Jack Derby of Derby Management, a Boston consulting group, estimated that more than half of his 400 clients are postponing major investments and putting off hiring because of political uncertainties.
“The amount of dollars on the balance sheets of corporate America is at unprecedented levels,” Derby said. “But they’re sitting on it because they’re unsure about their expenses.”
Spinali, the Peabody machine shop owner, said he has spent about $4 million in the last three years buying automated state-of-the-art manufacturing equipment to produce components for semiconductors, medical devices, and defense-related products. He said he was already concerned that the global economic slowdown would hurt demand for semiconductors and his company’s components.
Now he also has to worry about conditions at home, and when his own government will make the spending and tax decisions that could affect him and his company’s 85 employees.
“Congress is so polarized,” he said. “And it seems like we’re a casualty of this war going on between the two parties.”