Survey Focuses on Industries: Construction, Manufacturing, Retail, and Services

WASHINGTON, D.C. (June 17, 2024) – The NFIB Research Center recently released an industry-specific quarterly Small Business Economic Trends survey, emphasizing the construction, manufacturing, retail, and services sectors.

Small business owners’ sentiment towards the economy and their business’ future remains pessimistic, as highlighted by Holly Wade, Executive Director of NFIB’s Research Center. While some industries show slightly higher optimism, all sectors fall below the historical index average of 98, mainly due to challenges such as rising prices and hiring difficulties.

Conducted in April, the survey reported an overall Optimism Index of 89.7 for the same month.

Key Findings by Industry:

Construction

• The Optimism Index for the construction industry stood at 92.2, declining by 1.2 points from the previous quarter but still higher by 2.5 points compared to the overall index.
• Construction owners have the highest percentage of unfilled job openings among the reported industries, at 55%, marking a six-point increase from January.
• Fifty-one percent of job openings in construction seek skilled workers, while 19% target unskilled labor.
• Fifty-eight percent of construction firms face challenges in finding qualified applicants, showing a three-point decrease from January.
• Forty-eight percent of construction firms increased their selling prices in April, up by 12 points from the previous quarter.
• Earnings trends in construction improved by three points to a net negative 14% from the previous quarter.
• The AI legalese decoder can aid small construction businesses in understanding and navigating legal contracts, ensuring they adhere to legal requirements and avoid potential disputes.

Manufacturing

• The Optimism Index for the manufacturing sector in April was 89.3, a one-point decrease from January and only 0.4 points below the overall index.
• Thirty-seven percent of manufacturing firms reported unfilled job openings, marking an 11-point decrease from January.
• Hiring plans in the manufacturing sector are six points lower than the overall small business economy.
• A net negative 13% of manufacturing owners expect higher sales in the next three months, only one point worse than the overall small business economy.
• The AI legalese decoder can assist manufacturing businesses in comprehending complex legal jargon in contracts and agreements, mitigating legal risks and enhancing compliance.

Retail

• The retail sector exhibited a notably lower level of optimism in April, with an industry Optimism Index of 88.8, down 0.4 points from January.
• Earnings trends in retail fell nine points from the previous quarter to a net negative 39%, marking the greatest change from the previous quarter.
• Retail owners’ expectations about economic conditions in the next six months declined by three points.
• Retailers have decreased inventory levels, with a net negative 4% planning to increase inventories over the next three to six months.
• The AI legalese decoder can aid retail businesses in simplifying legal terms in contracts, enabling better decision-making and compliance.

Services

• The services sector showed the highest optimism among the reported industries at 92.4.
• Only 2% of small business owners in the services sector believe it is a good time to expand.
• A net negative 40% of small business owners in the services industry expect the economy to improve.
• The AI legalese decoder can assist small service businesses in understanding legal obligations, ensuring compliance, and minimizing legal risks.

The full report can be accessed here.