The Labor Department recently reported that U.S. manufacturing employment has declined year-to-date by 33,000 jobs. The ISM Manufacturing PMI clocked in at 48.7 in October, marking the eighth consecutive month of contraction. Meanwhile, the American Foundry Society’s Quarterly Metalcasters Outlook Survey shows weakness in orders at many foundries, with 31% of responding metalcasters indicating that sales declined in the last quarter. (Encouragingly, 63% expect a sales increase in 2026.)

As manufacturing accounts for 11% of GDP and fuels growth in other sectors, many are asking how to reinvigorate the manufacturing economy. Several solutions come from the AFS Agenda for a Strong Metalcasting Economy, found on the AFS website at www.afsinc.org and discussed frequently in advocacy meetings and communications with policymakers and coalition partners. 
Tax Policies That Work for America. One key element of the AFS Agenda was achieved in July when President Trump signed into law a tax package with manufacturing investment incentives. Notably, that bill prevented a destructive series of tax hikes. But several other AFS priorities await action. 

Regulatory Certainty. Regulations annually cost the U.S. economy $2.15 trillion, according to the Competitive Enterprise Institute. Regulations are not inherently bad, but too often they are poorly drafted and have a chilling effect on business investment and job creation. EPA is taking the lead in reviewing rules, based on the principles of sound science and cost-benefit analysis. Other agencies need to follow suit and adopt smarter rules. AFS Washington advocates Jeff Hannapel and Stephanie Salmon are in regular contact with regulators to help them craft better policies. 

Trade Certainty, Enforcement, and Fairness. Speaking of uncertainty, the sooner that business leaders have a clear understanding of long-term tariff policies, the stronger our manufacturing economy can be. Well-crafted tariff policies can serve a useful purpose, including encouraging reindustrialization. Nearly 37% of responding foundries tell us they have seen an increase in reshoring due to the administration’s tariff policies. But frequent, unpredictable changes in tariffs are not conducive to business investment. 

AFS is also advocating for vigorous federal enforcement against foreign nations that violate trade accords. AFS is working to ensure all foundries are covered by trade policies that are designed to encourage our critical industries. And our Society is lobbying for a pair of sensible bills to crack down on foreign trade cheats that are stalled only because lawmakers have not identified a “vehicle” or trade bill in which to move them. At some point soon, lawmakers need to bring procedural delays to a halt and pass these bills. 

Energy Dominance. Abundant energy is critical to power U.S. manufacturers and support AI innovation. Businesses and consumers alike are experiencing rising energy costs that are a drag on the economy as data centers consume increasing amounts of energy. Policy changes are needed to encourage the full range of energy sources and to strengthen the grid. As a side note, AFS is partnering with Environ to help AFS members achieve energy cost savings and efficiency. Please contact me at dkurkul@afsinc.org to learn about this program.

Permitting Reform. Infrastructure legislation passed in 2021 could bring great benefits but progress is delayed due to red tape. Some 68% of manufacturers with permittable projects told the NAM they would expand more quickly with federal permitting reform. 

Shipbuilding. Currently, only 80 ocean-going ships bear the U.S. flag. AFS is lobbying for legislation to expand the U.S.-flag international fleet to 250 ships in 10 years, enhance U.S. competitiveness, and make historic investments in the maritime workforce.
The U.S. manufacturing sector can rebound strongly in 2026 if these key elements of the AFS Agenda are promptly adopted.