeded those of the previous year. Three-quarters said they expected to raise employee pay this year, and half said they wanted to hire more people.
When questioned about the recession's possibility, one executive stated that “Disruptions in international trade, geopolitical tensions, or economic instability in major economies can have ripple effects globally."
Another remarked that “Banks are failing, loan rates dropping. Hence, inflation will set in, and the price of things will go up."
The CEOs questioned all work for organizations with at least $10 million in sales, and more than half of them had $100 million or more in revenue.
