US manufacturing index expands for ninth straight month, but price pressures surge in September

ANI |
Updated: Oct 01, 2026 20:17 IST

Washington [US], October 1 (ANI): US manufacturing activity remained in expansion territory for the ninth consecutive month in September, even as a sharp rise in prices pointed to growing cost pressures for manufacturers, according to the latest PMI data report from the Institute for Supply Management (ISM).
The ISM Manufacturing Purchasing Managers’ Index (PMI) is a monthly indicator that tracks activity in the US manufacturing sector. A reading above 50 per cent indicates that the sector is generally expanding, while a reading below 50 per cent indicates contraction.
The data highlighted that the Manufacturing PMI stood at 54.5 per cent in September, down slightly from 54.6 per cent in August. The overall US economy continued to expand for the 23rd consecutive month, according to ISM.
ISM said manufacturers’ comments reflected concerns over pricing volatility, tariffs and the Iran war. Pricing volatility was mentioned in 46 per cent of negative comments, while tariffs were cited in 34 per cent and the Iran war in 30 per cent.
Of the six largest manufacturing industries, five expanded in September — Computer & Electronic Products, Food, Beverage & Tobacco Products, Transportation Equipment, Machinery and Chemical Products.
The data showed that demand conditions improved during the month. The New Orders Index rose to 55.3 per cent from 53.7 per cent in August, marking its ninth consecutive month of expansion. The Backlog of Orders Index also increased to 56.4 per cent from 51.8 per cent.

However, the increase in prices was a key feature of the September data. The Prices Index jumped 6.8 percentage points to 77.9 per cent, from 71.1 per cent in August. ISM said the index returned to its level at the start of the Iran War.
“The Manufacturing PMI registered 54.5 per cent in September, 0.1 percentage point below the August figure of 54.6 per cent,” said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee.
Production continued to expand but at a slower pace. The Production Index stood at 56.7 per cent, down from 58.3 per cent in August. Despite the slowdown, production has now expanded for the 11th consecutive month.
Employment also improved during September. The Employment Index rose to 52.7 per cent from 51.2 per cent in August, indicating continued expansion in manufacturing employment.
The data also showed pressure on inventories. The Inventories Index fell to 48.6 per cent from 50.6 per cent, moving back into contraction. 
Export orders continued to grow, although at a slower pace. The New Export Orders Index stood at 50.9 per cent, down from 53.2 per cent in August. The Imports Index also declined to 51 per cent from 52.5 per cent.
Overall, the September data showed that US manufacturing continued to expand, supported by stronger new orders and employment, while rising prices emerged as a key pressure point for the sector. (ANI)

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Piyush Goyal Arrives in Milwaukee for G20 Trade Ministers’ Meeting, Engages US Manufacturing, Tech Leaders

Union Minister for Commerce and Industry Piyush Goyal arrived in Milwaukee, United States, today to attend the G20 Trade Ministers’ Meeting and interacted with CEOs and senior executives of leading US manufacturing and technology companies at a business roundtable hosted by the National Association of Manufacturers (NAM).

Goyal was received by Dr. M. Anand Prakash, Consul General of India in Chicago, upon his arrival.

NAM represents a substantial share of leading US manufacturing companies, which contribute significantly to the country’s manufacturing GDP of around $3 trillion, stated a press release by the Ministry of Commerce & Industry.

During the interaction, Goyal highlighted the expanding scope of the India-US economic relationship, saying it is moving beyond a traditional trade relationship to encompass investment, manufacturing, technology, innovation, resilient supply chains and the development of high-value capabilities in both countries.

The CEOs and senior executives shared their views on emerging opportunities in India and their perspectives on expanding partnerships in the country. Goyal said the Government of India remains committed to facilitating companies in their operations, expansion and investments in India.

Goyal also attended a reception hosted by the Business Roundtable (BRT) and NAM at the global headquarters of Rockwell Automation, where he interacted with Trade Ministers from other G20 countries and senior business leaders of US companies.

-PIB Inputs

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Asus won’t say how it escaped the US router ban

This spring, the United States banned all future foreign-made consumer routers — effectively all future routers — unless their makers could 1) convince the US government that they weren’t a national security threat, and 2) submit “a detailed, time-bound plan to establish or expand manufacturing in the United States.”

As of September 9th, Asus now has an exemption from the ban, just in time to bring its first early Wi-Fi 8 routers here. But Asus has not publicly announced any plan to bring manufacturing to the US. It would not even confirm to The Verge whether it had submitted a US manufacturing plan.

Initially, Asus spokesperson JJ Guerrero forwarded the following statement to The Verge: “ASUS has submitted the required plan to the FCC and is working with trusted manufacturing partners to support our future networking product portfolio in the U.S.”

But when we repeatedly asked Asus to clarify whether that meant it had submitted a plan to manufacture equipment in the United States — as opposed to equipment that’s just for the United States — the company did not answer. We’ve been waiting over 12 days without clarification.

The US router ban is not about security, despite the government’s claims. The FCC doesn’t ask companies a single question about security to get an exemption from the ban; it’s more about where routers are made. Nor is the FCC carefully testing which products are safe and which might have security holes — it has granted Asus a blanket exemption on all future routers through March 2028.

Few consumer products are made in the United States these days for all kinds of economic reasons. Even a copy of the board game Monopoly is now difficult to manufacture domestically. It wouldn’t be surprising if Asus wants to avoid building factories here.

But if the US router ban is not about US manufacturing, and it’s not about security, what is it actually about? Why did the Trump administration suddenly give Asus a blanket exemption, and why did it give Netgear a similar blanket exemption back in April?

The FCC did not respond to a request for comment then, and it has not responded to our fact-check request for this story. Perhaps it’s simply satisfied that these companies aren’t making them in China; both Asus and Netgear claim they’re manufacturing in countries that are considered US allies, and Netgear additionally says that “we no longer procure internet-connected components from manufacturers in China, or entities owned or controlled by China.”

Publicly, both Asus and Netgear are using the US government’s exemptions as marketing tools. In April, Netgear even emailed existing customers to share the news that Netgear is a “trusted consumer router company” now. Asus now claims it passed a “rigorous cybersecurity review” and is now certified as a “Trusted Networking Equipment Brand” and listed as a “Trusted Consumer Router Vendor,” as if those were official terms.

But search results for “Trusted Networking Equipment Brand” and “Trusted Consumer Router Vendor” only point back to Asus’s own claims — not the federal government.

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KCC Manufacturing And Transaera Partner To Scale U.S. Production Of High-Efficiency Cooling Systems

KCC Manufacturing and Transaera have formed a manufacturing and engineering partnership to scale U.S. production of Transaera’s next-generation dedicated outdoor air systems, which use Metal Organic Framework materials to remove moisture before cooling.

The systems will be manufactured at KCC’s employee-owned facilities in Kentucky, with KCC responsible for the equipment cabinet, implementation support for Transaera’s proprietary controls, systems integration, and the platform’s domestic production capacity. Multiple units have already been manufactured, with additional systems in production. 

The partnership is intended to address one of the more energy-intensive aspects of commercial building cooling: humidity control.

Traditional packaged rooftop equipment often manages humidity by cooling the air well below the required indoor temperature and then reheating it. That process consumes energy during both cooling and reheating.

Conventional desiccant systems can avoid that cycle but require significant energy to regenerate, or dry out, the desiccant so it can be reused.

Transaera’s approach uses Metal Organic Frameworks, or MOFs, engineered to release captured moisture at much lower regeneration temperatures, allowing the system to combine desiccant-based moisture removal with an all-electric heat-pump architecture.

The system is also designed to fit within existing rooftop equipment footprints, potentially making adoption easier for commercial building owners replacing or upgrading conventional systems.

Transaera said its platform has demonstrated approximately 40% energy savings compared with conventional packaged direct-expansion-only systems and has achieved more than twice the current federal minimum efficiency standard for moisture removal. 

KCC’s role centers on turning Transaera’s materials technology into equipment that can be produced, installed, controlled, and serviced at commercial scale.

The company adapted its existing dedicated outdoor air system cabinet for Transaera’s first-generation unit and is now working with Transaera’s engineering organization on the next-generation cabinet.

KCC is also supporting implementation of the electronics associated with Transaera’s proprietary control sequences and integrating the desiccant and refrigeration portions of the system so they operate together.

The arrangement allows Transaera to expand production without building its own cabinet fabrication and manufacturing infrastructure. 

The production partnership follows growing commercial activity for Transaera.

In May 2026, Transaera announced a multi-year collaboration with Amazon to expand deployment of its high-efficiency heat pump technology following a six-month field trial at an Amazon logistics facility operating in hot and humid conditions. 

Warehouse, logistics, commercial, and multifamily facilities in high-humidity climates represent potential markets for the technology because moisture removal can account for a significant portion of their cooling load.

The companies believe lowering the temperature needed to regenerate the desiccant could improve the economics of all-electric humidity control while reducing energy consumption.

Under the partnership, Transaera will continue developing the MOF-based sorbent materials and overall system architecture, while KCC will use its established dedicated outdoor air manufacturing lines to build and ship finished systems.

Additional units are already in production, and the companies expect manufacturing volumes to grow as adoption of high-efficiency, all-electric humidity-control systems expands across commercial and multifamily properties. 

KCC Companies was founded in 1977 and is a 100% employee-owned company headquartered in Jeffersontown, Kentucky.

The company employs more than 1,000 people and operates approximately 800,000 square feet of manufacturing space across four facilities in Jeffersontown and Simpsonville, Kentucky.

Its products include dedicated outdoor air systems, air handling equipment, roof curbs and adapters, dehumidification technology, and energy recovery systems for commercial buildings and specialized applications.

KCC has operated as an employee stock ownership plan since 2008 and ranks as the 13th-largest private company in Louisville, according to the announcement. 

Transaera was founded in 2017 by MIT engineers and materials scientists and is headquartered in Somerville, Massachusetts.

The company’s technology applies MOF materials to cooling and dehumidification systems, with the KCC partnership providing a pathway for scaling those systems through established U.S. manufacturing infrastructure.

KEY QUOTES:

“Materials science wins in a lab. Products win on a roof, and getting from one to the other is a manufacturing problem. Transaera solved the hard chemistry. Our job was to put that core inside a cabinet that can be built repeatably, controlled reliably, and serviced by a normal technician, and to build it here. That is the work that turns a breakthrough into something a building owner can actually buy.”

Joel Strieter, President Of KCC Manufacturing

“We were never going to scale this by building cabinets ourselves. KCC has been making dedicated outdoor air systems for decades, and they brought a production platform, a controls organization, and real manufacturing capacity to a company our size. Having that behind us in the United States is what lets us commit to customers on volume and on timing.”

Sorin Grama, CEO And Co-Founder Of Transaera

“Latent load is where a lot of rooftop equipment quietly loses. The conventional answer is to overcool and reheat. The conventional desiccant answer trades that penalty for a regeneration penalty. What makes the MOF approach interesting is that it removes moisture at a much lower regeneration temperature, which is what puts an all-electric path to humidity control genuinely in reach. Our role has been to make sure the system around that core performs the way the material does.”

Kevin Muldoon, Director Of Research & Development At KCC

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WASHINGTON POLICY FORUM EXAMINES PHYSICAL AI, MANUFACTURING AND COMPETITIVENESS

At LG-Supported Forum, Policymakers and Industry Leaders Explore How Allied
Manufacturing Partnerships Can Translate AI Advances Into Real-World Industrial Deployment

News Summary

• “Physical AI in America: Robotics, Manufacturing and the Allied Industrial Base,” a Washington, D.C. policy forum convened by LG Group, examined how Physical AI is reshaping U.S. manufacturing, supply chains and industrial competitiveness.
• Ambassador Yunju Ko, President of LG Group’s Global Strategy Center, underscored the importance of partnerships across allied nations, pointing to LG’s collaboration with NVIDIA as an example of AI advancing into real-world industrial applications.
• The forum brought together representatives from government, industry, academia and the policy community who emphasized that technology and supply chain cooperation across allied partners will be essential to building a resilient AI-driven industrial ecosystem.

WASHINGTON, Sept. 29, 2026 /PRNewswire/ — Policymakers, technology leaders and manufacturing experts examined how Physical AI is reshaping U.S. manufacturing, supply chains and industrial competitiveness today at “Physical AI in America: Robotics, Manufacturing and the Allied Industrial Base,” a Washington, D.C. policy forum supported by LG Group.

Participants discussed the industrial capacity and policy framework needed to sustain U.S. AI leadership as AI extends beyond software and computing into the physical economy through robotics, autonomous systems and smart factories. Topics included advanced manufacturing, semiconductors, batteries, energy infrastructure, resilient supply chains and cooperation among trusted allies, including the U.S. and South Korea.

Ambassador Yunju Ko, President of the LG Global Strategy Center, opened the event with a fireside chat. A panel discussion followed, featuring Jessica McBroom, Director at Micron; Juan Higueros, Co-Founder and Chief Operating Officer of Bear Robotics; Tim Del Monico, Chief of Staff to U.S. Representative Sam Liccardo; and Martijn Rasser, Vice President for Technology Leadership at the Special Competitive Studies Project.

Turning AI Innovation Into Industrial Competitiveness
In his remarks, Ko emphasized that long-term AI leadership will depend on both industrial application and closer collaboration with strategic partners.

“The future AI race will not be won by any single company or country acting alone,” said Ko. “It will be won through trusted partnerships that connect innovation, manufacturing and investment across allied nations. By strengthening these partnerships, we can build a more resilient industrial base and ensure that the benefits of AI are translated into real-world economic growth.”

To illustrate this approach, Ko cited LG’s collaborations with NVIDIA across mobility, AI infrastructure and Physical AI. The partnership uses NVIDIA Omniverse libraries, Cosmos world models and the open NVIDIA Isaac robotics platform to create robot training data from LG’s extensive manufacturing experience. Using this data and simulating processes at LG Electronics’ Tennessee appliance factory, LG CLOiD robots are being trained how to move, stack and assemble parts for potential use at U.S. manufacturing sites.

Cooperation Takes Center Stage in Physical AI Discussion
Building on the forum’s broader discussion, panelists focused on the policy priorities and industrial capabilities shaping the development of Physical AI.

The discussion examined the U.S. AI ecosystem, including areas of strength and gaps that could affect long-term technological leadership. Panelists also highlighted that stronger technology and supply chain cooperation between the U.S. and South Korea can contribute to a more resilient AI-driven industrial ecosystem, with supportive policy needed to advance it at scale.

Expanding Investment in U.S. Industry and Future Technologies
Over the past decade, LG has invested more than USD 20 billion in the United States across batteries, advanced manufacturing, electronics and mobility technologies. These efforts have contributed to the U.S. industrial base and approximately 20,000 jobs, while creating a foundation for LG’s collaboration with leading U.S. technology companies in AI, robotics and smart manufacturing.

“As a long-term investment partner, LG has consistently contributed to the growth of the U.S. industrial base,” Ko said. “We look forward to working with innovative U.S. companies, to help accelerate the deployment of AI across real-world industrial applications.”

About the LG Global Strategy Center
The LG Global Strategy Center (GSC) serves as LG Group’s headquarters for global strategy and external affairs. The GSC analyzes geopolitical, economic, and industry developments to assess their implications for LG’s businesses, while coordinating global external engagement and strengthening relationships with key government, policy, and business stakeholders worldwide.

About the LG Washington D.C. Office
The LG Washington D.C. Office is LG Group’s representative office for government affairs and public policy engagement in the United States. Working closely with policymakers, industry stakeholders, think tanks, and business organizations, the LG Washington Office provides strategic insights and promotes constructive dialogue on issues affecting innovation, trade, manufacturing, supply chains, and economic competitiveness. Through these efforts, it supports LG’s commitment to responsible business growth and investment in the United States.

Media Contacts:

LG Group Washington Office   
Joohwa Jin
+1 202 922 9054
[email protected]                              

SOURCE LG Group

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Attalon Invests Nearly $13 Million to Expand U.S. Sapphire Manufacturing Capacity

Attalon Invests Nearly $13 Million to Expand U.S. Sapphire Manufacturing Capacity

Investment in Murrieta, California, expands domestic production of advanced optical materials supporting growing demand across EO/IR and next-generation defense systems

Attalon, a leading U.S. aerospace and defense technology company, today announced a nearly $13 million investment to expand sapphire manufacturing capacity at its Murrieta, California, operation, strengthening domestic production of a critical optical material used across demanding electro-optical and infrared defense applications.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260929509193/en/

Sapphire produced at Attalon’s Murrieta, California, facility supports advanced optical systems for mission-critical defense applications. Attalon is investing nearly $13 million to expand domestic manufacturing capacity.

The investment comes as demand for high-performance optical materials continues to increase across advanced sensing, targeting, surveillance, missile and other mission-critical defense systems. By expanding its U.S.-based sapphire manufacturing capabilities, Attalon is increasing the production capacity, manufacturing readiness and technical capabilities required to support customers as these systems move toward greater production volumes.

“Sapphire is an enabling technology behind some of today’s most demanding defense systems, and ensuring we have the domestic capacity to produce it at scale is increasingly important,” said John Bergeron, Chief Executive Officer of Attalon. “This investment is about building that capacity here in the United States and ensuring our customers have a trusted manufacturing partner ready to grow alongside their programs.”

The investment builds on a longstanding effort to establish and sustain a domestic U.S. supply of defense-critical sapphire. More than seven years ago, Congressman Ken Calvert, now Chairman of the House Appropriations Subcommittee on Defense and representative for Murrieta, played an important role in supporting federal investment in the advanced technology and manufacturing capabilities required to establish Murrieta as a domestic source for high-performance sapphire.

That early government investment, coupled with sustained private-sector investment in the facility, helped build the technical expertise and U.S. manufacturing capability required to support demanding defense applications, including the F-35 program. Attalon’s nearly $13 million investment marks the next phase of that effort—expanding capacity, advancing manufacturing capabilities and strengthening a proven domestic supply of sapphire for current and next-generation defense systems.

Sapphire combines exceptional optical performance with the durability required for demanding defense environments. Its material properties make it particularly well suited for advanced EO/IR applications where optical performance, environmental resilience and reliability are essential to mission success.

“Our Murrieta team has built deep expertise in sapphire, from material development through production, and this investment allows us to translate that expertise into greater manufacturing scale,” said Anthony McBride, Vice President and General Manager of Precision Optics at Attalon. “We’re expanding the capabilities and infrastructure needed to increase throughput while maintaining the precision, consistency and reliability our customers depend on.”

The expansion is part of Attalon’s continued investment in the enabling technologies behind next-generation defense systems and its strategy of expanding U.S.-based manufacturing for mission-critical technologies. Across advanced optical materials, precision optics, optical coatings, directed energy and thermal technologies, the company is increasing domestic capacity in areas where manufacturing scale, reliability and supply-chain resilience are increasingly important to national security and the advanced defense platforms that depend on them.

About Attalon

Attalon is a leading U.S. aerospace and defense technology company engineering and manufacturing advanced lasers, precision optics, optical coatings, advanced materials and thermal technologies. With more than 500 employees across the United States, Attalon combines deep technical expertise with scalable domestic manufacturing to deliver mission-critical capabilities that strengthen the U.S. defense industrial base and support the modern warfighter.

Press Contact:

Valerie McKiernan

Vice President, Strategy & Communications

Valerie.McKiernan@atln.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20260929509193/en/

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SMITH AND FORD Push East-West Energy, Infrastructure and Manufacturing Ties at Calgary Enserva Event – Canadian Energy News, Top Headlines, Commentaries, Features & Events

Premiers Danielle Smith and Doug Ford during a fireside chat hosted by Enserva at the Calgary Telus Convention Centre September 28, 2026 – EnergyNow Media

EnergyNow Media

The two premiers appeared September 28 at the Enserva Speaker Series — Build Canada Stronger: Powering Canada’s Economic Future at the Calgary TELUS Convention Centre. The event brought together energy and business leaders to discuss energy security, infrastructure, trade and Canada’s ability to compete in global markets. It was moderated by Enserva President and CEO Gurpreet Lail. Enserva

The discussion highlighted both areas of agreement and differences between Smith and Ford, particularly on Canada’s evolving relationship with the United States.

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Smith said Alberta’s exposure to U.S. tariffs differs significantly from Ontario’s because most Alberta exports entering the United States are energy products that remain largely tariff-free.

“If you’re looking at a bit of a difference in tone between Premier Ford and I, that’s what it comes down to,” Smith said, pointing to Alberta’s large existing trade relationship with the United States and the role played by cross-border energy companies including Cenovus, TC Energy and Enbridge.

Smith argued that Canada could potentially use energy as the foundation for a broader economic agreement with Washington, suggesting significantly larger volumes of Canadian oil could ultimately move south if a comprehensive Canada-U.S. arrangement were reached.

Ford struck a somewhat different tone but emphasized that he remains strongly supportive of the broader Canada-U.S. relationship.

“I truly love Americans,” Ford said, noting Ontario’s deep economic integration with U.S. manufacturing and trade. He argued for what he called a “Fortress North America” approach in which Canada and the United States strengthen their economic and security relationships while Canada simultaneously expands trade with other countries.

Ford said the current trade friction could ultimately push Canada to become economically stronger.

“He woke us up that we needed to be woken up, and he’s united the country like I’ve never seen before,” Ford said of U.S. President Donald Trump. “We’re going to diversify our trade, but continue building a strong relationship with our closest friends and allies, and that’s the Americans.”

Pipelines Move to Centre Stage

The conversation quickly turned to pipelines and major infrastructure projects — a central theme of the Enserva event, which was promoted around the question of how Canada can build, move and sell more energy to global markets. Enserva

Smith said she has become increasingly confident about the prospects for a proposed new West Coast oil pipeline.

“I’m feeling more and more confident every day that the West Coast oil pipeline is going to potentially even be the first of the projects that go ahead,” she said.

Smith argued that global concerns about supply security have strengthened Canada’s position as a potential long-term supplier to Asian countries seeking greater diversification.

She also pointed to additional export possibilities through the United States and to the proposed Northern Shield corridor, which Alberta and Ontario have been advancing as a potential east-west energy and infrastructure route.

Ford was emphatic that Canada should not be forced to choose between individual pipeline routes.

“We need the West, we need the North, we need the South, and we need to go east,” he said. “Why can’t we do it simultaneously?”

Ford also signalled Ontario’s willingness to participate financially in the Northern Shield concept, saying he evaluates major infrastructure according to its potential return to taxpayers.

“You show me the numbers, and if you can clip those coupons after we get it built every single year, that’s a great investment for our province,” Ford said.

Skilled Labour Could Become the Next Constraint

Both premiers warned that even if governments approve more infrastructure, Canada will need enough skilled workers to actually build it.

Smith pointed to Alberta’s expansion of apprenticeship programs, dual-credit education and partnerships with unions and employers. She said Alberta now has 81,000 apprenticeship positions and argued provinces need greater ability to align immigration with labour-market shortages.

“We need some office jobs, but we sure need a heck of a lot more factory floor jobs and field jobs,” Smith said. Pasted markdown

Ford said Ontario has invested more than $2 billion through its Skills Development Fund and said more than 750,000 people have received training through various programs.

“Number one issue: supply chain and labour. Who is going to fill these jobs?” Ford said, arguing that provinces should have greater influence over immigration programs so workers who have developed needed skills can remain in Canada. Pasted markdown

Alberta Energy Meets Ontario Manufacturing

Perhaps the strongest area of agreement came around creating deeper economic links between Alberta’s energy sector and Ontario’s manufacturing base.

Ford argued governments need to reduce regulatory barriers and create conditions that encourage companies to invest.

“The biggest problem, biggest hurdle is government,” Ford said, pointing to regulation, taxation and permitting as obstacles governments can address. Pasted markdown

Smith then outlined several areas where the provinces could work together directly.

One is natural gas-fired power generation. Alberta wants to substantially expand electricity generation to support industrial growth and data centres, but Smith said global demand for natural gas turbines has created long equipment lead times.

“We’ve got the cheapest natural gas probably anywhere in the world, sitting on an ocean of it,” she said.

Smith suggested Ontario’s manufacturing expertise could help develop a Canadian supply chain for natural gas turbines and related electricity infrastructure.

Another opportunity is steel.

With pipelines, energy projects and other infrastructure requiring enormous volumes of steel pipe and fabricated components, Smith said Alberta should identify the equipment its energy industry will need and work with Ontario manufacturers to produce more of it domestically.

“Let’s figure out how we can identify the steel fabricated items that we need, and let’s work with our friends in Ontario,” Smith said.

She also suggested Canada needs stronger east-west supply chains, rather than relying predominantly on north-south trade with the United States or imported products arriving through West Coast ports. Pasted markdown

The message fit closely with the theme Enserva established for the event. Using Canadian energy, infrastructure and industrial partnerships to improve the country’s economic competitiveness and energy security. Enserva said the discussion was intended to examine how Canada could “look beyond provincial boundaries” to unlock its energy potential.

For Canada’s energy services sector, the discussion underscored a potentially significant shift: major energy development is increasingly being presented not simply as a Western Canadian issue, but as an opportunity to connect Alberta resources, Ontario manufacturing, Canadian workers and new international markets.

And on that central point, Smith and Ford were clearly aligned.

“We’re stronger together,” Ford said.

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Lawmakers Examine Challenges Facing U.S. Generic Drug Manufacturing

Why It Matters

U.S. generic drug manufacturers told lawmakers that low prices and foreign competition are making domestic production increasingly difficult to sustain, as Congress considers ways to reduce U.S. dependence on overseas pharmaceutical supply chains.

At a Senate hearing held on September 23, U.S. manufacturers of generic drugs told lawmakers that low prices, competition from abroad, and federal policies have made it increasingly difficult to keep domestic production going, since Congress and the Trump administration are considering measures to reduce the United States’ dependence on medicines made in foreign countries.

Christine Baeder, President of Apotex USA and LATAM, disclosed that her company demolished its North American penicillin plant last year because of unsustainable market conditions. The hearing took place six days before Section 232 tariffs on certain patented pharmaceuticals and associated pharmaceutical ingredients were scheduled to take effect Sept. 29, sharpening the debate around a policy landscape the administration has been reshaping through executive action.

The Big Picture

The hearing, titled “Leveling the Playing Field: Restoring America’s Edge in Generic Drug Manufacturing,” was the latest in a series led by Chairman Rick Scott (R-FL) examining U.S. dependence on foreign pharmaceutical manufacturing.

As of June, the American Society of Health-System Pharmacists had 227 drug shortages that were still active, and IBISWorld stated that the market value of the U.S. generic pharmaceutical manufacturing industry fell at a compound annual growth rate of 7.8 percent from 2021 to 2026.

Bipartisan legislation has already emerged from the committee’s work, including the Consumer Labeling for Enhanced API Reporting and Legitimate Accountability for Base Entity Listings (CLEAR LABELS) Act, introduced by Scott and Ranking Member Kirsten Gillibrand (D-NY), which would require prescription drug labels to disclose the original manufacturers of generic drugs and active pharmaceutical ingredients (APIs). The legislation advanced from the Senate Health, Education, Labor and Pensions Committee on a 21-1 vote in July.

What They’re Saying

The most incisive comment of the hearing was made by Baeder, who said, “The figures don’t add up; generics are operating in an environment driven by competition at the lowest level, where North American manufacturers are unable to compete with overseas manufacturers who have lower costs and rely on government subsidies.”

Kurt Orlofski, who is the CEO of PAI Pharma, turned the issue of transparency into a personal matter by saying, “I took three pills this morning, but I have no idea where they were manufactured. I am part of the industry.”

Mihir Torsekar, a Senior Economist with the Coalition for a Prosperous America, pointed to the drop in domestic production and said the United States now produces 27 percent of the medicine it uses, compared with 72 percent in 2002.

The sharpest exchange of the hearing took place when Scott asked Baeder if the FDA already has the power to reform its inspection practices. Baeder replied, “I don’t think that they consider themselves to have that power. Even if they do or don’t, I am not an expert at the FDA.” Scott then replied, “It just irritates you… because their role is to ensure safety for Americans.”

Witnesses also disagreed among themselves. When Gillibrand asked about hospital procurement incentives, Baeder praised a Centers for Medicare and Medicaid Services (CMS) proposal, but Orlofski immediately undercut it: “It doesn’t go far enough. None of the incentive flows back to the manufacturer.”

Political Stakes

The CLEAR LABELS Act has garnered bipartisan and bicameral support, with a House companion bill.

A version of the Securing America’s Biosecure Supply Chain and Ensuring Domestic Resilience (BIOSECURE) Act was included in the final fiscal year 2026 National Defense Authorization Act (NDAA), signaling that national security concerns surrounding pharmaceutical and biotechnology supply chains have already influenced major legislation.

The Section 232 pharmaceutical tariffs introduced by the Trump administration are adding a new aspect to the discussion. The tariffs set to come into force on Sept. 29 cover patented pharmaceuticals and the ingredients associated with them, while at this time generic pharmaceuticals and their associated ingredients are exempt from the Section 232 tariffs.

The Bottom Line

The hearing highlighted the fact that members of both political parties are concerned about the United States’ reliance on foreign manufacturing of pharmaceuticals as they consider changes to labelling, procurement, and regulation aimed at boosting domestic production. At the same time, the administration is carrying out its own strategy for bringing pharmaceutical manufacturing home by means of Section 232 trade policy, even though generic drugs are currently excluded from those tariffs.

Access the Legis1 platform for comprehensive political news, data, and insights.

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North America Manufacturing News Digest – the industry stories you should be aware of

Welcome to our weekly roundup of North America manufacturing news, designed to inform you of all the industry stories you should know about.

GE Appliances announces $1bn investment to expand US appliance manufacturing

GE Appliances, a Haier company, is investing $1bn to transform its Appliance Park campus in Louisville, Kentucky, expanding high-output laundry production and bringing dryer manufacturing from Mexico back to the US. Read more via The Manufacturer

Lilly breaks ground on $6.5bn Houston manufacturing site

Eli Lilly has broken ground on a $6.5bn pharmaceutical manufacturing facility in Houston, Texas, as part of the company’s drive to expand domestic production of medicines and active pharmaceutical ingredients (API). Read more via The Manufacturer

Quickparts invests nearly $6m in aerospace and defence manufacturing capacity

Quickparts is investing nearly $6m in its Seattle Aerospace & Defense Center of Excellence as part of a wider expansion of its additive manufacturing capacity across the US and Europe. Read more via The Manufacturer

UK’s Goodfellow set to create 20 new jobs as it invests £1.5m into US advanced manufacturing hub

Goodfellow, one of the UK’s leading advanced materials and metals suppliers, is targeting international expansion after opening a new expanded production facility in the US. Read more via The Manufacturer

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Silent Boom: Business, Manufacturing Surge Despite Inflation | News Radio 1200 WOAI

While public perception of the economy continues to wallow in negativity focused mostly on gas prices and stubborn inflation, there is a quiet boom underway that is not getting as much attention. New federal data reveal that U.S. manufacturing activity is surging, with factory output rising last month at the highest level in more than four years, while business service activity rose to its highest mark in nearly five years. At the same time, employmant in manufacturing and business services increased at a four-year high. “What we’re seeing is actually a business boom in the United States,” says John Carney, economics and finance editor of Breitbart. “The economy appears to be growing as fast as five percent annualized in September, and probably for the third quarter we’re going to get a (GDP) number as high as four percent…so this is a rapidly growing economy.”

These positive numbers come on the heels of recent news that the U.S. poverty rate hit a record low last year, while household wages reached a record high. Still, much of the media coverage and public opinion remain negative on the economy, primarily due to inflation and gas prices. And time is rapidly running out for President Trump and Republicans to turn that narrative around. “In my experience, people’s impressions about how the country and the economy are doing really get settled between Memorial Day and July 4th,” says Carney. “After that, it becomes very hard to change people’s minds about what is happening on the ground…so most people’s views on the economy are probably going to be unchanged between now and Election Day.”

Ironically, all of the positive factors in the economy helped convince the Fed to raise its benchmark interest rate this month, which can raise the cost of large purchases like homes and cars and further dampen public perception of the economy. “The problem is that inflation ran so hot under Biden that we’re still struggling with prices that seem too high,” says Carney. “One of the things inflation does is it poisons people’s minds against the economy for years to come, and we’re still dealing with that.”

“But objectively, this is one of the best economies we have seen in a generation.”

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