News

Demand for U.S. durable goods bounced back in August following two months of declines, according to U.S. Census Bureau preliminary data out Thursday.

What’s going on: New orders for durable manufactured items rose $8.9 billion, or 2.9%, to $312.1 billion last month, led by a surge in transportation equipment.

• The figures come after a 2.7% July decrease in durable goods orders and a 9.3% decline in June.
• Excluding transportation, new orders went up 0.4%, and excluding defense, they rose 1.9%.
• Orders for transportation equipment, which tend to be volatile month to month, went up $8.1 billion, or 7.9%, to $110.2 billion after declining 9.4% in July.

Shipments and unfilled orders: In August, durable goods shipments inched down $0.5 billion, or 0.2%, to $307.5 billion, following a 1.6% increase in July.

• Unfilled orders, which have risen for 13 of the past 14 months, rose $9.6 billion last month, or 0.7%, to $1,479.0 billion after a flat July.

Inventories and capital goods: Inventories of durable goods ticked down in August, decreasing $0.1 billion, following 10 back-to-back monthly increases.

• Nondefense new orders for durable goods increased $4.6 billion, or 5.1%, to $95.0 billion in August. Shipments declined $0.7 billion, or 0.8%, to $89.2 billion.

In other economic news: Sales of pre-owned homes declined 0.2% in August, to a seasonally adjusted annual rate of 4.0 million units ( The Wall Street Journal, subscription).

• The median home price rose to $422,600, up 2% from August 2024 and the highest-ever price for August.

Late last week, the Advisory Committee for Immunization Practices, which advises the Centers for Disease Control on vaccine safety and efficacy, recommended changes to the childhood vaccine schedule.

What’s going on: ACIP voted on a recommendation that children age 4 and under no longer receive the combined measles-mumps-rubella-varicella vaccine but instead receive two separate shots: one to vaccinate against measles, mumps, and rubella, and a separate varicella (chickenpox) shot.

Why it matters: The Vaccines for Children Program, and other federal health programs such as Medicaid, use ACIP recommendations to determine vaccine coverage. The committee’s vote—assuming the CDC director approves the recommendation, which is expected—means that these programs likely will no longer cover the MMRV shot for children under the age of 4.

• The combined MMRV vaccine has been proven safe and effective, according to the CDC itself.
• The vote also means private health insurers are no longer required to cover these vaccines. However, America’s Health Insurance Plans (AHIP) said its members will continue coverage of these and other previously recommended vaccines through the end of 2026.

What’s next: Acting CDC Director Jim O’Neill must approve ACIP’s recommendations. In the past, CDC directors have almost always taken recommendations from ACIP.

• Some states, including California, Colorado, Oregon, Nevada, and Washington, have issued their own guidance in an attempt to maintain access to these vaccines.

The NAM says: “Vaccines have revolutionized public health, saved millions from serious and deadly illnesses, and insulated our economy from destabilizing epidemics,” said NAM Vice President of Domestic Policy Jake Kuhns. “Continued access to immunizations is important to help keep manufacturing workers and their families safe and healthy.”

Incidents of high-value “man in the middle” cyber fraud have risen in recent years, taking a financial toll on global shipping (BBC).

What’s going on: “This type of fraud involves a hacker being able to intercept the communication between two parties, such as emails. The criminal then impersonates both in order to try to steal [global shipping firms’] sensitive information, such as log-in details or financial data, or even to take control of a company’s computer system.”

• The number of attacks is increasing, having gone from 10 in 2021 to at least 64 in 2024, according to a research group at NHL Stenden University of Applied Sciences in the Netherlands.

Who’s doing it: “Many incidents are linked to the governments of four countries . . .  Russia, China, North Korea and Iran . . . Other attacks are purely for financial extortion, be it gangs from Nigeria or elsewhere.”

Why it’s important: “Law firm HFW’s data shows that such hacking is a growing problem for the shipping sector, both attacks on ships and ports. It says that between 2022 and 2023 the cost of dealing with an attack doubled to an average of $550,000.”

• In those cases where the firms are unable to get rid of the cyber criminals and are forced to pay them, “HFW says the average cost of a ransom payment is now $3.2 million.”

A big target: About 80% of the world’s trade travels by ocean, and disruptions caused by hackers can make shipping firms’ costs increase enormously, “leav[ing] them short of capacity.”

Why it’s on the rise: The shipping industry’s increasing digitalization means “there are now simply more routes for hackers to use . . . while new communication technologies, Elon Musk’s Starlink satellite service, for example, have meant that ships have become more connected to the outside world. And therefore more hackable.”

• Compounding the problem is that adoption of digital technologies in the sector often happens in “a piecemeal way, and involves technology that can go rapidly out of date”—in large part because firms can’t afford to have their ships out of commission long enough for updates.
• Also, sensors used by ships to monitor emissions transmit data hackers can often access.

How it’s being addressed: “Ship management systems are now required—rather than simply advised— to include increasingly stringent cyber security measures, ranging from basic security hygiene to more technical operational and IT measures.”

NAM in action: The NAM supports legislation to crack down on supply chain theft and fraud and is working with industry partners to highlight the growing issue for policymakers.

The Manufacturing Institute, the 501(c)3 workforce development and education affiliate of the National Association of Manufacturers, announced that Amatrol will be an official sponsor of the Federation for Advanced Manufacturing Education USA.

The background: FAME USA, an initiative founded by Toyota and now run by the MI, is the premier American model of manufacturing skills training, developing highly skilled, professional and sought-after talent to meet the unique needs and challenges of modern manufacturing.

• Amatrol is a globally recognized leader in technical education, providing critical certification, training equipment and continuing education materials to educational institutions and manufacturers.

The partnership: Amatrol is now the exclusive FAME training equipment and content sponsor for the advanced manufacturing, industrial maintenance and smart manufacturing space.

• Together, the two institutions will advance workforce readiness and upskilling as the sector embraces artificial intelligence and the Manufacturing 4.0 revolution.
• Amatrol will continue its Diamond Sponsorship of the FAME National Conference while extending its support to the MI’s Workforce Summit as a Gold Sponsor.

The MI says: “The Manufacturing Institute’s mission is building and strengthening the manufacturing workforce, and FAME USA is a key part of fulfilling that mission. Manufacturers will need to fill 3.8 million jobs by 2033, and half of those are expected to go unfilled because we don’t have the people with the right skills,” said MI President and Executive Director Carolyn Lee.

• “Through the partnership with Amatrol, we’re creating a clear pathway for FAME USA chapters to access top-tier training resources—whether ensuring new chapters start with great equipment from day one, or giving existing chapters the opportunity to strengthen and expand their training programs as needs evolve.”

“Most importantly, this will allow us to work more cohesively with instructors throughout the FAME initiative and help them be more successful,” said Amatrol President Paul Perkins.

Global nuclear operational capacity will increase more than 100% in the next 25 years, according to new International Atomic Energy Agency projections.

What’s going on: “For the fifth year in a row, the [IAEA] has revised up its projections for the expansion of nuclear power, as global momentum continues to build behind this clean and secure source of energy.”

• By 2050, capacity will reach 2.6 times its 2024 level, “with small modular reactors (SMRs) expected to play a pivotal role in this expansion.”
• The projections—which include all “operating reactors, possible license renewals, planned shutdowns, power uprates to increase output levels and plausible and ongoing construction projects foreseen for the next few decades”— are included in the IAEA’s annual report, released earlier this month at the 69th IAEA General Conference in Vienna.

The current state: By the end of last year, there were 417 nuclear power reactors in operation worldwide, with a capacity of 377 gigawatts electric.

• In the low-case projection, nuclear electrical-generating capacity is expected to increase to 992 GW(e), while in the high-case projection, it’s slated to go up to 561 GW(e).

Why it’s important: “As a clean, safe and abundant energy source, nuclear is a key piece of the successful all-of-the-above strategy the U.S. needs to meet growing energy demand that will power growth in domestic advanced manufacturing,” said NAM Director of Energy and Resources Policy Michael Davin.

Real GDP grew at an annual rate of 3.8% in the second quarter, according to the third and last estimate released by the Bureau of Economic Analysis. This represents a 0.5 percentage point increase from the second estimate of 3.3% and 0.8 percentage point jump from the first estimate of 3.0%.

• Meanwhile, the revised estimate for the first quarter showed real GDP decreased 0.6%, down 0.1 percentage point from the previous estimate of -0.5%.

What’s behind it: The upward revision of GDP in Q2 primarily reflects higher consumer spending.

• “Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.9% in the second quarter, revised up 1.0 percentage point from the previous estimate,” the BEA reported.

What it means for manufacturers: “The upward revisions to consumer spending and business investment in the second quarter are positive signs, given that manufacturers’ optimism and every forecasted metric in the latest NAM Manufacturers’ Outlook Survey increased notably in the third quarter,” said NAM Chief Economist Victoria Bloom.

• “Although investment in equipment picked up, spending on structures, which represent factories and infrastructure, contracted 7.5% in the second quarter amid an environment of heightened uncertainty.”

Low-carbon hydrogen is on track for explosive worldwide growth through 2030 (POLITICO Pro’s ENERGYWIRE, subscription).

What’s going on: “The International Energy Agency reported Friday that ‘clean’ hydrogen production will jump fivefold by the end of the decade from projects that are already operational or have reached financial close. More than 200 projects in the sector have finalized financial deals since 2020, it said.”

• It’s a big change from 2024, when global hydrogen demand rose 2% (though most of that was from traditional-fuel projects).
• Clean hydrogen—hydrogen gas produced with little to no emissions, either from renewables or via the capture of “blue” carbon from traditional energy sources—is seen as a way to cut emissions, particularly in sectors that have traditionally been difficult to decarbonize.

China’s big role: “China is driving much of the growth of green hydrogen produced with machines called electrolyzers.”

• This accounts for some 65% of global green hydrogen capacity that has either already been installed or gotten to financial closing.
• Renewable hydrogen in China could be cost-competitive by the end of the decade due to low technology and capital costs, according to the report.

And elsewhere in Asia: “Southeast Asia, where hydrogen production consumes 8% of the gas supply, also is emerging as a major market for the fuel to support chemical industries,” the report said.

In the U.S.: But low-carbon hydrogen projects are expected to decline in the U.S., as tax credits for them phase down.

• Production is expected to decline to 150,000 annual metric tons by 2030, down from 1.2 million estimated last year, according to BloombergNEF. And a pending review of Department of Energy projects could cut that further.
• However, “even if DOE funds are nixed, some hub projects may be economical. In a second research note this week, BloombergNEF said remaining hydrogen tax credits at a maximum could provide $90 billion over 10 years for the hubs.”

Canceled projects: Clean hydrogen production could increase to 37 million metric tons a year by 2030, but that estimate is nearly 25% lower than last year’s projection.

• Eighty percent of that decline is due to canceled projects in the U.S., Europe, Australia and Africa. These initiatives represent approximately 3% of the total pipeline.

The NAM’s take: “Manufacturers believe the U.S. should be supporting a robust and stable domestic hydrogen industry, which can play a role in achieving energy dominance and fuel security,” said NAM Vice President of Domestic Policy Chris Phalen.  “We must not cede leadership over innovation in emerging energy technologies to China.”

Traditional energy exploration and production in the U.S. declined slightly in the third quarter, as oil and gas executives reported rising concern about tariffs and trade uncertainty—and decreasing optimism about the state of the industry (POLITICO Pro, subscription).

What’s going on: A quarterly survey of oil and gas companies released today by the Federal Reserve Bank of Dallas quotes industry executives who pointed to concerns about various administration policies, from tariffs to energy.

• The survey of 139 energy-firm executives in northern Louisiana, Texas and southern New Mexico found that oil companies were drilling less as the administration’s 15% tariff on imported steel required for oil-and-gas infrastructure continued.
• The survey’s company index also slipped, from -6.4 in Q2 to -17.6.

Why it’s important: “Oil executives told the Dallas Fed earlier this year that Trump’s push to lower fuel prices, which lessens the economic incentive for producers to drill, was incompatible with his stated desire to increase production.”

• Tariffs on many imported goods have increased the cost of drilling “at a time when producers are struggling with an oversupplied market, sluggish demand and weak prices.”

What they’re saying: “Tariffs are increasing our supply costs,” said one oil-and-gas support services firm executive.

• “The administration is pushing for $40 per barrel crude oil, and with tariffs on foreign tubular goods, [input] prices are up, and drilling is going to disappear,” an exploration and production company leader said in his survey response. “The oil industry is once again going to lose valuable employees.”
• Said another: “The uncertainty from the administration’s policies has put a damper on all investment in the oilpatch. Those who can are running for the exits.”

“Addressing access to critical minerals must be a top priority for the Department of the Interior to increase manufacturing productivity, lower energy costs, spur greater domestic refining, drive new product development and strengthen our global competitiveness,” the NAM told the department this week.

What’s going on: The NAM filed comments this week on the U.S. Geological Survey’s draft 2025 Critical Minerals List, commending the agency for adding copper and potash while urging further action in designating key materials that underpin manufacturing in America.

Why it matters: Manufacturers rely heavily on critical materials and minerals to make a wide array of products.

• These include aircraft and defense systems, automotive parts and vehicles, electric grid components and other energy technologies, robotics and industrial automation, personal electronics and more.

The win: The NAM has long advocated the addition of copper to the USGS list, calling this action a clear win for manufacturers.  

• “Without a robust copper supply chain in the short and medium terms, manufacturing in America will not be able to reach its potential,” the NAM said.
• Additions of potash, silicon, silver, lead and rhenium are also welcome—as these minerals are critical to unleashing domestic energy dominance and reducing our reliance on imports of essential materials.

The minerals: “Manufacturers rely on a sustainable and reliable supply chain of the critical minerals that are listed within the USGS’s Critical Minerals List,” the NAM said.

• Aluminum plays a vital role in helping the U.S. meet its surging demand for energy, which is driven by data center growth and increased electrification. The NAM emphasized that aluminum is “a key input in energy storage technologies, transmission, transformers and commercial and residential wiring, all of which will be critical to this administration’s strategy to power American energy dominance.”
• Lithium is also critical to energy and national security in the U.S. “The NAM supports maintaining lithium on the USGS Critical Minerals List and would urge continued engagement with the industry to understand the implications of disruption to or negligence of lithium supply chains,” the NAM said.

But also: The NAM urged the USGS to go further by adding phosphate rock, boron, molybdenum, tellurium, arsenic and electrical steel to ensure the Trump administration can respond to the immediate needs of the country as they arise.

Need for alignment: The NAM emphasized the need for alignment with the Department of Energy’s list to eliminate confusion and ensure consistent access to federal programs. It commended the administration last month when DOI announced the additions of copper and potash to its list.

• “While the proposed action to update the USGS list will indeed bring the two lists into greater alignment, further actions can be taken to ensure all minerals and materials designated by either DOI or DOE will have the same supply chain protections, incentives and streamlined permitting,” the NAM said.
• These further actions include coordinating and data sharing to mitigate confusion, as well as working with Congress to issue a Statement of Administration Policy in support of the Mineral Consistency Act, which would eliminate the disparities between the two lists.

What’s next: As part of the administration’s goals to expand manufacturing capacity in the U.S., the NAM’s comments will help shape how the government secures critical mineral supply chains for years to come.

Christina Keller’s path into manufacturing began away from the factory floor.

She studied abroad in Costa Rica and Chile, taught microbusiness classes for young women in Peru, graduated from high school in Switzerland, consulted for global firms after business school and worked for a nonprofit that provides solar energy to impoverished communities in Africa.

From early opportunities that sparked her passion for building teams to leadership roles where she has driven strategy and culture, Christina has navigated every stage of her career with an openness to growth and reinvention. Along the way, Christina drew inspiration from leaders like Oprah Winfrey, whom she had the opportunity to interview as chair of the Economic Club of Grand Rapids. Examples of resilience and authenticity left a lasting mark on how Christina approaches her own leadership style.

That journey has brought her to the helm of her company today, where as CEO of Cascade Engineering she is leading with a vision of innovation and community good.

In the latest installment of the NAM’s “Forge Your Path” series, Christina talks about how trust fuels innovation, why she believes in “taking those who are most ready” and how Cascade’s triple bottom line—people, planet and profit—continues to drive lasting change.

Q: What is one lesson or insight you’ve gained in leadership that you haven’t widely shared before but that has been a key part of your and/or your company’s success?

Christina: “One lesson I haven’t shared widely is that real innovation starts with trust—trust that every voice has value. At Cascade Engineering, I realized that when people feel safe to share ideas, even small operational suggestions, we uncover transformational solutions.

For example, some of our biggest advances—EcoCart; Pink Cart; the first all-plastic chair (Equa for Herman Miller); and the first all-plastic vehicle (Chrysler Concept Vehicle)—came from individuals within our organization and our partners who have felt comfortable enough to share ideas. This is one of my roles as a leader: I spend time cultivating systems where ideas can flow freely. It’s reinforced for me that the idea of collective thriving isn’t just a philosophy; it’s a leadership strategy that unlocks innovation at every level.”

Q: Can you share a quote or mantra that defines your approach to leadership?

Christina: “‘Take those who are most ready.’ If one person, one team or one community thrives and models collective thriving, it lifts up everyone around them and then creates pathways where other people can follow. This shapes how I make decisions, whether it is investing in physical artificial intelligence to lighten repetitive work, or enabling people through the Source, which helps overcome barriers to housing, child care and transportation. I see leadership as not a zero-sum game but as a multiplier. When we help one group thrive, it sparks growth and resilience across the whole system. And to get there, you start with those who are most ready and pour into them.”

Q: What accomplishments at your organization are you the proudest of and why?

Christina: “As a triple bottom-line organization, I often think along the lines of people, planet and profit. So from a people perspective, I am most proud of our work with helping to establish the Source, which has helped nearly 600 employees overcome more than 1,800 barriers to employment and demonstrating how businesses can directly improve lives. In our community, we have collectively shifted the recidivism rate, and the BBC spotlighted our work.

From a planet perspective, I am proud of our decades of being zero waste to landfill and our award from the Institute of Scrap Recycling Industries for our EcoCart, which uses post-consumer curbside bulky rigids in addition to taking back post-consumer trash containers from the field.

From a profit standpoint, I am most proud of our innovative products and our use of physical AI to build out our automation and layer on a rich history of product innovation that includes the first all-plastic chair, the first all-plastic vehicle, all of the bumpers, grills and chassis skirts for the heavy truck industry in North America and the premier waste-collection product—Evolution cart—which fits 40% more on a truck than others in the industry.”

Q: Where do you see your company in the next 5–10 years, and what are you hoping to achieve?

Christina: “I see Cascade Engineering as a leader in collective thriving, circular economy and physical AI. We will be a factory of the future, modeling what sustainable manufacturing can look like globally. We will be leaders in physical AI, utilizing automation and robotics not just to reduce costs, but to create safer, more human-centered jobs and to expand on our innovative creativity.

We will also expand our diversified portfolio of circular economy products, such as containers, flood barriers and medical solutions, and tackle real environmental and community challenges. Most importantly, we will continue to demonstrate collective thriving—business success, employee well-being and community growth are mutually reinforcing. My hope is that others in manufacturing will follow, accelerating an industrial movement toward sustainability and dignity at scale.”

Q: What are the past three books that you’ve read that you would recommend to your peers and why?

Christina: “One that I recommend is ‘The Circular Economy Handbook’ by Peter Lacy, Jessica Long and Wesley Spindler. It’s a practical and strategic guide to embedding circular economy principles in business. It’s enhanced in my mind the importance of life-cycle thinking as we consider the design of products. It also echoes what we did with EcoCart—making carts from recycled carts—and inspired me to think about how we can scale circularity across industries.

Another book is ‘How Minds Change’ by David McRaney. This book offers insights into persuasion, psychology and how people shift their beliefs. As leaders navigating innovation, sustainability and culture change, it reinforced for me that transformation isn’t only about new technology; it’s also about helping people move through the chance curve with dignity and understanding.

I’d also recommend ‘The Coming Wave’ by Mustafa Suleyman. It’s a compelling exploration of how AI and emerging technologies will reshape society. It sharpened my conviction that physical AI, when applied with foresight and responsibility, can create safer, smarter and more sustainable manufacturing.

Together, these books cover the essential themes that I continue to explore and I see as key areas for manufacturing leadership: circular economy, collective thriving and physical AI.”