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Survey: Affordable Care Act Will Be A Drag On Company Growth

Mon, 08/26/2013 - 12:15pm
The Manufacturers Alliance for Productivity and Innovation (MAPI)

ARLINGTON, Va. -- A mid-year survey of senior executives from leading global manufacturers identified a number of major risk factors regarding their growth outlook for 2013 and beyond.

In Global Growth in 2013—Outlook and Risk Factors, the Manufacturers Alliance for Productivity and Innovation (MAPI) queried 130 corporate leaders from its council programs, including CEOs, CFOs, presidents, and heads of operations, marketing, and sales on issues ranging from the current economic landscape to workforce development.

“Global uncertainty continues to be the status quo, but manufacturing executives are not deterred from plans to expand their global footprints,” said Cam Mackey, MAPI vice president and survey coordinator. “Unfortunately, they share MAPI’s concerns that global growth in 2014 will be anemic.”

Among the key findings:

  • 83 percent believe the Affordable Care Act will be a drag on their companies’ growth; 79 percent feel the same about U.S. tax policy
  • 72 percent feel that the manufacturing skills gap is a real issue, even if it isn’t currently having a major impact on their companies
  • Most executives are cautiously optimistic about the 2014 outlook—nearly three-quarters expect sales to increase over 2013 levels (28 percent expect sales to increase by 5 percent or more)
  • Executives predicted a 22 percent likelihood of another recession in the U.S. by the end of 2014
  • Two-thirds expect weak employment to continue through 2014, if not longer
  • 68 percent predict the Eurozone recession will last through the end of next year
  • 65 percent expect slow or medium growth in China through 2014
  • Only 21 percent of respondents reported making fewer long-term investments in 2013 than in 2012
  • 61 percent indicated that due in part to anemic global growth, the U.S. is an especially attractive place to invest in 2013
  • One-third anticipate that instability in countries such as Turkey, Syria, and Iran could slow global growth

“Not surprisingly, many executives told us that weak demand and customers’ hesitation to spend will have a negative impact on growth in 2013,” Mackey noted. “Most executives we’ve talked to continue to wait and see.”

The Manufacturers Alliance for Productivity and Innovation (MAPI), established in 1933, is a nonprofit organization engaged in economic and policy research, continuing professional education, and allied activities. The Alliance's corporate membership includes U.S.-based and international companies in 
manufacturing and related business services. For more information, visit www.mapi.net

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