Member Briefing January 7, 2026

Posted By: Harold King Daily Briefing,

S&P: US Factory Sector Contracts For 10th Straight Month In December

U.S. manufacturing activity slumped to a 14-month low in December, with new orders contracting further and input costs grinding higher as the sector continued to bear the imprint of President Donald Trump's import tariffs. The ISM said its manufacturing PMI dropped to 47.9 in the final month of 2025, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing, which accounts for 10.1% of the economy.

  • Electrical equipment, appliances and components as well as computer and electronic products were the only two industries reporting growth. The remaining 15 industries, including chemical products, miscellaneous manufacturing, machinery and transportation equipment, reported a contraction.
  • The new orders sub-index was little changed at 47.7 in December from November's 47.4, marking a fourth straight month of falling demand. This measure has contracted in 10 of the last 11 months with demand curbed by the rise in some goods prices because of the tariffs.
  • The measure of manufacturing inventories dropped 3.7 percentage points to 45.2 last month.
  • The production index eased to 51 from 51.4 in November.
  • ISM's prices paid index was unchanged at 58.5, higher than forecasts for 57.0.
  • Amid the soft demand environment, factory employment declined for an 11th straight month, the sector's longest hiring slump by ISM's measure in about five years.
  • The ISM noted that for every comment on hiring, there were three on reducing head counts, adding that companies continued to focus on accelerating staff reductions due to uncertain near- to mid-term demand.

Read more at Reuters

Education and Health Services Drive 12 Month Hudson Valley Jobs Increase.

Private sector jobs in the Hudson Valley increased by 6,800 or 0.8 percent, to 847,900 in the 12 months ending November 2025. Job growth was centered in private education and health services (+6,300), professional and business services (+1,900), leisure and hospitality (+500), financial activities (+400), manufacturing (+200) and trade, transportation and utilities (+200). Losses were greatest in mining, logging and construction (-1,500), information (-700) and other services (-500). For the month of November private sector employment grew by a total of 3,000 jobs.

Manfuacturing lost 200 jobs in November. Employment in Hudson Valley manufacturers stood at 41,100, down from 41,300 in October but up from 40,900 in November 2024 – an increase of 0.5%. Statewide manufacturing employment stood at 408,400 in November, down 1,000 from October and off 2,600 from November 2024 - a decline of 0.6%. Nationally Manfuacturing employment totaled 12,694,000 in November down 16,000 from October and 81,000 from November 2024 – a decline of 0.6%.

Read The Labor Market Profile

US-Based Multinational Companies Will Be Exempt From OECD Global Tax Scheme

U.S. multinational corporations will be exempted from paying more corporate taxes overseas in a deal finalized by the Organization for Economic Cooperation and Development. The OECD announced Monday that nearly 150 countries have agreed on the plan, initially crafted in 2021, to stop large global companies from shifting profits to low-tax countries, no matter where they operate in the world. The amended version excludes large U.S.-based multinational corporations from the 15% global minimum tax after negotiations between President Donald Trump’s administration and other members of the Group of Seven wealthy nations.

U.S. Treasury Secretary Scott Bessent called the agreement “a historic victory in preserving U.S. sovereignty and protecting American workers and businesses from extraterritorial overreach.” The most recent version of the deal waters down a landmark 2021 agreement that set a minimum global corporate tax of 15%. Former Treasury Secretary Janet Yellen was a key driver of the 2021 OECD global tax deal and made the corporate minimum tax one of her top priorities. The plan was widely panned by congressional Republicans who said it would make the U.S. less competitive in a global economy.

Read more at the Hill

Venezuela

  • Venezuela Under Maduro Shipped Gold Worth $5.2 Billion To Switzerland - Reuters
  • Trump Says He's Prepared To Send More US Troops To Venezuela If Interim President Doesn't Cooperate - Politico
  • Security Forces Patrol Venezuelan Streets As Opposition Calls For Release Of Political Prisoners - BBC
  • Venezuela, US In Talks To Export Venezuelan Oil To US, Sources Say - Reuters
  • UN Says US Operation In Venezuela 'Undermined Fundamental Principle Of International Law' – France 24
  • Venezuelan Oil And China: Country's Oil Industry Won't Be 'Controlled By Adversaries Of The US,' Rubio Says – Nikkei Asia
  • Venezuelan Regime’s New Strategy: Appease Trump to Survive - WSJ
  • Trump Officials To Brief Senators On Venezuela Today – The Hill
  • Why Russia Is Treading Carefully After The Ousting Of Kremlin Ally Maduro - CNBC
  • Machado Says She ‘Certainly’ Wants To Give Nobel To Trump – The Hill
  • After Trump’s Venezuela Takeover, China’s Investors Prep For Latin American Era Of Anxiety - SCMP

 

Middle East

Ukraine

Other Headlines

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New Signs Of Life For Government Funding, But A Shutdown Still Looms

Congressional leaders and appropriators are taking a major step this week toward averting a partial government shutdown at the end of the month, but there’s a ton of work left to do.

House and Senate appropriators released a bipartisan funding deal Monday for the FY2026 Commerce-Justice-Science, Interior and Energy and Water spending bills. The three-bill funding package is on track for passage over the next few weeks, with initial House action expected later this week. The package largely rejects major spending cuts the White House had sought and doesn’t include provisions that would have led to partisan blowups.

Rejecting Trump’s spending cuts. House Democrats said the appropriations bills leave aside roughly $163 billion in proposed cuts from the Trump administration. Instead, the bills stave off drastic spending reductions for climate research, the EPA and NASA. The appropriations bills included directives that detail how the administration must spend the funds. While that language is often included in funding bills, Democrats noted that the CR gave more leeway to OMB. The minibus heads to the House Rules Committee tonight. The House will vote on the package on Thursday. Negotiators are still working on the six remaining funding bills that must get done by Jan. 30. Some of those bills may require a short-term or long-term CR.

 

 Read more at Punchbowl News

 

Lawmakers Boost Funding For NIST in ‘Minibus’- Include MEP Funds - After Proposed Cuts

Congressional appropriators are looking to maintain, and in some cases increase, the National Institute of Standards and Technology’s work in areas like artificial intelligence, cybersecurity and quantum research. The appropriations agreement released by House and Senate negotiators this week would include $1.8 billion for NIST, instead of funding cuts for the agency proposed by the Trump administration. The “minibus” appropriations package rejected many of the administration’s proposed budget cuts and limited agency reorganizations.

The agreement includes $1.25 billion for NIST’s research and services division, more than $542 million above the Trump administration’s request. The White House had proposed cutting NIST funding and positions in areas like cybersecurity and privacy; health and biological systems measurements; and physical infrastructure and resilience. The appropriations agreement also includes $175 million to continue funding NIST’s Hollings Manufacturing Extension Partnership Program. The MEP program includes 97 positions and helps fund a national network of centers across all 50 states and Puerto Rico that provide services to small- and medium-sized U.S. manufacturers. The Trump administration had proposed defunding the MEP program, arguing it was outdated and had struggled to address challenges facing the U.S. manufacturing sector.

Read more at the Federal News Network

CDC Changes Childhood Immunization Schedule, Removing Universal Recommendation For Multiple Shots

The Centers for Disease Control and Prevention (CDC) announced on Monday it is changing the childhood immunization schedule. The federal health agency is removing the universal recommendation for multiple shots, in what it calls an attempt to mirror the schedules of peer countries. Instead of being universally recommended for almost all children at certain age cut offs, vaccines are now split into three categories: vaccines for all children, vaccines for certain high-risk groups and vaccines based on shared clinical decision making. Shared clinical decision making is the term used by CDC to imply that patients, and parents, should talk to their provider about whether they should be vaccinated.

Some of the vaccines and immunizations that are no longer universally recommended include RSV, flu and COVID, as well as the hepatitis and meningococcal vaccines. The changes drew rebuke from doctors, who expressed concern that such a change did not undergo further debate before being implemented. Dr. Demetre Daskalakis, former director of the CDC's National Center for Immunization and Respiratory Diseases, said altering the schedule without consulting U.S. experts in pediatrics, infectious diseases and public health "undermines both scientific rigor and transparency."

Read more at ABC News

More Policy and Politics Headlines

Flu Season Surged In The US Over The Holiday And Already Rivals Last Winter’s Harsh Epidemic

U.S. flu infections surged over the holidays, and health officials are calling it a severe season that is likely to get worse. New government data posted Monday — for flu activity through the week of Christmas — showed that by some measures this season is already surpassing the flu epidemic of last winter, one of the harshest in recent history. Forty-five states were reporting high or very high flu activity during the week of Christmas, up from 30 states the week before.

The higher numbers appear to be driven by the type of flu that’s been spreading, public health experts say. One type of flu virus, called A H3N2, historically has caused the most hospitalizations and deaths in older people. So far this season, that’s the type most frequently reported. Even more concerning, more than 90% of the H3N2 infections analyzed were a new version — known as the subclade K variant — that differs from the strain in this year’s flu shots. Flu seasons often don’t peak until January or February, so it’s too early to know how big a problem that mismatch will be.

Read more at The AP

Upcoming Council Programs

Events

Manufacturing Champions Award Breakfast - Thursday May 7, 2026 -7:45 - 10:00 AM. West Hills Country Club, Middletown.

Networks

HR Sub Council Meeting Topic TBD, January 14, 2026, 8:15 - 11:00. Selux Corporation, Highland.

Health & Safety Sub Council Meeting Topic TBD, February 12, 2026, 8:30 - 10:30. Location TBD

Insight Exchange On Demand Webinars

Webinars and Seminars

Check back soon

Training

Making a Profit In Manufactuirng This course is designed to provide supervisors and team leaders with the financial acumen essential for maximizing profitability and reducing operational risks. January 20 & 21, 8:30 - 12:30 Via Zoom.

Human Resource Management Issues This identifies and explains key legal issues that a manager may have to address in the workplace today. It helps current and future managers realize their responsibility to understand and enforce the employment laws that speak to these issues and minimize their chances of ending up in court. February 3 & 4, 8:30 - 12:30 Via Zoom.

Effective Business Communication This course is designed to build core communication skills essential in professional settings. Topics covered include identifying appropriate communication channels, honing active listening skills, and mastering techniques like paraphrasing, summarizing, and clarifying for better interpersonal communication. February 17 & 18, 8:30 - 12:30 Via Zoom.

Lean Six Sigma Green Belt This program combines online coursework, with live Zoom sessions, to deliver a flexible and effective learning experience in Lean Six Sigma methodologies. Most Mondays March 2 - June 8 Via Zoom.

(Special Info session for those who are 'Green Belt curious' February 23rd)

Lean Six Sigma: Yellow Belt - Yellow Belt is an approach to process improvement that merges the complementary concepts and tools from both Six Sigma and Lean approaches. 3 Full days - March 9,10 & 11 - DCC Fishkill.

Trade Wars

AI-Driven Cyberattacks Are Coming. Here’s How To Prepare Now

The digital landscape in which all manufacturers operate is expanding, as are the threats. Bad actors are harnessing AI to execute exploits more quickly, automate attack reconnaissance and deployment, and weaponize older, unpatched vulnerabilities, among other advancements. While the skills required by hackers to deploy attacks used to be beyond what the average person knew how to do, AI is automating parts of the attack chain, and deep coding abilities are no longer necessary for malicious actors.

Heading into 2026, manufacturers must prepare for the acceleration of attacks spawned by AI and understand that the volume is more than human defenders can handle alone. One of the most pressing security concerns for manufacturers is the threat posed by unpatched vulnerabilities. Firstly, patching cycles within manufacturing organizations sometimes fall into a cyclical pattern—every few months, biannually, or even annually. Regardless, ad hoc patching is not the norm, and given that attackers are leveraging AI to scan for and exploit older, unpatched vulnerabilities, the norm of not patching lower-risk vulnerabilities until the next cycle is catching up with manufacturers.

Read more at Smart Industry

After a Big 2025 GM, Other Carmakers, Hint at Tough Year Ahead for U.S. Auto Sales

General Motors and several rivals reported year-end sales slumps, an ominous sign that U.S. auto sales will slow this year as consumers push back on higher prices. GM, the biggest automaker in the U.S. by sales and a bellwether for the U.S. industry, said Monday that sales fell 7% in the final quarter of 2025. Honda, Hyundai and Mazda also said on Monday that their U.S. sales fell toward the end of the year. For the year however General Motors reported a 5.5% increase in its annual U.S. sales. The Detroit automaker retained its position as the largest seller of vehicles in the U.S.

The slowdown is expected to extend into this year. Analysts and automakers predict U.S. annual sales will fall in 2026 following three straight years of gains as belt-tightening American car buyers collide with tariff costs that companies probably won’t keep absorbing. Consumers face not only higher new-car prices, but also more expensive insurance, financing and maintenance expenses. Executives at Toyota, which notched an 8% increase in U.S. sales during the fourth quarter, said they are preparing for a bruising year ahead. Toyota was able to maintain sales momentum at the end of last year by absorbing the costs of U.S. tariffs, and because car buyers gravitated toward the company’s entry-level models like the Corolla sedan. Yet executives said companies won’t be able to keep footing the bill for tariffs.

Read more at CNBC

Lucid, Uber And Nuro Unveil Jointly Developed ‘Global Robotaxi’ At CES

Electric automaker Lucid Group, autonomous driving technology developer Nuro and Uber Technologies unveiled a production-intent robotaxi based on the Lucid Gravity SUV at the Consumer Electronics Show on Monday, the companies announced in a joint press release. Each vehicle will be outfitted with Nuro’s autonomous driving technology and an in-cabin passenger experience designed by Uber. The first Gravity robotaxi deployments on Uber’s ride-hailing network are planned for the San Francisco Bay Area later this year.

“Uber is proud to partner with Lucid and Nuro to bring a state-of-the-art robotaxi to market later this year,” said Sarfraz Maredia, global head of autonomous mobility and delivery at Uber. “By combining leading expertise in electric vehicles, autonomy and ride-hailing, we’re building a unique new option for affordable and scalable autonomous rides in the San Francisco Bay Area and beyond.” The companies also announced that on-road testing of the robotaxis began in the Bay Area last month. Nuro is leading the testing of the vehicles, which are being monitored by human safety drivers.

Read more at Ward’s Auto

AMD’s Lisa Su Says AI Isn’t Replacing People, But Is Changing Who Gets Hired

Advanced Micro Devices CEO Lisa Su said Tuesday that artificial intelligence has not slowed the pace of hiring at her company, but the job candidates who have truly embraced the technology have become a priority. “I would say that we’re actually not hiring fewer people,” Su told CNBC’s Jon Fortt on Tuesday from the CES conference in Las Vegas. “Frankly, we’re growing very significantly as a company, so we actually are hiring lots of people, but we’re hiring different people. We’re hiring people who are AI forward.”

AMD is incorporating AI into how the company builds, designs, manufactures and tests chips, and Su said the candidates who “truly embrace” it are the ones getting hired. As of December 2024, AMD had roughly 28,000 employees worldwide, according to a filing with the U.S. Securities and Exchange Commission. “I would say that AI is augmenting our capabilities,” Su said. “It’s not replacing people, it’s actually just augmenting our productivity in terms of the number of products we can bring up at any given time.”

Read more at CNBC

Ford Reports Best Annual U.S. Vehicle Sales Since 2019

Ford Motor on Tuesday said its U.S. vehicle sales last year increased 6% to achieve the company’s best annual sales since 2019. The Detroit automaker reported sales of 2.2 million vehicles in 2025, including a 2.7% uptick to more than 545,200 units during the fourth quarter. In 2019, the automaker sold 2.42 million vehicles in the U.S. Ford finished the year as the third-largest automaker in the U.S. behind Toyota Motor and domestic sales leader General Motors.

Ford’s fourth-quarter performance came as it continues to battle production troubles with its F-Series pickup trucks due to two separate fires at a New York plant of key aluminum supplier Novelis. F-Series sales, including the popular F-150, were up 8.3% in 2025. Like many automakers, Ford’s all-electric vehicles business notably declined 14.1% last year, including a roughly 52% plummet during the fourth quarter. A nearly 22% increase in sales of Ford’s hybrid vehicles, which the company expects to grow, assisted in offsetting those losses. Traditional vehicles with internal combustion engines continued to dominate Ford’s sales, representing about 86% of the company’s volume in 2025.

Read more at CNBC

Honda Buying LG Energy Solution’s Stake In Ohio EV Battery Plant For $2.85B

Battery maker LG Energy Solution has agreed to sell its stake of its electric vehicle joint venture battery plant in Ohio to Honda Development and Manufacturing of America for $2.85 billion, according to a Dec. 23 regulatory filing. The plans for the joint venture EV battery plant were announced in August 2022 and included an initial investment commitment of $3.5 billion by Honda and LG Energy Solution to produce lithium-ion batteries for electric Honda and Acura models for the North American market beginning in 2026.

The transaction includes the building and infrastructure assets related to the joint venture, but excludes the land and equipment. The JV will continue to use the facility under a lease agreement, with no changes to production or operational plans, according to the Korea Herald. The deal is scheduled to close on Feb. 28. According to LG Energy Solution’s regulatory filing, the deal to divest its stake in the battery facility is intended to “increase the operational efficiency” of its joint venture with Honda. However, the plant may expand production of batteries for energy storage system applications, according to the Korea Herald. 

Read more at Manufacturing Dive

Nvidia Unveils Faster AI Chips Sooner Than Expected

On Monday at the Consumer Electronics Show in Las Vegas, Nvidia triangle Chief Executive Jensen Huang unveiled the company’s newest AI server systems, known as Vera Rubin, which go on sale in the second half of this year. Usually, Nvidia details the specs and capabilities of its latest chips at its spring developer conference in Silicon Valley. This year, Huang said, the complexity of computing required by AI and the immense demand for advanced processors to train and operate models has prompted the semiconductor industry to move faster.

Nvidia has long argued that the next phase of AI is what the company refers to as the “omniverse”—a type of model-training that allows AI to use simulations of reality to learn how to navigate real-world situations. For example, autonomous vehicles guided by AI models can be refined more quickly using simulations of on-the-road driving situations, rather than spending thousands of hours doing real-world training. The company’s new Vera Rubin servers—named for a midcentury American astronomer who made groundbreaking discoveries in observing how heavenly bodies move—are designed to be able to handle the enormous computing loads needed to create those simulations and use them in model-training.

Read more at The WSJ

Boston Dynamics Is Training An AI-Powered Humanoid Robot To Do Factory Work

Today's AI-powered humanoids are learning movements that, until recently, were considered a step too far for a machine, according to Scott Kuindersma, who is the head of robotics research at Boston Dynamics. "A lot of this has to do with how we're going about programming these robots now, where it's more about teaching, and demonstrations, and machine learning than manual programming." Kuindersma said.

Boston Dynamics is testing a new generation of its humanoid robot, Atlas. Atlas has an all-electric body and an AI brain powered by Nvidia's advanced microchips, making it smart enough to master hard-to-believe feats. Atlas learns in several ways. At Boston Dynamics, machine learning scientist Kevin Bergamin demonstrated an example of supervised learning. Wearing a virtual reality headset, Bergamin took direct control of the humanoid and guided its hands and arms through each task until Atlas succeeded. "That generates data that we can use to train the robot's AI models to then later do that task autonomously," Kuindersma said.

Read more at CBS News

Quote of the Day

"It is paradoxical, yet true, to say, that the more we know, the more ignorant we become in the absolute sense, for it is only through enlightenment that we become conscious of our limitations. Precisely one of the most gratifying results of intellectual evolution is the continuous opening up of new and greater prospects."

Nikola Tesla - Serbian Electrical and Mechanical Engineer who died on this day in 1943.

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