Utility and transportation costs are up from a year ago, in some cases considerably. Contacts also report paying more for petroleum-based inputs, chemicals, and metals. Selling prices remain mostly flat or rising at a low single-digit rate. Many respondents indicate that they cannot raise prices for fear of losing business. Most manufacturers report little net change in U.S. employment, although one-quarter of the sample plan deep cuts.
Some contacts indicate that the number of vacancies has fallen for salaried technical personnel.
Based on current trends, most contacts expect this year's wage and salary increases to be on par with last year's, although some expect a slight moderation. Capital spending plans are mixed and reflect some caution. For example, one manufacturer is putting some projects on temporary hold. Another plans to subcontract out some production in order to avoid making capital expenditures in economic uncertainty. Still others say they will focus on leveraging the capital they have, rather than incurring new costs.