US manufacturing hits 4-year high as exports rebound in July

US factory indicators strengthened in July, with demand, production and hiring improving in signals relevant to manufacturers, importers, exporters and sourcing teams tracking US industrial capacity.

For textile and apparel supply-chain participants, the key signals include the return of export-order growth, rising factory payrolls and increased capital-goods imports linked to retooling and expansion of factory capacity.

US manufacturing activity surged in July at the strongest rate in more than four years, with the ISM PMI expanding for a seventh straight month.
New export orders returned to expansion, while production, payrolls and wages rose, signalling stronger demand for US-made goods.
Capital goods imports exceeded 40 per cent of US goods imports as factories retooled and expanded.

US manufacturing activity surged in July at the strongest rate in more than four years, driven by strong demand, record production and new hiring, the White House said in press release.

The White House noted that the Institute for Supply Management (ISM) Manufacturing PMI showed the sector expanding for the seventh consecutive month. It described this as a reversal after contraction in every month of the previous Administration, outside a temporary post-pandemic bounce. New export orders also moved back into expansion.

Citing Federal Reserve indicators, the White House said manufacturing activity, payrolls and wages were rising nationwide. Manufacturing wages climbed 4.2 per cent year-on-year (YoY), outpacing inflation. Philadelphia Fed survey showed general activity and new orders at nearly five-year highs, added the release.

It mentioned President Trump’s Working Families Tax Cuts had supported six million American jobs, protected $540 billion in worker wages and preserved $1.1 trillion in US economic activity.

The White House also listed several related indicators: the US economy is projected to grow at a 6.2 per cent annualised rate in the third quarter of 2026; non-residential fixed investment rose 11.7 per cent last quarter, the fastest since 2023; orders for business equipment are on track for an all-time high in 2026; and capital goods imports now exceed 40 per cent of all US goods imports, which it called a historic peak as factories retool and expand.

The release further added that 83,000 factory construction jobs had been added since President Trump took office, and more than 18,000 manufacturing jobs had been created in 2026 alone, reversing years of decline. For sourcing and manufacturing teams, the published indicators frame July as a month of stronger US production momentum, expanding export orders and higher investment in factory capacity.

Fibre2Fashion News Desk

Source link

US manufacturing hits 4-year high, with AI buildout a major driver of growth, though price volatility looms: survey

Manufacturing activity in July hit a four-year high, with massive AI infrastructure investment a major driver of growth — even as industry leaders sounded the alarm over price volatility, according to a survey released Monday.

The Institute for Supply Management’s July manufacturing gauge jumped to 55.6 – expanding at its fastest pace since May 2022 and marking its seventh consecutive month of growth, the survey said.

President Trump has called for a return to US manufacturing. REUTERS

Any reading above 50 in the ISM’s monthly survey indicates growth while any measure below 50 signals contraction.

Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said increased certainty around President Trump’s tariff policy and hopes for a more permanent deal to end the war in Iran helped encourage the boost in manufacturing.

“My gut is, it’s not just a one- or two-month trend,” Spence told reporters. “Companies are seeing six or more months of these solid demand factors going in the right direction.”

The survey’s gauge for production jumped to 58.5, its highest level since the end of 2021; the employment measure hit 52.8, rising for the first time in nearly three years; and new orders growth, which signals demand, also increased.

Massive business investments in AI infrastructure helped drive the expansion, along with political pressure to ramp up US manufacturing, according to experts.

Despite the growth in manufacturing, individuals’ responses to the ISM survey were overwhelmingly negative, with many industry leaders calling out price shocks from the Iran war and the chances that the Fed could raise interest rates next month to counter inflation fears.

“Pricing volatility was mentioned in 57% of negative comments, the Iran war 43%, increasing lead times 22% and tariffs 18%,” Spence said.

Among the survey responses, one metals producer remarked that “it makes me yearn for the coronavirus pandemic chaos, which was more manageable than whatever this is that we are in.”

The Institute for Supply Management’s July manufacturing gauge jumped to 55.6. AFP via Getty Images

Some transportation equipment manufacturers lamented increased costs and transit time “for rerouted shipments due to conflicts in the Red Sea, Strait of Hormuz and Suez Canal.”

Others noted that a spike in demand for certain electronics supplies due to the AI race was “challenging on-time fulfillment for our supply chains.”

Jackson Barnes, CEO of Novo, a financial platform for small businesses, said the build-out of massive AI data centers is largely driving manufacturing investments – but that has a lopsided impact on the industry. 

“Look at where the demand is coming from. It’s coming from semiconductors, AI infrastructure and defense. Those are capital-intensive supply chains dominated by large manufacturers,” Barnes told The Post.

Massive business investments in AI infrastructure helped drive the expansion, according to experts. Getty Images

“That gap shows up clearly in what we see. Across the small manufacturers we work with, the median firm’s quarterly revenue is down roughly 12% from two years ago, even though total volume across that same group is up about 14%.”

Tech giants like Meta and Microsoft have announced planned capital expenditures this year of as much as $145 billion and $190 billion, respectively, as they ramp up their AI efforts.

Rising oil prices amid the Iran war have multiplied costs for nearly every manufacturer – and the concern for many in the industry is that the Federal Reserve could soon raise interest rates as a result, which could hit their growth streak.

Overall, it was a strong report, according to experts, as all but one manufacturing industry reported growth in July — including electrical equipment, appliances and components and computer and electronic products. Chemical products marked the only sector that contracted over the month.

“I would say that a lot of the tech investment right now has a lag,” said Amrita Bhasin, co-founder and CEO of Sotira and a manufacturing expert. “There is a lot of money being poured into AI infrastructure and that infrastructure is very resource-intensive.”

“I am optimistic just because we’ve got a lot of factors that are all coinciding at the right time,” Bhasin told The Post.

Source link

U.S. Manufacturing Hits $2.91 Trillion All-Time High

Article Summary

U.S. manufacturing reached a record $2.91 trillion in value added in 2024, making it the world’s eighth-largest economy, but the industry faces a critical shortage of skilled workers with nearly 3.8 million positions needing to be filled by 2033.

• $2.91 trillion in U.S. manufacturing value added in 2024, an all-time nominal record that would rank as the world’s eighth-largest economy if standalone
• 54 ISM Manufacturing PMI reading in May 2024, the strongest since May 2022, signaling broad expansion across new orders, production, and order backlogs
• $2.42 trillion in cumulative foreign direct investment in U.S. manufacturing, led by Japan ($819 billion), making manufacturing the largest FDI sector in America
• 3.8 million workers needed by 2033, with 1.9 million positions at risk of remaining unfilled without action to increase skilled workforce training
• 409,000 open manufacturing positions as of August 2025, with 65% of manufacturers citing talent attraction and retention as their top business challenge

U.S. manufacturing hit a record $2.91 trillion in 2024, and the momentum has continued: the ISM Manufacturing PMI reached 54 in May, its strongest reading since 2022. 

Factory construction spending more than doubled from 2021-2024. And, foreign companies have committed $2.42 trillion to U.S. manufacturing, more than to any other sector in the United States, according to MISUMI Americas’ The Rise of U.S. Manufacturing report.

“The investment case for American manufacturing has never been stronger — record output, a historic construction cycle, trillions in committed foreign capital. What we see with our customers every day is that the next constraint isn’t capital. It’s having enough people with the right advanced skills to run these new facilities at full capacity. The good news is that American students are already moving toward skilled trades and technical training. H.R. 9097 builds directly on that momentum by sending workers to learn from the countries — Japan, Germany, South Korea — that have spent decades perfecting advanced manufacturing training and bringing that expertise home,” says Dave Evans, president and CEO, MISUMI Americas and CEO, Fictiv.

Key takeaways:

• $2.91 trillion: U.S. manufacturing value added in 2024, an all-time nominal record. This single sector would rank as the world’s eighth-largest economy if it stood alone, ahead of France and just behind the United Kingdom. The figure reflects current, not inflation-adjusted, dollars, so part of the gain comes from manufacturers producing more goods and part comes from higher prices.
• 54 PMI: the ISM Manufacturing PMI reading for May 2026, the strongest since May 2022 and a clear signal of expansion. The index spent most of 2025 below the 50-point threshold that separates growth from contraction, making this a meaningful reversal. New orders, production, and order backlogs all expanded that month, the broadest improvement in factory activity in roughly four years.
• $235.6 billion: peak annual factory construction spending in 2024, nearly triple the roughly $81.9 billion spent in 2021. Semiconductor fabs and EV battery plants, fueled by the CHIPS Act and Inflation Reduction Act, drove the majority of that increase. The pace has since moderated to roughly $196 billion by January, though spending remains more than double pre-boom levels.
• $2.42 trillion: cumulative foreign direct investment (FDI) in U.S. manufacturing, led by Japan, Canada, and Germany. Manufacturing is now the single largest sector for inbound foreign investment in the country, representing more than 42% of all FDI in the United States. Japan alone accounts for over $819 billion of that total, more than any other country invests in any single U.S. industry.
• 2 million-plus: reshoring and FDI jobs announced since 2010, including a record 364,000 in a single year, 2022. The vast majority of recent announcements, 88% in 2024, are in high or medium-high technology manufacturing sectors such as semiconductors, electronics, and electric vehicles. Roughly 1.7 million of those announced jobs have already been filled.
• 3.8 million: additional manufacturing workers the industry will need by 2033, with 1.9 million of those positions at risk of going unfilled without action. Of that 3.8 million, roughly 2.8 million comes from workers retiring and the remainder from new growth, including jobs tied directly to the CHIPS Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act. More than 65% of manufacturers already cite attracting and retaining talent as their single biggest business challenge.
• 20% growth since Spring 2020: enrollment at high-vocational community colleges, a workforce already responding to the opportunity. Undergraduate certificate programs have grown for four consecutive years, evidence that students are choosing faster, skills-focused pathways into manufacturing careers. Even so, total enrollment at these institutions remains well under one million students nationwide, a fraction of the workforce the industry will need to recruit and train by 2033.
• What the data also shows is that the workforce has not yet scaled to match it. Nearly 2.8 million of the 3.8 million workers needed through 2033 comes from retiring employees, replacing the current workforce, not just expanding it. There were 409,000 open manufacturing positions as of August 2025, and 65% of manufacturers cite attracting and retaining skilled talent as their top challenge.
• Enrollment at high-vocational community colleges is up nearly 20% since Spring 2020, and undergraduate certificate programs have grown for four consecutive years. The pipeline is moving in the right direction — it simply needs to move faster and reach deeper into advanced, specialized skills that take years to build domestically but already exist abroad.

Source link

USMCA Review Has Investors Searching For High Quality U.S. Manufacturing Stocks

Trade policy headlines are back on center stage, with the U.S. stepping away from a long term USMCA deal in favor of annual reviews and possible renegotiations. That shift could reshape expectations for companies tied to North American supply chains, especially in U.S. domestic manufacturing. Rather than reacting blindly to every tariff rumor, you can focus on stocks with solid business health that may be better placed to handle this kind of policy churn. This article looks at 3 stocks exposed to the latest USMCA news, all screened for strong fundamentals and recent market strength.

Alamo Group (ALG)

Overview: Alamo Group is a Texas based manufacturer of heavy duty equipment used to cut, clear, sweep, plow, vacuum and maintain roadsides, fields and public infrastructure, selling into government, industrial, agricultural and tree care markets worldwide.

Operations: Alamo Group generates about US$964.3m from Industrial Equipment and US$665.6m from Vegetation Management, with most revenue coming from the United States at roughly US$1.2b and smaller contributions across Canada, the UK, France and other countries.

Market Cap: US$2.0b

Alamo Group stands out in this trade policy shock because it manufactures much of its infrastructure and agricultural equipment in the U.S. and serves a largely domestic customer base, which can reduce exposure to potential new USMCA tariffs even as it keeps some flexibility with facilities in Canada. The business combines exposure to long term infrastructure and mechanized land management demand with high earnings quality, solid cash generation and very low net debt, supported by a sizable new credit facility. At the same time, investors need to weigh slower recent profit growth, margin pressure in parts of Vegetation Management, a relatively new management team and sensitivity to government and municipal spending cycles. All of these factors make the next phase for Alamo Group especially important to watch.

Alamo Group’s combination of high earnings quality, strong cash generation and very low net debt could be the real story in this USMCA reset. The Alamo Group financial health report might reveal why that balance sheet strength cuts both ways.

ALG Discounted Cash Flow as at Jul 2026

Franklin Electric (FELE)

Overview: Franklin Electric is an Indiana based manufacturer of water and fuel pumping systems, supplying motors, pumps, controls, monitoring devices and related equipment used in residential, agricultural, municipal, industrial and energy applications across the U.S. and international markets.

Operations: Franklin Electric generates about US$1.3b from Water Systems, US$709.7m from Distribution and US$304m from Energy Systems, with roughly US$1.7b coming from the United States and Canada and several hundred million spread across Latin America, Europe, the Middle East, Africa and Asia Pacific.

Market Cap: US$4.7b

Franklin Electric gives you a way to gain exposure to U.S. focused water and fuel infrastructure with less direct exposure to cross border frictions, thanks to its in region, for region manufacturing and focus on essential replacement demand. Management reports that this demand has held up even as tariff headlines have picked up. Analysts currently forecast earnings growth, and the P/E is above the machinery industry average, which can indicate that the market already expects a lot from its push into higher margin, energy efficient water technologies. At the same time, a recent one off loss, softer profit margins and insider selling highlight that execution on acquisitions, cost control and pricing will be critical in the current USMCA review regime.

Franklin Electric’s premium P/E and push into higher margin, energy efficient water tech suggest the market may be pricing in more than just steady replacement demand. The analyst forecasts for Franklin Electric could show what that optimism might be missing.

NasdaqGS:FELE P/E Ratio as at Jul 2026

Boise Cascade (BCC)

Overview: Boise Cascade is a U.S. based producer of engineered wood products and plywood, paired with a large building materials distribution business that supplies dealers, home centers, wholesalers and industrial customers serving residential construction, remodeling and light commercial projects.

Operations: Boise Cascade generates about US$1.6b from Wood Products and US$5.9b from Building Materials Distribution, with intersegment eliminations of roughly US$1.2b reflecting internal sales between these segments.

Market Cap: US$2.7b

Boise Cascade provides targeted exposure to U.S. construction and remodeling through a mix of engineered wood manufacturing and a nationwide distribution network that management says is mostly based in the U.S. and built to handle tariff friction. The stock trades at a P/E that is slightly below its US Trade Distributors peers. Analysts expect earnings to grow faster than the wider U.S. market, supported by mill upgrades, warehouse expansion and active buybacks that have already retired more than 5% of shares under the latest program. At the same time, profit margins have come under pressure, recent revenue and EPS have declined and housing affordability and policy risk remain front of mind. Boise Cascade can be viewed as a trade policy winner, but one that still requires careful scrutiny.

Boise Cascade’s mix of mill upgrades, warehouse expansion and active buybacks has investors talking, but the real tension is how future earnings stack up against housing and policy risk. The analyst forecasts for Boise Cascade might reveal what the current share price is quietly signaling about the next phase.

NYSE:BCC Earnings & Revenue Growth as at Jul 2026

The three stocks highlighted here are just a starting point, with the full U.S. Domestic Manufacturing Stocks screener surfacing 20 more U.S. focused manufacturers with equally compelling business stories. Use Simply Wall St to identify, analyze and filter for the specific catalysts and narratives that matter to you so you can focus on the highest conviction ideas in this space.

Take Control of Your Investment Journey

If Boise Cascade or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point.
Once you’ve made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates.
Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives.
By uncovering hidden catalysts and risks early, you’ll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Before The Crowd Moves?

Fresh stock ideas do not stay under the radar for long, and strong momentum can be caught or lost quickly. Use these curated lists to research opportunities early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we’re here to simplify it.

Discover if Boise Cascade might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Source link

U.S. Manufacturing Hits Four Year High And Proves U.S. Can Become Self-Reliant 

By Manzanita Miller 

Critics were skeptical of President Donald Trump’s implementation of tariffs on a variety of imported products from countries like China, but the results are speaking for themselves. U.S. manufacturing reached its highest growth in four years in May and companies are promising multi-billion-dollar investments to develop critical pharmaceuticals, semiconductors, safe electrical equipment, and many more products in the United States. 

According to the Institute for Supply Management’s Purchasing Managers’ Index (PMI), U.S. manufacturing rose 1.3 percentage points in May, marking the fifth consecutive month of growth and the highest recording of the index since May 2022. This is a significant healthy signal that U.S. companies are beginning to compete once again. 

The report notes that indexes that measure inventories on hand, customer inventories on hand, new orders, and new export orders are all up over the past month. 

The inventories index rose 0.9 percentage points since April while the customers’ inventories index is up 3.6 points since April according to the report. 

The report also notes that “demand orders” are up, with both the new orders index and new export orders index expanding by 2.7 points since April.

Indexes that measure output are also up, with the production index rising for the seventh consecutive month according to the report. 

U.S. manufacturing is rising across a multitude of critical industries including petroleum, computers and electronics, mineral products, electrical equipment, machinery, appliances, transportation equipment, printing, textile mills, and food and beverages. 

The manufacturing boom is a result of President Donald Trump’s two-pronged economic approach to court companies with reduced corporate tax burdens signed into law with the One Big Beautiful Bill Act while making importing goods from foreign countries costly. 

Speaking at a campaign stop in a Mack Trucks facility in Macungie, Pa. on June 23, President Trump touted manufacturing’s impact on job creation, “[M]ore Americans are working today than at any time in the history of our country. And we’ve created over… 32,000 new jobs just starting in Pennsylvania alone. David, you have to get ready for that. And in the last few months alone, we’ve added 2,600 Pennsylvania manufacturing jobs. And that number is going to go much, much higher as the factories start to open.”

The approach is working, with U.S. manufacturing reaching a four-year high in May. Companies are committing to expanding the creation of products like prescription drugs, semiconductors, safe electrical equipment, and many more products on American soil as a result of the strategy. 

In March, Taiwan Semiconductor Manufacturing Company (TSMC), which produces semiconductors for electronics, announced an additional $100 billion investment in the U.S. on top of the previously committed $65 billion. 

CEO C.C. Wei thanked President Trump for his support in company’s expansion, saying, “we have to thank President Trump’s vision and his support. TSMC started the journey of establishing the advanced chip manufacturing in Arizona. And now, let me proudly say the vision becomes reality.”  

TSMC’s investment will include six semiconductor wafer fabs, two advanced packaging facilities and a research and development center, and is already underway in Phoenix, AZ. 

According to the company’s announcement, the facilities will create 6,000 high-tech jobs, as well as thousands of construction and supplier jobs. The company’s original investment is estimated to generate around $1.4 billion in direct and indirect tax revenues combined over the next thirteen years. The company is also estimated to create $9.3 billion in personal income and indirect income combined.

In May, Siemens, a German company that develops critical power equipment and transportation infrastructure, announced it had reached $1 billion in domestic manufacturing investments in the United States over the past five years. 

Siemens’ investments include $165 million to expand two electrical equipment manufacturing facilities and add three more locations in North and South Carolina and $190 million for a new data center in Fort Worth, Texas to build important electrical infrastructure. The company has also dedicated $95 million to expand electrical infrastructure manufacturing in Pomona, California. The projects should generate more than 2,200 new jobs in advanced manufacturing, skilled trades, and engineering by 2028.

Multiple pharmaceutical companies including Eli Lilly, the U.S. manufacturer of the popular GLP-1 weight regulating drug Retatrutide have announced multi-billion dollar investments in the U.S. Eli Lilly announced plans to spend $27 billion to build four U.S. plants, with plants being announced in Alabama, Virginia and Texas so far.     

AstraZeneca, a Swedish pharmaceutical company that makes a multitude of prescription drugs including those used in oncology has committed $50 billion to expand U.S. manufacturing by 2030. The company will create a new facility in Virginia and expand into Maryland, Massachusetts, California, Indiana and Texas.

The White House estimates that $10.6 trillion in U.S. and foreign investments have been made possible through President Trump’s economic approach as of this writing, spanning the industries of AI, energy, datacenters, food and beverages, manufacturing, pharmaceuticals and biotech, and many more. 

What this says is that the slate of tariffs on imports are doing exactly what President Trump theorized and encouraging a revitalization of the U.S. manufacturing sector. Not only is this healthy for businesses and consumers, but it is also critical to ensuring American-made products are available no matter how the geopolitical landscape looks. With a rise in U.S.-made products from semiconductors to essential electrical infrastructure to critical pharmaceuticals, Americans are becoming more self-reliant than they have been for decades.

Manzanita Miller is the senior political analyst at Americans for Limited Government Foundation. 

Source link

U.S. Manufacturing Activity Hit A Four-Year High in May, But There’s a Caveat

U.S. manufacturing activity rose to its highest level in four years in May amid rising costs, supply disruptions and uncertainty tied to the war with Iran, according to new data.

The S&P Global flash U.S. manufacturing purchasing managers’ index climbed to 55.3 in May from 54.5 in April, marking the strongest reading since May 2022. A reading above 50 indicates expansion.

The gain, however, was driven largely by manufacturers building inventories to protect against potential shortages and higher prices. S&P Global’s survey showed input inventories rose to an 11-month high, while supplier delivery times worsened, a pattern consistent with companies buying ahead of possible supply chain problems.

However, S&P Global said cost pressures intensified, with factory input costs reaching their highest level since June 2022. Companies also raised output prices, suggesting that some of those higher costs may eventually reach consumers.

The broader economy also looked softer than the headline manufacturing figure. S&P Global’s flash composite PMI, which tracks manufacturing and services, held at 51.7 in May. The services PMI slipped to 50.9 from 51.0, barely above contraction territory. Manufacturing employment rose modestly, but overall private-sector employment fell to its lowest level in 21 months, largely because of weaker services hiring.

Chris Williamson, chief business economist at S&P Global Market Intelligence, told Reuters that the reading indicated “that the economy will struggle to manage annualized GDP growth of much more ​than 1% in the second quarter.” He also cautioned that inventory accumulation tied to supply concerns is not a durable engine for expansion.

“On average, over the past three months order book growth has slowed to its weakest for two ⁠years, ​and a boost from precautionary stock building due to concerns over ​further price hikes and supply delays will not last forever,” said Williamson.

Manufacturing represents a smaller share of the U.S. economy than services, but remains closely watched because it is sensitive to global demand, shipping costs, commodity prices, and business confidence. The sector accounts for about 9.4% of the economy, according to the National Association of Manufacturers, so its strength alone may not be enough to offset weakness in services.

Source link

US Manufacturing Holds Up as Costs Gauge Hits Four-Year High

A worker arc welds a metal door during production at a manufacturing facility in Sacramento. (David Paul Morris/Bloomberg)

May 1, 2026 11:01 AM, EDT

This year’s U.S. manufacturing expansion extended into April even as the Iran war drove input prices sharply higher.

The Institute for Supply Management’s gauge of prices paid for manufacturing inputs climbed for a fourth straight month to a four-year high of 84.6, according to data released May 1.

The group’s measure of overall factory activity held steady at 52.7, matching the highest level since 2022. Readings above 50 indicate growth.

Military conflict in the Middle East and the effective closure of the Strait of Hormuz have disrupted supply chains around the world, driving up the cost of oil and other materials like aluminum and helium. Higher gasoline and diesel prices have also made shipping products more expensive.

Thirteen manufacturing industries reported growth in April, led by textile mills, nonmetallic mineral products and primary metals. Three industries indicated a contraction.

Sustained inflationary pressures may spur manufacturers to hike prices too, which could ultimately lead to higher costs for consumer goods. Data out April 30 showed the Federal Reserve’s preferred gauge of inflation jumped in March by the most since 2022.

.@ISM® Manufacturing PMI® Report: New orders ticked up, #employment contracted further and the prices elevator went even higher as #tariffs and the Middle East conflict remained headaches. The #ISMPMI was 52.7% for a second straight month. https://t.co/J7Z1OI1HlC #economy

— Institute for Supply Management (@ism) May 1, 2026

The ISM report showed new orders picked up in April as production growth decelerated. A measure of supplier deliveries rose to the highest level since 2022, with the longer lead times likely a result of war-related disruptions.

The group’s gauge of employment fell to a four-month low, indicating factory head count continued to shrink. The government’s April employment report is scheduled to be released May 8.

“Among panelists, 60% indicated that managing head counts remains the norm at their companies as opposed to hiring, and of those managing head counts, 34% are using layoffs and 43% using attrition or not backfilling positions,” Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said in a statement.

Source link

US manufacturing activity hits 4-year high: White House

US manufacturing is witnessing a surge across the country as the sector is growing for the third consecutive month, with key indicators showing broad strength, the White House recently said.

The Institute for Supply Management’s (ISM) key manufacturing index—which tracks factory activity across the country—registered the sector’s third straight month of expansion for its highest reading since 2022.

US manufacturing is seeing a surge as the sector is growing for the third month in a row, with key indicators showing broad strength, the White House said.
The ISM manufacturing index saw the third straight month of expansion for its highest reading since 2022.
The Federal Reserve Bank of Philadelphia’s April manufacturing index rose.
Orders for capital goods exceeded $4 billion in each month of Q4 2025.

The ISM new orders index expanded for the third consecutive month as both domestic and global buyers turn to US-made goods. The production index expanded for the fifth consecutive month and is accelerating as factories run at a pace not seen since before the Joe Biden-era slowdown, a White House release said.

The Federal Reserve Bank of Philadelphia’s manufacturing index surged in April, smashing expectations.

The manufacturing sector capped off the first quarter of 2026 with the first positive manufacturing job growth in three years. In a year, real manufacturing worker pay increased by $2,400 under President Trump after falling by $830 during President Biden’s four years in office.

The broader US economy has now expanded for 17 consecutive months, a streak of sustained growth the Biden Administration was never able to deliver.

Meanwhile, US Trade Representative Jamieson Greer testified this week before the House of Representatives Ways and Means Committee to lay out how Trump’s trade policy is delivering tangible results for American workers and their families, eliminating long-standing trade barriers abroad while reshoring jobs and production back home.

He highlighted the surge in orders for capital goods used for production, exceeding $4 billion each month of the fourth quarter of 2025.

Fibre2Fashion News Desk (DS)

Source link

Trump announces tariffs as high as 100% on pharmaceuticals

Exemptions include generic drugs and companies that have committed to building manufacturing plants in the United States.

President Donald Trump has announced a new pharmaceutical tariff that would impose as much as 100% on imported brand-name drugs. 

The executive order, announced Thursday, is to spur the production of pharmaceuticals in the United States. 

Exemptions are for generic drugs and companies that have already pledged to build manufacturing facilities in the United States. Pharma companies that lower prices would be subject to a 20% tax. 

“I have determined that it is necessary and appropriate to impose a 100 percent ad valorem duty rate on the import of patented pharmaceuticals and associated pharmaceutical ingredients …” Trump said in Thursday’s proclamation. “I have determined that it is necessary and appropriate that the ad valorem duty rate be 20 percent on imports of patented pharmaceuticals and associated pharmaceutical ingredients produced by companies that have plans, approved by the Secretary, to onshore production of such pharmaceuticals and pharmaceutical ingredients.”

The 20% rate will increase to 100% four years after the date of the proclamation, Trump said.

No tariffs would be imposed on imports of patented pharmaceuticals and associated pharmaceutical ingredients produced by companies that have fully executed agreements or are negotiating agreements with the Secretary and the Secretary of Health and Human Services regarding Most Favored Nation pricing and onshoring of production.

“Such agreements further United States economic and national security interests by making pharmaceuticals more accessible and affordable in the United States and by strengthening the domestic manufacturing base,” Trump said.

Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO Stephen J. Ubl responded by statement: “Tariffs on cutting-edge medicines will increase costs and could jeopardize billions in U.S. investments announced in the last year. Every dollar spent on tariffs is a dollar that can’t be invested in communities across the country. 

“The innovative biopharmaceutical sector has a robust U.S. manufacturing footprint. In fact, two-thirds of the medicines that are consumed in the U.S. are made in America. And when innovative medicines or their inputs are sourced from other countries, these products overwhelmingly come from reliable U.S. allies, like Europe and Japan.”

Biopharmaceutical innovation has delivered $1.7 trillion in economic impact, supported 5 million American jobs and provided patients with the access to new medicines, he said.

Email the writer: [email protected]

 

Source link

US Manufacturing Defies Gravity: Industrial Output Surges as Philly Fed Index Hits Five-Month High

The United States manufacturing sector, long written off by skeptics as a casualty of high interest rates and global trade volatility, has roared back to life in early 2026. Fresh data released this week shows that manufacturing output rose by a surprising 0.7% in January, more than doubling consensus estimates of 0.3%. This surge in production was further validated by the Philadelphia Fed Manufacturing Index, which leaped to 16.3 in February—a five-month high that suggests the industrial heartland is entering a “second gear” of expansion.

These figures have sent a jolt through financial markets, effectively recalibrating the narrative for the broader US economy. Instead of the “soft landing” many economists predicted for 2026, the data points toward a “no-landing” scenario: a situation where the economy continues to accelerate despite the Federal Reserve’s benchmark interest rates remaining between 3.50% and 3.75%. The resilience of the factory floor is now the primary driver of a revised economic outlook that prioritizes domestic production over globalized supply chains.

A High-Tech Rebirth on the Factory Floor

The 0.7% rise in January manufacturing output was spearheaded by a 0.8% increase in durable goods production, marking the strongest monthly performance for the sector in nearly a year. This growth was not evenly distributed but was concentrated in high-tech machinery and electronics, fueled by a massive infrastructure build-out for artificial intelligence. Domestic factories are now operating at a capacity utilization rate of 76.2%, as companies scramble to meet a sudden influx of new orders for data center hardware and advanced electronics.

This manufacturing renaissance is largely being credited to the “One Big Beautiful Bill Act” (OBBBA) of 2025, which introduced 100% bonus depreciation and aggressive incentives for domestic modernization. The timeline of this recovery began in late 2025, when supply chains finally stabilized following years of post-pandemic fluctuations. By the time January 2026 arrived, the combination of policy incentives and a surge in AI-related demand created a perfect storm for industrial growth.

The Philadelphia Fed’s February reading of 16.3 provided the psychological “all-clear” for the sector. While the headline number was robust, sub-indices revealed a complex internal dynamic: the future activity index spiked to 42.8, indicating extreme optimism for the coming six months. However, the employment index dipped slightly to -1.3, suggesting that manufacturers are increasingly leaning on automation and “low-hire” strategies to boost output rather than traditional labor expansion.

Winners and Losers in the New Industrial Era

Industrial giants like Caterpillar Inc. (NYSE: CAT) have emerged as clear winners in this environment. Caterpillar reported a record $51 billion backlog in early 2026, driven primarily by its Power and Energy segment. The company’s large-scale generators are in high demand for AI data centers, offsetting a projected $2.6 billion headwind from current trade tariffs. Similarly, GE Aerospace (NYSE: GE) has capitalized on the trend, forecasting double-digit revenue growth for 2026 as it pivots toward high-margin aftermarket services for an aging global airline fleet.

The automotive sector is also seeing a dramatic reshuffling. Ford Motor Co. (NYSE: F) recently announced plans to boost its F-Series production by 50,000 units in 2026, pivoting away from pure electric vehicles (EVs) to focus on more profitable hybrid and gas-powered trucks. Meanwhile, General Motors (NYSE: GM) is aggressively moving production of its popular SUV models from Mexico to plants in Tennessee and Kansas. This move is designed to mitigate the impact of the 2025 tariff regime and align with the “Made in America” incentives that are currently driving the 0.7% output rise.

However, not all players are faring equally. Smaller manufacturers that lack the capital to automate are struggling with a “Prices Paid” index that hit 38.9 in February, signaling persistent inflationary pressure on raw materials. While Deere & Company (NYSE: DE) has seen its stock rally 27% year-to-date due to a recovery in construction demand, it must still navigate over $1.2 billion in annual tariff costs. The “winners” in 2026 are those with the scale to reshore production and the technology to maintain margins in a high-cost environment.

The Macro Significance: “Higher for Longer” Returns

The resilience of US manufacturing has profound implications for the Federal Reserve’s policy trajectory. Entering 2026, many traders were betting on a series of rate cuts beginning in March. Those expectations have now evaporated. With manufacturing output surging and the “no-landing” scenario gaining traction, the Fed is likely to maintain its current interest rate levels well into the third quarter of 2026. The “Prices Paid” component of the Philly Fed report suggests that inflation remains stickier than the central bank’s 2% target, particularly as the 2025 tariff regime raises the cost of imported components.

Historically, such a sharp rise in the Philly Fed Index has been a precursor to sustained economic heat. Comparing this to the mid-1990s expansion, economists note that the current cycle is unique because it is being driven by a structural shift—reshoring—rather than just a cyclical rebound. This trend has ripple effects on competitors in Europe and Asia, who are seeing a “capital flight” toward the US as manufacturers seek to benefit from the OBBBA incentives and proximity to the world’s largest consumer market.

Furthermore, the policy shift toward protectionism and domestic subsidies represents a departure from decades of globalized trade. This “new normal” means that manufacturing is no longer the “swing” sector of the economy that suffers first during rate hikes; instead, it has become a resilient pillar bolstered by national security interests and the race for AI supremacy.

What Lies Ahead: Strategic Pivots and Market Risks

In the short term, investors should prepare for a period of market volatility as the reality of “higher for longer” interest rates sinks in. While the manufacturing data is positive for growth, it complicates the valuation of growth stocks that depend on cheap capital. Companies will likely continue their strategic pivots toward automation; we can expect to see increased capital expenditures (CAPEX) in robotics and AI-integrated assembly lines as firms seek to bypass the stagnant labor market reflected in the Philly Fed’s employment sub-index.

The long-term outlook remains bullish for the “re-industrialization” of America, but challenges remain. If the Fed is forced to keep rates at 3.75% or higher through 2027 to combat “tariff-flation,” the cost of servicing industrial debt could begin to eat into the very CAPEX that is driving current growth. A potential scenario involves a “bifurcated recovery,” where tech-enabled industrial leaders thrive while traditional, debt-laden manufacturers are squeezed out.

Summary and Investor Outlook

The January and February data for 2026 has confirmed that US manufacturing is undergoing a structural transformation. The 0.7% rise in output and the 16.3 Philly Fed reading are not just statistical anomalies; they are the results of a concerted policy shift toward reshoring and a technological revolution in the form of AI infrastructure.

Key Takeaways for Investors:

• The “No-Landing” is Real: Strong industrial data suggests the US economy is not cooling as fast as expected, which will delay Federal Reserve rate cuts.
• Reshoring is the Driver: Watch companies like General Motors (NYSE: GM) and Caterpillar Inc. (NYSE: CAT) as they move production back to the US to capture tax incentives and avoid tariffs.
• Watch the Margin: With the “Prices Paid” index rising, focus on companies with high pricing power and advanced automation capabilities.

Moving forward, the market will be hyper-focused on the March industrial production report and the Fed’s July meeting. For now, the factory floor is once again the engine of American economic exceptionalism, proving that even in a high-interest-rate environment, the “Made in the USA” label is staging a formidable comeback.

This content is intended for informational purposes only and is not financial advice.

Source link