Major manufacturing stories and trends for 2024 are useful for planning for 2025. We investigated and now offer a perspective from a CNC machine shop.
We found 10 stories from IndustryNet. Of these, 3 stories stood out that impacted our business in 2024 and could continue to impact us in 2025.
Economic Indicators for US Manufacturers
US manufacturing spent most of the year in contraction. The manufacturing capacity utilization rate was at 76% at the end of November. Typically, capacity utilization is around 78%.
Overall, demand for manufactured products continues to be weak, but demand may be starting to trend higher according to an ISM business survey. In general, manufacturing businesses enter 2025 cautiously optimistic.
Our business was reasonably good in 2024. We also enter 2025 cautiously optimistic.
Trump 2.0 Policies
Trump is a big supporter of American manufacturing. Much like his first term, his stated policies include a reduction in the tax rate for US-based manufacturing, using tariffs to level the playing field with foreign competition, general deregulation and support for workforce development.
This all sounds good. Perhaps that is one reason why manufacturers are cautiously optimistic about 2025.
Skills Gap and Manufacturing Jobs
The US manufacturing sector is expected to have a net need of 3.8 million jobs over the next decade. However, half of these jobs could be unfilled due to a skills gap. This is why part of Trump 2.0 has to do with workforce development.
Related: Trends in US Manufacturing Jobs Since NAFTA
We find that attracting and hiring qualified workers to be challenging. In addition to a lack of technical skill, soft skills like general work ethic can be an issue. However, we have built a
relationship with our local technical school which has been helpful.
It will be interesting to see how the skills gap problem will be solved for the broader manufacturing sector.
About C&C Machine
We are a family-owned CNC machine shop in Claremore, Oklahoma. As we begin our 45th year of business, we are cautiously optimistic.
