51�Թ���

More than 300 leaders and experts gathered in Minneapolis last week to discuss the industry’s talent challenges, from hiring to training and retaining. The Manufacturing Institute’s annual Workforce Summit convened manufacturers, partners from education and training groups, philanthropy leaders and representatives from community-based organizations to share insights and brainstorm solutions.

The backdrop: With more than , manufacturing leaders are intent on solving the talent equation.

• MI Chief Program Officer Gardner Carrick provided context for attendees. “For the last 7+ years, manufacturers have told the MI that the single biggest challenge they face is finding the right people to employ,” he said. “It is the crisis right in front of us.”
• Carrick urged attendees to “act now, because the system needs help.” However, he also noted that this crisis will take time to fix, saying that manufacturers should “be patient, but be committed.”

Quick insights: The participants brought many new ideas and fresh perspectives to the gathering. Here are some of the highlights:

• Recruitment and hiring: NTT DATA led a session on artificial intelligence technologies that can help with talent attraction, while other sessions focused on changing Americans’ perceptions of the industry and demonstrating that manufacturing is a “cool” field to work in.
• Retention: Mark Rayfield, CEO of Saint-Gobain North America and CertainTeed, highlighted the importance of culture as a retention tool, saying, “Culture is everything. Employees want to work for a place where they are respected.” In a separate session, Jill Wyant, president and CEO of Madison Air, shared why their cultural value of frontline obsession guides how they attract and retain their frontline employees.
• Training: One session focused on training frontline supervisors in methods that boost retention of frontline workers. Other sessions focused on using the FAME USA model (of combined accreditation and training) to cultivate talent for manufacturing facilities.
• Preparing the next generation: Ketchie Inc.’s Andy Silver spoke about the company’s program, an unpaid internship program for high school students that offers real-world learning experience and mentorship. Programs like these can transform young people’s perceptions of the manufacturing industry and set them on rewarding career paths, as Silver noted.

Did you miss it? Don’t worry! There are plenty of ways to get involved in the solutions being driven by the MI, the 51�Թ���’s 501(c)3 workforce development and education affiliate.

• Check out the , a new initiative that will provide manufacturers innovative resources and opportunities to access solutions and best practices on how to tackle the challenges of recruiting, training and retaining talent in today’s competitive landscape. Attendees got a first look, but now we’re sharing it with everyone.
• �ұ��  directly from the MI on the latest workforce insights and receive information about registering for next year’s Workforce Summit in Charlotte, North Carolina, taking place Oct. 20–22, 2025.
• Want more labor data and insights? Sign up for the MI’s comprehensive to stay up to date on the latest workforce trends.

The last word: “The MI and manufacturers across the country are changing the narrative, raising awareness and finding new ways to get people in the door and retain them,” said MI President and Executive Director Carolyn Lee. “As we face workforce shortages and retention challenges, events like the MI’s Workforce Summit are necessary to help the industry share important insights and ensure the readiness of the future manufacturing workforce.”

As part of the 51�Թ���’s “” tax campaign, small and medium-sized manufacturers are urging Congress to make full expensing of capital equipment purchases permanent, warning that the phaseout of this pro-growth tax provision is harming their ability to invest, grow and compete.

What’s happening: Tax reform allowed manufacturers to immediately expense 100% of the cost of capital equipment purchases. But this provision started to be phased out in 2023, dropping by 20%. It will drop by a further 20% every year until 2027, when it will expire completely.

• Seventy-eight percent of manufacturers said that the expiration of full expensing and other pro-growth tax provisions has decreased their ability to expand U.S. manufacturing activity, according to an from last year.

What’s at stake for manufacturers: Capital-intensive industries like manufacturing are the primary beneficiaries of full expensing.

• Lori Miles-Olund, president of Miles Fiberglass & Composites in Clackamas, Oregon, explained the benefits for her company: “We were able to purchase new equipment that not only made our production more environmentally friendly but also safer and more efficient for employees.”
• Colin Murphy, president and owner of Simmons Knife & Saw in Glendale Heights, Illinois, emphasized how critical full expensing is for global competitiveness: “To remain competitive, we need to continually innovate and consistently invest in new machinery and equipment. But with rising tax bills, it’s becoming harder to do so.”

Delayed investments: Some manufacturers are holding off on equipment purchases due to the uncertain tax landscape.

• “I know exactly where the next capital investment should be installed, but I’ve been delaying this decision,” said Courtney Silver, president and owner of Ketchie in Concord, North Carolina. “[Full expensing] dropped to 60% [in 2024], and the fact that I can’t expense the full value of this investment changes the return on investment calculation.”
• In Hodgkins, Illinois, Pioneer Service recently moved from a 24,000-square-foot building to a 62,000-square-foot building, but it can’t take advantage of all this space without full capital equipment expensing. “We had 13 more machines on order that we’ve put a hold on,” explained CEO and Co-Owner Aneesa Muthana. “Thirteen machines equivalent to about $5 million in capital, and that’s completely on hold until we know what’s going to happen next.”

Calling on Congress: If Congress does not act, accelerated depreciation will be entirely absent from the U.S. tax code for the first time in decades. “This isn’t just about numbers on my financial statements and my tax returns—this is about taking care of people here and in communities across this country working for small manufacturers,” said Silver.

• “Congress must act now to support American manufacturers,” said Murphy. “Our ability to invest in our communities, create jobs and innovate is at risk.”​

Rep. Mariannette Miller-Meeks (R-IA) visited Cemen Tech in Indianola, Iowa, for an employee town hall about how pharmacy benefit managers increase prices for manufacturing workers.

The event, hosted by Cemen Tech Chief Financial Officer Josh Maurer, allowed workers to engage directly with Rep. Miller-Meeks on the affordability of their health care, including prescription medicines.

The issue: The town hall focused on the need , underregulated middlemen that drive up the costs of prescription medicines for manufacturers like Cemen Tech, the world’s largest manufacturer of on-demand concrete mixing equipment.

• Rep. Miller-Meeks discussed the DRUG Act, legislation that she introduced, which seeks to lower health care costs by delinking PBMs’ compensation from the list price of medicines—removing their incentive to push for higher prices.
• “PBMs distort the market, increasing the cost of prescription drugs for businesses and their workers,” Rep. Miller-Meeks explained. “That’s why I’m working in Congress to pass PBM reform that reins in these powerful actors.”

Manufacturers’ concerns: “We’ve seen health care expenses skyrocket, and a big part of that is due to the lack of transparency surrounding PBMs,” Maurer said during the town hall.

• “Cemen Tech and other small manufacturers like us are committed to providing affordable health care to employees, but it’s becoming increasingly difficult. PBM reform that addresses these rising costs is absolutely necessary.”

Addressing employee concerns: Cemen Tech employees also spoke about their struggles with the growing burden of health care costs across the board. Rep. Miller-Meeks explained that her proposed reform would have far-reaching effects: “It’s not only about reducing drug prices—it’s about ensuring that businesses can afford to continue providing health care benefits to their workers,” she said.

51�Թ��� in action: In addition to supporting the “delinking” provisions in the DRUG Act, the 51�Թ��� is working with Congress on legislation to make PBMs’ opaque business practices more transparent and to ensure that savings from rebates are passed directly to manufacturers and their workers rather than being pocketed by PBMs.

The bottom line: “Manufacturers like Cemen Tech are essential to our economy, and ensuring they can thrive means addressing the rising costs of health care,” said Rep. Miller-Meeks. “PBM reform will free up manufacturers to do what they do best—build facilities, develop new product lines, increase wages and benefits and help the American economy grow.”

The liquefied natural gas export industry has turned the U.S. into a powerhouse of cleaner energy, benefiting its trading partners around the world. The Biden administration’s ongoing ban on new LNG export licenses, however, is throttling an industry that could produce many more billions in revenue and a startling 900,000 jobs by 2044.

The data: A from the 51�Թ��� and PwC shows that the U.S. LNG revolution could extend its upward climb, as shown on the graph above. Today, the industry is a huge source of jobs and profit:

• U.S. LNG exports support 222,450 jobs, resulting in $23.2 billion in labor income.
• The LNG industry contributes $43.8 billion to U.S. GDP.
• And lastly, federal, state and local governments receive $11.0 billion in tax and royalty revenues, thanks to U.S. LNG exports.

But that pales in comparison to the industry’s potential over the next two decades. The study projects the likely growth of the industry through 2044, showing all that is at stake if the ban remains in place until then:

• Between 515,960 and 901,250 jobs, resulting in $59.0 billion to $103.9 billion in labor income, would be at risk.
• The ban would also stifle between $122.5 billion and $215.7 billion in contributions to U.S. GDP during the same period.
• Between $26.9 billion and $47.7 billion in tax and royalty revenues meant to benefit communities across the United States would also be at risk in 2044.

Public opinion: The American public is squarely behind the LNG export industry, showing overwhelming approval in an 51�Թ��� poll taken in March.

• Eighty-seven percent of respondents agreed the U.S. should continue to export natural gas.
• Seventy-six percent of respondents agreed with building more energy infrastructure, such as port terminals.

The last word: “With LNG exports, we do not have to choose between what’s good for the economy and good for the planet. Today’s research shows the massive opportunity America has when we unleash our economic and energy potential,” said 51�Թ��� President and CEO Jay Timmons.

• “Building LNG export facilities and expanding natural gas production are not just good for our industry—they also cut emissions and help power manufacturing around the world.”

The Producer Price Index for final demand (also known as wholesale prices) was unchanged in September, after rising 0.2% in August. Over the past year, the final demand index rose 1.8% on an unadjusted basis, a slight decline from the 1.9% over-the-year increase in August. Prices for final demand excluding foods, energy and trade services inched up 0.1%, after rising 0.2% in August.

In September, prices for final demand services increased 0.2%, offsetting a 0.2% decline in prices for final demand goods. While both food (1.0%) and other goods (0.2%) prices saw an uptick, a 2.7% drop in energy prices more than balanced out those increases. The largest underlying increase was a 0.3% rise in transportation and warehousing services prices, although prices for both trade services and other services also increased slightly. The rise in transportation and warehousing services prices in September follows a significant price decline of 0.9% in August.

Prices within intermediate demand fell in September, continuing the declines from August. Processed goods for intermediate demand dropped 0.8%, with prices for processed energy goods leading the decrease. On the other hand, prices for processed foods and feeds rose 0.9%. Over the 12 months ending in September, prices for processed goods for intermediate demand fell 2.7%.

Meanwhile, prices for unprocessed goods for intermediate demand moved down 3.2% in September, after declining 3.1% in August. The decrease was driven by a 12.6% drop in unprocessed energy materials. In contrast, unprocessed foodstuffs and feedstuffs and nonfood materials less energy prices increased 2.7% and 1.9%, respectively. Over the 12 months ending in September, prices for unprocessed goods for intermediate demand fell a dramatic 9.5%.

Consumer prices rose 0.2% over the month and 2.4% over the year in September, slightly above consensus expectations of a 2.3% year-over-year increase. This is the smallest over-the-year increase since February 2021. Core CPI, which excludes more volatile energy and food prices, ticked up slightly to a 3.3% increase over the year and remains higher than overall CPI.

Shelter increased 0.2% over the month and 4.9% over the year in September. Food, which rose just 0.1% over the month and 2.1% over the year in August, rose 0.4% over the month and 2.3% over the year in September. Together, these two indexes accounted for more than 75% of the monthly increase of the all-items index. Transportation services also remain high, rising 1.4% over the month and 8.5% over the year, with motor vehicle insurance increasing 16.3% over the year.

Energy costs, which fell 1.9% over the month and 6.8% over the year in September, helped restrain the headline inflation rate. This significant decline is partly due to energy prices being elevated in September 2023. While energy commodity prices are down over the year, electricity prices are up 3.7%.

Although the report came in hotter than expected, markets are still a 25-basis-point rate cut at the Federal Open Market Committee’s next meeting in November. Federal Reserve Bank of Chicago President Austan Goolsbee noted there would likely be more close call-type meetings in deciding the Fed’s interest rate target in the coming months.

The NFIB Small Business Optimism Index rose 0.3 points in September to 91.5, marking the 33rd consecutive month below the 50-year average of 98. Meanwhile, the Uncertainty Index rose 11 points to 103, the highest reading ever recorded.��This high level of uncertainty is making small business owners hesitant to invest in capital and inventory, with owners reporting the lowest level of capital outlays in September since July 2022 and inventory gains falling to the lowest reading since June 2020. Although price increases have slowed in recent months, inflation is the top concern for small business owners, with 23% identifying higher input and labor costs as their primary issue.

Filling job openings continues to be a top issue for small businesses and is acute particularly in manufacturing, transportation and construction. In September, 34% of small business owners reported jobs they could not fill.

A net 25% of small business owners plan price hikes in September. A net 32% of small business owners reported raising compensation, down one point from August and the lowest reading since April 2021. Following the Federal Reserve’s interest rate cut,��a net 12% of owners reported paying a higher rate on their most recent loan, down 3 points from August and the lowest reading since March 2022. Profitability remained under pressure, mainly due to weaker sales.

The service sector continues to be holding up, while manufacturing and housing remain weak. The outlook for general business conditions remains negative but is improved from earlier in the year, while the current economic conditions and business climate were the top reasons cited for why it is not a good time to expand.

Medical supply chains are critical to ensuring the health and security of Americans—and Congress should act to bolster their resiliency, the 51�Թ��� members of Congress this month.

What’s going on: “The COVID-19 pandemic brought to light the risks and instability resulting from concentration and choke points in medical supply chains, though the pandemic also showed how medical supply chains can quickly adjust to external shocks,” 51�Թ��� Managing Vice President of Policy Chris Netram told Reps. Brad Wenstrup (R-OH), Blake Moore (R-UT) and August Pfluger (R-TX) in response to a on how to improve medical supply chains.

What should be done: The 51�Թ��� recommended that Congress should work with manufacturers “on a comprehensive approach to find ways to onshore, near-shore and friend-shore more of the medical supply chain,” Netram continued.

There are several actions the federal government should take to fortify medical supply chains, including:

• “[C]reating an environment where small businesses can continue to thrive” and where large companies can maintain their pandemic-era practices of “leveraging sources of domestic production when feasible, working with existing smaller suppliers to improve their reliability” and sourcing goods through new suppliers;
• Streamlining the Food and Drug Administration’s new-supplier certification process;
• Taking “creative steps to incentivize onshoring, near-shoring and friend-shoring, as opposed to imposing punitive or unworkable requirements to do so”;
• Passing the Medical Supply Chain Resiliency Act (H.R. 4307/S. 2115), which would authorize the president to strategically create new trade agreements specific to medical goods with our allies and partners;
• Strategically refining Section 301 tariffs on imports from China;
• Restoring “ and full expensing of capital equipment purchases,” ensuring “that the does not exceed 21%” and making the permanent; and
• Completing “reauthorization of the Workforce Innovation and Opportunity Act and expansion of Pell grant eligibility to short-term training programs,” as well as supporting solutions that incentivize companies to collaborate to reduce the manufacturing-worker shortage.

The bottom line: “[A]n approach that creates incentives that reduce the cost and complexity of moving supply chains can help U.S. manufacturers to be more resilient in the face of a future global crisis and better able to serve patients who depend on these products,” Netram said.

In high-level meetings with government, manufacturing and trade group leaders held in Mexico last week, the 51�Թ��� hammered home a key message: For North American manufacturing to remain globally competitive, Mexico must protect investor holdings in the country.
��
What’s going on: During a jam-packed three-day visit to Mexico City, 51�Թ��� President and CEO Jay Timmons and an 51�Թ��� contingent with top officials in the new Sheinbaum administration, as well as leadership at multiple agencies and associations.

• These included newly appointed Deputy Trade Minister Luis Rosendo Gutiérrez, the Business Coordinating Council (CCE),��the Confederation of Industrial Chambers of Mexico (CONCAMIN),��the Mexico Business Council (CMN), the National Council of the Export Manufacturing Industry (INDEX) and others.������

What they said: The 51�Թ���’s main message at each gathering was the same: Companies investing in Mexico need assurance that their portfolios will be protected regardless of the fate of proposed in the country.

• The 51�Թ��� also underscored the of the U.S.–Mexico–Canada Agreement, which is due for review in 2026, and the necessity of ensuring that the deal is upheld for all three parties.
• If its terms are respected, USMCA could help North American manufacturing outcompete China.

On China: This week, just days after his office’s meeting with the 51�Թ���, Gutiérrez announced that the Sheinbaum administration will seek U.S. manufacturers’ help to reshore—mainly from China—the production of some critical technologies (, subscription).

• “We want to focus on supporting our domestic supply chains,” he told the Journal, adding that talks with U.S. companies are still in the informal stage.

​�ċ�ċ�ċ�ċ�ċ�ċThe 51�Թ��� says: ��“Manufacturing is at the heart of the USMCA,” said 51�Թ�����Vice President of International Policy Andrea Durkin, who was part of the 51�Թ��� group on the ground in Mexico.��“The 51�Թ��� intends to work to ensure that the agreement strengthens the competitiveness of manufacturers.”
​�ċ�ċ�ċ�ċ�ċ�ċ

The Defense Department’s Office of Strategic Capital is now accepting applications for flexible direct loans to build, expand and/or modernize “critical technologies” facilities ().

• It’s also seeking input from companies and trade associations on the Defense Department’s loan program, via a Request for Information open through Oct. 22 ().

What’s going on: The OSC’s , launched Sept. 30, aims “to attract and scale private capital in industries and technologies that are critical to America’s national and economic security,” according to the . This is part one of the��application process.

• The financing is geared toward manufacturers that must spend significantly on industrial or specialty equipment to create new assembly lines in existing facilities.
• The money is also intended to help them cover “soft” expenses, such as factory preparation and installation, associated with critical technology projects.

Why it’s important: “The funding from this program could benefit manufacturers of all sizes that are working to expand their businesses and product lines in critical areas of the economy,” said 51�Թ��� Director of Energy and Natural Resources Policy Mike Davin.

• The OSC loans offer flexible terms, a U.S. Treasury-comparable interest rate, long repayment periods and deferred payments.

Who’s eligible: Manufacturers within the 31 “Covered Technology Categories”— which include advanced manufacturing, cybersecurity, battery storage and spacecraft—are encouraged to apply.

• There is no company-size or employee-number threshold or limit, and manufacturers with existing federal grants are eligible.