U.S. Manufacturing Faces Headwinds as Factory Orders and PMI Indicate Slowing Growth
- Jan 8
- 1 min read
December 2025 manufacturing data shows contraction in key sectors, signaling broader potential impacts for grid equipment production.
January 2026 data released from U.S. economic surveys shows that manufacturing activity slowed at the end of 2025, with the Purchasing Managers’ Index (PMI) for manufacturing hitting its lowest point of the year. New orders and production levels declined, reflecting weakening demand in several sectors. While the electronics and computer equipment segments saw some growth, broader manufacturing, including heavy equipment related to grid projects, contracted. This trend raises concerns about the pace at which grid equipment, from power electronics to structural components, will be produced and delivered for key infrastructure expansions in 2026.
U.S. manufacturing PMI suggests contraction in key manufacturing segments as of December 2025.
New orders declined, pointing to weakening demand in some industrial sectors.
Electronics sector growth contrasts broader manufacturing softness.
Slowdowns may affect production timelines for grid infrastructure hardware.
Industry watchers note that sustained contraction could worsen already long lead times.
“Unless demand improves, current factory production levels are seen as unsustainable by industry economists."
CONCLUSION
Slowing manufacturing activity raises caution for planners relying on timely deliveries of specialized equipment needed for large grid builds. Extended lead times for hardware, from power systems gear to structural components, can impact design schedules, budgets, and deployment readiness. For ambitious initiatives like high‑capacity transmission corridors, having a clear view of industrial production trends and their implications helps shape contingency planning and supplier strategy to ensure engineering momentum is upheld.
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