US Manufacturing Sector NAICS 31-33

Jan 20, 2026 - Job Losses

• The US manufacturing sector logged seven consecutive months (April-November) of job losses following President Trump’s April 2025 “Liberation Day” tariffs, which were intended to boost domestic production and hiring, MSN reported in January. In an interview with CNN, Kevin Hassett, director of the National Economic Council, acknowledged the decline, but argued that new factory groundbreakings, about 30 since September, would generate jobs in 2026. However, commentators like Brian Allen note that manufacturing workers continue to face layoffs despite pro‑manufacturing rhetoric, calling the trend economic deterioration rather than renewal. Data cited by CNN reinforces the concern: industries dependent on manual labor have been cutting jobs throughout 2025, with Bureau of Labor Statistics figures showing sustained losses across traditional blue‑collar sectors. Analysts warn that the broader economy cannot be considered healthy if manufacturing employment continues to shrink, raising questions about the effectiveness of current trade and industrial policies.
• Several mega‑projects scheduled for 2026 signal rising investment in US manufacturing despite a recent dip in overall manufacturing construction spending and the cancellation of $32 billion in clean‑energy projects, Manufacturing Dive reports. Federal incentives, especially CHIPS Act funding and state tax credits, are driving a new concentration of high‑value manufacturing capacity across semiconductors, autos, and pharmaceuticals. Micron’s $200 billion multistate expansion, Samsung’s $17 billion Texas fab, and TSMC’s previously announced $100 billion US buildout collectively will strengthen domestic chip supply chains and create tens of thousands of direct and indirect jobs, while boosting demand for construction materials, automation systems, and industrial equipment. Stellantis’ $13 billion investment across four states accelerates domestic vehicle and EV‑related production, while Lilly’s $27 billion pharmaceutical buildout expands domestic drug‑ingredient and biologics capacity. For the manufacturing sector, the impact is broad: stronger regional manufacturing hubs, deeper supply‑chain localization, increased demand for skilled labor, and long‑term opportunities tied to capital equipment, components, and industrial services.

• 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 state attorneys general.
• Producer prices for all US manufacturing industries rose 3.5% in September compared to a year ago, after falling 2.4% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by manufacturing companies shrank 0.7% year over year in September, while average sector wages rose 4.3% over the same period to a new high of $29.31 per hour, BLS data show. Through November, the US manufacturing sector had lost 73,000 jobs (seasonally adjusted) over the past 12 months, according to BLS employment statistics.