Member Briefing June 2, 2026

Posted By: Harold King Daily Briefing,

US Manufacturing Expands To Highest Level Since May 2022: PMI

Economic activity in the U.S. manufacturing sector expanded in May for the fifth consecutive month to 54%, 1.3 percentage points higher than April and the highest reading since May 2022, according to the Institute for Supply Management’s latest Purchasing Managers’ Index. The S&P Global US Manufacturing PMI showed a slightly higher rate of expansion, registering 55.1, up from 54.5 in April. “Not only are we in the fifth month of expansion, but the indices are all going in the right direction,” Susan Spence, chair of ISM’s Manufacturing Business Survey Committee, said during a media call on Monday.

  • The New Orders Index expanded for the fifth consecutive month after four straight readings in contraction, registering 56.8%, up 2.7 percentage points compared to April.
  • The Production Index registered 54.3%, 0.9 percentage point higher than April’s reading of 53.4%.
  • The Inventories Index registered 49.9%, up slightly from April’s reading of 49%.
  • The Employment Index registered 48.6%, up 2.2 percentage points from 46.4% in April. ISM said that among panelists, 50% indicated that managing head counts remains the norm at their companies, while 50% are hiring.
  • The Prices Index remained in expansion, registering 82.1%, a 2.5-percentage point decrease from April’s reading of 84.6%.

Read more at Manufacturing Dive

US Construction Spending Beats Expectations In April

U.S. construction spending increased more than expected in April, boosted by single-family homebuilding, though rising mortgage rates amid the war with Iran ​continued to cast a shadow over the housing market. The Commerce Department's ‌Census Bureau said on Monday that construction spending rose 0.4% after a downwardly revised 0.2% increase in March. Economists polled by Reuters had forecast construction spending gaining 0.2% ​after a previously reported 0.6% rise in March.

  • Construction spending increased 0.9% ​on a year-over-year basis in April. Spending on private construction ⁠projects advanced 0.4% after gaining 0.2% in the prior month.
  • Investment in residential ​construction climbed 0.8% after rising 0.6% in March. Spending on new single-family housing ​projects increased 1.4%.
  • Spending on multi-family housing units, ​which account for ​a small share ⁠of the housing market, fell 0.3% in April.
  • Investment in private nonresidential structures such as power plants and factories fell ​0.2% in April. Spending on nonresidential structures has contracted ​for nine ⁠straight quarters, despite a surge in the construction of data centers to support artificial intelligence.
  • Investment in public construction projects increased 0.4% after rising 0.2% in March. ⁠
  • State and ​local government construction spending edged up 0.1% ​in April while outlays on federal government projects jumped 4.8%, likely related to the building of ​detention centers amid an immigration crackdown.

Read more at Reuters

Commerce Department: Personal Savings Plummeted in April as Prices Rose

Personal income edged down less than $0.1 billion, or less than 0.1%, in April. Disposable income, which is personal income after taxes, declined $19.9 billion, or 0.1%. Meanwhile, 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 and the lowest rate since June 2022.

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.

Read more at The Bureau of Economic Statistics

Iran and the Middle East

Ukraine

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Governor Hochul Announces 2026 Regional Economic Development Council Initiative

Governor Kathy Hochul Monday announced the launch of the 2026 Regional Economic Development Council Initiative (REDC). The REDC initiative has been the cornerstone of a bottom-up approach to economic development that allows the State's ten Regional Councils to support projects that advance strategic regional and statewide priorities. In 2026, eligible REDCs will compete for funding through the $150 million ACHIEVE competition to support high-impact regional projects to advance regional goals.

Up to $60 million in Regional Council Capital Funds will be made available in the 2026 Consolidated Funding Application (CFA) in addition to funding from more than 20 programs to facilitate projects that advance each region’s strategic plan and state priorities. The CFA portal is now open for the 2026 programs. For programs subject to the deadline, applications must be submitted by Friday, July 31 at 4 p.m. Open enrollment programs are not subject to the July 31 deadline and will continue to accept applications on an ongoing basis until funds are exhausted. CFA Workshops will be held throughout the State for applicants to attend and learn about programs offered through the REDC initiative and other State programs. A full schedule of workshops can be found here. The 2026 REDC Guidebook, the 2026 Resources Available, and other key documents are available here.

Read the Press Release

Remote Work — Not AI — Has Sidelined Recent College Graduates, Research Finds

The buzz on college campuses is that AI is disrupting the job market for young college graduates. But new research from the Federal Reserve Bank of New York finds that the culprit may be something else: remote work. An analysis of federal employment data, paired with a deep dive into the flexible work arrangements at one unnamed Fortune 500 tech company, reveals that companies are less likely to hire recent college grads into occupations that can be done remotely. Researchers speculate that employers are reluctant to put such workers in a setting where it's harder to absorb lessons from coworkers. The researchers found the unemployment rate among younger college grads — those under the age of 29 — rose 20% after the pandemic, while unemployment among older college grads fell slightly.

Using a widely-used index that measures how feasible it is to do a job from home, the team divided all occupations into two categories: "remotable," which included software engineering, and "non-remotable," which included mechanical engineering. They found the gap in unemployment between recent graduates and older workers was significantly higher in "remotable" jobs than in jobs that have to be done in person. The unemployment rate for younger grads in "remotable" jobs jumped by almost a full percentage point after the pandemic, while the unemployment rate among older grads fell marginally. They concluded that remote work explained nearly two-thirds of the rise in unemployment among young graduates during this period.

Read more at NPR

House, Senate Panels Posed To Markup Must-Pass FY27 NDAA

The House Armed Services Committee will begin marking up its fiscal year 2027 National Defense Authorization Act on June 4, followed by a closed-door session by the Senate Armed Services Committee the next week. The process is the beginning of negotiations to finalize the "must-pass" legislation before the end of the year. The House Armed Services Committee on May 26 released its markup of the fiscal 2027 defense policy bill, largely supporting the Pentagon’s plans but avoiding, for now, weighing in on the Trump administration’s push to add funding through the separate reconciliation process.

The HASC chairman’s mark of the 2027 National Defense Authorization Act (NDAA) includes the same $1.14 trillion national defense topline that was in the Pentagon’s request. The administration also is requesting an additional $350 billion in funding through reconciliation, which the measure does not include.

Read more at Aviation Week

More Policy and Politics Headlines

Mental Health Impacts Organizational Performance

Mental health is no longer a wellness initiative; it’s a workforce performance strategy. When mental health is supported in the workplace, it shows in productivity, engagement, retention and overall organizational health. When it isn’t, it shows as burnout, absenteeism, turnover and reduced performance. Mental health exists on a continuum and can change throughout different stages of life. Supporting mental health does not always require major changes. Small, consistent habits that improve recovery, resilience and stress management can have a meaningful long-term impact on both mental and physical well-being.

Mental health is not a benefit offering; it is a core driver of organizational performance. If we want healthier, higher-performing workplaces, mental health must be part of the strategy, not an afterthought. Organizations that invest in early support, prevention, psychological safety and accessible mental health resources are better positioned to: Improve retention. Reduce burnout and turnover. Strengthen engagement. Support long-term performance outcomes.

Read more at The Froedtert

Upcoming Council Programs

Events

Council of Industry Golf Outing - Monday August 24th 11:30 AM - 7:30 PM. The Powelton Club, Newburgh.

Insight Exchange - On Demand Webinars

C3POA - Key Perpectives on your CMMC Compiance Journey - Presented by Nick DeLena, PKF O'Connor Davies.

CMMC for Legacy Equipment: Securing Specialized Assets with Zero Trust Micro-Enclaves - Presented by Marc Hoover, Trout Software.

See previous episodes here!

Training

Making a Profit in Manufacturing, In Person at iPark 87 in Kingston.  June 4, 8:30 - 4:30.

Human Resource Management Issues, In Person at iPark 87 in Kingston.  June 10, 8:30 - 4:30.

Effective Business Communication, In Person at iPark 87 in Kingston.  June 24, 8:30 - 4:30.

Risk Management - Environment Health & Safety, In Person at iPark 87 in Kingston.  July 8, 8:30 - 4:30.

Strategies for Managing, Coaching and Dealing with Difficult People, In Person at iPark 87 in Kingston.  July, 15, 8:30 - 4:30.

Lean Six Sigma Yellow Belt, In Person at DCC Fishkill.  October 13, 14, and 15 8:30 - 4:30.

Trade Wars

IMTS 2026 - Manufacturers Mean Business

The Largest Manufacturing Show in the Western Hemisphere. IMTS 2026 will be held September 14-19, 2026 at McCormick Place, Chicago. The International Manufacturing Technology Show is a biannual magnet for big technologies and big ideas, but it’s revealing to know that the event is also a big draw for big businesses. Recently the organizers of IMTS 2026, AMT - the Assn. At the September 2024 event, which drew 89,020 registered visitors from 110 countries, the attendees were associated with many of the largest and most prolific businesses in the globIMTS 2026 will feature the latest in AI, automation, and digital manufacturing solutions, attracting industry leaders worldwide.

The event underscores the significant investment flow into U.S. manufacturing, totaling over $10.5 trillion, and highlights opportunities for growth and innovation. Attendees include major manufacturers and machine shops seeking solutions to improve efficiency, speed, and competitiveness in global markets. Registration for IMTS 2026 is open, offering a platform for networking, learning, and exploring new business opportunities in manufacturing technology.al economy.

Read more at American Machinist

Nvidia Introduces First PCs Designed for AI Agents

Nvidia unveiled the first prototypes in a new generation of personal laptop computers designed for running artificial-intelligence “agents,” using a newly designed version of the company’s signature AI chips. The new PCs will be as slim as 14 millimeters thick, and the lightest will weigh less than 3 pounds. To start, Nvidia will work with six manufacturers—Dell Technologies, Lenovo Group, Microsoft, HP, Asus and MSI—to build the laptops. PCs that use the chip will be “targeted at creators, AI developers and gamers” and priced at the premium end of the market, said Mark Aevermann, Nvidia’s senior director of product development. To power the new computers, Nvidia is introducing the RTX Spark, which it described as “the most efficient PC chip ever built.”

Eventually, there will be 30 laptop models and about 10 desktop models using the new chips, developed from Nvidia’s graphics-processing unit. Nvidia couched the new PC announcement as part of a broader shift in AI computing. In recent years, large AI labs have focused first on training large language models and then, once they are mature, running them efficiently using a process known as inference, which allows models to respond to user queries. Now, AI is moving away from the world of human users. The proliferation of tens of millions of AI agents—or autonomous bots that are capable of doing many tasks—has changed how companies like Nvidia design and market their silicon products and other tools. “AI is moving from answering questions to doing real work,” Ian Buck, Nvidia’s vice president for hyperscale and high-performance computing said.

Read more at the WSJ

Microporous Breaks Ground On $1.6B Va. Facility

Two years after local and state officials announced a billion-dollar investment, the first shovels hit the ground at the Southern Virginia Megasite at Berry Hill. Battery component manufacturer Microporous is building a $1.6 billion facility expected to create 1,800 jobs in Pittsylvania County. Microporous, an advanced battery separator manufacturer, will be building a new manufacturing facility in Danville, VA. The plant will produce battery separators for lithium-ion batteries. It is set to hire 2,015 people to staff the facility. "This is a pivotal milestone for Microporous as we move from planning into execution," said John Reeves, CEO of Microporous in a press release.

Microporous plans to use its Virginia facility to manufacture battery insulators — components that prevent batteries from short-circuiting. CEO John Reeves says the project benefits both the company and the communities it’s entering. The facility is expected to take approximately 14 months to complete, with a targeted opening date as early as 2027.

Read more at WSLS

Blue Origin To Spend $600 Million To Expand Florida Rocket Plant

Blue Origin will expand its Cape Canaveral spaceport to the tune of $600 million and 830,000 square feet. According to a statement from the Florida governor’s office, the new factory Blue Origin plans to build will add an extra 500 aerospace manufacturing jobs to the site, carrying an average salary of $98,000. "Project Horizon is the latest and most ambitious chapter in Blue Origin's decade-long commitment to Florida," said Dave Limp, CEO of Blue Origin. “Since 2015, we’ve scaled to nearly 4,000 employees, invested more than $2.3 billion across 500 Florida suppliers, and expanded to 11 sites across Brevard and Orange Counties. And we’re just getting started.”

Construction of the multimillion rocket plant, which will assemble upper-stage rocket parts, will be partially funded by Florida’s Spaceport Improvement Program, or SIP, a partnership between the Florida Department of Transportation and Space Florida, itself a public corporation for supporting aerospace manufacturing in the state. SIP has spent $531 million in state investments to fund 48 major infrastructure projects since 2012; The amount SIP is spending for Blue Origin’s latest expansion as not disclosed.

Read more at Plant Services

MIT Bullish On Its Initiative For New Manufacturing At The One-Year Mark

One year into the launch of its Initiative for New Manufacturing, the Massachusetts Institute of Technology is gaining traction toward its goal of helping modernize U.S. industrial systems. INM launched with financial support from seven consortium members last year: Amgen, Autodesk, Flex, GE Vernova, PTC, Sanofi and Siemens. First Solar has since joined as a consortium member.

The group’s goal is to help develop new technologies and systems, as well as accelerate the adoption of emerging technologies. It will also facilitate efforts to share knowledge across businesses and industry groups, scale workforce education programs and develop more entrepreneurship options. INM received 50 research proposals from faculty in its first year and so far has funded eight. This includes projects focused on agentic artificial intelligence, robotics and other technologies. John Hart, a co-director of INM likened this to seed funding for new startups, of which MIT has yielded many over the years. Other initiatives so far include MIT’s Technologist Advanced Manufacturing Program, which is training its first cohort of manufacturing employees at their organizations, among others.

Read more at Manufacturing Dive

Third Fire In One Month Forces Tennessee Metal Powders Plant To Close

Amaero Advanced Materials and Manufacturing is being forced to shut down operations at its Chattanooga, Tennessee following an explosion. Local news source ABC 9 reported an explosion on the morning of May 26 follows two previous incidents at the same site: On May 13, an explosion hospitalized two workers with severe burns, and two days later, another small explosion caused a second fire. ABC 9 cited local fire officials, who said the plant will be “closed until further notice” pending an investigation by Tennessee Occupational Safety and Health Administration.

Amaero is an Australian company that produces specialty metal powders and powder metallurgy services, including hot isostatic pressing, for the defense, aerospace, medical, petroleum, and heavy equipment industries. Hot isostatic pressing involves compacting powdered materials, metal or ceramic, into a sealed kiln that uses pressure and heat to fuse the powders together into a finished, low-porosity product suitable for high-demand industries. In February, another isostatic pressing facility in Canby, Oregon exploded, injuring one employee. “The safety and well-being of every member of the Amaero family is our highest priority — today and every day,” said Amaero CEO Hank Holland. Our thoughts are with our two colleagues and their families, and they remain our immediate concern. We have commenced a thorough root cause analysis to determine the cause of the incident, to identify any additional preventative measures and to reinforce our safety procedures and training.”

Read more at Plant Services

Siemens Entry Aims To Make Agentic AI More Affordable For Smbs

Siemens is claiming that its new entry into the agentic AI software market can shorten downtime in engineering and manufacturing reconfigurations—which take nearly 70% of a robot’s cost cycle—therefore making the machines more affordable for small to medium-size businesses in addition to improving factory floor operations. The company pitched its Eigen Engineering Agent as a brand-agnostic agentic AI, offering that the software product can replace manual coding or programming for programmable logic controllers (PLC), distributed control systems (DCS) and robotics applications, updating code or instructions to reflect new priorities and goals.

“We don’t attract the best of the programmers to the manufacturing floor. … So, getting programmers to come and code our PLCs or robotic systems? That was a scale-up bottleneck. And then add to that, the new generation of people who are coming in, they just know how to do vibe coding. They will not do syntax-based coding anymore,” Ujjwal Kumar, president of the Americas for Siemens’ Digital Industries Automation said.  "The AI should be able to learn and reconfigure at a much faster rate than what was possible, say, five years back." Humans must always remain in the loop, however, Agentic AI is like an orchestra and humans are its conductors.”

Read More at Smart Industry

Texas Data Centers: Coming In Batches

Texas’ main power grid operator is laying the groundwork for more data centers to come online in the Lone Star State. The board of directors of the Electric Reliability Council of Texas is scheduled to vote tomorrow on whether to approve a new process to connect data centers to the grid. The proposed rules would pave the way for ERCOT to approve projects in batches that could include dozens of the power-hungry facilities.

The effort has set off a mad dash among developers wanting to be part of that “Batch Zero.” But it is also coming up against a growing chorus of lawmakers and grassroots groups who say the state should slow down and better study data centers’ impacts on power and water usage. If ERCOT’s board greenlights the rules on today, they will go to the Public Utility Commission of Texas for final approval later this month. The rules could serve as a blueprint for other grid operators across the country, said Ian Rock, chief technology officer of Terraflow Energy, which builds batteries for data centers.

Read more at Politico

Daily Market Update June 1, 2026

The July ’26 natural gas contract is trading down $0.07 at $3.22. The July ‘26 crude oil contract is up $2.34 at $89.70. 

Read more at NRG

Learn more about the Council of Industry Energy Buying Group

Quote of the Day

"In the beginning I used to make one terrible play a game. Then I got so I'd make one a week and finally I'd pull a bad one about once a month. Now, I'm trying to keep it down to one a season."

Lou Gehrig - American Baseball player know as the 'Iron Horse' for his games playes streak. He died of Amyotrophic Lateral Sclerosis (ALS), a disorder now commonly referred to as Lou Gehrig's Disease on this day in 1941.

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