General

Industrial production fell 0.3% in October after declining 0.5% in September. The decline in October was influenced significantly by the strike of Boeing workers, with a smaller impact from the lingering effects of two hurricanes. Manufacturing output decreased 0.5%, with aerospace and miscellaneous transportation equipment dropping a dramatic 5.8%. At 102.3% of its 2017 average, total industrial production in October was down 0.3% from the same month last year. Capacity utilization fell to 77.1%, 2.6 percentage points below its long-term average from 1972 to 2023, but was up 1.2% from the same month last year.

In October, major market groups saw mixed results. Among consumer goods, the production of durables decreased 1.4%. On the other hand, the index for nondurables increased 0.4%, with growth in both energy and nonenergy goods. The business equipment index declined 2.7% in October, weighed down by the sharp 13.9% drop in the production of transit equipment, affected for a second month by the strike.

Durable goods manufacturing decreased 1.2%. Apart from the large drop in aerospace and miscellaneous transportation equipment, declines occurred in primary metals (down 3.3%), motor vehicles and parts (down 3.1%) and furniture and related products (down 1.1%), with slight declines in numerous other durable industry groups. Nondurable goods manufacturing, on the other hand, inched up 0.1% in October, with the largest gain in petroleum and coal products (up 0.9%) and the largest drop in printing and support (down 2.6%).

Manufacturing capacity utilization decreased 0.5% to 76.2%, which is 2.1 percentage points below the long-term average.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the results of the 2024 election.

“Manufacturers congratulate President-elect Donald Trump on his historic victory and strong performance across manufacturing intensive states.

“Every election represents a new beginning, providing a fresh opportunity to work with and for all Americans, no matter their political affiliation, and to recommit ourselves to the American experiment. President-elect Trump, we have worked with you during your time in office to enact historic wins for the 13 million people who make things in America, to drive increased investment in the sector, create jobs and provide for communities across the country. Now it’s time to get to work to address the policies that will define your administration.

“The 2017 Tax Cuts and Jobs Act was ‘rocket fuel’ for manufacturers. The legislation increased wages, helped us hire and make tremendous investments in our businesses and communities, giving us the certainty we needed to kickstart the manufacturing resurgence we have seen in recent years. Efforts to modernize permitting processes, unleash American energy and relieve backlogs of pipeline projects helped make us energy independent and provide needed resources for allies around the world.

“But we are facing monumental headwinds today, and sector optimism is at its lowest levels in years. The cost of business continues to increase. From health care to looming tax hikes, and aggressive agency overreach, the policies of today are keeping shovels out of the ground. We believe that we can build on the successes of our previous work together to roll back burdensome regulations, unleash American energy security, power the economy of the future with an all-of-the-above energy strategy and restore the dignity of manufacturing work.

“More than 600 business leaders joined the NAM in signing a letter, which was released publicly on Election Day, to the next president stating, ‘We believe in an exceptional America, and that our future is strongest when we are united … This moment is critical for the millions of workers and communities who rely on our success. A strong manufacturing economy is essential to our national security, economic resilience and continued prosperity. We must restore confidence in the future and in the economic systems that have long driven opportunity and innovation, so that American families and businesses can thrive in a united and forward-looking nation.’

“With competitive taxes, sensible regulation and unleashed American energy, manufacturers are ready to win big. We are prepared to work closely with you and your new administration to build a future where our workers thrive and American leadership remains second to none.

“Elections may place Americans on different sides, but as we approach America’s 250th anniversary, this can be a moment to renew our belief in each other and in the promise of our nation—the promise we see every day on shop floors across our country. Let’s work together as we did before to define not just your time in the White House but to define a historic moment in our nation’s history.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – The National Association of Manufacturers and 606 business leaders from across the manufacturing economy signed and released a letter to be sent to the next president, following the election. The letter demonstrates a firm commitment to working with the next administration regardless of whom the American people send to the White House.

The letter states the following:

Dear President-Elect:

As we approach the 250th anniversary of the signing of the Declaration of Independence, we, the leaders of America’s manufacturing industry and the industries that support it, extend our congratulations on your election. This historic milestone reminds us of the moments when our country came together to define its future—built on the foundation of free enterprise, competitiveness, individual liberty and equal opportunity.

We believe in an exceptional America, and that our future is strongest when we are united. As business leaders, we have a unique responsibility to help bridge divides and advance our shared purpose. In this era of challenges and change, we are committed to working together to strengthen trust and collaboration—within our sectors and across the nation.

This moment is critical for the millions of workers and communities who rely on our success. A strong manufacturing economy is essential to our national security, economic resilience and continued prosperity. We must restore confidence in the future and in the economic systems that have long driven opportunity and innovation, so that American families and businesses can thrive in a united and forward-looking nation.

We understand the power of collaboration and are ready to work productively with your administration to tackle the pressing challenges we face. While there may be moments of disagreement, we are committed to addressing those differences with mutual respect and in the spirit of constructive dialogue.

The days following a hard-fought election have always been a time for healing, finding common ground and renewing our focus on what unites us as a people. The peaceful transition of power is a hallmark of our democracy and is essential to ensuring continued confidence in the rule of law—a commitment that has made America exceptional.

As leaders of industries that drive America’s promise, you can count on us as steadfast partners in this work and in building our future together.

To view the full list of signatories, click here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org

Nevada’s Thacker Pass lithium mine has received final approval on a $2.26 billion loan from the Department of Energy (Reuters, subscription).

What’s going on: On Monday, Lithium Americas—which is building the Thacker Pass lithium mine project in Nevada with a nearly $1 billion investment from General Motors Co.—closed on a loan from the DOE Advanced Technology Vehicles Manufacturing Loan program. The loan, which has a 24-year term, was approved provisionally in March.

• Thacker Pass, which broke ground in March 2023 just south of the Nevada–Oregon border, was approved at the end of the previous administration and is expected to open later this decade.

The big picture: “The funds are a key part of U.S. President Joe Biden’s efforts to reduce dependence on lithium supplies from China, the world’s largest processor of the electric vehicle battery metal,” according to Reuters.

• Last week, the Biden administration approved another lithium project, by developer Ioneer.

What to expect: “With the loan now closed, Vancouver-based Lithium Americas plans to start major construction, a process that could take three years or longer. The mine’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 EVs.”

• The project is anticipated to create about 1,800 jobs during construction and 360 full-time jobs once it is up and running.

Manufacturers agree that the U.S. should address the potential national security and privacy risks associated with connected vehicles—those that use technologies to communicate with each other and other systems. But “[n]ational security, privacy and economic strength can be pursued in conjunction with one another,” the NAM told the Commerce Department this week.
 
What’s going on: In September, the Commerce Department’s Bureau of Industry and Security proposed rules to ban connected vehicles that integrate information and communications technology from China and Russia (POLITICO).

• While manufacturers support safeguarding efforts, “[o]ur competitiveness also requires national security challenges to be addressed through proportionate actions … [that] do not unduly hinder” American manufacturing, NAM Managing Vice President of Policy Chris Netram told BIS on Monday.
• The rule’s software prohibitions would go into effect for vehicles model year 2027, while the hardware regulations would take effect for vehicles model year 2030. The NAM is asking BIS to discuss with stakeholders whether they need more time to comply, given the length of the automotive design and development cycles.

What it could do: If finalized, the rule would require automotive manufacturers using Chinese or Russian technology to find new suppliers.
 
The problem: “Automotive supply chains are highly complex, with [information and communications technology and services] embedded in the products of many sub-suppliers who sell to automotive original equipment manufacturers,” Netram continued.

• What’s more, information and communications technology and services “are foundational technologies across the manufacturing ecosystem and wider economy. As such, the rule in its current form could generate unintended consequences both within the automotive industry and across the broader ICTS supply chain, violating the department’s obligation to engage in reasoned decision making and avoid arbitrary and capricious rulemaking.”   

What should happen: The NAM urged BIS to take several actions, including the following:

• Clearer definitions: Certain wording in the rule should be rephrased for clarity, including “Person Owned by, Controlled by or Subject to the Jurisdiction or Direction of a Foreign Adversary” and “Connected Vehicle.”
• Covered software: “[T]he NAM urges BIS to consider revising the proposed rule to ensure it does not require visibility into and control over the software code provided by an OEM’s tier 3 suppliers and beyond.”
• Specific authorizations: “[T]he NAM recommends that BIS issue clear guidance about what criteria the Office of Information and Communications Technology would use to review and approve the risk assessments and the measures proposed by the applicant to mitigate the risks.”
• Attestations of compliance: Allow companies “to attest to their compliance” rather than “document and demonstrate compliance” to safeguard trade secrets.

The final say: With the NAM’s recommended changes, the BIS’s draft rulemaking “will support national security and privacy while ensuring that a vibrant manufacturing industry can continue to innovate and power growth in America for years to come,” Netram concluded.

Washington, D.C. – Following news that Boeing machinists voted against a new labor deal, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“The broader impact of this ongoing work stoppage is being seen across the aerospace sector as manufacturers within the supply chain are being forced to furlough employees and shutter operations. That’s why we’re urging union leadership to head back to the table and find a solution to end this prolonged strike and why we thank Acting Secretary of Labor Julie Su for her continued engagement. We’re looking at a cost of more than $3.7 billion to the regional economy after 45 days, according to NAM calculations. It is critical that an agreement be reached so we can protect Americans from the consequences of supply chain disruptions and strengthen the manufacturing industry. Preventing even greater damage to the broader economy means ensuring that Boeing is strong and operational.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Circleville, Ohio – With just weeks remaining before Election Day, the Route 250 Initiative aims to show that even in moments of political division, we can come together to celebrate the contributions of creators, makers and doers across America.

The National Association of Manufacturers, funded by a grant from Stand Together Trust, launched the Route 250 Initiative proof of concept at the Circleville Pumpkin Show to highlight stories of creators in Ohio and beyond, encouraging participants to consider how they can contribute to their communities through acts of service, innovation and collaboration as the nation gets ready to commemorate America’s 250th anniversary in 2026.

The Route 250 Diner, the centerpiece of this immersive experience, evokes the classic American diner. Visitors are invited to reflect on the contributions of those who make things in America and engage in conversations to learn more about their neighbors and get excited about the future.

“America’s Semiquincentennial is the perfect opportunity to remind ourselves—and especially the next generation—about what makes our nation exceptional,” said NAM President and CEO Jay Timmons. “When trust in our country is high, we are at our best and can do more to realize its full promise. It inspires that American spirit of hard work, grit and determination that has been central to our progress in centuries past—and will be essential for centuries to come. By strengthening civic pride, inspiring acts of service and deepening our connections to our communities, we can ensure that manufacturers and enterprises across the nation shape a brighter future for America.”

“Since the Declaration of Independence, Americans have been actively creating and building a better future for our country,” said Stand Together Vice President, Sarah Cross. “The Stand Together community celebrates this spirit of progress seen in the Route 250 Initiative. Empowered individuals driving positive change in their communities are vital to America’s next 250 years.”

“The Route 250 Initiative is an important celebration of America’s creators and makers who play a vital role in strengthening our communities through meaningful acts of service as we approach America’s 250th anniversary in 2026,” said America250 Chair, Rosie Rios. “America250 is grateful to Circleville Mayor Michelle Blanton, the National Association of Manufacturers, and Stand Together Trust, along with America 250-Ohio and our other state partners, for their invaluable support in making this initiative a reality as we build momentum towards this historic milestone.”

“Just as restaurants bring people together to share meals and important moments, this initiative provides a space for people to come together and connect,” said National Restaurant Association President and CEO Michelle Korsmo. “The Route 250 Initiative reminds us that in every community, there are people creating opportunities for themselves and others—and that’s something worth celebrating as we help more people learn how to make America’s next 250 years better than our first.

“As we approach this momentous anniversary, the Route 250 Initiative is an exciting way to bring communities together and reflect on the principles that have guided us for 250 years,” said Bill of Rights Institute President and CEO David Bobb. “By engaging in meaningful, constructive dialogue and celebrating the individuals who by their hands, hearts and minds are creating a better future, we can inspire a renewed commitment to those enduring ideals.”

In addition to the National Restaurant Association and the Bill of Rights Institute, the proof of concept is held in partnership with the International Franchise Association, The Ohio Manufacturers’ Association, the Ohio Restaurant & Hospitality Alliance and America 250-Ohio, among other supporting organizations. It’s also organized with the support of Advoc8 and LSG. The experience will be open to attendees at the Circleville Pumpkin Show Oct. 17–19, 2024.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org

-Stand Together Trust-

Stand Together Trust (STT) is a grantmaking organization that supports bottom-up solutions by empowering people through key institutions like business, communities, education, and government. We connect social entrepreneurs and policy innovators with resources—funding, incubation, talent, and strategic support—to accelerate their impact. As part of the Stand Together community, STT tackles the root causes of our country’s toughest challenges, from education and economic opportunity to health care and bridging divides. Learn more at standtogethertrust.org.

Washington, DC – Following the news of the passing of Thomas J. Donohue, former president and CEO of the U.S. Chamber of Commerce, National Association of Manufacturers President and CEO Jay Timmons released this statement:

“Tom Donohue did more than change this world for the better. He showed others how to do the same—how they too could make a difference with their lives and leadership. Today, there are millions of Americans who enjoy meaningful employment and economic security because of the work that Tom undertook, most notably during his storied leadership of the U.S. Chamber of Commerce.

“Tom could command the attention of presidents and prime ministers, of CEOs and media moguls. When he spoke, they listened. But it was his actions outside of the spotlight that revealed his true character. His compassion and his care for his fellow human—that’s what distinguished him. There are countless individuals who have benefitted from Tom’s empathy and instinctive desire to help. My family are among them; we have been recipients of his care and concern on more than one occasion. He lent a hand before you’d even have a chance to ask.

“Tom was also a mentor. As he did for other association executives finding their footing, he invited me to lunch when I began my role. We sat down, and he laid out a game plan. He did that for so many because he believed that the business community is strongest when we all are at our best.

“For anyone who wants to make an impact on the world, look to the example of Tom Donohue, whose trademark combination of dogged determination and quiet kindness made him an institution.

“Our deepest condolences go out to his companion, Margot Wilson, his three sons and their families and all who loved him.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org

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.”

Industrial production rose 0.8% in August after falling 0.9% in July. The decline in July was influenced by shutdowns due to Hurricane Beryl. Manufacturing output increased 0.9%, in part, due to a recovery in motor vehicles and parts production, which jumped nearly 10% in August. Meanwhile, manufacturing output excluding motor vehicles and parts production increased 0.3%. At 103.1% of its 2017 average, total industrial production in August was unchanged from the same month last year. Capacity utilization moved up to 78%, 1.7 percentage points below its long-term average from 1972 to 2023.

In August, the majority of major market groups saw gains. The consumer goods index rose 0.7%, with a 10.5% increase in automotive products making up for its loss in the previous month. The materials index grew 0.9%, with gains in all its subcomponents. Defense and space equipment posted a modest increase of 0.5%. The business equipment index rose 1.4%, supported by a 6.6% gain in the transit equipment index.

Durable goods manufacturing increased 2.1%. Apart from the large rebound in motor vehicles and parts, there were gains in primary metals (up 3.2%), electrical equipment, appliances and components (up 2.0%) and aerospace and miscellaneous transportation equipment (up 1.2%). Nondurable goods manufacturing, on the other hand, decreased 0.2% in August, with the largest losses in petroleum and coal products (down 2.3%) and apparel and leather (down 1.6%).

Manufacturing capacity utilization increased 0.6% to 77.2%, which is 1.1 percentage points below the long-term average.