Although there is certainly more than a small amount of roiling in U.S. durable goods manufacturing due to tariff uncertainties, let’s face it: At the end of the day, consumers still need to consume.
According to the U.S. Census Bureau’s Manufacturers’ Shipments, Inventories, and Orders (M3) program, which is managed by the agency’s Economic Indicators Division, some industries are more than holding their own. Durable goods orders in August increased by $8.9 billion from July, a 2.9% rise, bringing the month’s total to $312.1 billion. Notably, of that total, one sector increased by $8.1 billion on its own: transportation equipment.
Yes, planes, trains, and automobiles (although there is a whole lot more activity in the first and last than the middle).
In terms of planes, the commercial aircraft industry essentially comes down to two: Boeing and Airbus.
While Boeing is based in the United States and Airbus is headquartered in Europe, a trade agreement between the United States and the European Union reinstated zero tariffs on civil aircraft in September 2025, leveling the playing field between the competitors.
In the first half of the year, Boeing’s commercial airplane orders experienced huge growth compared to the same period in 2024, with 668 gross orders versus 156.
At Airbus, that number was 494, up from 327 in the first half of 2024. And while that’s good news for European manufacturing plants, it’s also good domestically – Airbus operates a plant in Mobile, Alabama, where it employs more than 2,000 people who produce the A220 and A320 families of aircraft.
Bigger Numbers (Smaller Products)
In the automotive sector, the numbers are bigger (although the vehicles are smaller – and significantly less expensive).
Through the first three quarters of 2025, General Motors delivered 2,150,298 vehicles in the United States, a 10.3% increase over the 1,949,920 it delivered in the same period in 2024.
At Ford, domestic sales totaled 1,658,908 vehicles, up 7.2% from the same period in 2024, when it delivered 1,548,172.
But Stellantis North America, the third company of what used to be known as the “Big Three,” didn’t perform as well through Q3 2025 as the other two, delivering just 928,024 vehicles, a drop of 6% from the same period in 2024 (982,827 vehicles).
While not all of these millions of vehicles were produced in the United States, a significant number were, and there will be more.
Serious Money
These companies are each making significant investments in their U.S. manufacturing operations. In a letter to GM’s shareholders, Chair and CEO Mary Barra announced a $4 billion investment over the next two years in manufacturing plants in Michigan, Kansas, and Tennessee. It captures the thinking of automotive leaders in the United States:
“We believe the future of transportation will be driven by American innovation and manufacturing expertise.”
Two weeks before this announcement, GM made another: It would invest $888 million at Tonawanda Propulsion for the production of sixth-generation GM V-8 engines.
In June, Ford announced a $2 billion investment at its Louisville Assembly Plant to produce a midsize electric truck, which it expects to launch in 2027. Interestingly, this investment doesn’t just retool the plant from making the Ford Escape and Lincoln Corsair to producing a truck. The company has developed an entirely different way to build a vehicle: the Ford Universal EV Production System.
Just as Ford pioneered the moving assembly line, the new process separates vehicle production into three major lines. The front and rear sections are based on large, single-piece aluminum castings. The assembly line for the last component, the structural battery, will include the carpeting, seats, and consoles. The three sections are then combined at a final station. Some predict that the impact of this change in Ford’s manufacturing process might be analogous to what Henry Ford started in 1913.
Stellantis announced that it will invest $13 billion in U.S. manufacturing over the next four years – the largest investment in company history. This investment will reopen the Belvidere Assembly Plant in Illinois to build two Jeeps, produce a new midsize truck at the Toledo Assembly Complex in Ohio, build a new large SUV at the Warren Truck Assembly Plant in Michigan, and produce a new four-cylinder engine at its factories in Kokomo, Indiana.
While those investments are nothing to sniff at, in March 2025, Korea’s Hyundai Motor Group announced a $21 billion investment in the United States between 2025 and 2028. In August, it added $5 billion, bringing the total to $26 billion.
These monies will be spent on a steel mill; increasing its automotive production capacity at its two Hyundai plants in Alabama and Georgia and its Kia plant in Georgia; and the creation of a robot design, manufacturing, testing, and deployment facility with an annual capacity of 30,000 units. (Not only does Hyundai know something about robots because of the deployments in its plants, but it also owns Boston Dynamics, which makes the quadruped robot Spot and humanoid robot Atlas.)
Here, an Ioniq 9 EV is being produced at the Hyundai Motor Group’s plant outside Savannah, Georgia. The company is investing $26 billion in the United States for manufacturing. (Image: Hyundai)
And here’s something that seems absurd: In April, Toyota announced it is investing $88 million in its powertrain plant in West Virginia. An investment of that size would be impressive normally, but compared to those aforementioned billions, it seems rather small – unless, of course, you provide tooling or equipment for the production of hybrid transaxles. (And to be fair, Toyota has already invested $2.8 billion into that plant.)
Of course, the investments in U.S. manufacturing aren’t all being done by auto companies.
This Is a Really Big Number
The investments by these automakers are big, but there are still bigger ones out there.
On Aug. 6, 2025, Apple CEO Tim Cook announced, “Today, we’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program.”
An Apple server plant in Houston will go into full production in 2026. (Image: Apple)
Apple has built a 250,000-square-foot server manufacturing plant in Houston, which is set to launch mass production in 2026. These servers were previously made outside the United States.
Apple’s American Manufacturing Program will enhance its glass production partnership with technology company Corning and develop a smartphone glass production line at a plant in Harrodsburg, Kentucky. When the factory is in full production, it will provide the glass for every iPhone and Apple Watch sold around the world.
In addition to Corning, Apple is working closely with nine other suppliers to develop a U.S.-based end-to-end silicon supply chain.
Also in August, Apple opened the Apple Manufacturing Academy in Detroit, which works with small and medium-sized businesses. It is partnering with Michigan State University to provide courses and programs in manufacturing subjects, including machine learning, automation, leveraging data to improve product quality, applying digital technologies, and more.
As Sabih Khan, Apple’s chief operating officer, put it: “Apple works with suppliers in all 50 states because we know advanced manufacturing is vital to American innovation and leadership. With this new programming, we’re thrilled to help even more businesses implement smart manufacturing so they can unlock amazing opportunities for their companies and our country.”
Capex From the Mag 7
The other tech companies that make up the Mag 7 (Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla) have announced their capital expenditures in the upper tens of billions. While not all of this money will directly relate to manufacturing, significant sums will be allocated toward the construction of data centers. That means producing manufactured components for these massive structures. And those structures are being filled with servers, which, of course, need to be manufactured as well.
But there are some challenges – like the availability of skilled tradespeople to take on current and new jobs.
Where Are the Workers?
In July, the Harris Poll’s Corporate Strategy & Reputation Practice fielded a survey on the subject of the perceptions of Americans – from Generation Z (ages 18-28) to baby boomers (61-79).
The headline of the results should be this: “91% agree trade jobs are just as important to society as white-collar jobs, with 63% strongly agreeing.”
But then there’s this: “90% say most people don’t realize how well-paying skilled trades can be; 86% agree skilled trade careers are overlooked in schools today.”
So, while people believe jobs in trades like manufacturing are important, they also believe young people aren’t learning about their advantages. Only 38% of Gen Z believes that skilled trades offer the best job opportunities. Boomers, who are aging out of the workforce, think skilled trades offer opportunities; 59% say so. Additionally, only 38% of Gen Z believes that skilled trades offer a faster and more affordable path to a good career; 40% of Gen Z is unaware of the high pay potential of jobs in the skilled trades.
But here is something that businesses need to know about how they can help – and why. The survey participants were presented with this statement:
“I have a more positive opinion of companies that support skilled trade programs.”
And 81% of Gen Z, 89% of millennials, 91% of Generation X, and 97% of boomers agree.
The companies that support training, apprenticeships, internships, scholarships, and similar programs for people pursuing a skilled trade will likely see serious ROI.
The Essential Economy
Research released by the Aspen Institute in June highlights the importance of businesses supporting the growth of what it calls the “Essential Economy,” which encompasses workers in agriculture, construction, energy, manufacturing, transportation and logistics, maintenance and repair, and the public sector. It noted:
“The most acute labor shortages today are in the skilled trades essential to these lagging sectors. Investing in targeted education and training isn’t just social policy; it’s strategic talent development. We need to bridge the gap between educational institutions and employers, funding proven models that equip workers with the high demand skills needed to operate a modern, productive Essential Economy.”
The “lagging” is compared with the productivity growth in the white-collar economy. The researchers point out: “The productivity bottleneck in the Essential Economy isn’t merely an academic concern. It has tangible, costly implications for businesses.”
It notes implications for individuals, too: If productivity in the essential economy kept pace with the rate established 20 years earlier, U.S. GDP would be 10% higher, and, importantly, “a typical American worker would earn $5,000 more a year.”
On Sept. 30, at the Ford Pro Accelerate: The Essential Economy conference held by Ford in Detroit, 300 leaders representing companies within that sphere came together to discuss these topics. Ford CEO Jim Farley said, “What happened to the Essential Economy? We outsourced a lot of skills and jobs. We stopped investing in the trades. If Henry Ford saw what has become of us, I think he’d be kind of mad.”
Probably more than “kind of.”
Many of the component parts for the Aeon R rocket engine were 3D printed by Relativity Space in Long Beach, California. Stage 1 of the Terran R spacecraft will use 13 of these engines. (Image: Relativity Space)
The Final Frontier
Another area of transport – not exactly transportation – is growing, and, importantly, it is the kind of thing that would attract younger generations who may see working in manufacturing as dirty and dull.
In the aerospace field, some startups are manufacturing in innovative ways. Not only did these companies not exist 20 years ago, but neither did many of their customers, who are now putting satellites and other payloads into orbit.
This presents a whole new suite of opportunities for suppliers – and for people interested in manufacturing.
For instance, Relativity Space, which was established in 2016, launched the Terran 1 rocket on March 22, 2023. This is notable, as it became the first 3D printed rocket to reach space. Measuring 110 feet tall and 7.5 feet wide, Terran 1 was the largest 3D printed object to exist at the time – with 85% of its mass 3D printed – and it went into space.
The Relativity Space factory floor in Long Beach, California, boasts routers, lathes, machining centers, and other CNC equipment, as well as tools for vertical and circumferential friction welding. It also uses powder bed fusion and a proprietary wire arc additive manufacturing system to build components for its Aeon R engines. The engines will be used to power the Terran R rocket, which is scheduled to launch in 2026.
Another company, Firefly Aerospace, which was established in 2017 near Austin, Texas, focuses on designing, engineering, and manufacturing small- and medium-lift launch vehicles. Like many newer companies in the field, Firefly uses advanced manufacturing technologies to produce its products.
This past April, the Air Force Research Laboratory at Edwards Air Force Base awarded Firefly a contract based on Firefly’s expertise in carbon fiber composite technology. The company will develop a ceramic matrix composite nozzle extension for liquid rocket engines. These nozzle extensions have traditionally been made of metal.
According to Jason Kim, CEO of Firefly: “As we’ve seen with Firefly’s carbon composite barrels, domes, and tanks, composites provide a cost-efficient, lightweight solution that improves performance.”
Not only do they anticipate a reduction in mass of more than 50%, but they also note a significant reduction in lead time.
To be sure, there are many more startups and legacy aerospace companies. But what’s interesting about companies like Relativity Space and Firefly is that their approach to design, engineering, and manufacturing takes advantage of materials and methods that are rooted in advanced technology (and even science fiction) – the kind of approach that breaks from the “dirty” factories of the past and could attract a whole new generation of manufacturing professionals.
To read the rest of the Industry Outlook Issue of MT Magazine, click here.
