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This Week in Manufacturing - 7/9/2025

This Week in Manufacturing - 7/9/2025

AI is driving the train, but who's along for the ride?

July 09, 2025

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💴 This Week in Manufacturing

Manufacturing output is stabilizing, but June’s headlines reveal a much bigger shift underway. A modest uptick in PMI points to recovering production, but with new orders and employment still shrinking, the outlook remains mixed. Beneath the surface, however, a strategic pivot is gaining speed: major players like Jabil and Toyota are putting billions behind U.S.-based manufacturing of AI and EV components. And the Southeast—particularly North Carolina—is quickly becoming ground zero for this industrial transformation. Meanwhile, smaller manufacturers are feeling new pressure from tariff escalations, highlighting a widening gap between firms with momentum and those struggling to keep up.

The headlines of the week explore major themes such as tech and training investments, and reflection on America’s manufacturing past.

This week’s first podcast, from The Manufacturing Executive highlights a labor force opportunity through fair chance hiring. The second podcast, from Advanced Manufacturing Now, discusses a champion of CNC building up the next generation of workers.

Our Social Video and Fun Fact highlight advances in two tech industries: EV and AI.

Thanks for joining us!

⚙ Manufacturing Headlines

Diversity in business ownership can accelerate America’s manufacturing [Brookings]
EV Tax Credit Cuts Threaten U.S. Jobs and Manufacturing [EVXL]
MIT Initiative Advancing U.S. Manufacturing with Cutting-Edge Tech [Thomas]
Manufacturing from America’s Founding Through Its Future [IndustryWeek]
Pioneering the Future of Defense Manufacturing with the U.S. Navy [AI Invest]

COMMENTARY

♨️ North Carolina’s Manufacturing Surge is No Accident

Strategic investment is driving manufacturing growth

If you’re trying to make sense of where American manufacturing is heading, this week delivered a potent mix of signals.

Manufacturing output ticked upward in June, but it's the $500M AI hardware facility in North Carolina and shifting regional dynamics that tell the real story—reshoring is gaining steam, but not all players are keeping pace.

The manufacturing industry is teetering on a precipice as production is rising while new orders and workforce remain under pressure. Meanwhile, AI infrastructure and regional investment are reshaping the landscape.

Upshot: This week’s developments highlight the need for an industrial strategy that empowers small manufacturers, strengthens domestic networks, and ensures America doesn’t lose this opening inning advantage.