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Released June 03, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. manufacturers expect capital spending will increase 0.3% over the next 12 months, based on the latest outlook survey by the National Association of Manufacturers (NAM), compared with 1.2% last quarter, as respondents continue to indicate tariffs and other "trade uncertainties" are their main business challenge. Still, Industrial Info's data indicates U.S. Industrial Manufacturing Industry project activity remains robust.
The NAM survey ran from May 8 to May 27 and received 299 responses, featuring small (those with 49 or less employees), medium-sized (between 50 and 499 employees) and large manufacturers (500 or more employees).
According to the summary of findings, released May 30, 26.9% of the respondents see reduced capital expenditures in the next year, an increase from last quarter (17.7%); 29.9% of the respondents expect additional capital spending--which is down from 36.6% last quarter and 42.4% in fourth-quarter 2024.
About 36% said "recent changes to tariff rates" delayed or canceled investments, such as capital expenditures, new facilities or research and development.
Meanwhile, 77% of the respondents said that trade uncertainties (e.g. actual or proposed tariffs, trade negotiations uncertainty) were their top business challenge, followed by increased raw material costs (66.1%). That compares with 76.2% and 62.3% of respondents, respectively, last quarter.
"When asked what manufacturers expect to happen with raw material prices and other input costs, respondents expect those costs to increase 5.8% on average, the highest rate of increase since Q2 2022."
In addition, a majority of the respondents (89%) said the cost of doing business has increased due to tariffs imposed this year, while a majority also said they expect export sales will decline 0.6% over the next 12 months--the first negative figure since second-quarter 2020--as a result of the U.S.' tariffs and retaliatory ones.
For the latest information on the tariffs, see May 30, 2025, article - Appeals Court Pauses Block on Trump Tariffs.
Only 55.4% of respondents reported a positive outlook for their companies--down nearly 15% from the first quarter's figure, and the lowest level since second-quarter 2020.
The manufacturers also continued to urge Congress to pass pro-manufacturing tax policies; the U.S. House of Representatives took a step toward doing so by including a provision in the "One Big, Beautiful Bill" that would extend the 2017 Tax Cuts and Jobs Act, although there is no guarantee the bill will move through the Senate in its current form. For more information on the sought-after tax reform and the NAM's outlook survey from last quarter, see March 10, 2025, article - U.S. Manufacturers Need Congress to Prevent Tax Reform Legislation Sunset.
Despite any negative sentiment facing U.S manufacturing, Industrial Info's data indicates strong related project spending.
Data from IIR's North American Industrial Project Spending Index for the U.S. Industrial Manufacturing Industry shows project spending in April (the latest data available) was $357 billion--up from $195.5 billion year-over-year (an increase of 82.6%).
Click on the image at right to see a breakdown of the April project spending index for the U.S. Industrial Manufacturing Industry, by market region.
Industrial Info is tracking more than $400 billion worth of U.S. Industrial Manufacturing Industry projects under construction, with two sectors accounting for nearly 50% of the spend: data centers and semiconductors & computers.
Intel Corporation (NASDAQ:INTC) (Santa Clara, California) is building two semiconductor fabrication centers in New Albany, Ohio, amounting to some $28 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the related project reports.
Intel and other chipmakers have applauded President Donald Trump's desire to reshore chip manufacturing, but Intel indicated in a recent letter to the U.S. Department of Commerce that semiconductor chip tariffs could cause it to reduce planned investments: "Government policies should support, not hinder, these investments. Intel's return to leadership in process technology is an important achievement, but imposing overly broad tariffs could disrupt this progress, counteracting the ability to sustain this leadership into the future."
The Trump administration is conducting a "Section 232" investigation into semiconductor imports, and recent comments from Trump indicate he could impose tariffs specifically on imported semiconductor chips and related semiconductor materials. Section 232 investigations are performed by the U.S. Secretary of Commerce, under the Trade Expansion Act of 1962, to determine the effect of imports on national security. "The President can concur or not with the Secretary's recommendations, and take action to 'adjust the imports of an article and its derivatives' or other non-trade related actions as deemed necessary," according to a U.S. Department of Commerce white paper.
In other manufacturing sectors, data center construction is booming. Among the projects expected to wrap up next year are two in Loudon County in Virginia, which has the largest concentration of data centers among all U.S. states: Google's (Mountain View, California) $600 million Leesburg Hayden Data Center Expansion Phase III, and the first two buildings (worth $600 million of investment) at data center developer STACK Infrastructure's (Denver, Colorado) grassroot data center campus (NVA06). Subscribers can read more information on the Google and STACK Infrastructure projects.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of U.S. Industrial Manufacturing Industry projects that are under construction.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The NAM survey ran from May 8 to May 27 and received 299 responses, featuring small (those with 49 or less employees), medium-sized (between 50 and 499 employees) and large manufacturers (500 or more employees).
According to the summary of findings, released May 30, 26.9% of the respondents see reduced capital expenditures in the next year, an increase from last quarter (17.7%); 29.9% of the respondents expect additional capital spending--which is down from 36.6% last quarter and 42.4% in fourth-quarter 2024.
About 36% said "recent changes to tariff rates" delayed or canceled investments, such as capital expenditures, new facilities or research and development.
Meanwhile, 77% of the respondents said that trade uncertainties (e.g. actual or proposed tariffs, trade negotiations uncertainty) were their top business challenge, followed by increased raw material costs (66.1%). That compares with 76.2% and 62.3% of respondents, respectively, last quarter.
"When asked what manufacturers expect to happen with raw material prices and other input costs, respondents expect those costs to increase 5.8% on average, the highest rate of increase since Q2 2022."
In addition, a majority of the respondents (89%) said the cost of doing business has increased due to tariffs imposed this year, while a majority also said they expect export sales will decline 0.6% over the next 12 months--the first negative figure since second-quarter 2020--as a result of the U.S.' tariffs and retaliatory ones.
For the latest information on the tariffs, see May 30, 2025, article - Appeals Court Pauses Block on Trump Tariffs.
Only 55.4% of respondents reported a positive outlook for their companies--down nearly 15% from the first quarter's figure, and the lowest level since second-quarter 2020.
The manufacturers also continued to urge Congress to pass pro-manufacturing tax policies; the U.S. House of Representatives took a step toward doing so by including a provision in the "One Big, Beautiful Bill" that would extend the 2017 Tax Cuts and Jobs Act, although there is no guarantee the bill will move through the Senate in its current form. For more information on the sought-after tax reform and the NAM's outlook survey from last quarter, see March 10, 2025, article - U.S. Manufacturers Need Congress to Prevent Tax Reform Legislation Sunset.
Despite any negative sentiment facing U.S manufacturing, Industrial Info's data indicates strong related project spending.
Data from IIR's North American Industrial Project Spending Index for the U.S. Industrial Manufacturing Industry shows project spending in April (the latest data available) was $357 billion--up from $195.5 billion year-over-year (an increase of 82.6%).
Industrial Info is tracking more than $400 billion worth of U.S. Industrial Manufacturing Industry projects under construction, with two sectors accounting for nearly 50% of the spend: data centers and semiconductors & computers.
Intel Corporation (NASDAQ:INTC) (Santa Clara, California) is building two semiconductor fabrication centers in New Albany, Ohio, amounting to some $28 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the related project reports.
Intel and other chipmakers have applauded President Donald Trump's desire to reshore chip manufacturing, but Intel indicated in a recent letter to the U.S. Department of Commerce that semiconductor chip tariffs could cause it to reduce planned investments: "Government policies should support, not hinder, these investments. Intel's return to leadership in process technology is an important achievement, but imposing overly broad tariffs could disrupt this progress, counteracting the ability to sustain this leadership into the future."
The Trump administration is conducting a "Section 232" investigation into semiconductor imports, and recent comments from Trump indicate he could impose tariffs specifically on imported semiconductor chips and related semiconductor materials. Section 232 investigations are performed by the U.S. Secretary of Commerce, under the Trade Expansion Act of 1962, to determine the effect of imports on national security. "The President can concur or not with the Secretary's recommendations, and take action to 'adjust the imports of an article and its derivatives' or other non-trade related actions as deemed necessary," according to a U.S. Department of Commerce white paper.
In other manufacturing sectors, data center construction is booming. Among the projects expected to wrap up next year are two in Loudon County in Virginia, which has the largest concentration of data centers among all U.S. states: Google's (Mountain View, California) $600 million Leesburg Hayden Data Center Expansion Phase III, and the first two buildings (worth $600 million of investment) at data center developer STACK Infrastructure's (Denver, Colorado) grassroot data center campus (NVA06). Subscribers can read more information on the Google and STACK Infrastructure projects.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of U.S. Industrial Manufacturing Industry projects that are under construction.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
