News & Insights

NAM: Sen. Lankford, H.R. 1 permanently restored 100% bonus depreciation for qualifying property acquired after Jan. 19, 2025, reversing a phasedown that had reduced the deduction to 40% in 2025 and would have eliminated it by 2027. As a member of the Senate Finance Committee, what does permanent full expensing mean for manufacturers making long-lived capital investment decisions, and how does permanency change their planning horizon relative to a temporary extension?

Sen. Lankford: Permanency is the difference between short-term tax relief and long-term economic certainty. Manufacturers are not making one-year decisions. They are making 10-, 20-, even 30-year capital allocation decisions on facilities, heavy equipment and production lines. When full expensing is temporary or phasing down, it distorts those decisions and often forces companies to either accelerate investments inefficiently or delay them altogether.

By making 100% expensing permanent, we are giving manufacturers confidence that the tax treatment will be consistent across the full lifecycle of an investment. That stability lowers the cost of capital, improves after-tax returns and allows companies to plan rationally instead of reacting to arbitrary deadlines.

That is why I have pushed for permanency through efforts like the ALIGN Act, which was included in the Working Families Tax Cuts Act, because pro-growth policy only works if businesses can rely on it over the long term.

NAM: During the phasedown years, when bonus depreciation fell from 100% to 80% to 60% to 40%, manufacturers reported delaying or canceling major capital purchases because the economics no longer worked as favorably. Now that 100% expensing is restored permanently, what evidence are you seeing—in Oklahoma or nationally—that manufacturers are moving forward on investments that were on hold?

Sen. Lankford: What we are hearing, both in Oklahoma and across the country, is that the return to full expensing is beginning to unlock projects that were sitting on the sidelines. During the phasedown, when expensing dropped from 100% to 40%, many of those investments simply didn’t pencil out.

That lines up with what we know about Oklahoma’s economy. The state is heavily concentrated in capital-intensive sectors like oil and gas, manufacturing and aerospace. Oil and gas alone accounts for a significant share of state GDP, and when you include the broader supply chain, it touches more than a quarter of the economy. These are exactly the types of industries where cost recovery drives investment decisions.

In practical terms, that showed up in delayed energy projects, deferred equipment purchases and slower expansion of processing and manufacturing facilities. In manufacturing and aerospace, companies stretched the life of existing equipment and postponed automation upgrades.

Now, with full expensing permanently restored, those same businesses are revisiting projects. That includes moving forward on pipeline investments, placing new equipment orders and advancing plant and infrastructure upgrades. The key shift is that companies are no longer trying to time the tax code. They are making decisions based on operational need and long-term growth.

NAM: H.R. 1 also raised the Section 179 expensing cap from $1 million to $2.5 million, providing a complementary benefit particularly for smaller manufacturers. The legislation also expanded bonus depreciation to manufacturing facilities. How do bonus depreciation, the enhanced Section 179 and the new deduction for factories work together to drive capital investment across manufacturers of all sizes, and what are you hearing from businesses about how these provisions are impacting them?

Sen. Lankford: For smaller and mid-sized manufacturers, Section 179 is often the tool they use the most. These are businesses that are upgrading equipment, adding a new machine or expanding part of their shop floor. They are not doing massive projects all at once. They need something simple, predictable and easy to use. Increasing the cap means more of those everyday investments can be written off immediately, which helps with cash flow and makes it easier to keep reinvesting.

For larger manufacturers, the scale is different. They are looking at bigger equipment purchases, full production lines and major upgrades across facilities. Bonus depreciation matters here because it allows them to expense those larger investments upfront. When you are talking about large equipment investments, that timing difference can influence whether a project moves forward now or gets pushed out.

The addition of expensing for manufacturing facilities is a big step forward. For a lot of companies, the building is one of the most expensive parts of the project, not just the equipment inside it. Whether it is a new plant or expanding an existing one, being able to expense both the facility and the equipment reflects the full cost of what it takes to grow.

When you put all of that together, it creates a system that works for manufacturers at different sizes and at different stages. It supports the smaller, steady investments and the larger, long-term projects. It does not solve every challenge, but it removes a major barrier and lets companies make decisions based on what they actually need to grow.

NAM: Thank you, senator. What can NAM members do to help manufacturers understand and act on the restored bonus depreciation and enhanced Section 179 provisions?

Sen. Lankford: The most important thing NAM members can do is make sure permanent expensing actually reaches the shop floor. A lot of small manufacturers may not have heard about what changed, and even if they have, they may not immediately connect a tax provision to a real equipment decision. It’s a simple but important message: if you’ve been holding off on a new piece of equipment, talk to your accountant now, because you may be able to write off the full cost this year. Pro-growth policy only delivers if manufacturers know about it and use it, and that’s where NAM can make a real difference. That’s what will drive long-term investment, create jobs and grow local economies.

Washington, D.C. – On the first Tax Day since passage of H.R. 1, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“This Tax Day, manufacturers now have a permanent, pro-growth tax code that allows our industry to compete and win. 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, which 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, serving as rocket fuel for manufacturers.

“Manufacturers’ optimism is on the rise, and they are ready to keep building, investing and leading—but that requires certainty across the board to take full advantage of H.R. 1’s transformative provisions. President Trump and Congress went above and beyond to deliver tax certainty for manufacturers, and we look forward to continuing to work with them to build on this progress—ensuring certainty and lowering the cost of doing business—so that manufacturers can deliver the greatest manufacturing era in American history.

“This Tax Day, the message is clear: when Washington gets the tax code right, manufacturers deliver.”

This week, Timmons published a joint op-ed in the Washington Examiner with House Majority Whip Tom Emmer (R-MN) on the pro-growth tax reforms of H.R. 1. Read it here.

Manufacturing Wins

Learn more about how tax reform is bolstering manufacturing in America:

• Ketchie CEO Credits Trump’s “Beautiful Bill” with Helping Her Machine Shop Prosper
• Brunswick Revs the Engine on Innovation and U.S. Investment
• Tax Reform Delivers “Biggest Investment in Company History” for Marlin Steel
• J&J Makes Major Investment in North Carolina Thanks to Tax Reform
• Sylvamo to Congress: Tax Reform Made Manufacturing Success Possible

Background

Prior to final passage of H.R. 1 in 2025, the NAM activated manufacturers in America—engaging shop floor workers, plant managers, executives and state and local partners nationwide­—as part of the “Manufacturing Wins” campaign. With a coordinated public advocacy campaign, which included outreach to congressional offices both in district and in Washington, targeted social media drives, video testimonials and local media op-eds, the NAM made the case for this bill directly to members of Congress and the American people. These collective voices underscored how preserving and expanding key tax provisions translates into growing businesses, creating jobs and powering stronger communities.

In January 2025, the NAM released a landmark EY study on the economic consequences of failing to renew the pro-manufacturing provisions of the Tax Cuts and Jobs Act. The NAM was joined by Senate Finance Committee Chairman Mike Crapo (R-ID), House Ways and Means Committee Chairman Jason Smith (R-MO) and House Majority Leader Steve Scalise (R-LA) for a Capitol Hill press conference highlighting the study.

KEY FACTS: If Congress had failed to preserve tax reform in 2025, the U.S. would have risked:

• 5.9 million lost jobs;
• A $540 billion reduction in employee compensation; and
• A $1.1 trillion shortfall in U.S. GDP.

-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.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons issued the following statement congratulating former NAM Board Chair Jim Fitterling on his appointment as executive chair of the board of Dow Inc.

“Dow’s announcement marks an important leadership transition for the iconic manufacturer and an opportunity to recognize the extraordinary leadership of Jim Fitterling.

“Jim is a leader of substance and integrity—clear in his direction, consistent in his approach and deeply committed to the people and communities that power manufacturing. As NAM Board chair, he helped strengthen the association’s impact and build consensus across the industry around a competitiveness agenda that is delivering results—from historic tax reform implementation to regulatory modernization and a growing consensus around permitting reform as essential to unlocking investment, jobs and growth in America.

“Jim’s imprint on America’s future has extended well beyond policy. He has been a driving force behind efforts to inspire the next generation of manufacturers. Through his leadership, the Creators Wanted campaign became the most successful workforce initiative in modern manufacturing history—reaching millions of students, parents and educators and changing perceptions about careers in our industry. He approached that work with a straightforward message: if you want to design, build and create, manufacturing offers that opportunity.

“He carried that same commitment into his strong support for the Manufacturing Institute as a respected advocate for bringing one’s authentic self to the workplace, helping broaden the impact of the MI in developing talent and opening doors for more Americans to pursue careers in modern manufacturing.

“Jim leaves behind a stronger Dow, a more competitive manufacturing industry and meaningful progress in building the workforce that will define the future of manufacturing in the United States. On a personal level, he has been a trusted partner, counselor and a leader who consistently pushed for excellence and results on behalf of manufacturers.

“As we continue our historic charge with Jim as an Executive Committee member of the NAM, manufacturers congratulate Karen Carter on being named CEO of Dow. Karen is a proven and accomplished leader, and we look forward to working with her as she builds on Dow’s momentum and continues advancing manufacturing in the United States and around the world.”

-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

New orders for manufactured goods were virtually unchanged in February after staying the same in January. Meanwhile, new orders for manufactured goods increased 3.7% over the year. When excluding transportation, new orders rose 1.2% over the month and 1.7% year-over-year in February. Orders for durable goods declined 1.3%, following a 0.4% decrease in January. Year to date, durable goods orders jumped 8.2%. Meanwhile, nondurable goods orders grew 1.5% in February after advancing 0.5% in January. On the other hand, nondurable goods orders edged down 0.6% over the year.

In February, the largest monthly increase occurred in mining, oil field and gas field machinery, which surged 14.2% after a 7.0% gain in January. The largest decline occurred in nondefense aircraft and parts, which plummeted 28.6% after falling 1.7% the prior month. The largest over-the-year changes occurred in nondefense aircraft and parts (up 60.8%) and photographic equipment (down 15.6%).

Factory shipments rose 1.4% in February, after increasing 0.7% in January. Shipments grew 2.7% over the year. Shipments excluding transportation similarly increased 1.4% in February, following a 0.5% uptick the previous month. Shipments for durable goods similarly moved up 1.4% in February, following a 0.9% rise in January, and are up 6.2% year to date. Meanwhile, nondurable goods shipments climbed 1.5%, after advancing 0.5% the prior month, and have declined 0.6% year to date.

Unfilled orders for all manufacturing industries edged up 0.1% in February, after increasing 0.6% in January. Unfilled orders over the year jumped 11.0%. Inventories inched up 0.1% month-over-month and 0.7% year-over-year. The inventories-to-shipments ratio declined from 1.55 in January to 1.53 in February. The unfilled orders-to-shipments ratio for durable goods moved down to 6.92 in February from 6.99 in January.

In March, consumer prices increased 0.9% from February and 3.3% over the year, up from the 2.4% annual rise in February and the greatest over-the-year increase since April 2024. Core CPI, which excludes more volatile energy and food prices, rose 0.2% from February and 2.6% over the year, up slightly from the 2.5% 12-month increase the month prior.

Energy costs jumped 10.9% over the month in March, after advancing 0.6% in February. Over the year, energy costs surged 12.5%, after ticking up 0.5% year-over-year in February. Within the energy index, gasoline prices soared 21.2% in March and 18.9% over the year, while fuel oil prices climbed 30.7% month-over-month and 44.2% year-over-year. Meanwhile, electricity prices grew 0.8% in March and 4.6% from March 2025, while natural gas prices declined 0.9% over the month but were still up 6.4% over the year.

In March, food prices stayed the same over the month but increased 2.7% over the year, down from the 3.0% year-over-year advance in February. Prices for food at home edged down 0.2% from February but rose 1.9% from March 2025, while prices for food away from home moved up 0.2% month-over-month and 3.8% year-over-year. Of the different food groups, beef and veal and coffee continue to rise at the fastest pace, surging 12.1% and 18.7% over the year, respectively.

The shelter index advanced 0.3% from February and 3.0% over the year, consistent with the 3.0% annual gain in February. Meanwhile, prices for used cars and trucks fell 0.4% over the month and 3.2% over the year, while new vehicle prices ticked up 0.1% over the month and 0.5% from March 2025. Relatedly, prices for motor vehicle maintenance and repair jumped 1.3% month-over-month and 6.1% year-over-year.

The headline inflation rate is still above the Federal Reserve’s target of 2.0% and continues to creep up from its 2025 lows. Despite labor market risks persisting, Federal Reserve officials held their interest rate target steady at their January and March meetings, and markets anticipate that the Federal Open Market Committee will keep its interest rate target unchanged again at the meeting later this month as risks to the Federal Reserve’s inflation mandate rise.

Washington, D.C. – The Manufacturing Leadership Council, the digital transformation division of the National Association of Manufacturers, today announced the finalists for the 2026 Manufacturing Leadership Awards, honoring world-class manufacturers and individual leaders for outstanding achievements in digital transformation. In addition, MLC unveiled the 2026 Partners in Collaborative Innovation, which recognizes technology and consulting organizations that play a vital role in advancing Manufacturing 4.0 throughout the industry.

The 2026 Manufacturing Leadership Awards finalists represent excellence across nine project categories and two individual categories, reflecting the breadth, depth and momentum of digital innovation underway throughout the manufacturing sector. A complete list of finalists is available here.

“In an era defined by rapid technological change and continued business uncertainty, manufacturers are demonstrating that digital transformation remains a powerful driver of resilience, competitiveness and long-term growth,” said David R. Brousell, founder, vice president and executive director of the Manufacturing Leadership Council. “The 2026 finalists showcase the ingenuity, leadership and strategic vision that are shaping the future of manufacturing, and we are proud to recognize their accomplishments.”

Category winners will be announced at the Manufacturing Leadership Awards Gala on June 24, 2026, at the Fairmont Princess in Scottsdale, Arizona. In addition to category winners, the gala will also recognize recipients of the Future of Manufacturing Award, Small/Medium Enterprise Manufacturer of the Year, Large Enterprise Manufacturer of the Year and Manufacturing Leader of the Year. The gala takes place at the conclusion of Rethink: Accelerating Digital Transformation in Manufacturing.

“The Manufacturing Leadership Awards continue to evolve alongside the industry, mirroring how manufacturers are applying advanced technologies to transform operations, culture and business models,” said Penelope Brown, senior content director at the Manufacturing Leadership Council and director of the awards program. “This year’s finalists reflect an exceptional level of strategic thinking and execution, underscoring how digital initiatives are delivering real, measurable impact across the manufacturing enterprise.”

In conjunction with the finalist announcement, MLC also named its 2026 Partners in Collaborative Innovation, honoring organizations that support manufacturers on their digital transformation journeys through thought leadership, technology, research and ecosystem-building. These partners play an essential role in fostering collaboration, accelerating innovation and strengthening the broader Manufacturing 4.0 community.

All finalists will be formally recognized on stage during the Manufacturing Leadership Awards Gala. Additional details about the awards program, the gala event and the complete list of finalists and Partners in Collaboration can be found 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 $2.95 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

Washington, D.C. – The Manufacturing Leadership Council, the digital transformation division of the National Association of Manufacturers, today announced the appointment of Ron Castro, vice president and chief supply chain officer at IBM, as chairman of the MLC Board of Governors, and Will Bonifant, group vice president and chief supply chain officer at Hormel Foods, as vice chairman.

The MLC Board of Governors is a distinguished advisory body composed of senior manufacturing executives who provide strategic guidance to the council on its critical issues agenda, research initiatives and programs designed to help manufacturers advance on their Manufacturing 4.0 journeys.

“Ron and Will bring exceptional leadership experience, deep operational expertise and a strong commitment to advancing digital transformation in manufacturing,” said David R. Brousell, founder, executive director and vice president of the Manufacturing Leadership Council. “Their perspectives will be invaluable as the MLC continues to help manufacturing leaders navigate an increasingly complex and technology-driven environment.”

As chairman, Castro will help guide the strategic direction of the MLC at a time when manufacturers are accelerating the adoption of advanced technologies across operations and supply chains. At IBM, Castro leads global supply chain operations and has been instrumental in driving the development of an end-to-end, AI-enabled supply chain that integrates advanced analytics, automation and cognitive technologies to improve performance, resilience and decision-making.

“It is an honor to serve as chairman of the Manufacturing Leadership Council Board of Governors,” said Castro. “The MLC plays a critical role in bringing manufacturing leaders together to share insights, challenge conventional thinking and accelerate progress toward Manufacturing 4.0. I look forward to working closely with the board and the MLC leadership team to further strengthen the council’s impact across the industry.”

Bonifant, as vice chairman, brings extensive global supply chain and operations leadership experience spanning food and consumer packaged goods manufacturing, engineering, strategy and organizational transformation. In his role at Hormel Foods, Bonifant oversees the company’s global supply chain, including procurement, manufacturing, planning, logistics, engineering and supply chain innovation. Prior to joining Hormel Foods, he held senior supply chain leadership roles at The Hershey Company and earlier served as a management consultant and U.S. Navy officer.

“I’m honored to take on the role of vice chairman of the MLC Board of Governors,” said Bonifant. “The council’s focus on the intersection of technology, leadership and operations is more important than ever, and I look forward to contributing to its mission of helping manufacturers build more agile, resilient and digitally enabled enterprises.”

The Manufacturing Leadership Council is the nation’s foremost executive leadership organization dedicated exclusively to digital transformation in manufacturing. Through research, events, peer networking and thought leadership, the MLC helps manufacturing executives understand and act on the technological, organizational and leadership dimensions of Manufacturing 4.0.

-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

In January, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 0.9% annual gain, down from the 1.1% gain in December. The 10-City Composite increased 1.7%, down from 2.0% the previous month, while the 20-City Composite rose 1.2% year-over-year, down from 1.4% in December. Among the 20 cities, New York posted the highest annual gain at 4.9%, followed by Chicago at 4.6% and Cleveland at 3.6%. Meanwhile, Tampa again posted the lowest annual return, with prices falling 2.5%.

On a month-over-month basis, the U.S. National Index and 20-City Composite both declined 0.1% before seasonal adjustment. At the same time, the 10-City Composite ticked down 0.03%. After seasonal adjustment, the U.S. National Index, 10-City and 20-City Composites all rose 0.2%. The Northeast and Midwest continued to outperform other regions as January continued the trend of weak price growth. Meanwhile, in addition to Tampa, the Sun Belt market kept declining, including Denver (down 2.1%), Phoenix (down 1.6%), Dallas (down 1.5%) and Portland (down 1.0%).

Affordability concerns showed no sign of easing as the market appeared to be neither recovering nor correcting. Before seasonal adjustment, 14 of the 20 major metro areas saw price declines in January. In areas where prices continued to rise, appreciation has slowed notably. Overall, home price growth trailed inflation, reducing home values over the past year.

Consumer confidence inched up 0.8 points in March to 91.8. Among its components, the Present Situation Index improved while the Expectations Index declined as customers’ concerns regarding the present situation eased and concerns about the future worsened.

The Present Situation Index, reflecting current business and labor market conditions, rose 4.6 points to 123.3. Meanwhile, the Expectations Index, which reflects customers’ short-term outlook for income, business and labor market conditions, decreased 1.7 points to 70.9, remaining below the recession signal threshold of 80 since February 2025.

Views of the current labor market situation were virtually unchanged, with 27.3% of consumers saying jobs were “plentiful,” up slightly from February (26.7%), while 21.5% said jobs were “hard to get,” also up slightly from February (21.0%). Looking to the future, 15.4% said they expect more jobs to be available, down from 16.0% the prior month, while 27.9% anticipate fewer jobs, up from 26.2% the previous month.

Mentions of high prices and inflation continued to top the list of topics influencing consumers’ views of the economy. At the same time, mentions of energy prices and the conflict in Iran picked up, while mentions of trade decreased meaningfully in March. Consumers’ 12-month inflation expectations jumped to their highest levels since August 2025, and the proportion of consumers expecting higher interest rates surged. At the same time, the share of consumers who believe a recession is “very likely” over the next year rose, but the small share thinking the economy is already in a recession was virtually unchanged.

Buying plans for cars, with a clear preference for used cars, rose in March, but purchasing plans for homes softened slightly. Meanwhile, consumers’ plans for buying other big-ticket items declined. At the same time, consumers’ intentions to purchase more services fell for every category in March. Despite declining, restaurants, bars and take-out remained the top planned service spending category in March. Overall, consumers’ views of their current financial situation strengthened slightly in March, while views of their future financial situation worsened.

In March, Texas factory activity expanded but at a weaker pace after improving the prior month. The production index decreased from 12.5 to 6.8, falling below the series average of 9.6. The new orders index declined 5.0 points to 6.1, while the capacity utilization index stepped down 4.6 points to 7.2. Meanwhile, the shipments index fell 8.1 points to 1.8. The Eleventh District consists of all of Texas, northern Louisiana and southern New Mexico.

Perceptions of manufacturing business conditions weakened slightly in March, with the general business activity index edging down 0.4 points to -0.2. At the same time, the company outlook index also turned negative, falling 6.6 points to -3.5. Moreover, the uncertainty index jumped 19.5 points to 26.0, rising above the series average and to its highest reading since April 2025.

Labor market indicators suggested a decline in headcounts and a virtually unchanged workweek in March, with the employment index decreasing 8.5 points to -1.0 and the hours worked index declining 5.2 points to 0.9. Nearly 15.0% of firms reported net hiring, while a larger percentage (16.0%) noted net layoffs.

Price pressures strengthened slightly, while wage pressures weakened in March. The prices paid for raw materials index inched up 1.0 point to 32.7. Meanwhile, the prices received for finished goods index ticked up 0.5 points to 18.4, both higher than the series averages. The wages and benefits index fell 6.7 points to 25.2, remaining above the series’ average of 21.0.

The outlook for future manufacturing activity weakened in March, despite the future production index improving 1.4 points to 35.7. Moreover, the future company outlook index declined 7.5 points to 18.2, while future general business activity decreased 2.1 points to 10.6, with both indexes dipping below the series’ averages.