News & Press https://woodindustry.org/news/default.asp Thu, 4 Jun 2026 10:20:49 GMT Mon, 1 Jun 2026 15:36:00 GMT Copyright © 2026 Wood Industry Association Inflation Squeezes Consumers Amid Manufacturing Expansion https://woodindustry.org/news/news.asp?id=728346 https://woodindustry.org/news/news.asp?id=728346
  • Another measure of inflation accelerated in April: After the previously released CPI and PPI inflation measures accelerated in April, the PCE price index followed suit. The PCE price index, the preferred inflation gauge for the Federal Reserve, rose 0.4% over the month in April and 3.8% over the year, up from the 3.5% year-over-year increase in March and the largest annual jump since May 2023. Prices for goods advanced 0.7%, while prices for services increased 0.3%.
    • What it shows: While the conflict in the Middle East continues to elevate energy prices, when excluding food and energy, the core PCE price index advanced 0.2% over the month and 3.3% over the year, well above the Federal Reserve’s 2% target and indicating broader price pressures beyond energy. As a result, the Federal Reserve, as indicated from their April meeting minutes, is now considering raising their interest rate target before the end of the year.
  • Personal savings plummeted amid rising prices: Disposable income, which is personal income after taxes, declined $19.9 billion, or 0.1%, in April. At the same time, personal consumption expenditures rose $111.1 billion, or 0.5%. The personal saving rate, which is personal saving as a percentage of disposable income, was 2.6%, down 0.6 percentage points from March.
    • What it means: As price pressures continue to mount, incomes are not keeping pace, resulting in consumers showing signs of stress. The personal saving rate fell to the lowest rate since June 2022, a time which followed a period of record-high savings after significant fiscal stimulus. Now, pandemic-era excess savings have been depleted since 2024, making the low saving rate more worrisome as consumers keep spending.

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    ]]>     Mon, 1 Jun 2026 16:36:00 GMT     Manufacturers Remain Optimistic About Future as Consumer Confidence Plunges https://woodindustry.org/news/news.asp?id=727970 https://woodindustry.org/news/news.asp?id=727970
  • Kansas City manufacturing activity slows in May: The month-over-month composite index in the Tenth District ticked down 2 points from 10 in April to 8 in May, while expectations for future activity moved up 1 point to 19. The production and shipments indices remained positive but slowed, declining from 10 to 9 and from 15 to 7, respectively. Meanwhile, new orders ticked up from 12 to 13, while the employment index turned negative, falling from 2 to -4 in May.

    • Why it matters: Although manufacturing activity in Kansas City slowed in May, the majority of the indices remained positive. Furthermore, activity in the region continues to show positive signs for the future. That said, frequent changes to input prices could further erode the current level of growth.

  • Philadelphia manufacturing contracts slightly in May: Philadelphia’s regional manufacturing activity turned negative in May after four consecutive months of growth, with the index for general business activity falling from 26.7 to -0.4. This month, 22.9% of firms noted decreases in activity, while 22.5% reported increases. New orders declined, moving from 33.0 to -1.7, while shipments grew at a slower pace, dropping from 34.0 to 4.9.

    • What it means: Although activity contracted in Philadelphia, the outlook remains strong. In May, expectations for future business activity rose 12.4 points to 53.2. At the same time, expectations for future production and shipments improved in May, increasing to 53.5 and 45.7, respectively. The rise in expectations came from a gain in the proportion of firms expecting an increase in activity (66.5%), with fewer firms anticipating decreases in activity (13.2%) compared to the prior month.

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    ]]>     Tue, 26 May 2026 20:52:00 GMT     Price Pressures Pick Up and Broaden https://woodindustry.org/news/news.asp?id=727468 https://woodindustry.org/news/news.asp?id=727468
  • Consumer price growth accelerates in April: In April, consumer prices increased 0.6% from March and 3.8% over the year, up from the 3.3% annual rise in March and the greatest over-the-year increase since May 2023. Core CPI, which excludes more volatile energy and food prices, rose 0.4% from March and 2.8% over the year, up slightly from the 2.6% 12-month increase the month prior.

    • Why it matters: Higher energy costs were the biggest factor in the jump in consumer prices in April. Overall, energy costs surged 17.9% over the year in April after jumping 12.5% in March. Nonetheless, core prices also rose and are well above the Federal Reserve’s 2% target. This risk is creating pressure on the Federal Open Market Committee to potentially raise rates before the end of the year, although markets still anticipate rates remaining unchanged at the next meeting.

  • Meanwhile, producer prices jumped by even more: Wholesale prices, which tend to give an early look at where consumer prices are heading, rose 1.4% over the month in April, up from the 0.7% increase in March. Meanwhile, producer prices surged 6.0% over the year in April, up from 4.3% in March and the largest 12-month increase since December 2022. Prices for services climbed 1.2% in April, the largest monthly increase since March 2022, while prices for goods soared 2.0%.

    • What it means: Energy prices continue to surge due to the war in Iran. Overall, energy prices rose 7.8% in April as gasoline prices climbed 15.6%. At the same time, core PPI, which excludes food and energy, increased 1.0% in April and 5.2% over the year, highlighting how energy prices are no longer the only factor driving the overall increase.

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    ]]>     Mon, 18 May 2026 18:17:00 GMT     Manufacturing Productivity Picks Up as Job Gains Stall https://woodindustry.org/news/news.asp?id=726967 https://woodindustry.org/news/news.asp?id=726967
  • Manufacturing productivity bounces back in first quarter: Manufacturing productivity advanced 3.6% in Q1 after falling 3.2% in the prior quarter. This gain reflects a 3.3% rise in output and a 0.4% reduction in hours worked. Durable manufacturing productivity jumped 5.3%, while nondurable manufacturing productivity moved up 2.0%. Total manufacturing productivity rose 1.7% over the year.

    • What it means: Nonfarm business productivity growth slowed in the first quarter, increasing just 0.8%, down from a revised 1.6% in Q4 2025. Despite the slowdown, productivity has grown 2.9% from Q1 2025. Meanwhile, manufacturing labor productivity more than recovered the loss from the fourth quarter and has improved tremendously since 2024.

  • Manufacturing employment slips in April: Manufacturing employment edged down by 2,000 in April after increasing by 15,000 in March. Meanwhile, nonfarm payroll employment rose by 115,000 in April, coming in above expectations. At the same time, the unemployment rate stayed the same in April at 4.3%, while the labor force participation rate ticked down 0.1 percentage point to 61.8%.

    • Why it matters: Despite the better-than-expected nonfarm job gain in April, the 12-month average stands at just 21,000 job gains per month. Furthermore, labor force participation continues to fall, dropping to the lowest rate outside the pandemic since January 1977. At the same time, manufacturing employment is down 73,000 over the year but up 16,000 jobs in the first four months of the year amid expanding activity in 2026.

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    ]]>     Mon, 11 May 2026 16:23:00 GMT     Manufacturing Growth Persisted Amid Investment Surge in AI https://woodindustry.org/news/news.asp?id=726603 https://woodindustry.org/news/news.asp?id=726603
  • Economy grew at a faster pace to start the year: Real GDP increased at an annual rate of 2.0% in the first quarter of 2026, up from a 0.5% rise in the fourth quarter of 2025 but slightly below consensus expectations. The GDP gain in the first quarter mostly reflects increases in investment and consumer spending on services, which grew at annual rates of 8.7% and 2.4%, respectively.

    • Why it matters: GDP grew at a steady pace in the first quarter, although by less than expected and partially due to a recovery from the government shutdown in the fourth quarter. At the same time, although consumer spending is generally the driver of GDP growth in the U.S., investments in information processing equipment and intellectual property products were this quarter, which surged 43.4% and 13.0%, respectively.

  • Manufacturing activity continued to expand in April: The ISM Manufacturing® PMI expanded for the fourth consecutive month and at the same pace as the prior month, remaining at 52.7% in April. The New Orders and Backlog of Orders indexes remained in expansion territory, while the New Export Orders Index remained in contraction territory. After surging 7.8 percentage points in March, the Prices Index jumped another 6.3 percentage points in April to 84.6%, the highest reading since April 2022.

    • What it means: Although demand indicators remained broadly positive, the conflict in the Middle East is starting to have a notable impact on sentiment and is now being referenced more frequently than tariffs. In addition, several respondents noted how the conflict is creating further upward pressure on prices, with more to come. As the pricing and supply pressures flow through, it could dampen activity in the months to come.

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    ]]>     Mon, 4 May 2026 20:02:00 GMT     Data Suggests Continued Manufacturing Growth Despite Plummeting Consumer Sentiment https://woodindustry.org/news/news.asp?id=726108 https://woodindustry.org/news/news.asp?id=726108
  • Consumer sentiment falls further in April: The University of Michigan index of consumer sentiment fell 6.6% in April to an index reading of 49.8, a record low, after decreasing 5.8% the prior month. Current economic conditions dropped 5.9%, while the expectations index contracted 7.0%. Meanwhile, year-ahead inflation expectations surged from 3.8% to 4.7% and long-run expectations rose from 3.2% to 3.5% in April.

    • Why it matters: The decline in sentiment was widespread across demographic groups and widely influenced by shocks to gasoline and other prices. Although sentiment rebounded in interviews that concluded after the Middle East conflict ceasefire announcement, sentiment is unlikely to improve meaningfully if developments in the Middle East do not lift supply constraints or lower energy prices.

  • Flash PMI signals boost in manufacturing activity: The S&P Global Flash U.S. Manufacturing PMI increased from 52.3 to 54.0 in April, a 47-month high. Factory production and new order growth improved in April, with both experiencing their strongest growth since 2022. Meanwhile, export orders declined after stagnating the prior month as a result of uncertainty caused by the conflict in the Middle East.

    • What it means: While the Flash PMI is only an early estimate of manufacturing activity based on 85% of responses, it can give an indication of where activity is trending. This expansion continued the trend of nine consecutive months of growth, with the improvement driven by domestic demand. Looking forward, supply chain challenges could impede growth as the conflict in the Middle East affects prices, availability and delivery times.

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    ]]>     Mon, 27 Apr 2026 15:48:00 GMT     Manufacturing Output Weakens as Goods Prices Rise https://woodindustry.org/news/news.asp?id=725646 https://woodindustry.org/news/news.asp?id=725646
  • Manufacturing production slips in March: Manufacturing output ticked down 0.1% in March after moving up 0.4% in February. At 97.3% of its 2017 average, manufacturing production advanced 0.5% from March 2025. Capacity utilization for manufacturing was 75.3%, down 0.2 percentage points from February but up 1.1% over the past year. Capacity utilization remained 2.9 percentage points below its long-term average.

    • Why it matters: After output growth slowed slightly in February, manufacturing production took a negative turn in March. There continues to be wide variations across sectors, with aerospace (up 6.2%) posting the largest over-the-year rise and apparel and leather (down 5.8%) seeing the most significant decline from March 2025.

  • Producer price increase accelerates over the year in March: Wholesale prices increased 0.5% over the month in March, unchanged from the 0.5% rise in February and below expectations. Meanwhile, producer prices jumped 4.0% over the year in March, up from 3.4% in February and the largest 12-month increase since February 2023. Prices for services stayed the same in March, while prices for goods soared 1.6%, the largest monthly increase since August 2023.

    • What it means: Energy prices remain volatile but elevated due to the war in Iran. Overall, energy prices rose 8.5% in March as gasoline prices surged 15.7%. At the same time, core PPI, which excludes food and energy, ticked up only 0.2% in March, highlighting how energy prices are driving the overall increase.

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    ]]>     Mon, 20 Apr 2026 17:23:00 GMT     Trade/Tariff Update https://woodindustry.org/news/news.asp?id=725318 https://woodindustry.org/news/news.asp?id=725318 Trade/Tariff Update

    Over the last couple of months, there were rumors that the structure of the Section 232 steel, aluminum, and maybe copper tariffs could be changing. Among the tweaks being floated were ending the inclusions process, new Section 232 investigations and imposing a tariff on the whole product but trifurcating the rate based on how essential steel (aluminum, copper) was to the product. This would contrast to the more complicated process of calculating the product’s steel (aluminum, copper, etc.) content and tariffing only that part. The Wall Street Journal noted at the time that the latter change would trade simplicity for potentially higher tariff costs, depending on the product. 
     
    Earlier this month, rumors turned into action with a Presidential Proclamation here and a Fact Sheet here.
     
    Below is a brief breakdowns of some details: 

    • Effective on April 6, articles in Annex I-A will have a 50% tariff. Products from the UK for which the steel was melted and poured/aluminum was smelted and cast in the UK will have a 25% tariff. Certain derivative articles for which the steel content is entirely steel melted and poured in the U.S. or the aluminum/copper content was entirely smelted and cast in the U.S. will have a 10% tariff.
    • Effective on April 6, articles in Annex I-B will have a 25% tariff. Products from the UK for which the steel was melted and poured/aluminum was smelted and cast in the UK will have a 15% tariff. Certain derivative articles for which the steel content is entirely steel melted and poured in the U.S. or the aluminum/copper content was entirely smelted and cast in the U.S. will have a 10% tariff.
    • Effective on April 6, articles in Annex II will no longer face a Section 232 steel or aluminum tariff.
    • Effective on April 6 and through December 31, 2027, articles in Annex III will face, depending on the country, a 15% top-up (i.e. a product with a baseline tariff below 15% gets topped up to 15% and a baseline tariff above 15% faces no additional tariff), 10% (for products for which the steel content is entirely steel melted and poured in the U.S. or the aluminum content was entirely smelted and cast in the U.S.), or 25% (countries with no normal trading relations). The President reserves the right to revoke this treatment if imports of a product increase in such a way that undermines national security. Revocation would subject Annex III products from the country to Annex I-B tariff rates.
    • 200% aluminum tariffs will remain in effect for Annex I-A, I-B, and III products that were smelted or cast in Russia.
    • Products on Annex I-A, I-B, or III that contain some combination of steel, aluminum, and copper will only be subject to one tariff rate. In other words, the steel, aluminum, and copper tariffs do not stack.
    • Products on Annex I-B or III that do not contain any steel, aluminum, or copper content (as laid out in Annex IV) will not be subject to tariffs.
    • The inclusions processes for steel, aluminum, and copper are terminated, though the Commerce Department and USTR reserve the right to add more derivative articles to the tariffs.
    • Drawback is available to a product on Annex I-B or III that is not subject to an antidumping or countervailing duty order, from a trade agreement partner country (UK, EU, Japan, South Korea, Mexico, Canada, and others with a final Agreement on Reciprocal Trade (ART)), and the steel is completely melted and poured in the trade agreement partner country (or aluminum/copper smelted and cast).

    One question is how future derivative additions might be made, which is where, for all its faults, we could miss an inclusions process. Because on the one hand, it did provide some transparency on what requests were made. Without it, things get driven into a more disparate combination of public pleas via letters, press articles, etc. and private entreaties. But on the other hand, it must be said that the inclusions process just wasn’t working well. BIS had (and still has) too much on its hands to be able to devote the FTEs necessary to making it work as envisioned, and they were on the road to creating an incentive structure that was only going to weigh it down even further. 
     
    Calculating the Metals Tariff

    On April 3, CBP issued guidance to implement the new tariff regime on imports of aluminum, steel and copper and their derivative products. The guidance also includes a Metals HTS List that identifies articles of aluminum, steel, copper, and derivatives that are subject to the new tariff calculations. 

    The CBP guidance provides instructions on how importers should file the 10-50% additional duties on the full customs value of certain metal articles outlined in the April 2 proclamation and its annexes. 

    CBP also provides further details on key provisions in the proclamation, including: 

    • 15% Aggregate Weight Calculation: Goods specified in the proclamation annexes as derivative articles of more than one metal (e.g., aluminum and copper), should calculate the aggregate weight of all metals. If the aggregate weight is below 15% and the article is not classifiable under Chapters 72, 73, 74, or 76, then the article shall not be subject to an additional Section 232 duty.
    • Definition of UK-origin steel and aluminum: Articles “where at least 95%” of aluminum was smelted or most recently cast in the UK, or 95% of steel was melted and poured in the UK are eligible for the special UK-origin duty rates.
    • Definition of US-origin steel, aluminum, and copper: Articles made abroad but with “at least 95%” U.S.-smelted/cast aluminum and copper or at least 95% U.S. melted/poured steel is eligible for a lower 10% rate. 

    Overview of the Metal Tariffs – A Quick Reference

    The proclamation is a significant shift away from the prior methodology, under which tariffs on many steel and aluminum derivative articles applied to the declared metal content value within the product. Manufacturers must consult the annexes to the proclamation to determine the base tariff rate for their products and whether any lower rate would apply depending upon the source of the metal content. 

    Below is a preliminary and quick reference guide to the changes – as always, members should consult their compliance teams and customs or legal advisors to determine how to file customs declarations for their products.


     

     

    Resources: CSMS # 68253075 guidance; Metals HTS list


    ]]>     Tue, 14 Apr 2026 13:46:00 GMT     Energy Price Surge Drives March Jump in Headline Inflation Rate https://woodindustry.org/news/news.asp?id=725294 https://woodindustry.org/news/news.asp?id=725294
  • Consumer price growth accelerated in March: In March, consumer prices increased 0.9% from February and 3.3% over the year, up from the 2.4% annual rise in February, and the greatest over-the-year increase since April 2024. Core CPI, which excludes more volatile energy and food prices, rose 0.2% from February and 2.6% over the year, up slightly from the 2.5% 12-month increase in February.

    • Why it matters: The inflation rate accelerated in March primarily due to the rise in energy prices, which jumped 10.9% over the month and 12.5% over the year. Within the energy index, gasoline and fuel oil prices increased 18.9% and 44.2% over the year, respectively. Meanwhile, core CPI accelerated just slightly, highlighting that the price level remained elevated more broadly, but that March’s jump was due largely to the war in Iran.

  • Aerospace volatility continued to drive shifts in factory orders: New orders for manufactured goods were virtually unchanged for the second consecutive month in February. When excluding transportation, new orders rose 1.2% over the month. New orders for durable goods fell 1.3%, with nondefense aircraft and parts leading the decline, plummeting 28.6%, following January’s 1.7% decrease. Meanwhile, the largest over-the-year change also occurred in nondefense aircraft and parts (up 60.8%).

    • What it means: New orders for manufactured goods grew 3.7% over the year, but when transportation is excluded, new orders are up just 1.7% over the year, highlighting how the tremendous year-over-year rise in aerospace orders is driving that headline growth. At the same time, the manufacturing industry is struggling to fill orders, with unfilled orders for manufactured durable goods rising in 19 of the past 20 months and jumping 11.0% year-over-year.

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    ]]>     Mon, 13 Apr 2026 20:52:00 GMT     Expanding Activity Provides Boost to Manufacturing Labor Market https://woodindustry.org/news/news.asp?id=724888 https://woodindustry.org/news/news.asp?id=724888
  • Manufacturing employment rises in March: Manufacturing employment increased by 15,000 in March after declining by 6,000 in February. Meanwhile, nonfarm payroll employment increased by 178,000 in March, coming in well above expectations. The industries with the most significant job gains in March were health care, construction and leisure and hospitality, each recouping the losses they incurred in February. At the same time, the unemployment rate edged down 0.1 percentage point from February to 4.3% in March, while the labor force participation rate ticked down 0.1 percentage point to 61.9%.

    • What it means: Despite the better-than-expected nonfarm job gain in March, the 12-month average stands at just 22,000 job gains per month. Therefore, the labor market remains weak but resilient. Furthermore, three consecutive months of expanding manufacturing activity are starting to have a positive impact on the manufacturing labor market, with employment up slightly since the end of 2025.

  • Manufacturing activity ticks up in March: The ISM Manufacturing® PMI expanded for the third consecutive month and at a slightly faster pace than the prior month, increasing to 52.7% from 52.4% in February. The New Orders and Backlog of Orders indexes remained in expansion territory, while the New Export Orders Index fell back into contraction territory. After surging 11.5 percentage points in February, the Prices Index jumped another 7.8 percentage points in March to 78.3%.

    • Why it matters: Although steady increases in demand and activity are positive news, several respondents to this month’s ISM PMI survey noted how the Middle East conflicts are creating further upward pressure on prices and denting consumer confidence. As a result, the Prices Index rose to its highest reading since June 2022 when inflation was at its peak of nearly 9%. As the pricing and supply pressures flow through, it will likely dampen activity in the months to come.

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    ]]>     Mon, 6 Apr 2026 20:42:00 GMT     Data Indicates Sustained Manufacturing Expansion Despite Rising Prices https://woodindustry.org/news/news.asp?id=724490 https://woodindustry.org/news/news.asp?id=724490
  • Import costs rose for manufacturers as energy prices increased: In February, U.S. import prices for manufacturing rose 2.2% over the year, while U.S. import prices for nonmanufacturing industries fell 10.0%. Import costs varied by sector across manufacturing. Primary metal manufacturing experienced the most significant over-the-year U.S. import price increase in February, surging 33.8%. On the other hand, the greatest yearly decline in U.S. import prices occurred in beverage and tobacco product manufacturing, which fell 12.0% from February 2025.

    • What it means: Most manufacturing sectors exhibited import price declines in February, but those declines were offset by a large jump in import costs for primary metal manufacturers. At the same time, fuel import prices climbed 3.8% in February—the largest monthly rise since April 2024—although they fell 10.6% year-over-year. In February, while natural gas prices soared 24.7% over the month and 57.9% over the year, March’s report will show the impact of the conflict in Iran on crude oil prices, pushing up the headline fuel import price category further.

  • Flash PMI signals expansion in manufacturing activity: The S&P Global Flash U.S. Manufacturing PMI increased from 51.6 to 52.4 in March, a two-month high. Factory production and new order growth both improved in March, with new orders experiencing their strongest growth since October. Meanwhile, export orders stabilized after eight months of decline due to some softening of tariff impacts.

    • Why it matters: While the Flash PMI is only an early estimate of manufacturing activity based on 85% of responses, it can give an indication of where activity is trending. This expansion continued the trend of eight consecutive months of growth. Looking forward, the conflict in Iran could hamper that growth, but the building up of safety stocks could soften the negative impact on prices and supply.

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    ]]>     Mon, 30 Mar 2026 22:02:00 GMT     Aerospace and Computer and Electronic Parts Continue to Drive Manufacturing Growth in 2026 https://woodindustry.org/news/news.asp?id=723872 https://woodindustry.org/news/news.asp?id=723872
  • Manufacturing output increased in February: Manufacturing output rose 0.2% in February after expanding 0.8% in January. At 97.6% of its 2017 average, manufacturing production advanced 1.3% from February 2025. Capacity utilization for manufacturing was 75.6%, unchanged from January but up 1.1% over the past year. Capacity utilization remained 2.6 percentage points below its long-term average.

    • Why it matters: After January saw the highest monthly growth rate in manufacturing output since February 2025, output expanded at a slower pace in February. Although there continues to be wide variations among sectors, aerospace and computer and electronic products continue to be the growth leaders, rising 7.1% and 6.3% over the year, respectively.

  • Aerospace volatility continued to drive shifts in factory orders: New orders for manufactured goods inched up 0.1% in January, following a 0.4% decrease in December. When excluding transportation, new orders rose 0.4% over the month. New orders for durable goods stayed the same, with the biggest underlying shifts occurring for ships and boats (up 10.9%) and defense aircraft and parts (down 23.8%). Meanwhile, the largest over-the-year change occurred in nondefense aircraft and parts (up 93.8%).

    • What it means: New orders for manufactured goods grew 3.5% over the year. However, when transportation is excluded, new order growth was just 0.6% over the year, continuing to highlight how the tremendous year-over-year rise in aerospace orders is driving that headline growth. The broader manufacturing base is not seeing major shifts in demand, positive or negative.

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    ]]>     Mon, 23 Mar 2026 18:45:00 GMT     Inflation Holds Steady in February as Energy Price Hike Looms https://woodindustry.org/news/news.asp?id=722324 https://woodindustry.org/news/news.asp?id=722324
  • Over-the-year consumer price growth stays the same in February: In February, consumer prices increased 0.3% from January and 2.4% over the year, unchanged from the 2.4% annual rise in January and in line with expectations. Core CPI, which excludes more volatile energy and food prices, rose 0.2% from January and 2.5% over the year, also unchanged from the 2.5% 12-month increase in January.

    • What it means: The inflation rate remained steady over the year, but energy prices increased across the board for the month. Fuel oil prices jumped 11.1% month-over-month and 6.2% year-over-year, a problem for the CPI in March as the conflict in Iran continues to have a negative impact on the price of energy. This risk further supports the market belief that the Federal Open Market Committee will keep rates unchanged at their meeting this week.

  • Manufacturing job openings grew in January as activity picked up: Job openings for manufacturing increased by 69,000 to 495,000 in January. The manufacturing job openings rate jumped to 3.8% from 3.3% in December and 3.4% the previous year. Meanwhile, the hires rate for manufacturing ticked up 0.1 percentage point to 2.3%, but the separations rate, which includes quits, layoffs, discharges and other separations, edged down 0.1 percentage point to 2.3%.

    • Why it matters: Consistent with the positive employment report in January, job openings also increased notably. However, this boost may prove to be short-lived, and there could be a reversal in February, just as occurred with employment. That said, job openings in manufacturing are now higher than where they were a year ago and back above the 2024 and 2025 averages.

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    ]]>     Mon, 16 Mar 2026 19:57:00 GMT     Manufacturing Activity Stays Positive Despite Employment Slipping https://woodindustry.org/news/news.asp?id=721837 https://woodindustry.org/news/news.asp?id=721837
  • Manufacturing activity remained positive in February: The ISM Manufacturing® PMI expanded for the second consecutive month but at a slower pace than the prior month, decreasing to 52.4% from 52.6% in January and remaining above the threshold of 50% that indicates growth in activity. Demand indicators remained in expansion territory with the New Orders, New Export Orders and Backlog of Orders indexes at 55.8%, 50.3% and 52.6%, respectively. Meanwhile, the Prices Index surged 11.5 percentage points from January to 70.5%.

    • Why it matters: Production expanded at a slower pace in February, falling from 55.9% to 53.5%, as demand indicators remained positive. On the other hand, raw materials prices grew for the 17th straight month in February and at a much faster pace than the prior month. Of the six largest manufacturing sectors, all reported increased prices, driven by higher steel and aluminum prices impacting the entire supply chain, as well as the tariffs applied to most imported goods. Roughly 45.4% of companies reported paying higher prices, up from 29.0% in January and from 21.0% in January 2025.

  • Manufacturing employment stalls after slight uptick: Manufacturing employment decreased by 12,000 in February, after gaining 5,000 jobs in January. Meanwhile, nonfarm payroll employment declined by 92,000 in February, coming in below expectations of a nominal gain. The industries with the most significant job gains in January—health care and construction—both shed jobs in February. The unemployment rate inched up 0.1 percentage point to 4.4%, while the labor force participation rate ticked down 0.1 percentage point to 62.0%.

    • What it means: After a slight increase in January ended 13 consecutive months of manufacturing job losses, the labor market continued to show weakness. Employment in the sector is down 98,000 over the past year after revisions show that 8,000 jobs were collectively shed in December and January. Furthermore, although manufacturing employment continued to remain weaker, the nonfarm labor market displayed new weakness in February.

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    ]]>     Mon, 9 Mar 2026 18:22:00 GMT     Manufacturing Across Regions Remains Mixed Amid Unstable Demand https://woodindustry.org/news/news.asp?id=721296 https://woodindustry.org/news/news.asp?id=721296
  • Aerospace volatility continued to drive shifts in factory orders: New orders for manufactured goods decreased 0.7% in December, following a 2.7% increase in November. When excluding transportation, new orders inched up 0.4% over the month. New orders for durable goods fell 1.4%, with nondefense aircraft and parts leading the decline, plummeting 24.8%, following November’s 98.2% surge. Meanwhile, the largest over-the-year change occurred in nondefense aircraft and parts (up 106.2%).

    • What it means: New orders for manufactured goods grew 3.7% over the year. However, when transportation is excluded, new orders were just 0.9% over the year, continuing to highlight how the tremendous year-over-year rise in aerospace orders is driving that headline growth. This aerospace growth was supplemented by gains in computers and related products orders. At the same time, new orders for consumer goods were unchanged in December following two months of decreases, and they declined 0.6% over the year.

  • Texas manufacturing activity expanded as perceptions remained strong: In February, the production index increased from 11.2 to 12.5. The new orders index ticked down 0.7 points to 11.1, while the capacity index rose 4.7 points to 11.8. Supported by growth in most indicators in February, perceptions of manufacturing conditions improved 1.4 points to 0.2, in line with the series’ average.

    • Why it matters: Following a rebound in activity in January, Texas manufacturing broadly experienced tepid growth across indexes. The production index moved up, while new orders edged down, but both remained above the series’ averages. Despite gains across many indexes, the outlook for future manufacturing weakened in February, although it remained above the series’ average, a sign that the future outlook was broadly positive.

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    ]]>     Mon, 2 Mar 2026 18:38:00 GMT     Fourth Quarter Growth Takes a Hit Due to Government Shutdown https://woodindustry.org/news/news.asp?id=720780 https://woodindustry.org/news/news.asp?id=720780
  • Economy grows at a slower pace in the fourth quarter: Real GDP increased at an annual rate of 1.4% in the fourth quarter of 2025, down from a 4.4% rise in the third quarter of 2025 and below consensus expectations. The GDP gain in the fourth quarter mostly reflected increases in consumer spending and investment, which grew at annual rates of 2.4% and 2.6%, respectively. Overall, GDP increased 2.2% over 2025, down from 2.8% in 2024.

    • What it means: While GDP came in weaker than the consensus forecast, part of the weakness can be attributed to the extended government shutdown during the quarter, which lowered the headline rate by more than one percentage point. At the same time, spending on durable goods fell 0.9%, driven by motor vehicles and parts, after rising 1.6% in the third quarter.

  • Manufacturing output increased in January: Manufacturing output rose 0.6% in January after staying the same in December and inching up 0.3% in November. At 97.5% of its 2017 average, manufacturing production advanced 2.4% from January 2025. Capacity utilization for manufacturing was 75.6%, up 0.4 percentage points from December and 1.1% over the past year.

    • Why it matters: After no movement in December, January saw the highest monthly growth rate in manufacturing output since February. After steady gains in the first three quarters of 2025, activity turned negative in the fourth quarter, falling 2.2%. Furthermore, capacity utilization remained 2.6 percentage points below its long-term average.

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    ]]>     Mon, 23 Feb 2026 19:15:00 GMT     Inflation and Employment Data Bring More Promising News https://woodindustry.org/news/news.asp?id=720390 https://woodindustry.org/news/news.asp?id=720390
  • Consumer price growth slowed in January: In January, consumer prices increased 0.2% from December and 2.4% over the year, down from the 2.7% annual rise in December and lower than the 2.5% hike anticipated. Core CPI, which excludes more volatile energy and food prices, rose 0.3% from December and 2.5% over the year, down from the 2.6% 12-month increase in December and the slowest pace since March 2021.

    • What it means: Inflation moderated as lower gasoline, fuel oil and auto prices drove the headline rate down. Meanwhile, prices for core goods and import-heavy categories continue to heat up, providing evidence that increased costs from tariffs are still affecting consumers. This data further supports the market belief that the Federal Open Market Committee will keep rates unchanged at their next meeting.

  • January jobs report provides glimmer of hope for the manufacturing labor market: Manufacturing employment increased by 5,000 in January, after 13 consecutive months of declines. Meanwhile, nonfarm payroll employment rose by 130,000 in January, coming in above expectations. The unemployment rate edged down 0.1% to 4.3%, while the labor force participation rate ticked up 0.1% to 62.5%. In addition, the establishment survey was revised for the annual benchmarking process, resulting in the employment levels from April 2024 to March 2025 being revised downward by 898,000 nonfarm jobs and 98,000 manufacturing jobs.

    • Why it matters: Although the large, negative benchmark revision to employment figures didn’t come as a surprise, it shows the labor market was even weaker in 2025 than earlier estimates suggested. Following news that manufacturing activity expanded for the first time in January after 10 consecutive months of contraction, the uptick in manufacturing employment shows that the demand for talent may be turning around after a lengthy decline. Nonetheless, continued improvement over the next several months will be necessary to determine if the upswing is part of a larger trend or a temporary anomaly.

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    ]]>     Tue, 17 Feb 2026 18:49:00 GMT     Manufacturing Shows Widespread Positive Developments in January https://woodindustry.org/news/news.asp?id=719936 https://woodindustry.org/news/news.asp?id=719936
  • Manufacturing activity expands in January after series of contractions: The ISM Manufacturing® PMI expanded for the first time after 10 consecutive months of contracting and at its fastest pace since 2022, increasing to 52.6% from 47.9% in December and rising above the threshold of 50% that indicates growth in activity. Three demand indicators improved in January, with the New Orders, New Export Orders and Backlog of Orders Indexes rising to 57.1%, 50.2% and 51.6%, respectively. Meanwhile, the Customers’ Inventories Index contracted at a faster rate into “too low” territory, also a positive sign for future production.

    • Why it matters: The Production Index increased from 50.7% to 51.4%, as three of the four demand indicators entered expansion territory. While the boost to the manufacturing index is welcome, expectations of a continuation of this rate of growth should be moderated since respondents noted that January is a post-holiday reorder month and mentioned buying to get ahead of anticipated tariff-related price increases. Furthermore, respondents continue to note concern about near-term demand, primarily driven by tariff costs and uncertainty, which is also restricting their investment decisions. That said, activity appears to be stabilizing.

  • Manufacturing job openings grew as activity picked up: Job openings for manufacturing increased by 34,000 to 433,000 in December. The manufacturing job openings rate rose to 3.3% from 3.0% in November, and stayed the same from the previous year. Meanwhile, the hires rate for manufacturing ticked up 0.1 percentage point to 2.3%, but the separations rate, which includes quits, layoffs, discharges and other separations, stayed the same at 2.4%.

    • What it means: Despite continued weakness in the labor market, job openings in manufacturing saw slight gains, while they fell notably for the broader economy. Job openings in manufacturing were roughly at the level seen in December 2024. Meanwhile, there were nearly 1 million less job openings in the broader economy compared to last year. Turnover remained low in manufacturing, and the hires rate inched up in December. However, the hires rate stayed close to the 10-year low of 2.1%, as firms remain hesitant to increase headcounts.

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    ]]>     Mon, 9 Feb 2026 21:02:00 GMT     Capital Expenditure Growth Provides Hope for Manufacturing https://woodindustry.org/news/news.asp?id=719431 https://woodindustry.org/news/news.asp?id=719431
  • Aerospace volatility continues to drive shifts in factory orders: New orders for manufactured goods increased 2.7% in November, following a 1.2% decline in October. When excluding transportation, new orders inched up 0.2% over the month. New orders for durable goods jumped 5.3%, with nondefense aircraft and parts leading the increase, surging 97.6%, following October’s 17.9% drop. Meanwhile, the largest over-the-year change occurred in nondefense aircraft and parts (up 111.8%).

    • What it means: New orders for manufactured goods grew 3.4% over the year, but when transportation is excluded, new orders are up just 0.7% over the year, highlighting how the tremendous year-over-year rise in aerospace orders is driving that headline growth. The broader manufacturing base still isn’t seeing the same lift. On the other hand, new orders for core capital goods, a proxy for capital expenditures, have grown notably since June, likely boosted by the passage of the landmark tax bill, and climbed 5.3% year-over-year in November.

  • Texas manufacturing activity expanded as perceptions strengthened: In January, the production index increased from -3.0 to 11.2. The new orders and capacity utilization indexes also turned positive, rising 18.4 points to 11.8 and 11.7 points to 7.1, respectively. Supported by growth in most indicators in January, perceptions of manufacturing conditions remained negative but rose 10.1 points to -1.2.

    • Why it matters: Following a contraction in activity in December, Texas factory activity rebounded in January across various indexes. The production and new orders indexes soared, both moving above the series’ averages. Consistent with the growth across indexes, the outlook for future manufacturing strengthened in January and remains above the series average.

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    ]]>     Mon, 2 Feb 2026 20:36:00 GMT     Regional Manufacturing Surveys Display Progress in New Year https://woodindustry.org/news/news.asp?id=718860 https://woodindustry.org/news/news.asp?id=718860
  • Kansas City manufacturing activity remains constant in January: The month-over-month composite index in the Tenth District remained unchanged at 0 from December, while expectations for future activity stayed positive but declined 3 points to 7. The production index remained negative but inched up from -3 to -2, while the new orders index moved up from -2 to 0. At the same time, the employment index rose in January from -4 to 0.

    • Why it matters: Although activity remained relatively stable in January in Kansas City, manufacturing activity in other areas, such as New York and Philadelphia, picked up dramatically. Furthermore, Kansas City exhibited numerous positive signs for at least a stabilization in future activity, if not an improvement. In sum, activity appears to be taking a positive turn in 2026.

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    ]]>     Mon, 26 Jan 2026 17:48:00 GMT     WIA Technology Committee Highlights AI Technologies to Watch https://woodindustry.org/news/news.asp?id=718478 https://woodindustry.org/news/news.asp?id=718478 AI technologies we are keeping an eye on

    The Technology Committee continues to monitor how emerging technologies may eventually impact the wood products industry, particularly when those technologies begin appearing in manufacturing environments outside of our immediate space.

    Earlier this fall, we attended The Assembly Show in Rosemont, Illinois. While the event is not focused on woodworking, it brings together manufacturers, engineers, and automation professionals from industries such as automotive, aerospace, electronics, and industrial equipment.

    The Assembly Show Floor, Rosemont, Illinois 

    There was limited technology on display that was both new/innovative and felt immediately transferable to most WIA member companies. However, several AI-driven approaches stood out, not because they are ready for adoption today, but because they illustrate how AI is beginning to support planning, safety, and process development in manufacturing environments.

    One example was focused on helping engineers identify and source automation components more efficiently. In industries where complex machinery is being designed or integrated, this type of technology is used to aggregate technical specifications and supply chain data across large part libraries. While most woodworking companies are not building automation systems from scratch, the underlying concept is relevant as facilities continue integrating CNC equipment, robotics, and material handling systems. Tools that improve planning, compatibility review, and lead-time visibility may eventually influence how equipment decisions are made (KIPOAI).

    Another technology observed at the show applies AI to workstation analysis using simple video capture. The system evaluates movement patterns and identifies potential ergonomic or safety risks without requiring wearables or production downtime. For woodworking operations that rely heavily on hands-on assembly and finishing, this raises important questions about how future technology might support safety programs and workstation design (Retrocausal’s Ergo Copilot).

    Ergo Copilot Software in use.

    A third example uses AI to generate work instructions from CAD files, including suggested build sequences and visual guidance. While currently used more heavily in automotive and aerospace applications, the concept highlights how AI may eventually assist with documentation, training, and knowledge transfer for complex or customized builds. The representative there also mentioned cabinet assembly among current use cases (Dirac’s BuildOS).

    It’s important to note that the Technology Committee does not recommend specific tools, software, or providers. Our role is to identify emerging themes and encourage members to consider how similar technologies may eventually apply within their own operations.

    Looking ahead, the committee will continue monitoring developments at industry-adjacent events and sharing observations where the underlying ideas may spark useful internal discussion. We plan to provide more light updates and occasional video content that take a closer look at relevant technology concepts being explored across manufacturing.

    These efforts connect directly to upcoming programming at the Wood Industry Conference. The Technology Committee is pleased to share that Dr. Shawn DuBravac has been secured as the technology speaker for the event. Building on last year’s discussion around artificial intelligence, this year’s session will focus more heavily on practical case studies, along with guidance on how companies can identify areas where technology may add value and the steps required to move from interest to implementation. Look out for a survey in the coming months to help gauge the current level of sophistication with AI tools among the WIA member companies.

     

    David Biggs
    Technology Committee Chair

    ]]>     Wed, 21 Jan 2026 15:28:00 GMT     Green Shoots Appear After Sluggish Q4 https://woodindustry.org/news/news.asp?id=718399 https://woodindustry.org/news/news.asp?id=718399
  • Manufacturing output ticks up in December: Manufacturing output increased 0.2% in December after moving up 0.4% in November and falling 0.6% in October. At 97.4% of its 2017 average, manufacturing production advanced 2.0% from December 2024. Capacity utilization for manufacturing was 75.6%, unchanged from November but up 1.1% over the past year.

    • What it means: After the pace of growth slowed for several months and declined in October, December’s manufacturing output level has finally surpassed August’s level of 97.3% of its 2017 average. After a strong early gain in the first quarter of 2025, activity slowed some in the second and third quarters and declined in the last quarter of the year (down 0.7%). Furthermore, capacity utilization remains 2.6 percentage points below its long-term average.

  • Consumer price growth held steady in December, while wholesale prices ticked up in November: In December, consumer prices increased 0.3% from November and 2.7% over the year, unchanged from the 2.7% annual rise in November. The core consumer price index, which excludes more volatile energy and food prices, rose 0.2% from November and 2.6% over the year, also unchanged from the 2.6% 12-month increase in November. Meanwhile, wholesale prices advanced 0.2% over the month in November, after prices inched up 0.1% in October. Over the year, producer prices moved up 3.0% in November, up from 2.8% in October.

    • Why it matters: Although price increases are moderating some, current accelerations in price growth are driven by goods inflation, as energy and services price increases ease. For example, producer prices for services stayed the same in November, while prices for goods jumped 0.9%, the largest increase since February 2024.

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    ]]>     Tue, 20 Jan 2026 16:39:00 GMT     Charles G G Schmidt & Co., Inc is celebrating its 100th anniversary! https://woodindustry.org/news/news.asp?id=718048 https://woodindustry.org/news/news.asp?id=718048 Charles G. G. Schmidt & Co., is pleased to announce the Celebration of their 100th year in the woodworking tool business. For 100 years, the Schmidt Company has been manufacturing and distributing high quality woodworking tools for all stages of woodworking. From their modest beginning in a fourth floor location in downtown New York City to their home now in Montvale, NJ they have become a trusted name for quality tools and solutions. Combined with years of experience in the sales and manufacturing departments and keeping current with the latest CNC equipment they can help solve your production problems. Servicing one man shops to large architectural woodworking companies, Schmidt has both stock and custom made tooling of all types. Made to order knives for your particular machine, insert tools, moulder and shaper heads, Esta Knives and accessories are just some of tools and services they provide. Look for our new catalog, Number 1400 due out soon. Download your copy from our website, www.cggschmidt.com or call 1 800 Schmidt to have a copy sent to you when available.]]> Wed, 14 Jan 2026 16:36:00 GMT ‘No Hire, No Fire’ Manufacturing Labor Market Persists https://woodindustry.org/news/news.asp?id=717916 https://woodindustry.org/news/news.asp?id=717916
  • The labor market continues to weaken: Manufacturing employment decreased by 8,000 in December, the eighth consecutive month of job losses, after slipping by 2,000 in November. Meanwhile, nonfarm payroll employment ticked up by 50,000 in December, after rising by 56,000 in November. Following the government shutdown, employment is still down by 67,000 from September. On the other hand, the unemployment rate edged down 0.1 percentage point from November to 4.4% in December, while the labor force participation rate also ticked down 0.1 percentage point to 62.4%.

    • Why it matters: Overall, this report exhibits how the labor market doesn’t appear to be picking up any momentum and that weakness continues to be more severe for manufacturing. Excluding the impacts on the government labor force from the shutdown, private payrolls cumulatively rose by 88,000 since September. Meanwhile, manufacturing employment is down by 19,000 over that same period.

  • Job openings remain depressed as manufacturing activity is slow: Job openings for manufacturing decreased by 11,000 to 403,000 in November. The manufacturing job openings rate fell to 3.1% from 3.2% in October and from 3.4% the previous year. Meanwhile, the hires rate for manufacturing ticked down 0.2 percentage points to 2.3%, but the separations rate, which includes quits, layoffs, discharges and other separations, stayed the same at 2.5%.

    • What it means: The data continues to exhibit a “no hire, no fire” labor market. Job openings in manufacturing remain far below the half-a-million mark seen as the average through 2024, but turnover remains low, meaning most firms are holding on to the talent they have. On the other hand, the hires rate for manufacturing dipped again and is nearing the 10-year low of 2.1%, providing further evidence that manufacturing employment is declining due to attrition.

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    ]]>     Mon, 12 Jan 2026 21:35:00 GMT     New Orders Stagnate Globally and Decline in the U.S. https://woodindustry.org/news/news.asp?id=717438 https://woodindustry.org/news/news.asp?id=717438
  • Growth in global manufacturing activity weakened: In December, growth in global manufacturing activity decreased from 50.5 to 50.4 but remained above the threshold that indicates an increase in activity. Output rose for the fifth consecutive month but at a slower pace than November, as new orders remained stable from the prior month. The stagnation in new work was due, in part, to the ongoing contraction in international trade, with new export orders declining for a ninth consecutive month.

    • Why it matters: The sustained growth in activity in December continues to challenge the prediction of a stall in global manufacturing activity in the second half of the year. Furthermore, forward-looking indicators were positive, with business optimism remaining at November’s five-month high and investment goods producers seeing positive gains after stalling recently.

  • S&P Global continues to exhibit a rosier picture of U.S. activity: The S&P Global Manufacturing PMI was 51.8 in December, down from the November reading of 52.2 but still above the 50 threshold that indicates growth in activity. Production rose over the month, allowing stocks of finished goods to rise for the fifth consecutive month. Nonetheless, output increased at a slower rate than November’s survey record due to the contraction in new orders.

    • What it means: New orders declined for the first time in a year, resulting in the gap between the growth of production and the drop in orders to expand to the greatest extent since the height of the global financial crisis. At the same time, exports fell for the seventh consecutive month, as tariffs continued to impact sales to key markets, especially Canada. If demand and export sales remain weak, the continuing rise in unsold stock likely will result in a decline in output in future months.

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    ]]>     Mon, 5 Jan 2026 20:30:00 GMT