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Member Briefing June 16, 2025

June 16, 2025

Posted By: Harold King in Daily Briefing,

Top Story

Trump Approves U.S. Steel Merger With Japan’s Nippon After Companies Sign National Security Agreement

President Donald Trump issued an executive order on Friday approving U.S. Steel’s merger with Japan’s Nippon Steel, after the companies signed a national security agreement with the U.S. government. U.S. Steel and Nippon said the national security agreement will give the U.S. government a “golden share” and makes certain commitments related to governance, domestic production, and trade. The companies did not elaborate on what powers the U.S. government will wield with its golden share.

The national security agreement calls for Nippon to make $11 billion in new investments by 2028, including initial spending on a greenfield project that will be completed after 2028, the companies said. U.S. Steel made clear it would become a “wholly owned subsidiary” of Nippon North America under the terms of the merger agreement in an April 8 filing with the Securities and Exchange Commission. Trump’s description of the deal as a “partnership” caused confusion among investors and union leadership.

Read more at CNBC

PPI = 2.6 Adding to a String of Tame Inflation Reports

U.S. wholesale inflation rose less than expected in May, signaling modest cost pressures that could influence upcoming Federal Reserve decisions. The Producer Price Index (PPI) for final demand advanced just 0.1%, falling short of economists’ expectations for a 0.2% rise, while the core PPI—excluding food and energy—also rose 0.1%, undercutting the 0.3% estimate. The PPI for final demand goods increased 0.2%, driven primarily by a 0.2% rise in core goods, while food prices ticked up 0.1% and energy prices were unchanged.

Volatile components such as jet fuel, down 8.2%, and pork prices, also lower, offset gains in tobacco (+0.9%) and roasted coffee. Weakness in energy markets, combined with flat pricing in essential categories, suggests limited upstream pressure on consumer prices. The annual rise in the core PPI (excluding food, energy, and trade services) stands at 2.7%, in line with the Fed’s comfort zone. May marks a deceleration from April’s 0.1% monthly decline, but the bounce remains soft. Importantly, unprocessed goods for intermediate demand fell 1.6%, indicating that upstream input costs are not rebounding, with natural gas prices plummeting 18.7%.

Read more at FX Empire

Reshoring Continues to Add Jobs

In 2024, the US added 244,000 manufacturing jobs via reshoring and foreign direct investment (FDI), according to a new report, Reshoring Initiative 2024 Annual Report. While early 2025 job announcements are trending lower, policy stability could quickly unlock another wave of reshoring-driven investment, the Reshoring Initiative noted. Since 2010, over 2 million jobs have been announced as U.S. companies and foreign investors bring manufacturing closer to U.S. customers, driven by rising geopolitical risk, supply chain vulnerabilities, and growing bipartisan support for American industrial competitiveness. Key Findings from the Report:

Reshoring by U.S.-headquartered companies outpaced FDI by foreign-headquartered companies by the largest margin on record in 2024.
High-tech industries are driving growth: 88% of 2024 jobs were in high or medium-high tech sectors, rising to 90% in early 2025.
Texas, South Carolina, and Mississippi are the top 2025 states for reshoring and FDI.
Asia remains the largest source of reshored + FDI jobs, while South Korea, China, and Germany led among individual countries.
Tariffs are now a key motivator: Cited in 454% more cases in 2025 vs. 2024. Government incentives cited 49% less as previous subsidies phase out.
Workforce constraints loom large: U.S. manufacturing apprenticeships rose 83% over the past decade, but far more skilled workers are needed to sustain reshoring growth.

Read more at Material Handling & Logistics

Global Headlines

Middle East

Ukraine

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Policy and Politics

Saturday’s Parade and Protests Lay Bare the Fragile Nature of American Unity

The fragile nature of American unity was on display across the country Saturday. Joined by tens of thousands of spectators, President Trump presided over a military parade celebrating the 250th anniversary of the U.S. Army, a pageant of soldiers in Revolutionary War uniforms, Sherman tanks from World War II and heavy equipment from every modern military conflict. Trump, in brief remarks, lauded the Army’s history. “Over the past two and a half centuries, our warriors have shown unrivaled valor on fields and battle around the globe,” Trump said.

Meanwhile, hundreds of thousands of protesters used the day to take to the streets throughout the country to demonstrate against Trump’s policies. The events, organized under the slogan “No Kings,” weren’t the only sign of America’s volatility. The shootings of two state lawmakers in Minnesota, one of them fatally, brought the menace of political violence to the day. Gov. Tim Walz said the lawmakers had been political targets. National organizers of the rallies included progressive groups, such as the American Civil Liberties Union and Planned Parenthood. They said their goal was to protest presidential overreach, including Trump’s deportation policies, efforts to expand presidential power and what they say is the administration’s defiance of court orders limiting its authority.

Read more at The WSJ

Pentagon Acquisitions Process ‘Inadequate’ For Modern Threats

A new review of US military acquisitions has found the Pentagon system for developing and delivering new hardware to be inadequate for modern threats facing the country. An independent report released by the US Government Accountability Office (GAO) on 12 June says it takes the Pentagon and its suppliers an average of 12 years to deliver the first version of a new weapon system. “That’s not nearly fast enough to keep up with emerging threats or deliver innovative technology,” the GAO concludes.

The GAO cites a “deeply entrenched” preference within the Pentagon for a liner acquisition structure characterised by “rigid, sequential processes”. Auditors describe that paradigm as “inadequate in adapting to evolving threats”. “In a linear acquisition, the cost, schedule, and performance baselines are fixed early. Thus, programs develop weapon systems to meet fixed requirements that were set years in advance. This risks delivering a system – sometimes decades later – that is already obsolete,” the GAO says. The GAO recommends an iterative cycle approach deployed in many private sector companies. Under such an arrangement, multiple phases of the design and test process can occur simultaneously, resulting in a quicker delivery to market.

Read more at Flight Global

House Narrowly Passes DOGE Cuts After Holdout Republicans Change Votes

House Republicans narrowly passed a $9.4 billion rescissions package that includes cuts to foreign aid as well as the entity that funds National Public Radio and the Public Broadcasting Service. The vote was 214-212, after some last-minute arm twisting by GOP leaders convinced two Republicans—Reps. Nick LaLota of New York and Don Bacon of Nebraska—to switch their votes to yes from no.

All Democrats were opposed, joined by four Republicans: Reps. Mark Amodei of Nevada, Brian Fitzpatrick of Pennsylvania, Nicole Malliotakis of New York and Mike Turner of Ohio. The Republicans raised concerns about cuts to the Corporation for Public Broadcasting and PEPFAR, the HIV/AIDS relief program created by President George W. Bush. The package would rescind all federal funds appropriated for CPB for fiscal 2025 and 2026, and 8% of the money allocated for PEPFAR for fiscal 2025. The package now heads to the Senate, where it could face more scrutiny from Republicans.

Read more at the WSJ

Political Headlines

Health and Wellness

New COVID Variant NB.1.8.1 'Nimbus' Now Driving 37% of Cases in US: Know These Symptoms

As summer and peak travel season begins, a highly transmissible new COVID-19 variant called NB.1.8.1, or "Nimbus," is spreading in the United States. The mutated omicron subvariant, which caused surges in parts of Asia this spring, now accounts for more than one-third of cases in the U.S., new data show. Nimbus was first detected in the U.S. in late March. Since then, the fast-spreading variant has been detected in more than a dozen U.S. states, and cases are expected to keep rising.

Although NB.1.8.1 is causing a rapidly increasing proportion of cases in the U.S., COVID trends — including test positivity and hospitalizations — remain stable. As of June 6, the level of COVID viral activity in wastewater is “low” nationally, according to the U.S. Centers for Disease Control and Prevention. Given its mutations and rapid spread, it’s likely that NB.1.8.1 is more transmissible, but it’s too soon to tell how it compares to other strains circulating, experts say. So far, the symptoms of Nimbus seem to be similar to those caused by recent omicron strains, which include: Sore throat, Cough, Runny nose or congestion, Shortness of breath, Fever or chills, Headache, Body aches, Fatigue, New loss of sense of smell or taste.

Read more at Today

Industry News

Trade War Updates

US Consumer Sentiment Jumps as Inflation Expectations Improve

The preliminary reading of the University of Michigan’s closely watched consumer sentiment index, released Friday, jumped 16% from 52.2 to 60.5. The large increase followed steady drops that left the preliminary number last month at the second-lowest level in the nearly 75-year history of the survey. Consumer sentiment is still down 20% compared with December 2024. The Conference Board’s consumer confidence index, released in late May, also increased after five straight declines that were linked to anxiety over tariffs.

Consumer confidence is sharply divided by political outlook. This month, however, sentiment did improve among supporters of both parties and independents. Consumers’ inflation expectations — basically a measure of how worried people are about future inflation — dropped this month, which will be welcomed by the inflation-fighters at the Federal Reserve. Inflation expectations can become self-fulfilling, because if people worry price increases will get worse, they can take steps — such as demanding higher pay — that push prices even higher.

Read more at the AP

Micron Expands US Manufacturing Commitment To $200B

Semiconductor maker Micron Technology plans to invest $200 billion in U.S. manufacturing and research and development capacity, the company announced Thursday. Micron will spend $150 billion to expand domestic memory manufacturing across its facilities in New York, Idaho and Virginia, as well as $50 billion on R&D efforts. The investment, expected to create 90,000 direct and indirect jobs, includes a new $30 billion commitment to build a second fabrication plant in Boise, Idaho, expand Micron’s Manassas, Virginia, facility and grow high bandwidth memory packaging capacity.

Micron has announced several high-profile investments in recent years. In 2022, the company unveiled plans to invest $100 billion in Clay, New York over two decades to build the largest fabrication plant in the country. The investments aim to bring high-bandwidth memory manufacturing to the U.S., as well as expand dynamic random-access memory chip production. Micron said it’s on track to begin DRAM production in Idaho in 2027, and will begin construction preparation in New York later this year. Micron expects to complete construction of the second Idaho fab before its first New York facility. The second Idaho facility will house its high bandwidth memory production.

Read more at Manufacturing Dive

Boeing Resumes China Deliveries With 787-9 Jet To Juneyao Airlines, Yicai Reports

Boeing delivered a new 787-9 aircraft to China's Juneyao Airlines (603885.SS), opens new tab on Saturday, Chinese media outlet Yicai reported, as trade tensions between Beijing and Washington ease. The U.S. aerospace giant had suspended new aircraft deliveries to China in April as President Donald Trump's tariff war escalated between the world's two largest economies. Boeing said at the end of May that deliveries would resume this month after the tariffs were temporarily scaled back for 90 days.

On Monday, a new Boeing 737 MAX painted in the livery of Xiamen Airlines landed in China, adding to signs that the planemaker was resuming deliveries to China. The country represents about 10% of Boeing's commercial backlog and is an important and growing aviation market. The delivery comes two days after a Boeing 787-8 Dreamliner with 242 people on board crashed in a fireball shortly after takeoff in western India.

Read more at Reuters

What Does The Air India Crash Mean For Boeing?

Last month, Boeing celebrated carrying its billionth passenger on the 787 Dreamliner - an impressive feat given it only launched 14 years ago. Until last week's tragic Air India crash in Ahmedabad, the model was a mainstay of intercontinental travel and had an exemplary safety record. So far, there is nothing to suggest any fault on Boeing's side today in India. A much fuller picture will come once the plane's black boxes - the electronic recording devices that store vital flight information - have been recovered.

Even so, Boeing has found its name associated with yet another tragic aviation incident. Chief executive Kelly Ortberg said the firm's "deepest condolences go out to the loved ones of the passengers and crew" on the flight, and that Boeing would support the investigation into the crash led by India's Aircraft Accident Investigation Bureau. The tragedy is another problem for a firm that lost nearly a billion dollars a month last year, as it grappled with a safety crisis, quality control issues, as well as a damaging workers' strike which lasted seven weeks.

Read more at BBC

Oil Prices Climb As Israel-Iran Conflict Heightens Supply Disruption Fears

Oil prices climbed in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, heightening fears that escalating battle could trigger a broader regional conflict and widely disrupt oil exports from the Middle East. Brent crude futures were up $1.70, or 2.3%, to $75.93 a barrel by 2253 GMT, while U.S. West Texas Intermediate crude futures gained $1.62, or 2.2%, to $74.60. They had surged more than $4 earlier in the session.

The latest exchange of strikes between Israel and Iran resulted in civilian casualties and intensified fears of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes. The latest developments have stoked concerns about disruptions to the Strait of Hormuz, a vital shipping passage. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel.

Read more at Reuters

Drugmaker UCB To Open $5B US Factory

Belgium-based drugmaker UCB plans to invest $5 billion in a new U.S. drug manufacturing facility, the company announced Thursday, as part of a plan to capitalize on growing U.S. market demand. The company, which makes drugs for immunology and central nervous system diseases, plans to hire 300 employees for direct roles at the plant. UCB is currently evaluating possible locations for the facility, with a focus on areas with a strong talent pipeline.

UCB’s U.S. headquarters is based in Atlanta, and the company operates three research and development centers across the country in Seattle, Boston and Durham, North Carolina. The company has invested $4.5 billion in the country since 2017, gaining 15 Food and Drug Administration approvals over the past eight years. As part of its U.S. strategy, UCB will also continue to grow its contract drug manufacturing partnerships. UCB has been in a strategic growth mode in recent months. The company’s revenue hit 6.15 billion euros in fiscal year 2024, up 17% from the previous year, after bringing five new drugs to market. The drugmaker is also in the midst of studying nine new drugs in its pipeline this year.

Read more at Manufacturing Dive

Ford Expands Lobo Street Truck Sub-brand With V-8 Powered F-150

After the positive reception of the Lobo-edition Ford Maverick late last year, the automaker has given the same street-style treatment to its main moneymaker, the F-150 full-size pickup truck. Where most hopped-up pickups lean more toward the dirt and gravel side of the style spectrum, the Lobo distinguishes itself from other F-150 looks with its distinctly on-road attitude. Lead exterior designer, Josh Blundo, says the formula for the F-150 Lobo is pretty straightforward: “Drop it. Give it V8 sound and performance. Make dual exhaust tips standard. Add aggressive styling. And give it a face that looks ... sinister.”

To give it a more street-worthy stance, Ford also dropped the rear suspension 2 inches, so it’s not only the ground effects that give it a lowered appearance, it actually sits closer to the asphalt. However, the modification results in slightly lower towing (7,900 lbs) and payload (1,450 lbs) capacities.

Read more at Autoweek

Volvo Construction Equipment To Expand Manufacturing In The United States

As part of a significant global investment, Volvo Construction Equipment will begin manufacturing crawler excavators and large wheel loaders in Shippensburg, Pennsylvania. For crawler excavators, three main sites will see about $261 million invested to expand production to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics. The three sites include Shippensburg, Changwon, South Korea and a location in Sweden. Alongside crawler excavator production, Volvo CE will also expand wheel loader production to include large wheel loaders in Shippensburg. Currently, soil and asphalt compactors and mid-size wheel loaders are manufactured at the Shippensburg factory.

By expanding production capabilities in key markets, Volvo CE will reduce dependency on any single site and become less reliant on long-distance logistics. Supply chain risks will also be mitigated by expanding domestic supplier bases, allowing the OEM to more nimbly manage any economic or regulatory challenges. As well, Jernberg said fostering collaboration with local suppliers and customers will better position the company for sustained growth and innovation without compromising standards. Volvo CE acquired the Shippensburg site in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. On top of recent investments, Volvo CE will invest about $40 million locally in the next five years.

Read more at Equipment Journal

Commerce’s Proposed Budget Takes An Axe To MEP

Secretary of Commerce Howard Lutnick took to Capitol Hill last week to defend the department’s proposed budget, which seeks to cut spending by 16.5%. During his hearing, Lutnick discussed not only the department’s ongoing renegotiations of CHIPS and Science Act funding contracts, but its plans to slash funding for a variety of other programs, including the National Institute of Standards & Technology, which aims to promote industrial innovation across the country. DOC’s proposed budget cuts $325 million from NIST, a sizable chunk of the organization’s current roughly $1.2 billion budget.

In April, the Trump administration announced it would cut funding for 10 MEP programs, but walked its decision back following pushback from lawmakers and advocates. It has since been unclear whether funding will continue for the other 41 programs. The proposed budget offered some clarity, stating that it does not provide funding for the MEP program. When asked by lawmakers how the Commerce Department plans to replace the assistance provided by the program to small- and medium-sized manufacturers, Lutnick said the agency is looking to “reexamine and retool” outdated programs to be better suited for the artificial intelligence-driven industry of the future.

Read more at Manufacturing Dive

Workforce Newsletter 45- June 12, 2025June 12, 2025