US Manufacturing Sector NAICS 31-33

Nov 20, 2025 - Manufacturers Oppose Rail Merger

• The proposed merger of the Union Pacific and Norfolk Southern railroads has raised alarm among major industrial users, particularly chemical manufacturers, according to the American Chemistry Council. The ACC warns that combining these two rail giants could significantly reduce competition, raising freight costs and undermining service reliability across critical supply chains. Rail is a linchpin for many manufacturing operations, delivering raw materials to plants and finished goods to markets. With fewer railroads, manufacturers could be stuck with limited shipping options and higher rates, putting US production at a competitive disadvantage globally. The ACC is advocating for stricter regulatory review and calling for policy interventions to preserve rail-to-rail competition rather than enabling greater railroad consolidation. The proposed $85 billion deal was approved by the companies’ shareholders in November but faces opposition from several states attorneys general.
• US factory activity shrank in October for an eighth straight month, driven by a pullback in production and tepid demand, The Wall Street Journal reported in November citing the latest data from the Institute for Supply Management (ISM). In October, ISM’s Purchasing Managers’ Index (PMI) fell to 48.7 from 49.1 in September (a reading under 50 indicated contraction), with production, new orders, and employment all contracting, reversing short-lived gains seen in previous months. Six manufacturing industries reported growth in October with Primary Metals, Food, Beverage & Tobacco Products, and Transportation Equipment topping the list. Twelve industries reported contraction for the month including Textile Mills, Apparel, Leather & Allied Products, Furniture & Related Products, and Machinery. WSJ noted that tariffs and their impact on prices and demand featured highly in respondents’ answers to the ISM survey.

• The complex web of tariffs imposed by the second Trump administration has infiltrated most segments of the US manufacturing technology supply chain, impacting everything from pricing and sourcing to investment timelines, a recent Association For Manufacturing Technology’s (AMT) survey of 80 manufacturing technology executives found. Reciprocal tariffs, Section 301 tariffs, 50% levies on steel and aluminum, and a pending Section 232 investigation of robotics and industrial machinery imports have added layers of complexity to pricing, sourcing, and production planning for US manufacturers across most of the supply chain, per AMT. The survey found 91% of respondents reported increased landed costs (the total cost of getting a product from the factory to a customer’s door) due to tariffs; 85% raised customer prices to offset those costs; and 85% experienced margin compression on imported machinery or components. Notably, only 9% of those surveyed reported switching suppliers.
• Producer prices for all US manufacturing industries rose 1.9% in August compared to a year ago, after slipping 0.8% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by manufacturing companies shrank 0.7% year over year in August, while average sector wages rose 3.9% over the same period to $28.94 per hour, down $0.09 from their high in July, BLS data show. The US manufacturing sector lost 12,000 jobs in August, continuing a downward trend despite Trump administration policies aimed at bolstering the sector, according to the BLS.