US manufacturing is booming
US manufacturing continues to expand, though August's final PMI of 53.4 fell short of the 53.9 forecast. Growth is largely propelled by AI data center infrastructure and energy storage, highlighted by a five-year strategic collaboration where SK On will supply 9 GWh of US-manufactured LFP cells to NeoVolta Power. While Taiwanese companies invest billions in the US, export orders have declined for 14 consecutive months due to tariffs. To support this expansion, Ohio has launched the JobsOhio Technician Pathway to address a growing shortage of skilled technicians.
What changed
NeoVolta Power secured a five-year deal for 9 GWh of SK On LFP cells and Ohio launched a technician training program.
Live updates
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US Manufacturing PMI Hits 53.4 as AI and Energy Storage Drive Growth
US manufacturing continues to expand, though August's final PMI of 53.4 fell short of the 53.9 forecast. Growth is largely propelled by AI data center infrastructure and energy storage, highlighted by a five-year strategic collaboration where SK On will supply 9 GWh of US-manufactured LFP cells to NeoVolta Power. While Taiwanese companies invest billions in the US, export orders have declined for 14 consecutive months due to tariffs. To support this expansion, Ohio has launched the JobsOhio Technician Pathway to address a growing shortage of skilled technicians.
Why it matters
The shift toward domestic production is being accelerated by supply chain uncertainties in the AI sector. This re-shoring trend coincides with high-value investments from Asian partners and a critical need for specialized labor to maintain new facilities.
What is confirmed
- The US Manufacturing PMI for August was 53.4.
- SK On and NeoVolta Power entered a five-year strategic supply and manufacturing collaboration for 9 GWh of US-manufactured LFP cells.
- Export orders fell for a 14th straight month.
Still unconfirmed
- The JobsOhio Technician Pathway program aims to train workers for in-demand technician jobs.
What to watch next
- November midterm election outcomes regarding AI data center expansion
- Further PMI data to determine if export order declines stabilize
- Details on the scale of Taiwanese investments in US manufacturing
confidence 80%Sources used for this update (9)
- timesofindia.indiatimes.com — India Q1 GDP Data Live Updates: Did Indian economy's growth slow down due to US-Iran war?
- www.yahoo.com — New Ohio program aims to train workers for in-demand technician jobs
- www.straitstimes.com — US-Taiwan ties ‘never been stronger’, says top diplomat in Taipei
- www.solarpowerworldonline.com — NeoVolta US-made BESS to use SK On LFP cells
- calgaryherald.com — AI data centre rush feeds expansion, hiring spree at Calgary tech darling CoolIT
- astanatimes.com — Kazakhstan Has Begun Structural Shift Toward Non-Resource Economy, Expert Says
- www.usatoday.com — Fun Town RV Names Jason Lippert Chief Executive Officer
- cryptobriefing.com — US manufacturing PMI August final at 53.4, below expectations
- diginomica.com — Welcome home! How AI data centers supply chain uncertainties might drive re-shoring
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AI Demand and Battery Contracts Drive US Industrial Expansion
Artificial intelligence is accelerating US manufacturing growth, specifically in optical fiber and data center infrastructure. Corning is doubling its size through a partnership with NVIDIA to build three optical-manufacturing facilities. Simultaneously, energy storage is scaling, with SK On securing a 9 GWh battery supply contract. While payroll growth remained steady in August, the rapid expansion of AI data centers has become a political flashpoint heading into the November midterm elections. Trade activity also remains high at the US-Mexico border, evidenced by surging freight between Texas and Nuevo Leon.
Why it matters
This industrial surge aligns with a broader US strategy to secure high-tech dominance and energy independence. The shift toward AI-integrated infrastructure requires massive physical scaling of glass fiber and battery storage. These developments occur as the US manages inflation and navigates strategic partnerships with India in defense technology.
What is confirmed
- Corning is partnering with NVIDIA to build three optical-manufacturing facilities to meet AI data center demand for glass fiber.
- SK On secured a 9 GWh battery supply contract for energy storage systems in the United States.
- US payrolls growth was back on track in August.
Still unconfirmed
- The Otay Business Park completed its first phase near the US-Mexico border.
What to watch next
- November midterm election results regarding data center regulations
- Progress on the three NVIDIA-Corning optical facilities
- Further US-India agreements on AI-enabled defense technology
confidence 90%Sources used for this update (7)
- www.freightwaves.com — Borderlands Mexico: Nuevo León governor pitches border boom as Texas-Mexico freight surges
- www.dailysabah.com — Data center backlash becomes battleground of US midterms
- www.freepressjournal.in — Nirmala Sitharaman Highlights India's Growth Potential During US Visit, Meets Business Leaders
- www.thestar.com.my — US jobs report seen backing Warsh view
- finance.yahoo.com — Massive AI boom puts one of America’s oldest manufacturers on path to double in size, CEO says
- biz.heraldcorp.com — SK On lands 9 GWh ESS battery deal in US, nine times last year's contract
- www.timesnownews.com — Tim Cook’s Last Day As Apple CEO: Here’s What He Achieved In 15 Years
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US Manufacturing Growth Sparks Debate Over Tariff Impact
US manufacturing is experiencing a boom characterized by increased hiring and production. However, analysts disagree on whether this revival stems from Donald Trump's tariffs. Some reports suggest that tariffs failed to reverse production declines and that growth actually surged after tariffs fell. This industrial expansion coincides with broader strategic competition between the US and China in high-tech sectors, including advanced semiconductors and nuclear fusion, as the US seeks to maintain its technological edge through defense startups and energy innovation.
Why it matters
The debate centers on the efficacy of protectionist trade policies in restoring domestic industry. While manufacturing output has risen, the correlation between specific tariff measures and this growth remains contested. This internal economic shift occurs amid a global race for dominance in critical future technologies.
What is confirmed
- US manufacturing is experiencing a boom.
- American manufacturers have resumed hiring.
Still unconfirmed
- Manufacturing surged after tariffs fell.
- Tariffs did not reverse the decline in factory production.
- Trump's tariffs are not responsible for the manufacturing boom.
- China could reduce its advanced chip supply gap to 34% by 2035.
- JPMorgan is backing defense startups through a USD 1.5 trillion initiative.
What to watch next
- Data confirming the correlation between tariff removals and production surges
- Updates on the US-China race to commercialize nuclear fusion
- Goldman Sachs reports on China's lithography progress for advanced chips
confidence 70%Sources used for this update (9)
- Financial Times — US manufacturing is booming — but it’s no thanks to Trump’s tariffs
- The Economist — Does Donald Trump deserve credit for a manufacturing revival?
- Alliance for American Manufacturing — Questions Answered on Trade, Tariffs and U.S. Manufacturing
- Dakota Free Press — Manufacturing Surged After Tariffs Fell; Tariffs Didn’t Reverse Decline in Factory Production
- Maryland Daily Record — American manufacturers are hiring again. Could tariffs be the reason?
- interestingengineering.com — China could slash advanced chip supply gap to 34% by 2035, Goldman Sachs claims
- www.newsweek.com — Nuclear Fusion: New US-China Race for Limitless Power
- www.analyticsinsight.net — Jamie Dimon Tours US Defense Startups: USD 1.5T Bet Takes Shape
- www.finanznachrichten.de — INTCO Medical Reports 40.6% H1 2026 Revenue Growth, Expands World's Largest Disposable Glove Capacity to 107 Billion Pieces