Milo’s Tea Has a Recipe for Sustainability
At Milo’s Tea, every element of the company’s delicious beverages is scrutinized for sustainability opportunities—from bottle-sourcing to the water and tea leaves that go into each gallon.
The bottles: The Bessemer, Alabama–based business recently opened a new, one-gallon bottle-blowing facility in its hometown, right next to its distribution center.
- The new facility will reduce carbon dioxide emissions by 1,000 metric tons per year, since it will eliminate the need for trucks to travel from farther-off bottling locations to the Bessemer distribution facility.
- “We’re still family-held, and sustainability is a family value, too,” said Chief Operating Officer Chris Droney. “When you have a project like this, that has a positive environmental impact and allows us to reinvest in our company growth, that’s a win–win.”
The water: The 78-year-old Milo’s Tea—which in 2022 became the top-selling refrigerated tea brand in the U.S. and is the fastest-growing refrigerated lemonade brand—has a strong track record of environmental resource preservation, starting with its water conservation.
- Since 2019, Milo’s has conserved nearly 37 million gallons of water, an achievement that has helped earn the certified woman-owned business two Platinum TRUE Zero Waste certifications (one for its Bessemer plant and another for its Tulsa, Oklahoma, facility).
- Among other measures, the company has invested in new, more water-efficient line-cleaning (clean-in-place) technology, which it uses between production runs to clean the brew, blend and filler equipment. “If we’re going from making sweet tea to zero-calorie tea, for example, it’s very important to make sure there’s no residue” in the lines, Droney explained.
- The enhanced equipment reduces energy, water and cleaning agent consumption, while also improving the effectiveness of the cleaning cycle. Milo’s made additional improvements to the production scheduling process, which decreased the total number of cleaning cycles required and further reduced energy, water and cleaning agent consumption.
- Milo’s was also able to reduce the amount of excess product the company had in its tanks during those flavor switchovers, further reducing waste and water use.
The tea: Milo’s earned its Oklahoma Zero Waste certification in part through “re-earthing” its tea leaves—“the largest waste stream we have”—in partnership with GEM Dirt, Droney said.
- The topsoil company takes Milo’s spent tea leaves and turns them into compost that it blends with dirt to create nutrient-rich soils. In 2023, Milo’s re-earthed more than 10,000 tons of used tea leaves from all facilities.
The packaging: When it comes to packaging, Milo’s doesn’t let dents stand in its way. The firm has installed compressed air stations on its lines to un-dent damaged bottles before they’re filled, so that none are thrown away.
- “At our flagship facility in Bessemer, if bottles can’t be undented, we send them back to the manufacturer and they can be reground and made into new bottles,” Droney continued. “A recycled bottle uses less resin than a new one.”
The production process: Milo’s has also recycled and diverted more than 148,000 tons of waste since 2019, another reason it has been so highly certified. On top of that, it has prioritized renewable energy sources at its facilities.
- Solar panels went live at the Bessemer plant in 2023, and this past summer, the business commissioned a rooftop solar farm at its Tulsa facility.
- The panels offset from 5% to 10% of each site’s total annual energy consumption, Droney told us. More solar panels are scheduled for other Milo’s sites, he added.
Advice for other manufacturers: Careful environmental stewardship can pay dividends for manufacturers, according to Droney.
- Profitability and sustainability “go hand in hand; we really believe that,” he said. “Solar power, onsite bottle blowing—there’s a cost to it, but there’s also a benefit. When you combine those, not only are you doing the right thing, but you’re generating fuel for future growth. We all have a responsibility to drive sustainability.”
Factory Shipments Continue to Decline, Despite Nondurable Goods Growth
New orders for manufactured goods rose 0.2% in October, after falling the previous two months. When excluding transportation, new orders edged up 0.1%. Orders for durable goods rose 0.3% after falling 0.4% in September. Year to date, durable goods orders are down 0.8%. Nondurable goods ticked up 0.1% in October after declining 0.1% in September. Nonetheless, nondurable goods orders are up 1.5% year to date.
New orders for mining, oil field and gas field machinery experienced the greatest increase of any industry at 17.4%, while metalworking machinery had the largest over-the-month decrease of 5.9%. After falling 23.0% in September, defense aircraft and parts orders are rose 16.6% in October. The largest over-the-year changes occurred in nondefense aircraft and parts (down 30.2%) and computers (up 21.5%).
Factory shipments decreased 0.2% in October, after falling 0.4% in September. Shipments excluding transportation edged up 0.1%, the same increase as the previous month. Shipments for durable goods declined 0.5% in October but are up 1.8% year to date. Meanwhile, nondurable goods shipments inched up 0.1% in October and are up 1.5% year to date.
Unfilled orders for all manufacturing and durable goods industries rose 0.4% in October, following a 0.3% increase in September. The unfilled orders-to-shipments ratio for durable goods increased to 7.03 from 6.97 in September. Inventories saw a slight decrease of 0.1%, while the inventories-to-shipments ratio remained unchanged at 1.46.
U.S. Manufacturing Contracts at Slower Pace in November
In November, U.S. manufacturing remained in contraction but at the slowest pace of the past five months. The S&P Global U.S. Manufacturing PMI rose to 49.7 in November from 48.5 in October, barely below the 50 threshold that indicates a contraction in the sector. This suggests manufacturing conditions continued to deteriorate but to a lesser extent than the previous month.
While the rate of decline in new orders slowed sharply, output continued to be scaled back. In addition, production levels fell for a fourth consecutive month to the fastest rate in more than a year. However, rising confidence encouraged manufacturers to increase employment. The rise in employment despite a slowdown in new orders meant firms were able to reduce their backlogs of work.
New export orders also declined and at the fastest pace since June 2023, as international demand weakness worsened. Nevertheless, the downturn in domestic demand for goods is easing, which could improve conditions for manufacturers in 2025. Respondents’ optimism about the year ahead strengthened to the highest level in two and a half years, boosted by the pre-election uncertainty ending.
The pace of input cost inflation eased slightly. On the other hand, output prices increased at a slightly faster pace and was above the pre-pandemic average. As a result of tariff threats, one in four companies reported higher input purchases in November, underlying manufacturers’ concern for how tariffs may impact input prices.
Consumer and Intermediate Goods Drive Growth Despite Investment Goods Decline
In November, the global manufacturing sector stabilized at 50.0 after contracting for four consecutive months. Three of the five PMI components were at levels consistent with expansion, as output and new orders registered meager growth, and average vendor lead times lengthened. On the other hand, employment and stocks of purchases both declined but at slower rates than the month prior.
The shift from contraction to stabilization is reflective of improvement of operating conditions in China and the rest of Asia and easing of conditions in the U.S. On the other hand, this improvement in business conditions was contrasted by a deep downturn in the Eurozone and Germany in particular. Growth was fastest in India, the Philippines, Kazakhstan, Colombia and Spain compared to other surveyed countries.
Data broken down by sector exhibited that output growth of consumer and intermediate goods producers more than offset a further downturn in the investment goods category. Increased production was due to new orders stabilizing and clearing backlogs of work.
In November, manufacturing employment declined for the fourth consecutive month but at a slightly slower rate than the prior month. Job cuts were reported in the Eurozone, China, the U.K. and Japan, while the U.S., India and Brazil registered employment growth. Nevertheless, confidence rose to a six-month high, with optimism improving across the consumer, intermediate and investment goods industries. On the other hand, inflationary pressures picked up, with both input prices and output charges rising.
Production and Inventories See Slower Declines Amid Tariff Concerns
In November, the U.S. manufacturing sector contracted for the eighth consecutive month, with the ISM Manufacturing® PMI rising to a five-month high at 48.4% from 46.5% the prior month, indicating activity contracted at a slower pace. The New Orders Index returned to expansion after seven months of contraction, registering 50.4%. Meanwhile, production (46.8%), inventories (48.1%) and backlog of orders (41.8%) remained in contraction, with production and inventories at slower rates of decline. The Inventories Index, although still low, rose 5.5 percentage points, the largest gain of the report. While there is not yet a concerted stockpiling effort, the increase in the index may be a reflection of companies being more willing to invest in inventory as a response to tariff threats. Supplier deliveries are no longer slowing, and although demand continues to be weak, companies have the benefit of some increased certainty with the election cycle ending.
Although the New Orders Index grew and is up 3.3 percentage points from October, the index hasn’t shown consistent growth since a 24-month streak of expansion ended in May 2022. Despite the slight upswing, respondents continue to note ongoing uncertainty and concern about a lack of new order activity, with three major sectors—computer and electronic products; machinery; and food, beverage and tobacco products—reporting an increase in new orders.
The Production Index remained in contraction in November but inched up 0.6 percentage points from October. Of the six largest manufacturing sectors, only two (computer and electronic products and food, beverage and tobacco products) reported increased production. While new order rates expanded somewhat, backlog levels continued to decline, leading to manufacturers reducing output.
The Employment Index is up 3.7 percentage points from October, contracting for the sixth consecutive month but at a slower pace. Companies continued to reduce headcounts through layoffs, attrition and hiring freezes, with only the food, beverage and tobacco products sector expanding employment in November.
The Prices Index fell 4.5 percentage points to 50.3%, indicating raw materials prices increased in November but at a slower pace than the month before. Aluminum, copper and natural gas registered slight increases, offset by steel, plastic resins and crude oil falling in price. Slightly more than 12% of companies reported paying higher prices, compared to nearly 20% in October.
U.S. Job Openings Rise Despite Cooling Labor Market
In October, job openings for manufacturing dropped by 13,000 to 465,000, decreasing in both durable and nondurable goods by 4,000 and 8,000 job openings, The manufacturing job openings rate fell 0.1% to 3.5% in October and declined from 4.3% the previous year. The rate for durable goods manufacturing stayed the same at 3.8%, while it decreased from 3.1% to 3.0% for nondurable goods.
In the larger economy, the number of job openings rose to 7.7 million, an increase of 372,000 from the previous month but a decrease of 941,000 from the previous year. The job openings rate increased to 4.6%, up from 4.4% in September, but declined from 5.2% last year. While this data reflects an overall labor market that remains solid despite cooling over the past year, it also exhibits continued weakness for the manufacturing industry.
The number of hires in the overall economy fell to 5.3 million from 5.6 million in September and dropped 501,000 from the previous year. The hires rate decreased 0.2% to 3.3%. Meanwhile, the hires rate for manufacturing declined 0.2% to 2.6%. The hires rate for durable goods fell to 2.2%, while it stayed the same for nondurable goods at 3.3%.
Total separations, which includes quits, layoffs, discharges and other separations, rose 65,000 from September to 5.3 million but dropped 369,000 from the previous year. The total separations rate stayed the same at 3.3% but fell to 2.6% from 2.9% for manufacturing. Within that rate, layoffs and discharges declined in October, while quits rose. The quit and layoff rates continue to remain lower for manufacturing than the total nonfarm sector.
Unemployment Rate Rises Slightly, Labor Participation Dips
Nonfarm payroll employment increased by 227,000 in November, recovering from the measly job gain the prior month and beating the expectation of 214,000. October’s job gain, which was revised upward to 36,000 from 12,000, was impacted heavily by hurricanes and strike activity. The 12-month average stands at 186,000 job gains per month. The unemployment rate ticked up 0.1% to 4.2%, while the labor force participation rate dipped 0.1% to 62.5%.
Manufacturing employment rose by 22,000, not fully recouping the 48,000 jobs lost the prior month. Meanwhile, employment in transportation equipment manufacturing increased by 32,000 in November, reflecting the end of the Boeing worker strike. The most significant losses in manufacturing in November occurred in computer and electronic products, which shed 4,000 jobs over the month.
The employment-population ratio fell slightly to 59.8% and is down 0.6 percentage points from a year ago. Employed persons who are part-time workers for economic reasons decreased by 100,000 to 4.46 million but are up from 3.99 million in November 2023. Native born employment is down 215,000 over the month and 1,094,000 over the year. Meanwhile, foreign born employment is also down over the month but up 401,000 over the year.
Average hourly earnings for all private nonfarm payroll employees rose 0.4%, or 13 cents, reaching $35.61. Over the past year, earnings have grown 4.0%. The average workweek for all employees edged up 0.1 hour to 34.3 hours in November.
NAM Leads Industry-Wide Call for Trump Regulatory Reforms
The regulatory onslaught facing manufacturers has “reached a fever pitch” over the past four years, but the incoming administration can turn things around, the NAM and more than 100 other manufacturing associations told President-elect Trump and his Cabinet today.
What’s going on: “You have the opportunity to tackle this challenge by addressing burdensome regulations that are stifling investment, making us less competitive in the world, limiting innovation and threatening the very jobs we are all working to create right here in America,” the groups wrote to the president-elect.
What they said: The letter outlines a pro-manufacturing regulatory agenda based on more than three dozen regulatory actions the administration can take starting on Day One. Key highlights include the following:
- Instituting a “regulatory reset”: The NAM and its partners are calling on the incoming administration to “stop the trend of overreaching regulations that seek to expand agencies’ authority” and instead focus on tailored rulemakings based on robust collaboration with the industry.
- Lifting the LNG export ban: President-elect Trump should undo the Biden administration’s January moratorium on liquefied natural gas export permits. A protracted pause would jeopardize 900,000 jobs and $250 billion in U.S. gross domestic product, according to a recent NAM study.
- Easing the permitting burden: “The United States’ out-of-date permitting laws and procedures are holding back progress and restricting manufacturers’ ability to compete globally,” says the letter. The Trump administration should accelerate the permitting process for critical energy infrastructure, create enforceable deadlines and provide regulatory certainty to manufacturers.
- Reconsidering NAAQS PM2.5 and maintaining the existing NAAQS ozone standard: In February, the Environmental Protection Agency announced an unworkably stringent National Ambient Air Quality Standard for fine particulate matter (PM2.5). The Trump administration should relax the PM2.5 rule and maintain the existing NAAQS for ozone—a standard the European Union has set more than 70% above the current U.S. threshold—when it comes up for review in 2025.
- Replacing unbalanced power plant rules: The Trump administration should replace the EPA’s new rules for existing coal-fired and new natural gas–fired power plants with workable standards.
- Depoliticizing the proxy process: In recent years, the Securities and Exchange Commission has taken steps to empower activist investors and proxy advisory firms. The incoming administration should rescind damaging standards, such as Staff Legal Bulletin 14L, which requires companies to include activist proposals on their proxy ballots, while preserving and protecting much-needed reforms from the first Trump administration, including the landmark 2020 proxy firm rule.
Other asks: The group also urged the new administration to:
- Reverse the trend of overly burdensome and unworkable chemicals regulations, such as the Biden administration’s PFAS rules;
- Take decisive measures to protect manufacturers’ intellectual property rights;
- Narrow the scope of proposed cyber incident reporting requirements; and
- Reconsider the Occupational Safety and Health Administration’s damaging “walkaround” rule and more.
Ready to move forward: America’s manufacturers are committed to a regulatory environment that “truly supports manufacturing, innovation and American prosperity”—and they are “ready to move forward” with the president-elect to “make America’s manufacturing sector unstoppable.”
Bipartisan Legislators: Pass PBM Reform Now
Pharmacy benefit managers are driving up health care costs for employers and employees alike—and they must be reformed as soon as possible, Rep. Buddy Carter (R-GA), Sen. James Lankford (R-OK) and other members of Congress said at a bicameral, bipartisan Capitol Hill press conference Wednesday.
What’s going on: Rep. Carter, Sen. Lankford and other lawmakers—including Reps. Mariannette Miller-Meeks (R-IA), Raja Krishnamoorthi (D-IL) and Nanette Barragan (D-CA)—are calling on House and Senate leadership to advance PBM reform legislation in Congress’ year-end lame-duck session.
- The House passed a bipartisan PBM reform bill last December, and seven congressional committees—in both the House and Senate—have approved PBM bills during this Congress.
- The NAM, long a champion of commonsense PBM reform, offered manufacturers’ strong support for the lawmakers’ efforts.
What they said: “Democrats and Republicans [alike] … recognize that PBMs are decreasing the accessibility, the affordability and therefore the quality of health care in America,” said Rep. Carter, who showed the crowd photos of real patients facing difficulties accessing medications due to PBMs.
- “Congress must act before the end of the year to save our constituents’ lives. That’s why I’m leading a bipartisan letter to the House and Senate leadership urging them to prioritize PBM reform during end-of-year negotiations and ensure that the bipartisan efforts we have worked on through the 118th Congress are enacted into law.”
- Added Rep. Miller-Meeks, sponsor of the NAM-backed DRUG Act: “Every American who utilizes prescription medications experiences the impact that PBMs … have on our health care system. Patients everywhere—and our independent pharmacists—deserve a health care system where patients always come first.”
Why it’s important: PBMs often dictate the prices that patients pay at the pharmacy counter—and their business model incentivizes them to increase those prices for their own benefit.
- PBMs take a cut of a drug’s list price and pocket a large portion of rebate savings that are supposed to go back to patients and employers.
- In addition, they operate without transparency into their pricing decisions, making it more difficult for employers to reduce prices or access savings.
Now’s the time: “We want leadership to be able to take [PBM reform legislation] up in the end-of-the-year package,” Sen. Lankford said at the press conference. “We don’t want to tell … patients, ‘Wait another two years and maybe we’ll get into it in the next session.’ Let’s actually get into it in this session.”
NAM advocacy: The NAM has been at the forefront of the fight for PBM reform. Last month, it launched a seven-figure ad campaign urging the passage of reforms during the lame-duck session.
The last word: “Manufacturers and manufacturing workers are facing increasing and unsustainable health care costs as a direct result of PBMs,” said NAM Managing Vice President of Policy Chris Netram. “Manufacturers agree with Rep. Carter and the bipartisan, bicameral members of Congress calling for reform: Congress must act urgently—in the lame-duck session—to increase transparency, lower health care costs and protect manufacturing workers.”
Manufacturers Appreciate President Trump’s Focus on Curbing the Regulatory Onslaught
Washington, D.C. – Today, the National Association of Manufacturers, along with more than 100 manufacturing associations, sent a letter to President Donald Trump laying out a roadmap for regulatory actions across a wide range of agencies that would boost the manufacturing economy and put a stop to the regulatory onslaught that is costing manufacturers $350 billion each year.
Manufacturers have made the case that unbalanced, unworkable regulations severely impact our ability to grow and create jobs. Today’s letter lays out specific steps the new administration can take to reverse the trend of federal agency overreach—providing much-needed regulatory certainty to manufacturers and empowering the industry to continue to make the long-term investments that drive job creation, growth and economic competitiveness here in the United States.
The letter states, in part:
Dear President-elect Trump,
Right now, regulations are strangling our economy. Manufacturers are shouldering enormous regulatory compliance costs—nearly $350 billion annually, or 12% of our entire sector’s contribution to U.S. GDP. For smaller manufacturers with fewer than 50 employees, these costs can exceed $50,000 per employee each year. This means that a small manufacturer with just 20 employees pays $1 million per year to comply with federal regulations—rather than investing those funds in raises or new jobs.
The regulatory onslaught reached a fever pitch during the Biden administration. Prior to the election, the National Association of Manufacturers surveyed the industry and found a significant decline in optimism among manufacturers, with an unfavorable business climate, particularly taxes and regulations, cited as a primary business challenge by more than 60% of respondents.
You have the opportunity to tackle this challenge by addressing burdensome regulations that are stifling investment, making us less competitive in the world, limiting innovation and threatening the very jobs we are all working to create right here in America.
The letter highlights more than three dozen regulatory actions the Trump administration can take to support manufacturing growth, including the following:
- Liquefied Natural Gas Export Ban: On Day One of your administration, lift the pause on LNG exports through an updated national interest assessment.
- Permitting Reform: Appoint an official within your administration to help coordinate policies across the executive branch to ease the permitting burden. Specifically, your administration should start by prioritizing a reconsideration of the “NEPA Phase 2 Rule” and the current implementation of the permitting reform provisions of the Fiscal Responsibility Act.
- National Ambient Air Quality Standards for Particulate Matter and Ozone: Reconsider and relax the Biden administration’s NAAQS for PM2.5 rule and maintain both the primary and secondary standard for the NAAQS for ozone rule at 70 parts per billion.
- Power Plant Rules: Replace the Environmental Protection Agency’s rule for existing coal-fired and new natural gas–fired power plants with workable standards.
- Proxy Advisory Firms and the Proxy Process: Rescind Staff Legal Bulletin 14L and end the politicization of the proxy process. Additionally, enforce and preserve the 2020 proxy advisory firm rule while taking steps to build on its reforms with additional policies modeled on the Securities and Exchange Commission’s 2019 proposal.
To view the full letter and list of regulations, click here.
Background:
In 2023, the NAM, along with members of the NAM’s Council of Manufacturing Associations and Conference of State Manufacturers Associations, launched the Manufacturers for Sensible Regulations coalition to address the impact of the regulatory onslaught coming from federal agencies.
An NAM-commissioned analysis on the cost of federal regulations to the U.S. economy shows the following:
- The total cost of federal regulations exceeds $3 trillion each year, an amount equal to 11% of U.S. GDP.
- Federal regulations cost the manufacturing sector about $350 billion per year.
- Small manufacturers with fewer than 50 employees face disproportionate regulatory burdens, incurring costs of more than $50,000 per employee per year to comply with federal regulations.
- Since 2012, there has been a $465 billion increase in aggregate regulatory compliance costs.
-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.