US Manufacturing Sector NAICS 31-33

Dec 20, 2025 - Manufacturing Slows Again in November

• US factory activity slowed to a four‑month low in November as tariffs pushed prices higher and softened demand, leading to a buildup of unsold goods, US News reports. The slowdown puts pressure on manufacturers by reducing new orders and requiring companies to carry elevated inventories, which ties up cash and limits production flexibility. Manufacturers are also facing weaker consumer demand for durable goods, as the University of Michigan survey reported a sharp drop in buying conditions, an early warning sign for sectors like machinery, appliances, autos, and fabricated components. Higher input costs from tariffs further squeeze margins, while slowing new orders suggest that production growth will remain muted, signaling a challenging environment heading into 2026. Overall, the US manufacturing sector can anticipate slower output, tighter margins, and prolonged inventory imbalances, increasing the need for cost control and demand forecasting improvements.
• 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.

• 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 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.