Input Stories

The federal Registered Apprenticeship program has the potential to help alleviate some of the manufacturing sector’s labor shortage—but it needs strengthening and streamlining to do so, Manufacturing Institute Chief Program Officer Gardner Carrick told the U.S. Senate Health, Education, Labor and Pensions Committee Wednesday.

What’s going on: “Registered Apprenticeship has an opportunity to play a significant role in the growth and scaling of the apprenticeship model in manufacturing,” Carrick said at the hearing “Registered Apprenticeship: Scaling the Workforce for the Future.” “But the program must be value-added.”

• In July, the MI—the NAM’s 501(c)3 workforce development and education affiliate—released “Manufacturing America’s Talent,” its workforce-system improvement roadmap that includes key recommendations for bettering the federal RA program framework.

FAME gives employers what they need: Apprenticeship works, Carrick said, pointing to the MI’s Federation for Advanced Manufacturing Education (FAME) program as evidence. FAME was started in 2010 by Toyota and is today fully run by the MI.

• But for the RA program to work as well—and help fill the many open manufacturing jobs, forecast to reach 3.8 million by 2033 if current trends continue—the federal government must provide flexibility to allow employers to tailor the program’s offerings to their real-world skill needs.
• The fact that just 15% of FAME participants are registered apprentices is evidence that the current system is not meeting needs, Carrick continued.

What should be done: The RA program “must be employer-led, offer a sensible balance between benefits and costs and support the infrastructure needs of our education partners to deliver the skills and competencies that manufacturers are actually asking for.”

What success looks like: Today, FAME works with nearly 500 companies in 45 locations across 17 states. Its graduates—highly skilled maintenance technicians—have a 95% full-time employment rate.

• One study shows that five years after finishing the program, FAME graduates were earning just under six figures annually, Carrick said.
• “In FAME, we achieve these levels of success because the model is employer-led, which means we teach the skills that employers actually demand.”

Read the whole thing: You can read Carrick’s full written testimony here.

Manufacturing in the U.S. is seeing major benefits from the Trump administration’s tax and regulatory policies—but more must be done to unlock a manufacturing investment boom, NAM Managing Vice President of Policy Charles Crain said at the recent Financial Times–Nikkei Investing in America Summit.

What’s going on: The tax bill’s pro-manufacturing policies—including immediate expensing for factory construction, capital equipment purchases and research spending—“set the stage for manufacturing growth and investment here in the United States,” Crain told FT Economics Editor Claire Jones.

• The 2017 Tax Cuts and Jobs Act was, in the president’s words, “rocket fuel” for manufacturing, Crain continued, and this year’s tax bill, preserving and expanding the TCJA, should have a similar effect on the industry.
• But “the question is … what impact do other policies have? Do they set a cap on the ‘rocket fuel’ that the tax and regulatory agenda should create? Or do they further unleash manufacturing investment and growth?”
• Crain noted that there are still significant opportunities on the table for Congress and the administration: comprehensive permitting reform to “get shovels in the ground” on critical projects, workforce solutions to reskill the manufacturing workforce and fill the industry’s 400,000 open jobs and commonsense trade policies to ensure manufacturers can make things in America and sell them abroad.

Aligning trade and tax policies: At maximum production capacity, the U.S. can make approximately 84% of the inputs needed for manufacturers to make things domestically, Crain said, and the economy currently produces about 67% of necessary inputs.

• Manufacturers must “have access to the inputs they need,” including both raw materials as well as equipment and machinery that are often “specialized for the modern manufacturing economy” and only available outside the U.S.
• Crain highlighted the variety of manufacturing investment announcements driven by the president’s tax and regulatory agenda, but noted that some manufacturers have been unable to import specialized machinery necessary to get those investments off the ground.
• He added that the NAM has been urging the administration “to ensure that trade policies align with the tax and regulatory policies that drive our industry’s growth here in the U.S.”

Immigration and workforce: Manufacturing in America requires a highly skilled labor pool, so the sector supports the use of H-1B visas, which Crain called “critically important to the industry.”

• The industry also needs what Crain called “manufacturing-skilled talent,” in important occupations such as technicians, welders, machinists and electricians. He noted the industry’s efforts to build a domestic supply of these workers, but also said that manufacturers need an immigration solution to fill those skills gaps.
• Manufacturers are committed to producing their needed talent in the U.S., partnering with community colleges and participating in workforce-development programs, such as the Manufacturing Institute’s Federation for Advanced Manufacturing Education (FAME) and Heroes MAKE America initiatives.

The AI effect: Artificial intelligence has been a boon to the industry, according to Crain—and the industry is working to ensure its workers have the skills they need to leverage this exciting technology.

• “AI poses tremendous promise for manufacturing,” he told Jones. “Our shop floors are more interconnected and more modern now than they ever have been,” and companies are using AI to “drive efficiency, to design products, to improve worker safety, to improve their supply chains” and more.
• At the same time, “we need the workers who come into the sector as well as the workers who are currently in the sector to be trained to utilize and to work with AI to actually be able to maximize the productivity gains that AI presents.”

Kentucky is one of the top manufacturing states in the U.S.—and the Kentucky Federation for Advanced Manufacturing Education (FAME) is helping keep it that way (Spectrum News 1).

• The state has more than 6,000 manufacturing facilities that together employ more than 260,000 residents and contribute over $47 billion each year to the state’s GDP.

What’s going on: KY FAME represents the Bluegrass State as part of the FAME USA network. FAME is the workforce initiative founded by Toyota and is today supported by the Manufacturing Institute, the 501(c)3 workforce development and education affiliate of the NAM.

• FAME USA, which has eight chapters across Kentucky, develops highly skilled, professional manufacturing talent using a “dual-education apprenticeship style [that] means students earn a full-time salary while they learn, an Advanced Manufacturing Technician certificate and an associate’s degree in two years’ time.”

Why it’s important: Kentucky, like the rest of the U.S., has long experienced a dearth of skilled manufacturing workers. KY FAME is helping build its own pool of talent with a dedicated and novel earn-while-you-learn model that is appealing to both students and manufacturers.

• Program participants work three days a week, Gene Fife, program coordinator of the Greater Louisville Chapter of KY FAME, told Spectrum News 1. “They’re coming to school for two days a week. One that allows them to perhaps graduate debt-free, and they have some money in their pocket for a reward for their hard work.”

Hopeful outlook: Manufacturing jobs in the state are still increasing due to advancements in technology and Kentucky’s growing industrial market.

• “I believe manufacturing is never going to go away,” Fife said. “The advent in AI and a lot of other things have really helped, and with robotics and things like that, we are able to do things in manufacturing we weren’t able to do as little as five years ago. But you always need that person [who] can fix it when it breaks.”

What participants say: “This program as a whole is phenomenal,” said Wyatt Drury, who is in his second year with the Greater Louisville Chapter of KY FAME, working as a maintenance technician at a local carbon steel pipe and tubing manufacturer.

• “It’s helped me out tremendously, and even if my company doesn’t want to hire me, I have open opportunities to go anywhere.”

The last word: “FAME is proof that when manufacturers take the lead in developing their own workforce, everyone benefits—students, companies and communities,” said MI President and Executive Director Carolyn Lee “The Kentucky chapters continue to deliver the skilled talent our industry needs to keep growing and innovating.”

Get involved: Interested in learning more about FAME USA? Go to fame-usa.com to learn more.

Amazon has a new package-sorting robotics system capable of doing the work of three separate stations “in one place,” the retail and technology giant announced recently (CNBC).

What’s going on: “The system, called Blue Jay, is made up of a series of robotic arms that are suspended from a conveyor belt-like track. Those arms are tipped with suction-cup devices that allow them to grab and sort items of varying shapes and sizes.”

The backdrop: The system is the latest in a lineup of robotics Amazon has begun using for an array of tasks, from removing goods from shelves to sorting packages. These investments not only make jobs more efficient, but they also increase safety for employees.

• In May, it unveiled “Vulcan,” a system that has a sense of touch.
• The company’s foray into robotics began in 2012, when it acquired Kiva Systems.

Employee-centered: Amazon, which plans to hire 250,000 workers for full- and part-time roles this holiday season, said “employees remain ‘at the center’ of its robotics development. … [and] its goal is to ‘reduce physically demanding tasks, simplify decisions and open new career opportunities’ for workers.”

Related development: Also recently, the global company unveiled augmented reality glasses for delivery drivers.

• The gadgets, which have been tested by hundreds of drivers, have artificial intelligence, cameras and sensors to scan packages and display hazards, driving directions and reminders.
• The glasses also feature a button drivers can use to call emergency services.

In August, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 1.5% annual gain, the weakest annual gain in over two years. The 10-City Composite saw an annual increase of 2.1% in August, down from 2.3% the previous month, while the 20-City Composite rose 1.6% year-over-year, down from 1.8%. Among the 20 cities, New York again posted the highest annual gain at 6.1%, followed by Chicago at 5.9% and Cleveland at 4.7%. Tampa again recorded the lowest annual return, with prices falling 3.3%.

On a month-over-month basis, the U.S. National Index ticked down 0.3% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both decreased 0.6%. After seasonal adjustment, the National Index and the 10-City and 20-City Composites all edged up 0.2%.

The combination of high financing costs and prices remaining near record highs has limited activity. Before seasonal adjustment, all cities except Chicago saw prices drop in August. The Midwest and Northeast markets continued to outperform other regions. Meanwhile, the Sun Belt and Western markets continued declining, including Tampa (down 3.3%), Phoenix (down 1.7%), Miami (down 1.7%), San Francisco (down 1.5%) and Denver (down 0.7%).

Despite high mortgage rates continuing to weigh on buyer demand, it appears the housing market is finding a new equilibrium. Several major markets in decline signal recent appreciation has ended. These adjustments may lead to a more sustainable market in the long run.

Consumer confidence decreased 1.0 point in October to 94.6. Among its components, the Present Situation Index improved while the Expectations Index declined, with consumers’ pessimism about future job availability and future business conditions being partially mitigated by consumers’ views of current job availability improving for the first time since December 2024.

The Present Situation Index, reflecting current business and labor market conditions, increased 1.8 points to 129.3. Meanwhile, the Expectations Index, which reflects consumers’ short-term outlook for income, business and labor market conditions, fell 2.9 points to 71.5, remaining below the recession signal threshold of 80 since February 2025.

Views of the current labor market situation improved, with 27.8% of consumers saying jobs were “plentiful,” up from September (26.9%), while 18.4% said jobs were “hard to get,” slightly higher than September (18.2%) and up from 14.5% in January. Looking to the future, 27.8% anticipate fewer available jobs in the next six months, up from 25.7% the prior month.

Mentions of high prices and inflation continued to top the list of topics influencing consumers’ views of the economy. Meanwhile, mentions of tariffs continued to decline in October but remained elevated. Comments on U.S. politics increased, with the ongoing government shutdown mentioned as a key concern. Consumers’ 12-month inflation expectations inched up from 5.8% to 5.9% in October. Meanwhile, 52.8% of consumers, compared to 51.1% in September, expect interest rates to rise, and a smaller share of consumers (26.2% vs. 26.9% in September) expect rates to fall.

Buying plans for cars increased in October, while buying plans for homes decreased. Consumers’ plans for buying big-ticket items were little changed in October but have started to pick up after weakening earlier this year. Consumers’ intentions to purchase more services rose after September’s pullback, and vacation intentions seem poised for a recovery. Preliminary data suggest consumers’ holiday spending will be down this year. Overall, consumers’ views of their current and future financial situation strengthened from September.

Manufacturing activity in the Fifth District declined in October, but at a slower pace than the previous month, with the composite manufacturing index moving up from -17 to -4. Meanwhile, the local business conditions index increased from -12 in September to -1 in October. Despite improvements in most indicators in October, manufacturers are more pessimistic about the future, with the outlook for future local business conditions falling from -1 in September to -5 in October. The Fifth Federal Reserve District consists of Virginia, Maryland, the Carolinas, the District of Columbia and most of West Virginia.

Among its components, shipments moved into positive territory, rising from -20 to 4. New orders and employment remained negative but contracted at a slower pace, stepping up to -6 and -10, respectively. The vendor lead time index declined from 10 to 6 in October. Meanwhile, the share of firms reporting backlogs eased, moving from -21 to -16. The average growth rate of prices paid and prices received both fell in October.

Looking ahead, firms still expect both price indexes to increase in the next 12 months, but with both rising at a slower rate than forecasted in September. Expectations for future shipments jumped from 0 to 13, while new orders increased from 8 to 12. Expectations for backlogs worsened, falling from -8 to -12. Meanwhile, firms’ expectations about equipment and software spending remained negative but improved from -9 to -6. Expectations for capital expenditures moved into positive territory, increasing from -11 to 1. In sum, businesses in the Fifth District are somewhat more optimistic about new investment plans while remaining cautious about future business conditions.

In October, Texas factory activity continued to expand and at the same pace as the prior month. The production index was unchanged from September at 5.2, remaining below the average of 9.6. Meanwhile, other measures posted mixed results for the month. The new orders index inched up 0.9 points to -1.7. Capacity utilization fell 5.0 points to -1.1, while shipments declined 0.9 points to 5.8.

Perceptions of manufacturing business conditions remained negative in October, with the general business conditions index stepping up 3.7 points to -5.0. Meanwhile, the outlook also improved but remained negative, with the company outlook index ticking up 0.7 points to -0.3. The uncertainty index jumped 8.3 points to 22.2, well above the series average of 17.2.

Labor market indicators suggest an increase in headcounts but a decline in the workweek in October, with the employment index rising 5.4 points to 2.0 and the hours worked index falling 8.9 points to -5.5. Nearly 18% of firms reported net hiring while a smaller percentage (15.7%) noted net layoffs.

Price and wage pressures eased somewhat in October. The prices paid for raw materials index fell 10.0 points to 33.4. Meanwhile, the prices received for finished goods index declined 4.0 points to 7.7. The wages and benefits index decreased 1.7 points to 14.2, staying below the series average of 21.

The outlook for future manufacturing activity weakened in October, with the future production index falling 10.6 points to 21.0. Meanwhile, the future general business activity index and future company outlook index both stepped down, declining to 7.0 and 7.1, respectively.

The Federal Open Market Committee lowered its interest rate target range by 25 basis points to 3.75%–4.00% at its October meeting. The FOMC also concluded its multiyear reduction of its Treasury holdings but will continue to shrink its holdings of mortgage-backed securities. In a change to its previous statement, the FOMC noted that inflation has moved up some since earlier this year, but available indicators suggest that economic activity continues to expand at a moderate pace. Nonetheless, the committee judged that downside risks to employment warranted an additional cut to its interest rate target. Two FOMC members—Stephen Miran and Jeffrey Schmid—dissented. Miran preferred to lower the target range by 50 basis points, while Schmid preferred to keep the rate steady.

In the press conference following the meeting, Federal Reserve Chairman Jerome Powell noted that the data that have remained available suggest that the outlook for employment and inflation has not changed much since their previous meeting, with conditions in the labor market cooling while inflation remains elevated. Chairman Powell also noted that a further reduction in the policy rate at the December meeting is not a forgone conclusion—“far from it.”

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, generally is released in conjunction with every other FOMC meeting. Since the September meeting included a release of economic projections, there was not a release in conjunction with the October FOMC meeting. The September summary signaled a more dovish stance than the June summary. Although nine Federal Reserve officials projected an additional 50 basis points worth of cuts in that projection, implying the likelihood of a December cut, Chairman Powell expressed that policymakers now bring “strongly different views about how to proceed.”

Call it an AI double-header: On Wednesday, NAM President and CEO Jay Timmons and Manufacturing Institute President and Executive Director Carolyn Lee spoke at two different AI-focused events—one hosted by Siemens and Widehall and the other hosted by NVIDIA—where they outlined manufacturers’ policy and workforce priorities.

• Siemens and Widehall: Timmons and Lee both participated in a fireside chat at Shaping an AI Ready Workforce, part of a series of events called AI for Real: DC that is sponsored by Siemens and Widehall.
• NVIDIA: Later in the day, Timmons spoke on a panel called “How AI Factories Can Drive Local Economic Development” at NVIDIA’s GTC DC conference.

Policy environment: Timmons said, of the current policy environment, “If you look back on 2017 and the tax reform plan that was put in place, the president actually announced his plan at our board meeting, and he said at the time it would be rocket fuel, and it really was….That was very important in terms of investment opportunities and job creation, regulatory certainty and modernization, [which are all essential for] energy policy.”

• “We’re very pleased that the administration is focused on energy—they call it energy dominance. That is going to be incredibly important for AI data centers [and AI-enabled factories].”
• “We want everybody to know what manufacturing is all about, why it’s modern, why it’s sleek, why it’s technology driven, and very different from [when] my grandfather was in manufacturing.”

Workforce outlook: Lee joined Timmons onstage at the Siemens-Widehall event:

• “We have to change the narrative around manufacturing. Part of that is seeing facilities like Siemens that are bright and clean and full of technology, and we know that the students today actually gravitate to that. They’re digital natives. I’m not. Most of us in this room are probably not. So [we need to] lean into that and let them see that there’s an opportunity for them, and in doing so, they’re strengthening their communities.”

AI and the workforce: Lee also addressed how the workforce can adapt to the advent of AI, saying “It is about learning the skills. It’s about adapting. It’s making sure that manufacturing and our communities can be competitive…. None of us can do this alone. All of us need to come together.”

• “As much as policy can enable this, policy is not going to solve this. We need to have employers first [drawing up] the agenda, working with the educational institutions to make sure that our education partners understand what is happening in our industries and training to those needs.”
• “We run the most successful multi-employer apprenticeship program that’s operating now in 20 states, and it continues to grow…. Companies see that coming together to build the solutions and train the common core of the workforce is good for all of us.”

At NVIDIA: Timmons again addresses the use of AI in manufacturing at NVIDIA’s conference, saying, “The truth of the matter is, every form of technology through decades has begun with manufacturing. Right now, we have about 50% of manufacturers across America [that] have AI in their operations.”

The roadmap to AI and Energy Dominance: “Today, we came out with a report about AI and energy dominance, the manufacturer’s roadmap, and basically it’s [saying] that we need an incredible amount of additional capacity on the grid to be able to power these AI factors or data centers and in order to serve the needs of the broader economy.”

Policy fixes: Timmons spoke of the need for bipartisan agreement, and for certain commonsense policy changes.

• “[I]f we turned on every factory right now in this country, and we put every manufacturing worker on the line, we could only produce 84%of the critical inputs necessary to build a new factory right here in United States…. So at a minimum, we have to import 16% of those critical inputs.”
• “What we need to see is some sort of a speed pass, to provide duty free access to those critical inputs for additional manufacturing capacity until we can build it here ourselves.”

The last word: “We need to have a nonpolitical and very much a policy century,” Timmons said in conclusion.

ICYMI: Read our full story on the Manufacturing’s Roadmap to AI and Energy Dominance.