Confidence creates demand

The largest international manufacturing technology show in the Americas is now history. IMTS 2010 took place the week of September 13 and by all indications, proved to be a show in which both exhibitors and attendees expressed a desire to excel in being world class manufacturers.

From the time the show doors opened on the first day, exhibitors and attendees alike were upbeat about the future of U.S. manufacturing. Deals were being made right on the show floor, especially for machine tools. The vast majority of attendees that I spoke with were seeing signs of improvement over the prior year’s activity. In addition, while they noted that the economic recovery was slower than that of other recessionary periods, they felt 2011 would be a growth year.

However, while U.S. manufacturers are gearing up to become more competitive in a global environment, there remains some strong sentiments about just how optimistic they can be. In other words, there still remains a cautious approach to forward, progressive planning. Manufacturers remain worried about the additional taxes they may be facing in 2011. Their main concern is the uncertainty of additional costs associated with the national healthcare system, Cap and Trade, medical device taxes, and the elimination of the 2001 and 2003 tax cuts. Manufacturers believe these additional tax burdens will hurt the backbone of America’s manufacturing sector – small businesses that provide jobs for an estimated 25% of the American workforce. Furthermore, they don’t view President Obama’s recently announced tax breaks as an effective way to jump-start the economy.

tgrasson@gie.net