US Manufacturing Sector NAICS 31-33

Jul 20, 2025 - US Manufacturing Contracts Again in June

• US factory activity contracted in June for a fourth consecutive month as new orders and employment shrank at an accelerated pace, Bloomberg reports. The Institute for Supply Management’s manufacturing index inched up half a point in June to 49, according to the latest data. (Readings below 50 indicate contraction.) Weak demand and shrinking order backlogs help explain a faster rate of decline in factory employment. According to the Labor Department, the US manufacturing sector shed 7,000 jobs in June, for a total of 89,000 jobs lost over the past 12 months. The nine manufacturing industries reporting growth in June included (in order) Apparel, Leather & Allied Products, Petroleum & Coal ,and Nonmetallic Mineral Products, while the fabricated metal products industry was among those industries reporting contraction.
• In June, GE Appliances announced it will spend nearly $500 million to reshore production of its washing machines from China to Louisville, Kentucky, a move that would create 800 jobs, The Wall Street Journal reports. The iconic American company said that while the move had been planned for sometime, the Trump administration’s steep tariffs on China hastened the decision, according to WSJ. GE said it will make front-loading washers and combination washer-dryers at its factory in Kentucky, with production set to begin in 2027. President Trump’s aggressive tariff agenda is causing more manufacturers to consider reshoring. Other major companies to make announcements this year about expanding US-based operations include Ford, Intel, Nvidia, and Apple. Advances in robotics and AI-driven automation have narrowed the labor cost gap between the US and lower-wage countries like China.

• 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.”
• Producer prices for all US manufacturing industries rose 1.2% in May compared to a year ago, after rising 1% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by US manufacturing companies dipped 0.7% year over year in May, while average sector wages rose 4.6% over the same period to $28.82 per hour, just $0.08 shy of their peak in March, BLS data show. US manufacturers, especially makers of durable goods, are struggling to hire workers. According to data from the Bureau of Labor Statistics, there are nearly half a million open manufacturing jobs right now. About two-thirds of manufacturing companies said recruiting and retaining workers was their No. 1 business challenge in a survey conducted by Deloitte in 2024.