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Negotiations between the U.S. Maritime Alliance and the International Longshoremen’s Association have stalled again, “raising the possibility of renewed strikes at U.S. East and Gulf Coast ports in January” ().

What’s going on: Talks between the dockworkers and their employers broke down this week over proposed language regarding the use of automation, according to the ILA.

• “This impasse follows a tentative agreement reached in early October, which ended a three-day strike across Atlantic and Gulf Coast ports” and extended the workers’ labor contract until Jan. 15, 2025.
• If the parties are unable to reach a long-term agreement by that date, the union could strike again.

Why it’s problematic: Even a brief work stoppage could have major economic consequences, according to widely cited 51�Թ��� .

• A strike at East and Gulf Coast ports would jeopardize $2.1 billion in trade every day and could reduce gross domestic product by up to $5 billion a day.

What must be done: “These ports are critical components of the manufacturing supply chain and move products on which Americans depend,” said 51�Թ��� Director of Transportation, Infrastructure and Labor Policy Max Hyman. “Both sides should return to negotiations as soon as possible and reach a lasting resolution that prevents needless economic destruction.”

When employers tell workers that unionizing would harm employee–manager relationships, they might be violating federal law, the National Labor Relations Board ruled last week (, subscription).
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What’s going on: “Telling workers that a union would come between them and their bosses may violate the National Labor Relations Act because it’s an effective threat to end workers’ direct relationships with management, a majority comprising the board’s three Democrats said [last] Friday in a case involving Starbucks.”

• The groundbreaking decision overturns nearly four decades of precedent. In its 1985 Tri-Cast ruling, the NLRB allowed employers to tell employees that unionization would strain worker–manager relationships “so long as they didn’t explicitly or implicitly threaten employees” when doing so ().
• The NLRB said such cases will now be decided on a case-by-case basis.

Looking ahead: The ruling will only apply to future cases, however, “allowing past communications under the Tri-Cast standard to stand without retroactive penalties” (JD Supra).

The for final demand (also known as wholesale prices) increased 0.2% in October, after rising 0.1% in September. Over the past year, the final demand index rose 2.4% on an unadjusted basis, an increase from the 1.9% over-the-year increase in September. Prices for final demand excluding foods, energy and trade services inched up 0.3%, after rising 0.1% in September.

In October, prices for final demand services increased 0.3%, while prices for final demand goods rose just 0.1%. Although both food (-0.2%) and energy (-0.3%) prices declined, a 0.3% increase in prices of other goods more than offset those decreases. The largest underlying increase was a 0.5% rise in transportation and warehousing services prices, while prices for both trade services and other services increased slightly.

Prices within intermediate demand rose 0.5% in October, following two consecutive monthly declines. Processed goods for intermediate demand increased 0.5%, with prices for processed energy goods leading the increase. On the other hand, over the 12 months ending in October, prices for processed goods for intermediate demand fell 1.2%.

Meanwhile, prices for unprocessed goods for intermediate demand moved up 4.1% in October, after declining 1.8% in September. The increase was driven by a 9.9% rise in unprocessed energy materials. Meanwhile, unprocessed foodstuffs and feedstuffs prices edged up just 0.4%, and nonfood materials less energy prices increased 2.1%. Over the 12 months ending in October, prices for unprocessed goods for intermediate demand fell 2.9%.

Consumer prices rose 0.2% over the month and 2.6% over the year in October, in line with consensus expectations but higher than the 2.4% over-the-year increase in September. Core CPI, which excludes more volatile energy and food prices, stayed at a 3.3% over-the-year increase and remains higher than overall CPI.

Shelter increased 0.4% over the month and 4.9% over the year in October, accounting for more than 65% of the yearly increase of the all-items index. On the other hand, food price increases have slowed considerably, rising 0.2% over the month and 2.1% over the year in October. Prices for transportation services also remain high, rising 0.4% over the month and 8.2% over the year, with motor vehicle insurance increasing 14.0% over the year.

Energy costs, which were flat over the month, fell 4.9% over the year in October, helping to restrain the headline inflation rate. This decline is due partly to energy prices being somewhat elevated in October 2023. While energy commodity prices are down over the year, electricity prices are up 4.5%.

Although the over-the-year headline rate ticked up from the previous month, markets are still a 25-basis-point rate cut at the Federal Open Market Committee’s next meeting in December. However, slowing progress on inflation might upend the Federal Reserve’s previous easing plans for 2025, pointing to the possibility of the FOMC’s interest rate target being cut at a slower pace.

Inflation rose again last month (, subscription).

What’s going on: The consumer price index increased 0.2% in October, the fourth consecutive increase ().

• “[P]rices were up 2.6% from a year earlier, in line with economists’ expectations. Core inflation, at 3.3%, also matched forecasts,” according to the Journal.

The details: Shelter prices rose 0.4% in October, accounting for more than half the increases overall (BLS).

• Food prices inched up 0.2%, while energy prices were unchanged after having declined 1.9% in September.

What it means: The news strengthened investor confidence that the Federal Reserve will cut rates in December for the third time this year in an effort to hit its 2% inflation goal, the Journal reports.

• “The October CPI report will likely support the notion that the last mile of inflation’s journey back to target will be the hardest,” Wells Fargo economists wrote in a memo to clients ().

New orders for manufactured goods fell another 0.5% in September, after falling 0.8% in August. When excluding transportation equipment, new orders edged up 0.1%. Orders for durable goods dropped 0.7% after falling 0.9% in August. Year to date, durable goods orders are down 1.5%. Nondurable goods fell 0.2% in September after declining 0.7% in August. Nonetheless, nondurable goods orders are up 1.4% year to date.

New orders for turbines, generators, and other power transmission equipment experienced the greatest increase of any industry at 4.9%, while the defense aircraft and parts had the largest over the month decrease of 23.7%. After falling 17.9% in August, mining, oil field and gas field machinery orders are back up 3.3% in September. The largest over the year changes were in nondefense aircraft and parts, which are down 33.4%, and computers, which are up 23.2%.

Factory shipments decreased 0.4% in September, after falling 0.7% in August. Shipments excluding transportation were unchanged, following a 0.4% decline the previous month. Shipments for durable goods were down 0.5% in September but are up 1.6% year to date. Meanwhile, nondurable goods shipments fell 0.2% in September but are up 1.4% year to date.

Unfilled orders rose 0.2% in September, following a 0.2% increase in August. The unfilled orders-to-shipments ratio for durable goods increased to 6.94 from 6.86 in August. Inventories saw a slight decrease of 0.2%, while the inventories-to-shipments ratio remained unchanged at 1.46.

In October, the global manufacturing sector contracted for the fourth consecutive month, but at a slower pace than in September. Three of the five PMI components were at levels consistent with contraction. While employment declined at a faster rate than in September, new business orders and new export orders slowed their decline from the previous month. Output stabilized, rising slightly into growth territory, but stressed supply chains lengthened supplier delivery times.

A deceleration of the rate of contraction is reflective of improvement of operating conditions in China and easing of conditions in the U.S. and the Eurozone. Growth was fastest in India, Spain, Brazil and the Philippines compared to other surveyed countries.

Data broken down by sector pointed to ongoing struggles in the global industry. The intermediate and investment goods industries contracted for the fourth consecutive month, but the rate of decline eased. On the other hand, consumer goods growth continued at an increased rate.

In October, manufacturing employment is a concern, as job losses were noted for the third consecutive month and at the steepest rate since August 2020. Job cuts were reported in China, the U.S. and the Eurozone, while Canada, the UK and India registered employment growth. Nevertheless, confidence remained close to September’s reading, which was at a 22-month low. Inflationary pressures also held steady, with input prices remaining unchanged and output charges rising only slightly.

With a new administration and Congress on the horizon, the 51�Թ��� is signaling confidence in its ability to secure wins for manufacturing in the United States, highlighting both recent achievements and policy priorities moving forward.

“The 51�Թ��� has always focused on what’s best for manufacturing in America, and our track record speaks to that,” said 51�Թ��� Executive Vice President Erin Streeter. “Our approach is consistent because we know what it takes to get results.”

What we’ve delivered:��With post-partisan engagement, the 51�Թ��� has achieved historic policy wins across both recent administrations, including:

• Tax reform: The 51�Թ���’s advocacy����the 2017 tax cuts, driving billions in savings that manufacturers have reinvested in jobs, innovation and facility upgrades.
• Regulatory certainty: The 51�Թ��� has played a pivotal role in streamlining regulations,��reducing compliance costs��under the Trump administration and working to�� during the Biden years.
• United States-Mexico-Canada Agreement: The 51�Թ��� was a����for USMCA, safeguarding U.S. jobs by ensuring fairer competition and greater access to key markets.
• Energy advances:����have supported growth in domestic energy production, creating a more stable energy market.
• Infrastructure and CHIPS Act: The 51�Թ��� was instrumental in securing the historic ��and the , both critical for modernizing the economy, bolstering national security and ensuring a reliable semiconductor supply.

“These wins demonstrate what we bring to the table,” Streeter said. “By staying focused on manufacturing’s priorities, we can partner effectively with the new administration and Congress to create and protect jobs and strengthen communities.”

Looking ahead:��The 51�Թ���’s focus on core issues remains critical for keeping the sector competitive and resilient, Streeter continued. These issues include:

• Securing tax reform: The 51�Թ���’s��“” campaign aims to lock in key 2017 tax provisions that manufacturers rely on for stability and growth. “Tax reform has been a game-changer,” said Streeter. “Protecting that progress means more jobs and manufacturing-led growth across the country.”
• Regulatory certainty: The 51�Թ��� is advocating for��balanced regulations��that support competitiveness. “Manufacturers thrive with clear, fair rules,” Streeter noted. “We’re making sure Washington understands the importance of regulatory stability—and the danger of excessive regulation.”
• Energy security: The 51�Թ��� is working to��secure reliable, affordable energy��while fostering innovation in sustainability. “Energy security and grid reliability are top of mind for every manufacturer,” Streeter added. “We’re ensuring manufacturers can continue to innovate, grow and drive America forward.”

Bottom line: ��The 51�Թ��� remains focused on advocating for policies that strengthen��U.S. manufacturing. “Our success is built on trust and influence,” Streeter said. “Our members know the 51�Թ��� is a constant force, with the relationships and expertise to deliver, regardless of political changes.”

In related news, President-elect Trump has named campaign manager Susie Wiles as White House chief of staff (, subscription), a choice 51�Թ��� President and CEO Jay Timmons����“a powerful move to bring bold, results-driven leadership to the White House from day one.”

The 51�Թ��� recently interviewed Sen. Maggie Hassan (D-NH) on the importance of reinstating immediate expensing for companies’ research-and-development expenditures. Here’s the full interview:

51�Թ���: Sen. Hassan, Congress is facing a “Tax Armageddon” next year, as crucial provisions from 2017’s Tax Cuts and Jobs Act are set to expire. As a member of the Senate Finance Committee, what is your focus moving into next year’s debate?

Sen. Hassan: Next year, we will need to work to pass a tax cut package to support both American families and businesses. The package should build on the one that was negotiated in the Senate earlier this year, including a restoration of the full R&D tax deduction to support innovative businesses. The R&D tax deduction is an area where I have been particularly engaged in negotiations, and it is vital for our national security and economic competitiveness. We need to ensure that our tax policy fosters innovation, promotes the creation of good-paying jobs and keeps the United States at the forefront of technological advancement. We also need to prioritize a bipartisan expansion of the Child Tax Credit to support hardworking families and a bipartisan expansion of the Low-Income Housing Tax Credit to address our country’s housing shortage. I will continue to push for these critical measures throughout negotiations.

51�Թ���: As you know, for nearly 70 years, manufacturers in the U.S. were able to fully deduct their R&D expenses in the year incurred. Beginning in 2022, however, manufacturers were forced to spread their deductions over several years, greatly harming our ability to grow and compete. What is Congress doing to restore immediate R&D expensing?

Sen. Hassan: I first introduced bipartisan legislation with Sen. Todd Young to restore the R&D deduction back in 2020, and we’ve been pushing for its passage since. The R&D tax deduction has wide bipartisan support—our measure supporting full R&D expensing passed 90–5 in the Senate in 2022. Recently, we had a bipartisan tax cut package that included the R&D tax deduction’s restoration, but unfortunately, it was blocked in the Senate, despite passing the House with an overwhelmingly bipartisan 357–70 vote. It’s disappointing and frustrating.

51�Թ���: During your time as senator, you have seen how impactful R&D is for manufacturers to be able to compete on a global level. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?

Sen. Hassan: The message I’m getting is clear—we can’t afford to fall behind in the global R&D race; it’s about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage, and I’m already hearing from business leaders across New Hampshire about how the expiration of the tax deduction is impacting their ability to plan for and make the investments that drive our economy forward.

There’s a critical national security component here too. We need to be at the forefront of designing, implementing and controlling new technologies, including those used for our national defense.

51�Թ���: Thank you, Sen. Hassan. What else can 51�Թ��� members do to stay engaged and be a resource for you going into next year?

Sen. Hassan: Your advocacy is crucial. I encourage 51�Թ��� members to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.

With a “Tax Armageddon” looming at the end of 2025, Sen. Maggie Hassan (D-NH) is gearing up to fight for manufacturers. Sen. Hassan, who introduced the bipartisan American Innovation and Jobs Act (S. 866) with Sen. Todd Young (R-IN) in 2020 and reintroduced it last year, understands the importance of restoring expired manufacturing-critical tax provisions.

What’s going on: One of Sen. Hassan’s top priorities for 2025 is reinstating immediate expensing for companies’ research and development costs.

• For nearly seven decades, manufacturers could fully deduct R&D spending in the year those expenses were incurred. But since immediate R&D expensing was allowed to expire in 2022, manufacturers have been required to amortize R&D expenses over a period of years instead.
• “The R&D tax deduction … is vital for our national security and economic competitiveness,” Sen. Hassan told us in a recent interview for the 51�Թ���’s “” campaign, adding that she has “been particularly engaged in negotiations” on the topic. “We need to ensure that our tax policy fosters innovation, promotes the creation of [well]-paying jobs and keeps the United States at the forefront of technological advancement.”

Why it’s important: “The message I’m getting [from manufacturers] is clear: We can’t afford to fall behind in the global R&D race,” Sen. Hassan continued. “It’s about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage.”

What she’ll be doing: Though a bipartisan tax cut package that included a restored R&D tax deduction passed in the House earlier this year, the legislation stalled in the Senate. That’s only made Sen. Hassan vow to redouble her efforts in 2025.

• “[L]ooking ahead, I’m committed to working across the aisle to get this done because it’s crucial for our manufacturers, our economy and our national security,” she said.

What you can do: Manufacturer input and engagement are vital as Congress considers tax legislation next year, Sen. Hassan emphasized.

• “I encourage [manufacturers] to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.”

Read the full interview .
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