Confidence of manufacturing companies declines.

Small and medium-sized manufacturers are slightly less confident for their business prospects over the course of the next 12 months, according to the results of an International Profit Associates Small Business Research Board (IPA SBRB) survey. The IPA SBRB manufacturing confidence index fell to 43.2, a drop of 1.8 points from the index of 45 reported in August. The 43.2, however, is still higher than the IPA Small Business Confidence Index (IPA SBCI) of 42.7 recorded in the latest national survey of all business owners and managers.

The cost of materials is now the greatest concern of the manufacturers responding to the poll, replacing the finding of quality employees as the top need. Health care costs, taxes and government regulation follow the cost of materials as the leading issues. Energy and fuel costs are now filth.

Manufacturers are projecting revenues to increase over the next 12 months, with nearly 60% indicating that sales will be higher (compared to 50% during the most previous reporting period). Of that group, slightly more than 43% said they believe revenues over the next 12 months will be more than 10% higher than the current levels.

Nevertheless, these same manufacturing concerns indicated that their hiring expectations have waned since late summer. Less than 30% believe they will be adding employees over the next 12 months.