Economics

NABE: Recent Tariffs Are Not Positive For Business

By Chemical Processing Staff

May 06, 2019

The National Association for Business Economics (NABE) releases its April Business Conditions Survey reports and the results are less than positive for recent tariffs. According to NABE, tariffs have negatively affected more than one quarter of respondent firms, while only 1% of respondents – those from goods-producing firms – indicate tariffs have had some positive impact on business conditions at their firms.

“The net impact of tariffs on American companies is not positive, and the negative impacts are especially noted within the goods-producing sector,” says NABE President Kevin Swift, CBE, chief economist, American Chemistry Council. “In response to trade concerns, panelists from goods-producers all report their firms had made changes in sourcing, supply chains or other practices. In contrast, about three out of four respondents in other sectors had not made any changes.”

According to the report, all respondents expect to see economic expansion continue within the next 12 months. More firms also report rising sales and higher profit margins at their firms in the first quarter than in the previous survey, while indicating materials input costs remain elevated. More than half of survey respondents report skilled labor shortages at their firms and that tight labor conditions push firms to raise wages, increase training and consider additional automation.

Read the entire report at: www.nabe.com