Jakarta –
High inflation makes the manufacturing industry bleak. As many as 59% of manufacturing industry leaders said this condition increases the risk economic recession which is likely to happen next year.
According to a recent survey released by the National Association of Manufacturers, about three-quarters of manufacturers said inflationary pressures were worse than they were six months ago. 54% also said current conditions made it more difficult to compete and be profitable.
“Through various crises manufacturers have proven to be very resilient, but there are dark clouds again,” said Manufacturing Trading Group CEO Jay Timmons. CNNThursday (16/6/2022).
The top business challenge reported by manufacturing CEOs in the survey was rising raw material costs. The main sources of inflation are rising raw material prices (97%), transportation and transportation costs (84%), wages and salaries (80%), energy costs (56%), and labor shortages (49%).
“Russia’s war in Ukraine has undeniably exacerbated higher energy and food costs,” Timmons said, adding that the federal government’s spending deficit had contributed to high inflation.
Lawmakers have been urged to exercise restraint by imposing new taxes and focusing on easing supply pressures, including passing the Bipartisan Innovation Act the White House championed. Timmons said 88% of manufacturers in the survey saw it as a key piece of legislation.
“While it won’t solve every problem, it will give us many of the tools we need to scale up domestic manufacturing and strengthen our supply chain. Congress needs to move quickly to bring it to President Biden’s desk,” Timmons said.
(aid/ara)
–
