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Released May 02, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Economic activity for U.S. manufacturing contracted for the second straight month in April, according to a survey report by the Institute for Supply Management (ISM), as tariffs continue to disrupt the domestic manufacturing sector.
The ISM's Purchasing Manager's Index (PMI), which tracks 18 industry sectors in the U.S., registered 48.7% in April, down marginally from 49% in March, 50.3% in February and 50.9% in January.
"Demand and production retreated and destaffing continued, as panelists' companies responded to an unknown economic environment," Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a related summary of findings. "Prices growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth."
Weakened demand is evidenced by several indicators, he said, including: the New Orders Index continuing in contraction territory and the New Export Orders Index dropping sharply further into contraction.
"Factory output (production) contracted further in April, indicating that panelists' companies are continuing to revise production plans downward in the face of economic headwinds." The Employment Index remained in contraction, as panelists said they continued to release workers.
The ISM survey participants highlighted Fiore's sentiment. One from the PMI's Computer & Electronic Products industry said, "Business climate is apprehensive, and with tariff costs implemented, all inbound Chinese shipments are on hold. It is not feasible for our business or customers to sustain the pricing required to provide an acceptable margin."
Another from Machinery pointed to two major issues: customers holding back orders as they aim to understand the tariffs' effect on their products, or they are being forcing to accept the tariffs, "which causes us to 'no quote' the job as we cannot take on that type of risk for an order."
Amid the global tariff environment, Industrial Info is tracking more than $400 billion worth of U.S. Industrial Manufacturing Industry projects that are under construction. Data centers lead all manufacturing sectors with more than $100 billion worth of projects.
Tech giants Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California), Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) and Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) account for about 40% of the spend.
Amazon's project activity includes the ongoing construction of five three-story, 300,000-square-foot data center buildings in Leesburg, Virginia: IAD-667 and IAD-668 are expected to wrap up by the end of the year, while IAD-669, 670 and 671 are expected to wrap up by the end of 2026. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read more information on the five projects, which have a total investment value of $2.3 billion.
Meta's $840 million grassroot data center in Montgomery, Alabama is the first phase of a multi-building complex; construction of the 715,000-square-foot building is expected to wrap up by the end of 2026. Subscribers can click here to read a detailed project report.
Meanwhile, Microsoft expects construction of the $400 million Phase II expansion of its data center campus in Douglasville, Georgia, which is part of a multi-phase, 980,000-square-foot development, will wrap up around the beginning of 2026. Click here to read more project information.
Subscribers can click here for a full list of U.S. Industrial Manufacturing Industry projects under construction.
Among the semiconductor-related projects underway is Micron Technology Incorporated's (NASDAQ:MU) (Boise, Idaho) $25 billion expansion of its campus in Boise. First chip production is expected in 2026. Subscribers can click here to read the detailed project report.
In the automotive sector, General Motors Company (NYSE:GM) (Detroit, Michigan) is building out a $788 million expansion and retooling of its Flint Truck Assembly Plant in Michigan. The project, which is expected to wrap up next year, involves expanding the existing 5.2 million-square-foot plant to assemble GM's next generation of internal combustion engine heavy-duty trucks. Click here for the project report.
GM on Thursday lowered its earnings forecast for 2025, indicating it could see a $4 billion to $5 billion drop in profits due to trade policy volatility. This comes days after President Donald Trump issued executive orders easing some existing 25% tariffs on automobiles and auto parts.
In the company's latest earnings-related conference call, Chief Executive Officer Mary Barra said, "as tariff policy came into focus," GM increased full-size pickup production at its truck plant in Fort Wayne, Indiana, "and we are developing plans to further increase U.S. vehicle production."
Subscribers to the GMI Database can click here for a look at all of the projects discussed in this article and here for the plant profiles.
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 ISM's Purchasing Manager's Index (PMI), which tracks 18 industry sectors in the U.S., registered 48.7% in April, down marginally from 49% in March, 50.3% in February and 50.9% in January.
"Demand and production retreated and destaffing continued, as panelists' companies responded to an unknown economic environment," Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a related summary of findings. "Prices growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth."
Weakened demand is evidenced by several indicators, he said, including: the New Orders Index continuing in contraction territory and the New Export Orders Index dropping sharply further into contraction.
"Factory output (production) contracted further in April, indicating that panelists' companies are continuing to revise production plans downward in the face of economic headwinds." The Employment Index remained in contraction, as panelists said they continued to release workers.
The ISM survey participants highlighted Fiore's sentiment. One from the PMI's Computer & Electronic Products industry said, "Business climate is apprehensive, and with tariff costs implemented, all inbound Chinese shipments are on hold. It is not feasible for our business or customers to sustain the pricing required to provide an acceptable margin."
Another from Machinery pointed to two major issues: customers holding back orders as they aim to understand the tariffs' effect on their products, or they are being forcing to accept the tariffs, "which causes us to 'no quote' the job as we cannot take on that type of risk for an order."
Amid the global tariff environment, Industrial Info is tracking more than $400 billion worth of U.S. Industrial Manufacturing Industry projects that are under construction. Data centers lead all manufacturing sectors with more than $100 billion worth of projects.
Tech giants Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California), Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) and Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) account for about 40% of the spend.
Amazon's project activity includes the ongoing construction of five three-story, 300,000-square-foot data center buildings in Leesburg, Virginia: IAD-667 and IAD-668 are expected to wrap up by the end of the year, while IAD-669, 670 and 671 are expected to wrap up by the end of 2026. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read more information on the five projects, which have a total investment value of $2.3 billion.
Meta's $840 million grassroot data center in Montgomery, Alabama is the first phase of a multi-building complex; construction of the 715,000-square-foot building is expected to wrap up by the end of 2026. Subscribers can click here to read a detailed project report.
Meanwhile, Microsoft expects construction of the $400 million Phase II expansion of its data center campus in Douglasville, Georgia, which is part of a multi-phase, 980,000-square-foot development, will wrap up around the beginning of 2026. Click here to read more project information.
Subscribers can click here for a full list of U.S. Industrial Manufacturing Industry projects under construction.
Among the semiconductor-related projects underway is Micron Technology Incorporated's (NASDAQ:MU) (Boise, Idaho) $25 billion expansion of its campus in Boise. First chip production is expected in 2026. Subscribers can click here to read the detailed project report.
In the automotive sector, General Motors Company (NYSE:GM) (Detroit, Michigan) is building out a $788 million expansion and retooling of its Flint Truck Assembly Plant in Michigan. The project, which is expected to wrap up next year, involves expanding the existing 5.2 million-square-foot plant to assemble GM's next generation of internal combustion engine heavy-duty trucks. Click here for the project report.
GM on Thursday lowered its earnings forecast for 2025, indicating it could see a $4 billion to $5 billion drop in profits due to trade policy volatility. This comes days after President Donald Trump issued executive orders easing some existing 25% tariffs on automobiles and auto parts.
In the company's latest earnings-related conference call, Chief Executive Officer Mary Barra said, "as tariff policy came into focus," GM increased full-size pickup production at its truck plant in Fort Wayne, Indiana, "and we are developing plans to further increase U.S. vehicle production."
Subscribers to the GMI Database can click here for a look at all of the projects discussed in this article and here for the plant profiles.
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).
