News

This isn’t your grandfather’s workforce development training (Manufacturing Dive).

What’s going on: “Emerging programs are increasingly going beyond simple vocational training by targeting students early or in underserved communities, offering direct pathways to employment and exposing trainees to advanced tech skills.”

• The changes are a direct response to the longtime shortfall of manufacturing workers, which could reach 1.9 million if current trends persist, according to a Manufacturing Institute–Deloitte study cited by the article.
• The MI is the NAM’s 501(c)3 workforce development and education affiliate.

How it’s happening: Thanks to federal and state-level funding and private-company innovation, “prospective workers can now opt into a manufacturing career via multiple training paths.”

• Events such as those hosted by manufacturers during Manufacturing Month in October are allowing companies to get prospective workers in the door.
• At the events, manufacturers reinforce “that this is a sector where you can make a real impact and build a fulfilling career,” Laura Phillips, vice president of engineering and procurement for Pella Corporation, told the publication. “We get to tell our story, challenge outdated perceptions and spotlight the career pathways that exist in this industry.”

What else they’re doing: Pella uses a “multifaceted” approach to attracting talent, pairing interns with mentors and forming partnerships with schools to host plant tours and job shadows so students can see what modern manufacturing is really about.

• “Many of the students we have met through these interactions have joined the Pella team,” Phillips said.

The automation factor: Pella uses automation to supplement, not replace, human workers.

• The technology “make[s] tough jobs easier and equip[s] younger team members with tools that help them upskill and work hand in hand with technology,” Phillips added.

The MI says: “Manufacturers have long recognized the need to better engage the next generation of workers,” said MI President and Executive Director Carolyn Lee.

• “That’s why MFG Day matters and is so powerful—especially when it’s connected to onboarding and training. Pella’s approach works and is a great model for our industry.”
• “From Manufacturing Month and Manufacturing Day events that bring in prospective team members to pay-as-you-learn training, the industry is igniting interest in students and job seekers everywhere.”

When manufacturers see their team members struggling to find convenient, high-quality child care solutions, they’re increasingly offering their own solutions (Manufacturing Dive).

What’s going on: Sheffield, Iowa–based Sukup Manufacturing Co., a maker of farm equipment that employs some 600 people, saw just such a need a few years ago.

• So the company “formed a coalition with West Fork School District and United Bank & Trust Co. to raise money for a local child care center. The group applied for and received a state matching grant of $1.25 million for the estimated $3.3 million project. Following a year of construction, Bin Town Child Care officially opened November 2024.”
• Today, the center, which has capacity for 112 youngsters, also serves the local community. Currently about 60 spots are filled, one-third of those by the children of Sukup employees.

Expanding existing offerings: At Toyota, employees have been able to count on onsite child care since 1993, when the company opened its first center at its factory in Georgetown, Kentucky.

• In August, the auto manufacturer announced expansions to its care offerings at plants in North Carolina, Alabama, Mississippi and West Virginia. All will be open by 2027.
• Toyota also recently expanded its Princeton, Indiana, child care center “to accommodate up to 366 children over two shifts.”

Why it’s important: With manufacturing job openings still hovering around pre-pandemic levels, companies are keen to offer benefits that will attract and keep workers. One of the most prized benefits today is child care.

• “As we went through COVID and things like that, there was a lot of talk about child care, and the team members’ needs kind of shifted around,” Myriah Sweeney, general manager for people and property services for Toyota North America, told Manufacturing Dive. “They weren’t asking for child care prior to that … or it didn’t seem to be as big of an issue.”
• The article cites a 2023 study by the Manufacturing Institute, the NAM’s 501(c) 3 workforce development and education affiliate, which found that child care is a top concern for both employers and workers in the industry.

The MI says: “Access to child care has long been a major concern for manufacturing workers, which means it’s also been a major concern for manufacturing leaders,” MI President and Executive Director Carolyn Lee said.

• “These manufacturers are leading the way in innovative, generous and employee-first offerings, enabling more workers to build long-term careers in manufacturing.”

The NAM’s mission of supporting the people who make things in America would not be possible without the organization’s board of directors.

Say hello: The NAM is pleased to announce its newest board members—committed and exemplary professionals dedicated to the success of manufacturing in the United States. The newest members will begin their two-year terms in January 2026. The additions, who come from across industries and leadership roles in manufacturing, include the following:

• Orlando Alvarez, chairman and president, bp America; senior vice president, Gas & Power Trading Americas; president and CEO, bp Energy Company
• Neil Barua, president and CEO, PTC Inc.
• Bruce Bodine, CEO, The Mosaic Company
• Rogerio Branco, executive vice president, chief supply chain officer, Eaton
• Rodney Bull, CEO, Komatsu America Corp.
• Eleanor Cabreré, senior vice president, general counsel and corporate secretary, International Motors, LLC
• Josh Chou, chief global supply chain officer, McCormick & Company, Inc.
• Keira Driansky, executive vice president, president North America, Ipsen Biopharmaceuticals, Inc.
• Henrietta Fuchs, partner, Manufacturing & Distribution Practice, CohnReznick LLP
• Alex Housten, chief operating officer, Rheem Manufacturing Company
• Frederick Humphries Jr., corporate vice president, U.S. Government Affairs, Microsoft Corporation
• Christina Keller, CEO and chair, Cascade Engineering, Inc.
• Erik Lampe, president and CEO, The Vollrath Company
• Rebecca Liebert, president and CEO, The Lubrizol Corporation
• Laura Matz, chief science and technology officer, Merck KGaA, Darmstadt, Germany
• Timothy Mulhere, CEO, Fortrex Solutions
• Sam Paul, senior managing director, Accenture
• Thomas Peddicord, managing director and senior partner, North America Industrial Goods Practice, Boston Consulting Group
• Heather Remley, president and CEO, BASF Corporation
• Toby Rice, president and CEO, EQT Corporation
• Ronald Richardson, chief revenue officer, FourKites, Inc.
• Scott Richardson, president and CEO, Celanese Corporation
• Brandon Spencer, president, Motion Business Area, ABB Group
• Dave Valkanoff, executive vice president, chief operating officer, Benchmark Electronics, Inc.
• Tom Williams, executive vice president and chief marketing officer, BNSF Railway Company
• Bryan Wright, partner, manufacturing national sector leader, Forvis Mazars, LLP

The NAM’s take: “The next few years will shape the manufacturing industry’s trajectory for decades. At a pivotal moment, the NAM will be stronger thanks to the service of our new board members,” said NAM President and CEO Jay Timmons.

“They will help lead the charge as we drive a comprehensive manufacturing strategy that empowers every manufacturer across the United States to build, invest, grow, thrive and lead. On behalf of the entire NAM team, I am grateful for their partnership as we advance the values that have made America exceptional and our industry strong—free enterprise, competitiveness, individual liberty and equal opportunity.”

In July, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 1.7% annual gain, one of the weakest annual price increases in the past decade. The 10-City Composite saw an annual increase of 2.3% in July, down from 2.7% the previous month, while the 20-City Composite rose 1.8% year-over-year, down from 2.2%. Among the 20 cities, New York again posted the highest annual gain at 6.4%, followed by Chicago at 6.2% and Cleveland at 4.5%. Tampa again recorded the lowest annual return, with prices falling 2.8%.

On a month-over-month basis, the U.S. National Index ticked down 0.2% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both decreased 0.3%. After seasonal adjustment, the National Index and the 10-City and 20-City Composites all fell 0.1%.

Short-term price movements in July underscore the housing market’s fragility. Geographic divergence continues to characterize changes as Northeastern and Midwestern markets, after seeing modest price growth, are now top performers. Sun Belt and Western markets are now faring worse, including Tampa (down 2.8%), Phoenix (down 0.9%), Miami (down 1.3%), San Diego (down 0.7%) and San Francisco (down 1.9%).

This housing cycle is showing signs of normalization with the ongoing rotation in regional performance. Stability is emerging as markets with strong local economies are thriving in a market more aligned with overall inflation. Furthermore, this new equilibrium points to a healthier trajectory for housing in the long run.

Consumer confidence decreased 3.6 points in September to 94.2, the lowest level since April. Among its components, the Present Situation Index and Expectations Index both declined, with consumers’ pessimism about future job availability and future business conditions being partially mitigated by stronger expectations about future income.

The Present Situation Index, reflecting current business and labor market conditions, fell 7 points to 125.4. Meanwhile, the Expectations Index, which reflects consumers’ short-term outlook for income, business and labor market conditions, declined 1.3 points to 73.4, remaining below the recession signal threshold of 80 since February 2025.

Views of the current labor market situation are still poor, with 26.9% of consumers saying jobs were “plentiful,” down slightly from August (30.2%), while 19.1% said jobs were “hard to get,” unchanged from August and up from 14.5% in January. Looking to the future, 25.6% anticipate fewer available jobs in the next six months, down slightly from 25.9% the prior month.

Mentions of high prices and inflation rose in September, regaining the top position influencing consumers’ views of the economy. Meanwhile, mentions of tariffs declined in September but continued to be associated with concerns about higher prices. Consumers’ 12-month inflation expectations stepped down from 6.1% to 5.8% in September. Meanwhile, 51.9% of consumers, compared to 52.1% in August, expect interest rates to rise, and a larger share of consumers (25.6% vs. 23.6% in August) expect rates to fall.

Buying plans for cars decreased in September, while buying plans for homes increased to a four-month high. Consumers’ plans for buying big-ticket items changed little overall in September but exhibited variation across items. For example, intentions to purchase TVs and dryers rose the most, while refrigerators saw the largest declines. Vacation intentions fell again to the lowest level since April, with lower intentions to travel abroad driving the decline. Overall, consumers’ views of their current and future financial situation declined slightly from August.

In September, Texas factory activity continued to expand but at a slower pace than the prior month. The production index declined from 15.3 to 5.2, falling below the average of 9.6. Other measures also moved down in September, pointing to slower growth. The new orders index fell 8.4 points into negative territory in September, decreasing to -2.6. Capacity utilization slipped 9.8 points to 3.9, while shipments dropped 7.5 points to 6.7.

Perceptions of manufacturing business conditions worsened in September, with the general business conditions index falling 6.9 points to -8.7, while the outlook also declined, with the company outlook index decreasing 4.3 points to -1. Meanwhile the uncertainty index dropped 4.4 points to 13.9, below the series average of 17.2.

Labor market indicators suggest a decline in headcounts and a slightly longer workweek in September, with the employment index dropping 12.2 points to -3.4, while the hours worked index fell 11.6 points but remained positive at 3.4. Nearly 13% of firms reported net hiring while a larger percentage (16.1%) noted net layoffs.

Price and wage pressures were largely unchanged in September. The prices paid for raw materials index edged down 0.3 points to 43.4. Meanwhile, the prices received for finished goods index declined 3.4 points to 11.7. The wages and benefits index inched up 0.5 points to 15.9 but stayed below the series average of 21.

The outlook for future manufacturing activity weakened from August, with the future production index falling 8.8 points to 31.6. Meanwhile, the future general business activity index and future company outlook index both declined, dropping to 8.4 and 11.7, respectively.

The S&P Global Manufacturing PMI was 52.0 in September, down slightly from the August reading of 53.0. New orders increased for the ninth consecutive month, although at a slower rate and below the survey average. Tariffs continued to hit exports, particularly to Canada and Mexico, and lead to increased input and output costs in September. Nonetheless, output price inflation slowed to its weakest pace since January.

Despite a slowdown in demand growth leading to weaker output gains, production rose sufficiently to allow stocks of finished goods to rise for the second consecutive month amid worries over tariffs and supply-side uncertainty. Meanwhile, delivery times lengthened in September due to difficulties importing goods and stock shortages.

Although tariffs continued to weigh on business confidence, overall business expectations improved slightly compared to August. Many manufacturers anticipate an increase in sales over the next year, and some see tariffs as driving expansions in domestic production. Furthermore, despite ongoing uncertainty related to trade and government policies, many manufacturers increased employment levels in September.

In September, global manufacturing activity was relatively unchanged from August, inching down from 50.9 to 50.8. Output and new orders both rose for the second consecutive month in September. However, these increases failed to stimulate other gains, with staffing levels remaining stable for the second consecutive month and new export business falling for the sixth consecutive month. Meanwhile, supply chains remained stretched as lead times lengthened for the 16th consecutive month.

India, Thailand, Netherlands and Myanmar had the highest PMI readings in September. On the other hand, the U.K., Brazil and Canada were some of the larger nations to register declines in activity. The upturn in manufacturing output occurred across consumer, intermediate and investment goods categories for the second consecutive month, with the pace of growth being greatest for consumer goods.

Meanwhile, price pressures eased slightly in September, with the rate of increase in input and output costs both slowing. Forward-looking indicators were more positive, with future output and export orders advancing from the prior month, but the surge in finished goods inventory suggests that production growth could be due largely to stockpiling rather than an improvement in demand.

In September, the U.S. manufacturing sector contracted for the seventh consecutive month but at a slower pace than the prior month, with the ISM Manufacturing^® PMI increasing to 49.1% from 48.7% in August. One of the four demand indicators improved in September, with the Backlog of Orders Index rising 1.5 percentage points to 46.2%. Meanwhile, the New Orders, New Export Orders and Customers’ Inventories Indexes contracted at faster rates. On the other hand, the Employment Index (45.3%) declined at a slower pace, while the Production Index returned to growth after contracting in August, increasing from 47.8% to 51%.

The New Orders Index contracted after one month of expansion, falling 2.5 percentage points from August. The index hasn’t shown consistent growth since a 24-month streak of expansion ended in May 2022. Of the six-largest manufacturing sectors, none reported an increase in new orders. Respondents continued to note concern about near-term demand, primarily driven by tariff costs and uncertainty.

The New Export Orders Index contracted for the seventh consecutive month at a faster pace, 4.6 percentage points lower than August. The continued contraction is likely indicative of dampened demand amid ongoing trade tensions and policy uncertainty. Meanwhile, the Imports Index contracted for the sixth consecutive month and at a faster rate, down 1.3 percentage points to 44.7% in September. Imports continued to contract as tariff pricing results in lower demand compared to prior months.

The Employment Index contracted for the eighth consecutive month but at a slower pace than the prior month, up 1.5 percentage points from August to 45.3%. Of the six-largest manufacturing sectors, none reported increased employment. Companies continued to focus on layoffs and attrition to restrict headcounts due to uncertainty around near- to mid-term demand. For every comment on hiring, three respondents noted reduced headcounts.

The Prices Index decreased 1.8 percentage points to 61.9%, indicating raw materials prices grew for the 12th straight month in September, but at a slower pace. Of the six-largest manufacturing sectors, all reported increased prices, led by machinery. The increase continues to be driven by steel and aluminum price increases impacting the entire supply chain, as well as the tariffs applied to most imported goods. Roughly 32.5% of companies reported paying higher prices, slightly down from 33.5% in August but still up dramatically from 21% in January.

Job openings for manufacturing decreased by 29,000 to 409,000 in Nondurable goods job openings in August declined by 26,000 to 150,000, while durable goods job openings edged down by 3,000 to 259,000. The manufacturing job openings rate fell to 3.1% from 3.3% in July and from 3.5% the previous year. The rate for nondurable goods manufacturing dropped from 3.5% to 3.0%, while it stayed the same at 3.2% for durable goods.

In the larger economy, the number of job openings ticked up to 7.2 million, an increase of 19,000 from July but a decrease of 422,000 from the previous year. The job openings rate stayed the same at 4.3%, down from 4.6% last year. This data reflects an overall labor market that has eased back to pre-pandemic levels, but remains relatively tight from a historical perspective.

The number of hires in the overall economy decreased 114,000 to 5.1 million in August and 104,000 from the previous year. The hires rate for the overall economy edged down 0.1% in August to 3.2%. Meanwhile, the hires rate for manufacturing stayed the same at 2.4%. The hires rate for durable goods similarly stayed the same at 2.2%, while the hires rate for nondurable goods inched up 0.1% to 2.8%.

In the larger economy, total separations, which include quits, layoffs, discharges and other separations, declined 110,000 from July to 5.1 million and 59,000 from the previous year. The total separations rate edged down 0.1% to 3.2% for the overall economy but inched up 0.1% to 2.5% for manufacturing. Within that rate, layoffs and discharges increased by 5,000 in August for manufacturing, while quits fell by 3,000. The quit and layoff rates continue to remain lower for manufacturing than the total nonfarm sector.