“ Contract manufacturers are increasingly adopting automation and advanced manufacturing techniques to meet the diverse needs of their customers.”
The U. S. is home to major automotive, aerospace, defence, engineering and construction OEMs. According to the National Association of Manufacturers( NAM), manufactured goods exports have more than doubled over the past two decades. Strong links between industry and academia foster innovation. With access to both Atlantic and Pacific trade routes, U. S. manufacturers can efficiently serve global markets. Manufacturers also benefit from tax credits, grants and subsidies— especially for renewable energy, workforce training and reshoring initiatives.
However, manufacturing leaders are becoming increasingly concerned about escalating trade wars, with U. S. tariff impacts reshaping sourcing strategies and cost structures. Ongoing tariff negotiations( especially with China and the EU) have been creating volatility. The skills profile of the manufacturing workforce is also undergoing a dramatic shift, with substantial changes due to the increased use of robotics, artificial intelligence( AI) and automation. Ongoing labour shortages in U. S. markets means that talent acquisition is a key challenge for U. S. manufacturers.
In this article, we analyse the manufacturing and industrial outlook, as well as metal forming activity and general economic analyses, in the United States and North America.
Concerns about future tariffs led to a strong surge in exports to the U. S. in the first quarter of the year
Economic forecast
EMBRACING RESILIENCE
We present the manufacturing and industrial outlook, as well as metal forming activity and general economic analysis, in the United States and North America.
Image: Nik Shuliahin( Unsplash).
According to the International Monetary Fund’ s latest World Economic Update( released in July 2025), in the United States( with tariff rates settling at lower levels than those announced on 2 April 2025 and looser financial conditions), the economy is projected to expand at a rate of 1.9 per cent in 2025. This is 0.1 percentage point higher than the IMF’ s April reference forecast, with some offset from private demand cooling faster than expected and weaker immigration.
“ Growth is projected to pick up slightly to 2.0 per cent in 2026, with a near-term boost from the OBBBA kicking in primarily through tax incentives for corporate investment. This is 0.3 percentage point higher than our April reference forecast. IMF staff estimates that the OBBBA could raise U. S. output by about 0.5 per cent on average over the WEO horizon through to 2030, relative to a baseline without this fiscal package,” commented the report.
The tariffs, acting as a supply shock, are expected to pass through to U. S. consumer prices gradually and hit inflation in the second half of 2025. Inflation is projected to remain above the two per cent target through 2026 in the United States.
“ The U. S. dollar has weakened considerably since April, although yields in the United States are higher than those in other advanced economies such as the euro area,” added the report.
“ Following an unprecedented escalation in tariffs imposed on the rest of the world in April, the United States partly reversed course, pausing the higher tariffs for most of its trading partners. This, and a de-escalation of trade tensions with China in May, modestly reduced the U. S. effective tariff rate from 24 % to about 17 %. Despite these welcome developments, tariffs remain historically high, and global policy remains highly uncertain, with only a few countries having reached fully fleshed-out trade agreements. This modest decline in trade