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Released March 19, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Data from the Federal Reserve found U.S. manufacturing output rose 0.9% in February, buoyed by an increase in the output of motor vehicles and parts.
Factory output jumped 0.9% last month after an upwardly revised 0.1% gain in January. On a year-over-year basis, output increased 0.7% in February.
Motor vehicle-related output jumped 8.5% in February after declining for two straight months.
In a March 7 statement from the White House touting President Donald Trump's efforts to boost U.S. manufacturing during his time in office, Press Secretary Karoline Leavitt said there were "9,000 new auto jobs created--the most auto jobs added in 15 months!"
However, Trump's tariffs are causing uncertainty across the domestic manufacturing sector.
Trump on March 4 implemented a 25% tariff on all imports from Mexico and Canada, but two days later, following a meeting with leaders of Stellantis (NYSE:STLA) (Amsterdam, Netherlands), Ford Motor Company (NYSE:F) (Dearborn, Michigan) and General Motors (NYSE:GM) (Detroit, Michigan), the president signed executive orders exempting all imports covered under the USMCA, including auto imports, until April 2.
For more information, see March 6, 2025, article - Trump Tariffs Continue, but Automakers will See Relief.
Among Ford's capital-spending projects underway is a battery plant in Marshall, Michigan. The $2.5 billion project entails constructing a 1.2 million-square-foot battery production plant and 606,000-square-foot battery pack assembly plant. Construction kicked off around the end of 2023 and is expected to wrap up in 2026, when it will begin production of 35 gigawatt-hours of lithium-iron-phosphate batteries, which don't use cobalt and provide a longer life cycle than other lithium-ion battery chemistries.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read a detailed project report.
Regarding the effect of the Trump tariffs and trade negotiations on investment in the U.S. manufacturing sector, the National Association of Manufacturers' latest quarterly capital-spending survey, which was conducted before the initial tariffs went into effect March 4, show 76.2% of the 254 executives surveyed cited "trade uncertainties" as their top business challenge--up 20 percentage points from fourth-quarter 2024. The survey also highlighted failure to implement new, or extend, corporate tax cuts could further inhibit capital investment. For more information on the survey, see March 10, 2025, article - U.S. Manufacturers Need Congress to Prevent Tax Reform Legislation Sunset.
The latest Federal Reserve data for manufacturing output in February indicated manufacturing excluding motor vehicles and parts increased 0.4%.
Production of durable goods--which refers to products with a lifespan of three years or more (e.g. automobiles, furniture, appliances and electronics)--increased 1.6%.
Power transformers are in high demand, buoyed by the ongoing buildout of data centers. The world's largest transformer manufacturer, Hitachi Energy, a unit of Hitachi Ltd. (Tokyo, Japan), expects its power transformers plant expansion in South Boston, Virginia will wrap up later this year. Click here to read the project report.
At the CERAWeek conference in Houston earlier this Month, Hitachi announced additional investments of more than US$250 million by 2027 to "expand global production of critical components for transformers," with more than 40% of the spend in the U.S. This comes on top of the US$6 billion investment announced in 2024 across the company's portfolio.
"As the electrification of industries, particularly data centers and AI (artificial intelligence), drives unprecedented demand for electricity, the need for transformers has surged beyond initial projections," the company said.
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).
Factory output jumped 0.9% last month after an upwardly revised 0.1% gain in January. On a year-over-year basis, output increased 0.7% in February.
Motor vehicle-related output jumped 8.5% in February after declining for two straight months.
In a March 7 statement from the White House touting President Donald Trump's efforts to boost U.S. manufacturing during his time in office, Press Secretary Karoline Leavitt said there were "9,000 new auto jobs created--the most auto jobs added in 15 months!"
However, Trump's tariffs are causing uncertainty across the domestic manufacturing sector.
Trump on March 4 implemented a 25% tariff on all imports from Mexico and Canada, but two days later, following a meeting with leaders of Stellantis (NYSE:STLA) (Amsterdam, Netherlands), Ford Motor Company (NYSE:F) (Dearborn, Michigan) and General Motors (NYSE:GM) (Detroit, Michigan), the president signed executive orders exempting all imports covered under the USMCA, including auto imports, until April 2.
For more information, see March 6, 2025, article - Trump Tariffs Continue, but Automakers will See Relief.
Among Ford's capital-spending projects underway is a battery plant in Marshall, Michigan. The $2.5 billion project entails constructing a 1.2 million-square-foot battery production plant and 606,000-square-foot battery pack assembly plant. Construction kicked off around the end of 2023 and is expected to wrap up in 2026, when it will begin production of 35 gigawatt-hours of lithium-iron-phosphate batteries, which don't use cobalt and provide a longer life cycle than other lithium-ion battery chemistries.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read a detailed project report.
Regarding the effect of the Trump tariffs and trade negotiations on investment in the U.S. manufacturing sector, the National Association of Manufacturers' latest quarterly capital-spending survey, which was conducted before the initial tariffs went into effect March 4, show 76.2% of the 254 executives surveyed cited "trade uncertainties" as their top business challenge--up 20 percentage points from fourth-quarter 2024. The survey also highlighted failure to implement new, or extend, corporate tax cuts could further inhibit capital investment. For more information on the survey, see March 10, 2025, article - U.S. Manufacturers Need Congress to Prevent Tax Reform Legislation Sunset.
The latest Federal Reserve data for manufacturing output in February indicated manufacturing excluding motor vehicles and parts increased 0.4%.
Production of durable goods--which refers to products with a lifespan of three years or more (e.g. automobiles, furniture, appliances and electronics)--increased 1.6%.
Power transformers are in high demand, buoyed by the ongoing buildout of data centers. The world's largest transformer manufacturer, Hitachi Energy, a unit of Hitachi Ltd. (Tokyo, Japan), expects its power transformers plant expansion in South Boston, Virginia will wrap up later this year. Click here to read the project report.
At the CERAWeek conference in Houston earlier this Month, Hitachi announced additional investments of more than US$250 million by 2027 to "expand global production of critical components for transformers," with more than 40% of the spend in the U.S. This comes on top of the US$6 billion investment announced in 2024 across the company's portfolio.
"As the electrification of industries, particularly data centers and AI (artificial intelligence), drives unprecedented demand for electricity, the need for transformers has surged beyond initial projections," the company said.
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).
