General

After days of disruption, and sustained advocacy by the NAM to keep manufacturers’ concerns at the forefront, the East Coast and Gulf Coast ports strike has ended, allowing for the resumption of normal operations crucial to manufacturers and the broader supply chain.

Background on the strike: The strike, which began earlier this week, had halted operations at key shipping terminals stretching from Boston to Houston, exacerbating the backlog at some of the busiest ports in the U.S. (Reuters , subscription). NAM data on the effects of a prolonged strike—including a hit to the U.S. GDP by as much as $5 billion a day—was cited widely by supporters of a compromise that would keep ports open as negotiations continued.

• The tentative agreement is for a wage hike of around 62% over six years, Reuters reports, with the current Master Contract extending until January to allow for ports to remain open as a final contract is negotiated.

Impacts on manufacturing: NAM members voiced deep concerns over shipment delays and the effects on production timelines. The strike impacted everything from raw materials to finished goods, underscoring the interconnectedness of the global supply chain and domestic manufacturing.

• “Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen,” NAM President and CEO Jay Timmons said in a statement . “This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions.”

Resolution and next steps: The resolution came after intense negotiations facilitated by federal mediators, with both parties agreeing to resume operations while finalizing contract details. The NAM will monitor developments and remain engaged with policymakers to support stable labor conditions at key ports.

“Manufacturers depend on the stability of our ports to continue building, innovating, delivering products to American families and supporting communities across the country,” Timmons continued. “Another strike would jeopardize $2.1 billion in trade daily… We cannot afford that level of economic destruction.”