News & Insights

Washington, D.C. – Ahead of the 2026 State of the Union address, National Association of Manufacturers President and CEO Jay Timmons released the following statement during the NAM State of Manufacturing Tour:

“The state of manufacturing is boundless if policymakers will help clear the skies. For America to lead, now and in the long run, manufacturers need a policy framework that makes the United States the best place in the world to make things—one that lowers the cost of doing business.

“Thanks to President Trump, leaders in his Cabinet and in Congress, the 2017 provisions of the Tax Cuts and Jobs Act were not just made permanent—they were made even stronger. And in doing so, we saved 6 million jobs. The tax and investment incentives in H.R. 1 amount to the most significant economic transformation in the history of our industry and is rocket fuel for manufacturers.

“Yet no rocket can launch until the skies are clear, the outlook is stable and the conditions are certain. Manufacturers need certainty because uncertainty chokes investment—and volatility chokes growth. To deliver the stability that manufacturers need to launch, the White House and Congress need to secure the rest of the NAM’s comprehensive manufacturing strategy.

“That means embracing an all-of-the-above energy strategy, delivering real permitting reform, driving the funding we need for modern infrastructure, modernizing regulations, investing in our workforce, fixing our immigration system, and instituting strategic trade policies.

“Every part and every policy must work together.

“If our nation’s leaders empower us through investments in smart and sustainable public policy, America’s manufacturers will reach new heights. What better way to honor our nation’s 250th anniversary than to empower us—the 13 million people who make things in America—to deliver the greatest manufacturing era in American history.”

Background: NAM State of Manufacturing Tour

Spanning seven states—New York, Ohio, Pennsylvania, North Carolina, Wisconsin, Texas and Arizona—the tour brings together manufacturing leaders, workers, educators, students and elected officials to highlight the policies and conditions needed for the United States to compete and win in a global economy, focusing on innovation, tax policy, permitting reform, energy dominance, workforce and trade policy.

-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 $2.95 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.

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000

2026 NAM State of Manufacturing Tour Stops in Milwaukee, Wisconsin

MILWAUKEE – The National Association of Manufacturers—official partner of America250—in partnership with Wisconsin Manufacturers & Commerce, continued its 2026 NAM State of Manufacturing Tour today in Milwaukee, Wisconsin, under the theme “Creating the Future.” Today’s visits included Rockwell Automation, Komatsu Mining Group and CNH.

The Milwaukee stops showcased how advanced manufacturing technologies power America’s industrial legacy and future—boosting productivity, strengthening supply chains and creating high-quality manufacturing careers. In Wisconsin, manufacturing supports 462,000 workers—more than 15% of the state’s workforce—cementing its role as an economic engine for the state.

“When it comes to artificial intelligence, manufacturers have not just deployed advanced technologies; we’ve developed them,” said NAM President and CEO Jay Timmons. “What we saw today at Komatsu, Rockwell Automation and CNH is proof that AI is already transforming modern manufacturing. These tools make our manufacturing workers safer, our supply chains smarter and our products more advanced. The growth of manufacturing drives AI, and the growth of AI drives manufacturing. If America wants to lead on AI, America must support the manufacturers leading the way. That includes regulations that foster innovation—not stifle it.”

The day started with a tour of Komatsu’s state-of-the-art South Harbor Campus—a world-class example of how sustainable design and high-tech manufacturing can coexist. The group then visited Rockwell Automation, the world’s largest company dedicated to industrial automation and digital transformation, where Chairman and CEO and NAM Board Chair Blake Moret has led for the past decade. After the tour, Timmons, Moret and Manufacturing Institute President and Executive Director Carolyn Lee convened a roundtable discussion on “Responsible AI Leadership,” focused on how manufacturers are approaching AI and advanced technologies.

“At Rockwell Automation, we believe that the ‘Factory of the Future’ is built on the intersection of human ingenuity and intelligent machines,” said Moret. “What we saw today in Milwaukee—from Komatsu to the discussions here at Rockwell—is an industry moving at the speed necessary to compete and win. This tour is about making sure Washington understands that speed. Manufacturers need abundant, reliable energy, comprehensive permitting reform and investments in the manufacturing workforce to ensure the massive investments required for AI and automation can continue to flow into our communities and beyond.”

The day concluded at industrial and agricultural equipment manufacturer CNH, where demonstrations showed how precision technology is benefiting both the traditional manufacturing sector and the agricultural manufacturing sector.

“Wisconsin isn’t just a manufacturing state—it’s a manufacturing powerhouse,” said Wisconsin Manufacturers & Commerce President and CEO Kurt Bauer. “From advanced machinery and paper production to food processing and cutting-edge technologies, our manufacturers compete and win globally. We are proud to partner with the NAM to showcase Wisconsin’s strength during this stop on the NAM State of Manufacturing Tour to show the strength of Wisconsin’s manufacturing workers. At the same time, we must confront a serious workforce challenge—60% of Wisconsin employers say they cannot find enough workers, and labor force participation has been declining for decades. To sustain our leadership, we need policies from Washington that strengthen and supplement our world-class training efforts, expand workforce pathways, align education with employer needs and make it easier for individuals to enter and advance in manufacturing careers.”

From Milwaukee, the 2026 NAM State of Manufacturing Tour will go on to Dallas, Texas, where Lee will deliver the 2026 Manufacturing Institute’s State of the Manufacturing Workforce Address; Houston, Texas; and conclude Friday in Phoenix, Arizona. The tour made stops in New York, Ohio, Pennsylvania and North Carolina prior to today’s events in Milwaukee. Throughout the tour, the NAM will continue meeting with policymakers, manufacturers of all sizes, students and business leaders, advocating for the people and policies that will ensure the United States is the best place in the world to do business. To learn more about the tour and the NAM’s mission, visit https://nam.org/stateofmfg/.

-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 $2.95 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.

2026 NAM State of Manufacturing Tour Stops in Charlotte and Concord, North Carolina

 CHARLOTTE – The National Association of Manufacturers—official partner of America250—in partnership with the North Carolina Chamber, continued its 2026 NAM State of Manufacturing Tour today in Charlotte and Concord, North Carolina, under the theme “Competing for the Future.”

The tour stop highlighted how the NAM-backed H.R. 1 is creating a more competitive tax environment—and why sustaining that certainty, along with regulatory rebalancing, modern infrastructure and reliable energy, is critical to driving continued investment and job creation across the sector. Today’s visits included Ketchie Inc., Siemens Energy and Electrolux.

“Here in North Carolina, we’re seeing exactly what tax certainty makes possible,” said NAM President and CEO Jay Timmons. “Thanks to President Trump and leaders in Congress, the pro-growth provisions in H.R. 1 were made permanent and strengthened, delivering a win for manufacturers of all sizes. To make the United States the best place in the world to do business and so manufacturers across North Carolina can keep investing, hiring and competing, we must build on that tax foundation we secured. That means enacting comprehensive, commonsense permitting reform to unleash American energy dominance, driving the funding we need for strong, modern infrastructure, modernizing regulations, investing in our manufacturing workforce and implementing smart AI policy—all through a comprehensive manufacturing strategy.”

Ketchie President and Owner Courtney Silver hosted the first stop of the day with a tour and panel discussion on how tax certainty due to the NAM-backed H.R. 1 has empowered manufacturers like her to reinvest in their workforce and facilities. Silver emphasized that pro-growth tax policies, such as permanent full expensing, have enabled business owners to remain agile and competitive. With that tax certainty in place, Ketchie has invested in new critical machinery—expanding capacity, increasing efficiency and positioning the company to hire, grow and compete for the long term.

The tour then moved to Siemens Energy, which recently announced a $421 million expansion in North Carolina to grow its large power transformer manufacturing and continue gas turbine production in Charlotte—an investment expected to create 500 new jobs statewide.

The day concluded at the North American headquarters of Electrolux, the global home appliance manufacturer, employing hundreds in the Charlotte region.

Throughout the day, business leaders highlighted the impact of North Carolina’s nearly 500,000 manufacturing workers who make up more than 11% of the workforce and power the largest manufacturing sector in the Southeast.

Timmons was joined by North Carolina Chamber President and CEO Gary Salamido and other NAM leaders throughout the day. Deputy Secretary of the Treasury Derek Theurer and Rep. Tim Moore (R-NC) participated in the visit to Ketchie.

“Thanks to America First policies, domestic manufacturing is back, and we’re seeing serious investments right here in North Carolina,” said Rep. Moore. “It was great to join the National Association of Manufacturers at Ketchie alongside Deputy Secretary of the Treasury Derek Theurer to see firsthand how tax certainty and pro-growth policies are giving companies the confidence to expand and compete with anyone in the world.”

“North Carolina’s manufacturers are a major driver of our state’s economy, contributing a higher-than-average 15% of our gross state product,” said Salamido. “With a manufacturing tradition like ours, we are proud to partner with the NAM to show the nation that our state is the premier destination for manufacturing, so long as pro-business policies allow for it.”

From Charlotte, the 2026 NAM State of Manufacturing Tour will go on to Milwaukee, Wisconsin; Dallas and Houston, Texas; and Phoenix, Arizona. The tour made stops in New York City, Cleveland and Pennsylvania prior to today’s events in Charlotte. Throughout the tour, the NAM will continue meeting with policymakers, manufacturers of all sizes, students and business leaders, advocating for the people and policies that will ensure the United States is the best place in the world to do business. To learn more about the tour and the NAM’s mission, visit https://nam.org/stateofmfg/.

-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 $2.95 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.

Building permits increased 4.3% in December but fell 2.2% over the year. Permits for single-family homes in December decreased 1.7% and 10.9% over the year. On the other hand, permits for buildings with five or more units surged 18.1% from November and 18.7% over the year.

In December, housing starts rose 6.2% from November but declined 7.3% over the year. Starts for single-family homes moved up 4.1% from November but dropped 9.0% over the year. Meanwhile, starts for buildings with five or more units jumped 10.1% over the month but fell 1.0% over the year.

Housing completions increased 2.3% over the month but ticked down 0.1% over the year. Single-family home completions edged down 0.1% from November but surged 10.2% from December 2024. At the same time, completions for buildings with five or more units rose 7.1% over the month but plummeted 15.9% from one year ago.

Manufacturing activity in New York state increased but at a slightly slower pace in February, with the headline business conditions index edging down 0.6 points to 7.1. The new orders index similarly ticked down but remained positive, decreasing 0.8 points to 5.8, while the shipments index plummeted 17.3 points to -1.0. Unfilled orders turned positive, surging 17.3 points to 9.1, while inventories rose 9.2 points to 7.1, indicating business inventories are growing again. Delivery times lengthened, and supply availability improved but remained negative, increasing 3.1 points to -1.0.

Employment increased in February, with the index for the number of employees rising 13.0 points to 4.0. At the same time, the average employee workweek index grew to 2.1 from -5.4, signaling an increase in hours worked from January. The prices paid index moved up 6.3 points to 49.1, while the prices received index rose 7.8 points to 22.2, reflecting a faster pace of increase in both prices received and prices paid.

In February, firms’ optimism regarding the future remained high, with the future business activity index advancing 4.4 points to 34.7. In the next six months, new orders are expected to rise and at a slightly faster pace compared to the prior month at 34.9. The future employment index jumped 11.2 points to 26.1, suggesting an anticipated faster pace of employment growth over the next six months. Meanwhile, input and selling price expectations are forecasted to increase at a faster pace, increasing from 52.6 to 57.6 and from 36.5 to 40.3, respectively. Furthermore, capital spending plans strengthened from January, up from 10.3 to 18.2.

In February, Philadelphia’s regional manufacturing activity expanded for the second consecutive month to its highest level since September, with the index for general business activity advancing from 12.6 to 16.3. This month, 31.0% of firms reported increases in activity, while 14.7% of firms noted decreases. The indexes for new orders and shipments fell, moving from 14.4 to 11.7 and from 9.5 to 0.3, respectively. Meanwhile, the employment index turned negative for the first time since June, falling 11.0 points, as the average employee workweek plunged 20.7 points to -11.6.

The prices paid index declined from 46.9 to 38.9, its lowest reading since January 2025, while the prices received index fell from 27.8 to 16.7, its lowest reading since December 2024. As has been the case for many months, the prices received index remained lower than the prices paid index, indicating that manufacturers have been absorbing a portion of higher costs paid.

Looking ahead, indicators showing expectations for future growth grew after two months of declines. After falling 12.6 points in January, expectations for future business activity soared 17.3 points to 42.8 in February. The rise came from an increase in the proportion of firms expecting an increase in activity (52.0%). At the same time, the number of firms anticipating a decrease in activity (9.2%) was virtually unchanged in February. The future new orders index rose from 32.9 to 54.1, its highest reading since November 2024, and the future shipments index moved up from 40.8 to 47.4. On the other hand, the capital expenditures index fell from 30.3 to 14.4, its lowest reading since September. The future prices paid and prices received indexes declined from 66.6 to 54.1 and from 61.8 to 50.1, respectively. Additionally, the index for future employment stepped down from 28.8 to 14.9.

In February, firms were asked about changes in core customer price sensitivity and anticipated cost changes. Of those responses, 30.8% of firms view core customers as more price sensitive since last quarter. Meanwhile, 39.1% of firms expect price changes in their industry’s costs, while 60.9% do not. When asked how they anticipate competitors to respond, 77.8% expect them to raise prices in the near term, while none believe they will lower prices. When asked, 58.3% of firms said they have experienced a net negative impact from tariffs over the past year, but 16.7% have seen a net positive impact. Looking forward, 46.2% expect a net negative impact over the next year from tariffs, while 15.4% predict a net positive impact.

The S&P Global Flash U.S. Manufacturing PMI fell from 52.4 to 51.2 in February, a seven-month low, although it remained positive. This continued the trend of seven consecutive months of growth, but marked the weakest advancement seen during that period. Factory production and new order growth both decreased in February, with production exhibiting its weakest growth since July. Meanwhile, export orders declined for the sixth consecutive month, which was due partially to adverse weather.

Inventories decreased in February as the stock of finished goods fell for the first time since July and at the sharpest rate in 13 months. At the same time, supplier delivery times lengthened to the greatest extent since October 2022, with respondents linking the increase to supplier delays, shortages and poor weather. Manufacturers’ input cost inflation ticked higher and continued to remain high by historical norms. Meanwhile, selling price inflation moderated to a 14-month low, resulting from increasing discounts to boost sales. Overall, price increases slowed for manufacturers but accelerated for the service industry.

Overall business activity declined to a 10-month low, edging down from 53.0 in January to 52.3 in February. In addition to manufacturing growth slowing, the growth rate in the services sector also moderated, falling to a 10-month low. Overall, new orders growth cooled as companies cited high prices hurting sales. Employment rose only slightly due to sluggish sales and concerns over rising costs.

On the other hand, optimism about future business conditions jumped in February to a 13-month high. The optimism reflected expectations for improving economic conditions and a boost after frigid weather lets up. In addition, companies expressed hope for greater policy support, including lower interest rates and government fiscal stimulus.

Industrial production increased 0.7% in January, while manufacturing output rose 0.6% after staying the same in December. At 97.5% of its 2017 average, manufacturing production advanced 2.4% from January 2025. Capacity utilization for manufacturing was 75.6%, up 0.4 percentage points from December and 1.1% over the past year. Capacity utilization remained 2.6 percentage points below its long-term average from 1972 to 2025.

In January, all major market groups posted gains. Consumer goods production grew 0.7%, while business equipment output increased 0.9%. The gain in production of consumer durables (up 0.5%) was led by home electronics’ output rising 2.8%. Meanwhile, the index for consumer nondurables stepped up 0.7%, experiencing gains in all but two of its categories. Among business equipment, the 1.2% gain in the index for industrial or other equipment led the increase. At the same time, the index for materials improved 0.6%, while the index for construction supplies moved up 0.5%, and the index for business supplies rose 1.1% in January.

Durable goods manufacturing advanced 0.8% in January and 3.7% from the year prior. Monthly growth was greatest for nonmetallic mineral products (up 2.2%), while aerospace and miscellaneous transportation equipment posted the only decline (down 0.2%), although it was still up 9.8% from January 2025. Meanwhile, led by a 1.3% gain in plastics and rubber products output, nondurable manufacturing increased 0.4% in January and 1.3% from January 2025.

Real GDP increased at an annual rate of 1.4% in the fourth quarter of 2025, down from a 4.4% rise in the third quarter and below consensus expectations. The increase in GDP during the fourth quarter mostly reflected increases in consumer spending and investment, which were partially offset by reductions in government spending and exports. In 2025, real GDP grew at an annual rate of 2.2%, down from 2.8% in 2024. The increase in GDP in 2025 mostly reflected a 2.7% rise in consumer spending, which was partially offset by a reduction in nondefense, federal government spending, which fell 4.2%.

Consumer spending grew at an annual rate of 2.4%, down from a 3.5% increase in the third quarter, with spending on services (up 3.4%) contributing to the gain, while spending on goods declined (down 0.1%). Consumer spending on nondurable goods ticked up 0.4%, but spending on durable goods fell 0.9% after rising 1.6% in the third quarter. The rise in nondurable goods consumer spending was driven by clothing and footwear and other nondurable goods, with declines in other nondurable goods categories. Meanwhile, the decline in consumer spending on durable goods was driven by motor vehicles and parts. Within services, spending increases were relatively widespread, with health care being the largest contributor to the gain.

Investment grew 2.6% at an annual rate in the fourth quarter, after ticking up 0.8% in the third quarter. The improvement was driven by a 7.4% surge in intellectual property products investment, up from 5.6% in the third quarter. Meanwhile, business spending on structures declined 2.4%. Exports dropped 0.9% in the fourth quarter, with the decline entirely concentrated in goods exports (down 1.8%). At the same time, imports fell 1.3% in the fourth quarter, with the decline also entirely concentrated in goods (down 2.8%). The plummet in federal government spending (down 16.6%) was driven by the extended government shutdown in the fourth quarter. Meanwhile, state and local government spending increased 2.4% in the fourth quarter, up from the 2.0% rise in the prior quarter.

Philadelphia, Pa. – During the second stop of the 2026 National Association of Manufacturers’ State of Manufacturing Tour, NAM President and CEO Jay Timmons and Rockwell Automation Chairman and CEO and NAM Board Chair Blake Moret issued the following joint statement on today’s Supreme Court decision:

“Today’s decision underscores the importance of clarity and durability in U.S. trade policy.

“Manufacturers rely on stability to plan investments, grow operations and create jobs. Ongoing legal and policy uncertainty makes it more difficult to make the long-term decisions that drive American competitiveness.

“Now is the time for policymakers to work together to provide a clear and consistent framework for trade, one that strengthens domestic manufacturing, secures supply chains for critical inputs, empowers the administration to negotiate strong trade deals and ensures manufacturers can access the materials and components they need to grow, compete and create jobs in America and the export markets they need to sell U.S.-made goods around the world. If tariffs are utilized as a tool, they should be targeted to countries engaged in specific unfair trade practices, particularly by nonmarket economies.

“We share the president’s goal of ushering in the greatest manufacturing era in American history, and clear, durable trade policies will help manufacturers deliver on that promise. Strengthening supply chain resilience will ensure manufacturers can expand production, compete globally and power economic growth here at home.

“The NAM will continue working with leaders in Congress and the administration to advance durable solutions that support manufacturers, strengthen America’s industrial base and benefit the millions of Americans who depend on a strong manufacturing economy.”

 -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 $2.95 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.

 733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000