While many industrial businesses are impacted by the COVID-19 pandemic, good news for U.S. manufacturers may be on the horizon. In the recent April industry report by ThomasNet, "COVID-19 Impact on North American Manufacturing," two out of three manufacturers are looking to re-shore as production begins to pick back up. This may lead to a domestic manufacturing boom here in the United States, as companies revaluate their supply chain.
91% believe that U.S. manufacturing can recover
How Manufacturers are Adapting
With good news on the horizon, relief funds have proven essential for businesses to recover. ThomasNet reports that 63% of U.S. manufacturers have applied for financial assistance, such as the Paycheck Protection Program.
Despite the impact of non-essential business shut-downs, manufacturing is one of the least impacted industries. 56% of companies have not experienced layoffs and 31% are now hiring. Manufacturers have also demonstrated a strong ability to quickly adapt as demands shift. 1 in 7 companies pivoted to COVID-19-related manufacturing.
An Optimistic Outlook for Industrial Business
While the industrial sector has seen a significant jump in COVID-10 related impacts, optimism in the market's ability to adapt and recover remains strong. With 91% of respondents believing that North American manufacturing can recover, there is no shortage of optimism in the market.
“We expect Q3 to be back at near 100%, then Q4 and beyond to be above 100% of our original forecasts.”
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