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💴 This Week in Manufacturing

U.S. manufacturing in August 2025 showed tentative yet meaningful signs of life after an extended period of contraction. A sharp jump in the S&P Global PMI to 53.0—the strongest in over three years—suggests that production and new orders regained momentum. Meanwhile, the ISM Manufacturing PMI remained below 50 at 48.7, indicating the sector is still contracting, though more moderately than in July.

New orders under ISM flipped back into growth at 51.4, a hopeful signal after six straight months of decline. But output has yet to catch up—ISM’s production index slipped to 47.8, reflecting ongoing struggles converting demand into actual output. Employment remains cautious: hiring picked up somewhat according to S&P Global, but ISM’s employment index lingered in contraction at 43.8.

Cost pressures, driven largely by revived import tariffs and inflation, are intensifying. Input prices remain elevated, while some lengthening in delivery times hints at strain in supply chains.

Still, corporate investments are underscoring long-term confidence: August saw major factory announcements—including a $700 million biotech facility, a $2 billion fertilizer plant, and GE Appliances’ $3 billion multi-state expansion.

The bottom line? The worst of the downturn may be fading, but the recovery is still fragile. The next few months will test whether recent order gains, favorable conditions, and investment can sustain a broader rebound—especially if tariff and price uncertainties persist.

This week’s headlines bounce between positive factory investments and regulatory oversight. At least we won’t go hungry with a new JBS bacon plant included in the openings!

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⚙ Manufacturing Headlines

• Biocon launches first US manufacturing facility in NJ [Investment Monitor]

• MircroBird’s school bus production underway [School Transportation News]

• GE Appliances recognized with Reshoring Award [Lane Report]

• FPI Crackdown Puts Manufacturing Investment at Risk [NAM]

• Hitachi Energy Announces $1 Billion Investment in US Manufacturing [Industry Week]

MONTHLY REPORT

♨️ U.S. Manufacturing Monthly Insights - August

U.S. manufacturing in August 2025 showed clear signs of renewed momentum, with certain indicators reaching multi-year highs even as underlying challenges persisted.

In August 2025, U.S. manufacturing showed signs of renewal as S&P Global’s PMI jumped to 53.0—the strongest in three years—while ISM’s 48.7 still marked contraction, though less severe. New orders rebounded (ISM at 51.4), but production lagged and employment remained mixed.

Input prices surged from tariffs, clouding the outlook. Still, investment momentum was strong: Genentech’s $700M biotech facility, Cronus’ $2B fertilizer plant, and GE Appliances’ $3B expansion highlight long-term confidence. The sector may be turning a corner, though fragility persists.

Upshot: The coming months will test the industry's resilience, but for now, August's numbers offer hope that a corner has been turned, even if cautiously so.

FROM THE FEED

📱Packaging at Wild Country Meats Processing Facility

🤨Did You Know?

Global meat production is expected to increase by 12% to

$382 metric tonnes (Mt)

by 2032.

^{Source: Towards Packaging}

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