Manufacturing growth is on the horizon, according to ISM’s December 2022 Semiannual Economic Forecast, with 45% of survey respondents anticipating greater revenues in 2023 than in 2022. The food, beverage, and tobacco industry is among the manufacturing industries that expect revenue improvement, increased production capacity, and increased capital expenditures in the new year.
Overall, expectations for 2023 are looking up for manufacturing — revenue is projected to increase 5.5% (compared to 9.3% reported for 2022) and capital expenditures are expected to increase 2.6% (compared to 12% reported for 2022). Employment is forecasted to grow by 3.9% in 2023.
Still, the next six months could be rocky. Just over a quarter (28%) of manufacturing survey respondents predict the first half of 2023 will be worse than the first half of 2022. Slightly less (24%) predict it will be better, and just under half (48%) expect no change. On a positive note, the food, beverage, and tobacco industry is one of eight manufacturing industries expecting improvements during this time.