Five Factory Trends to Watch in 2026

Leslie welcomes back Scott Paul, President of the Alliance for American Manufacturing, to explore why the coming year could be a turning point for U.S. manufacturing. He breaks down how easing interest rates, clearer trade policy, and a steadier economy may finally give manufacturers the confidence to invest, expand, and hire after several uneven years. Scott and Leslie also look at the growing wave of factory openings and why the real impact often shows up after construction—when workers are hired and local supplier networks take shape. The conversation digs into tariffs and trade policy, including what “tariff predictability” means for businesses and how the U.S.–China manufacturing relationship is shifting toward supply-chain security. Leslie and Scott close by examining workforce challenges, new short-term training pathways, and the growing competition between manufacturing and AI data centers for workers, energy, and materials. Overall, the episode offers a clear-eyed but optimistic look at what’s ahead for American manufacturing. AAM's website is AmericanManufacturing.org and their YouTube channel is youtube.com/@AmericanMfg (where you can watch episode's of AAM's podcast, "The Manufacturing Report") If you want to listen to episodes of "The Manufacturing Report," visit AmericanManufacturing.org/Podcast. Their handles on X and BlueSky are @KeepItMadeInUSA, and @keepitmadeinusa.bsky.social, respectively. Scott's handle on X is @ScottPaulAAM.