Manufacturers are making use of liquidity programs such as the Paycheck Protection Program and Main Street Lending Program, according to a new survey.
The National Association of Manufacturers released Thursday (Sept. 10) its third-quarter Manufacturers’ Outlook Survey that shows COVID-19 had or will have or a negative impact on cash flow for 82.7% of respondents, and among those, 72.1% obtained money from the Paycheck Protection Program, Main Street Lending Program or other liquidity programs, especially small manufacturers.
Of the companies that have taken advantage of such programs, 91.6% used the money to remain in business, retain their workforce or cover other necessary expenses. The National Association of Manufacturers asked for such programs and their expansion in its COVID-19 Policy Action Plan Recommendations and American Renewal Action Plan.
Manufacturing optimism has risen to 66%, from 33.9% in the second quarter when it fell to its lowest level since the Great Recession. The outlook remains below the historical average of 74.4%, and 62% of manufacturers expect revenues will not return to pre-COVID levels until 2021 or later.
“Congress and the administration have acted on more than five dozen of the policy provisions that the NAM made in our American Renewal Action Plan and other recommendations,” said Jay Timmons, president and CEO of the National Association of Manufacturers. “Without the bipartisan relief legislation signed into law earlier this year, this rise in optimism would not have been possible. But for our industry to truly recover and to keep our economy growing, further bipartisan congressional action is needed.”
Link here for the complete survey results.