US Manufacturing Sector NAICS 31-33

May 20, 2025 - SBA Loan Limit May Double

• A bipartisan group in Congress has introduced legislation that would boost manufacturing by small US firms, Barron’s reported in May. The Made in America Manufacturing Finance Act supports the Trump administration’s efforts to revive US manufacturing and create jobs. The bill would raise the $5 million cap on Small Business Administration 7(a) and 504 loans to $10 million, but only for manufacturers. (The current $5 million limit hasn’t changed since 2010.) The 7(a) program offers flexible financing for working capital, equipment, and real estate, while the 504 program is typically used for fixed assets like land and large machinery. The 7(a) loan program, which guarantees loans issued by banks and nonbank lenders, has long been a cornerstone of small business financing. Lenders broadly support the bill, but would like to see it applied to all small business loans, according to Forbes.
• While President Trump says tariffs will be a boon for American manufacturing, in the short term, at least, tariffs are making life harder for US manufacturers, the National Association of Manufacturers reports. The president of Ohio-based copper wire products maker Republic Wire told the Cincinnati Enquirer that while he understands what the administration is trying to achieve with tariffs, “Higher prices on materials could mean fewer construction projects, which could mean a slowdown for the industry, fewer jobs and a drag on the economy as a whole.” Chuck Daras, president and COO of Michigan automotive manufacturing firm AlphaUSA, wrote in an op-ed “The truth [about tariffs] is that the burden falls squarely on American manufacturers and, ultimately, the American consumer,” adding “If the tariffs remain in place long term, small manufacturers might not be able to hold out long enough to see their promised benefit.”

• As part of the Trump administration’s effort to cut federal spending, the Commerce Department has stopped funding 10 Manufacturing Extension Partnership (MEP) programs, Manufacturing Dive reports. The MEP program network supports small and medium-sized US manufacturers looking to grow or make operational improvements. The move impacted programs in Delaware, Hawaii, Iowa, Kansas, Maine, Mississippi, Nevada, New Mexico, North Dakota and Wyoming, which were notified that their contracts would not be renewed after expiring in March. The cuts are likely the first step in an effort to cut funding from programs in 40 other states and Puerto Rico when their contracts are up for renewal later this year, according to members of the House Committee on Science, Space, and Technology. During his first term, Trump tried multiple times to eliminate MEP funding, but Congress restored the funds each time. Critics say the cuts conflict with the president’s strategy to revive US manufacturing.
• New orders for manufactured goods rose 2.5% in February compared to a year ago with durable goods orders outpacing orders for nondurables, according to the Census Bureau. In February, new durable goods orders rose 3.4% year over year and 1% versus January, while new orders for nondurables rose 1.6% YoY and 0.3% versus January. Shipments of manufactured goods increased 2.6% YoY in February, with durable goods shipments up 3.6% and shipments of nondurables rising 1.6%, per the Census Bureau. Employment by US manufacturers was flat in April compared to a year ago, while average sector wages climbed 4.6% over the same period to $28.83 per hour, down $0.06 from their peak in March, according to the latest US Bureau of Labor Statistic data. Many manufacturing companies find themselves in a bit of a holding pattern due to tariff uncertainty.