News & Insights

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the recent passing of John Luke, chair of the NAM Board of Directors (2005–2006) and member of the NAM Board (2001–2016):

“John Luke was a titan for manufacturers, a pillar in the communities he served and a champion for the people who make things in America.

“As our board chair, John’s passion for the strength and success of manufacturing was matched only by his steady focus on credible and durable solutions. Thoughtful and considerate, he knew how to ask the right questions—and hard questions—of policymakers. Grounded in his credibility, John earned the respect of lawmakers from both parties, business leaders across industries and partners not only in the United States but around the globe—bolstering the NAM’s reach on behalf of the manufacturers powering America’s prosperity.

“That focus on sustainable success, on intentional leadership, on meaningful change defined every step of John’s life and career—in his dedication to his country as an officer in the United States Air Force during the Vietnam War, where he was awarded the Bronze Star for meritorious service; through his decades of leadership at the global packaging giant Smurfit WestRock and its predecessors, MeadWestvaco and Westvaco; and in his service on the boards of major institutions spanning industry, education and public policy, including the American Enterprise Institute, the Colonial Williamsburg Foundation, the commercial property insurance company FM Global and Virginia Commonwealth University, among many others.

“John’s tireless advocacy for our industry and our workforce was rooted in the fact that his family’s story is a manufacturing story.

“In the 1880s, John’s family founded the Piedmont Pulp & Paper Company in Piedmont, West Virginia. That company evolved over the decades to become Westvaco, where John took the helm as CEO and chairman in 1992. Shortly after John joined the NAM Board of Directors in 2001, Westvaco merged with the Mead Paper Company—a company close to my heart, where my grandfather worked in the Chillicothe, Ohio, plant for over 40 years.

“Nearly two decades ago, in an interview at the Wharton School of Business—where he had earned his M.B.A.—John said that ‘It is imperative for all aspiring leaders to determine answers to the critical questions of ‘What change?,’ ‘Why change?’ and ‘How change?’ if meaningful sustainable success is to be achieved from your efforts.’

“In his life, John asked what must change, why and how—and answered each question with conviction. Manufacturing in the United States, the people we hire and the communities we serve are all stronger as a result.

“The NAM today reflects John’s legacy: an institution with a steady focus on sustainable solutions. We send our deepest sympathies to Kathleen and the entire Luke family.”

-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. 

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Manufacturing activity in New York state was little changed in March, with the headline business conditions index falling 7.3 points to -0.2, right under the threshold that indicates contraction. The new orders index edged up 0.6 points to 6.4, while the shipments index moved down 5.9 points to -6.9. Unfilled orders increased 1.7 points to 10.8, while inventories ticked down 0.2 points to 6.9, indicating business inventories are growing but at a slightly slower pace. Delivery times lengthened, and supply availability worsened, declining 2.9 points to -3.9.

Employment increased in March, with the index for the number of employees rising 1.8 points to 5.8. At the same time, the average employee workweek index ticked down to 1.9 from 2.1, signaling a slower pace of increase in hours worked in March. The prices paid index fell 12.5 points to 36.6, while the prices received index edged down 0.8 points to 21.4, reflecting a slower pace of increase in both prices paid and prices received.

In March, firms’ optimism regarding the future declined but remained positive, with the future business activity index decreasing 3.7 points to 31.0. In the next six months, new orders are expected to rise but at a slower pace compared to the prior month at 29.1. The future employment index moved down 3.9 points to 22.2, suggesting an anticipated slower pace of employment growth over the next six months. Meanwhile, input and selling price expectations are forecasted to increase at a slower pace, dropping from 57.6 to 43.1 and from 40.3 to 32.4, respectively. Furthermore, capital spending plans strengthened from February, up from 18.2 to 21.6.

In March, Philadelphia’s regional manufacturing activity expanded for the third consecutive month, with the index for general business activity advancing from 16.3 to 18.1. This month, 39.2% of firms reported increases in activity, while 21.1% of firms noted decreases. The index for new orders moved down from 11.7 to 8.6, while the shipments index surged 21.9 points to 22.2, its highest reading since January 2025. Meanwhile, the employment and average employee workweek indexes both turned positive, rising 2.1 points to 0.8 and 14.4 points to 2.8, respectively.

The prices paid index increased from 38.9 to 44.7, while the prices received index moved up from 16.7 to 21.2 in March. 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 remained positive. After climbing 17.3 points in February, expectations for future business activity fell 2.8 points to 40.0 in March. The decline came from an increase in the proportion of firms expecting a decrease in activity (16.3%). At the same time, the proportion of firms expecting an increase in activity (56.3%) moved up in March. The future new orders index decreased from 54.1 to 49.6, while the capital expenditures index rose from 14.4 to 25.8. The future prices paid and prices received indexes declined from 54.1 to 53.7 and from 50.1 to 38.4, respectively. Additionally, the index for future employment jumped from 14.9 to 40.4.

In March, firms were asked about total production and capacity utilization in the first quarter of 2026 compared to the prior quarter. Of those responses, 51.8% reported an increase in production, while a smaller share (29.6%) noted a decrease. The median capacity utilization rate was unchanged from last quarter at 70% to 80%. When asked about which factors acted as constraints on capacity utilization, nearly half of firms (48.1%) said that uncertainty was at least a moderate constraint on capacity utilization. Looking forward, 53.6% of respondents expect the impact of energy markets to worsen, while 40.7% forecast the impact from uncertainty to worsen.

The Producer Price Index for final demand (also known as wholesale prices) jumped 0.7% over the month in February, up from the 0.5% increase in January and significantly above expectations. Over the year, producer prices climbed 3.4% in February, up from 2.9% in January and the largest 12-month increase since February 2025. Meanwhile, prices for final demand excluding foods, energy and trade services grew 0.5% over the month in February after rising 0.4% in January. Prices for these goods advanced 3.5% from February 2025.

Within final demand, prices for services rose 0.5% in February, after advancing 0.8% in January. Meanwhile, prices for goods soared 1.1% in February, the largest monthly increase since August 2023, after edging down 0.2% in January. Within the final demand services index, prices for traveler accommodation services surged 5.7%, accounting for about 20% of the February increase. Within the final demand goods index, prices for fresh and dry vegetables jumped 48.9%, accounting for over 20% of the February rise. At the same time, prices for industrial material handling equipment climbed 0.1% from January and 6.1% from February 2025.

Prices for processed goods for intermediate demand rose 1.6% in February, the largest monthly increase since August 2023, after staying the same in January. Within the index, prices for diesel fuel soared 13.9% after declining 1.1% in January. Meanwhile, prices for steel mill products and aluminum mill shapes advanced 3.0% and 5.7% from January and 20.9% and 39.1% from February 2025, respectively. Over the year, the index rose 4.0%, the largest annual increase since December 2022.

Meanwhile, prices for unprocessed goods for intermediate demand jumped 3.1% in February, the largest monthly increase since January 2025, after moving up 0.9% in January. The monthly rise was led by a 10.9% leap in natural gas prices, which surged 30.0% over the year. In contrast, prices for raw milk fell 9.1% in February and 33.3% from February 2025. Over the year, prices for unprocessed goods for intermediate demand decreased 1.7%, after declining 4.5% in January.

As anticipated, the Federal Open Market Committee maintained its interest rate target range at 3.50%–3.75% at its March meeting. On the other hand, one FOMC member—Stephen Miran—dissented, preferring to lower the target range by 25 basis points. In a change to its previous statement, the FOMC noted that the implications of developments in the Middle East for the U.S. economy are uncertain.

In the press conference following the meeting, Federal Reserve Chairman Jerome Powell noted that economic activity continues to expand at a solid pace, with job gains staying low while inflation remains elevated. Chairman Powell noted that the higher energy prices due to events in the Middle East will push up prices in the near term, but it is too soon to know the scope and duration of the potential effects on the economy. He reaffirmed that the FOMC is well positioned to determine the extent and timing of additional adjustments to its policy stance.

The FOMC’s summary of economic projections, which maps out the Federal Reserve’s expectations for where interest rates may be headed in the future, signaled a somewhat less mixed stance compared to the December summary. Twelve Federal Reserve officials project there will be additional rate cuts across 2026, while seven anticipate no additional rate cuts this year. A majority of the officials who predict a rate cut this year anticipate just one 25-basis-point cut across 2026. Meanwhile, the projections show that officials still expect inflation to remain elevated, averaging 2.7% in 2026, more so than the 2.4% average projected in December. At the same time, the projections show officials expect real GDP to rise slightly more in 2026 than previously anticipated.

New orders for manufactured goods inched up 0.1% in January following a 0.4% decrease in December. Meanwhile, new orders for manufactured goods grew 3.5% over the year. When excluding transportation, new orders rose 0.4% over the month and 0.6% year-over-year in January. Orders for durable goods stayed the same following a 0.9% decline in December. Year to date, durable goods orders jumped 9.1%. Nondurable goods orders advanced 0.3% in January after ticking up 0.1% in December. Nondurable goods orders decreased 1.8% over the year.

New orders for ships and boats led the rise in durable goods orders, surging 10.9% following December’s 5.8% drop. In January, the largest monthly decrease occurred in defense aircraft and parts, which plummeted 23.8% after gaining 11.8% in December. The largest over-the-year changes occurred in nondefense aircraft and parts (up 93.8%) and metalworking machinery (down 8.9%).

Factory shipments rose 0.5% in January after increasing 0.7% in December. Shipments over the year grew 1.4%. Shipments excluding transportation moved up 0.4% in January following a 0.5% gain the previous month. Shipments for durable goods stepped up 0.6% following a 1.2% rise in December and are up 4.8% year to date. Meanwhile, nondurable goods shipments increased 0.3%, after ticking up 0.1% the prior month, and have declined 1.8% year to date.

Unfilled orders for all manufacturing industries increased 0.8% in January after rising 0.9% in December. Unfilled orders over the year jumped 11.1%. Inventories stepped up 0.8% year-over-year. The inventories-to-shipments ratio edged down from 1.56 to 1.55 in January. Meanwhile, the unfilled orders-to-shipments ratio for durable goods stayed the same at 7.01 from December.

Industrial production increased 0.2% in February, while manufacturing output rose by the same amount after expanding 0.8% in January. At 97.6% of its 2017 average, manufacturing production advanced 1.3% from February 2025. Capacity utilization for manufacturing was 75.6%, unchanged from January but up 1.1% over the past year. Capacity utilization remained 2.6 percentage points below its long-term average from 1972 to 2025.

In February, major market groups posted mixed results. Consumer goods production stayed the same, while business equipment output increased 0.2%. The gain in production of consumer durables (up 0.4%) was led by the output of appliances, furniture and carpeting rising 1.5%. Meanwhile, the index for consumer nondurables moved down 0.1%, led by a decline in the index for clothing (down 0.4%). Among business equipment, the 2.8% gain in transit equipment led the increase. At the same time, the index for materials improved 0.3%, while the index for construction supplies declined 0.2% and the index for business supplies ticked up 0.1%.

Durable goods manufacturing advanced 0.1% in February and 2.4% from the year prior. Monthly growth was greatest for motor vehicles and parts (up 1.7%), while machinery posted the largest decline (down 1.2%). Meanwhile, led by a 0.9% gain in chemicals output, nondurable manufacturing edged up 0.2% in February and 0.3% from February 2025.

Washington, D.C. – Manufacturers today welcomed President Trump’s national AI legislative framework for its practical, pro-growth policy recommendations to advance U.S. leadership in artificial intelligence.

National Association of Manufacturers Executive Vice President Erin Streeter issued the following statement urging Congress to take up policies to advance AI innovation:

“Manufacturers support a consistent federal framework that emphasizes innovation and avoids a cumbersome 50-state patchwork, and President Trump’s announcement today reflects this approach. The president’s commonsense AI framework will remove barriers to innovation and growth, which is critical for success. But we also need comprehensive permitting reform to go hand in hand to achieve the energy dominance needed to set manufacturers on a trajectory to win the global race for AI.

“We look forward to working with Congress to get this done.”

Background

Manufacturers have been at the forefront of developing and implementing cutting-edge AI systems that are transforming shop floors and revolutionizing operations.

Last December, the NAM supported President Trump’s AI Executive Order on state AI regulations and endorsed several bills to streamline permitting.

In July 2025, the Manufacturing Institute, the nonprofit workforce development and education affiliate of the NAM, unveiled a set of policy priorities responding to a White House Executive Order on workforce modernization.

In May 2025, the Manufacturing Leadership Council, the digital transformation division of the NAM, released a groundbreaking report, “Shaping the AI-Powered Factory of the Future,” revealing that 51% of manufacturers already deploy AI in their operations, and 80% say AI will be essential to growing or maintaining their business by 2030. This is not just about efficiency—it’s about competitiveness, innovation and the future of American industry.

In May 2024, the NAM published “Working Smarter: How Manufacturers Are Using Artificial Intelligence”—a report that explains the ways in which manufacturers are using AI already, making the technology integral to modern manufacturing with manufacturers at the forefront of developing and implementing AI systems.

-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. – National Association of Manufacturers President and CEO Jay Timmons issued the following statement in response to the U.S. Court of Appeals for the Ninth District decision enabling Resolution Copper’s congressionally mandated land exchange to move forward—an outcome the NAM helped drive through years of sustained advocacy and strategic legal action, including an amicus brief filed with the court.

“The completion of Resolution Copper’s land exchange is a monumental milestone for our nation and the manufacturing industry’s efforts to ensure U.S. supply chains have reliable access to the raw materials that power our economy. We appreciate the leadership of the Trump administration, the Department of the Interior, the Department of Agriculture, the Bureau of Land Management and Congress for getting this extremely important land exchange across the finish line.

“The significance of this moment cannot be overstated. The U.S. imports about 35% of its copper. At full capacity, Resolution Copper—the third-largest known copper deposit in the world—could supply a quarter of all U.S. copper demand and as much as 40 billion pounds of copper over 40 years, securing access to critical minerals that are essential to our nation’s economic strength and national security. This would also reduce our reliance on adversarial nations for minerals and boost energy and critical national defense systems. The land exchange proves what is possible when policy, process and partnership align. It’s the kind of outcome manufacturers need to see more often: one that protects key landscapes, unlocks critical resources and advances America’s economic and national security.”

Background:

Copper is a critical material for manufacturing—serving as a core input in industrial production and machinery, as well as energy infrastructure that powers factories, data centers and advanced technologies. As manufacturers work to outcompete China and achieve American energy dominance, securing reliable, domestic sources of critical minerals like copper has become increasingly urgent. The NAM’s recent policy framework underscores this need, calling for a comprehensive critical minerals strategy.

At the same time, projects like Resolution Copper illustrate the challenges posed by the current permitting landscape. For more than a decade, the project has faced complex and uncertain federal review processes—reflecting broader systemic issues. According to recent NAM analysis, America’s broken permitting system costs manufacturers at least $7.9 billion each year, highlighting the need for bipartisan, comprehensive permitting reform to strengthen America’s economic and national security.

-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 $2.90 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. – Manufacturers today are urging policymakers to enact a modern, comprehensive policy agenda to secure access to critical minerals for both the industry and the nation—one that generates new pipelines for critical mineral projects at home while securing diversified access to vital manufacturing inputs sourced globally. To advance this agenda, the National Association of Manufacturers shared with the United States Trade Representative a framework to rebalance global supply chains with plurilateral partners.  

“The stakes are clear: manufacturers depend on secure, reliable and sustainable supply chains to make things in America,” said NAM President and CEO Jay Timmons. “Critical minerals and rare earth elements are essential for automotive parts and vehicles, electrical grid components, robotics and industrial automation, defense technology, electronics and more. With China dominating global supply chains, manufacturers can no longer risk these vulnerabilities.  

“Manufacturers support the administration and Congress’ efforts to rebalance global supply chains through comprehensive actions domestically and with international partners. The comprehensive approach the NAM is releasing today will enhance critical minerals capacity at home, leverage resources abroad and safeguard access to a diverse range of critical minerals necessary for U.S. economic strength and national security.”  

The NAM’s two-pronged policy framework offers specific, complementary domestic and international policy recommendations to the Trump Administration and Congress. On the domestic front, it calls for enacting comprehensive permitting reform and making strategic energy incentives permanent. Internationally, the NAM urges the administration to negotiate a plurilateral agreement that positions U.S. investors for success and leverages the collective advantages of international partners and allies across every stage of the critical minerals life cycle—effectively rebalancing the global market for critical minerals.  

Read the NAM’s full policy agenda 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