Deloitte’s 2026 Manufacturing Industry Outlook reports the US manufacturing PMI remained below 50 for much of 2025, indicating contraction. Costs rose, employment fell, and manufacturing construction spending declined steadily—driven largely by trade policy uncertainty and tariffs. Over three-quarters of manufacturers cited trade uncertainty as their top concern in the National Association of Manufacturers’ 2025 quarterly outlook surveys. The report, published 13 November 2025 by Deloitte’s Research Center for Energy & Industrials, underscores how geopolitical volatility reshapes sourcing, investment, and resilience planning for supply chain leaders.
According to www.deloitte.com, the 2026 Manufacturing Industry Outlook from Deloitte Insights highlights persistent headwinds facing US manufacturers heading into 2026, with structural challenges rooted in 2025’s economic performance. The Institute for Supply Management’s manufacturing purchasing managers’ index remained below 50 for much of 2025, signaling sector-wide contraction. Concurrently, costs rose, employment fell, and manufacturing construction spending declined steadily—a key indicator of capital investment in new or expanded facilities.
Trade Policy Dominates Strategic Concerns
These pressures were driven largely by trade policy uncertainty and tariffs. More than three-quarters of manufacturers responding to the National Association of Manufacturers’ 2025 quarterly outlook surveys consistently identified trade uncertainty as their top concern. This finding is central to the report’s analysis and underscores how geopolitical volatility directly impacts operational planning, supplier diversification, and facility location decisions.
Leadership and Research Context
The outlook was published on 13 November 2025 by the Deloitte Research Center for Energy & Industrials. It draws on expertise from a multidisciplinary team including:
- Steve Shepley, vice chair and US industrial products and construction sector leader, Deloitte United States
- Kate Hardin, executive director, Deloitte Research Center for Energy & Industrials, Deloitte Services LP
- John Morehouse, research leader, Industrial products manufacturing, with over 25 years of experience across industry, academia, and government
- Kruttika Dwivedi, research manager, Industrial products and construction, Deloitte Support Services India Private Limited, with nearly nine years of experience in advanced statistical analysis and strategic research
Practical Implications for Supply Chain Professionals
For global supply chain professionals, this outlook signals that tariff-driven volatility is no longer a transient risk but a core variable in network design. With over 75% of manufacturers flagging trade uncertainty as their top concern, procurement teams must prioritize dual-sourcing strategies, nearshoring feasibility assessments, and dynamic duty-optimization modeling. Declining manufacturing construction spending suggests reduced greenfield expansion—making asset-light models, third-party logistics partnerships, and modular automation deployments more critical than ever. Furthermore, sustained PMI contraction below 50 implies extended pressure on working capital, requiring tighter integration between demand forecasting, inventory optimization, and supplier finance programs.
Source: www.deloitte.com
Compiled from international media by the SCI.AI editorial team.
