U.S. manufacturing loses 78,000 jobs, 12,000 in August.

The U.S. manufacturing industry lost 78,000 jobs over the past year with 12,000 cuts in August alone, according to the latest federal data. This comes as automation is ramping up in factories, but it’s far from the only factor. While the September employment data isn’t available yet due to the government shutdown, the August 2025 labor turnover survey shows a 12% dip in job openings compared to last year, with 313,000 job separations in manufacturing. Experts say this isn’t new. Manufacturing jobs have been declining since February 2023, now reaching the lowest level since the onset of the COVID-19 pandemic.

“…Overall manufacturing employment peaked decades ago and has been on a gradual decline since pre-pandemic levels. Factory automation is playing a clear role, but experts say it’s not the only factor…”

The U.S. manufacturing sector has faced significant challenges in the past year, experiencing a loss of 78,000 jobs, including 12,000 cuts in August alone, as reported by the latest federal data. This decline coincides with the increasing implementation of automation in factories, although it is not the sole contributing factor to this trend. Although the September employment figures are currently unavailable due to the government shutdown, data from the August 2025 labor turnover survey reveals a noteworthy 12% decrease in job openings compared to the previous year. Additionally, the survey highlights a substantial 313,000 job separations within the manufacturing industry, indicating ongoing shifts in the job market landscape. Mister Jobs

This week at WEST 2025 – The Manufacturing Technology Series in Anaheim, our team at MROplan.ai — Scott Blanford, David Goodreau, and I — joined thousands of innovators shaping the future of U.S. manufacturing. The message was clear: AI isn’t the future of manufacturing — it’s the present. Smart Manufacturing in the U.S. is projected to more than double from $60 billion in 2022 to $145 billion by 2030. Small and medium-sized manufacturers (SMBs) make up 98.6 % of all manufacturing companies, driving the majority of production and employment. Yet this critical segment faces serious headwinds: Labor shortages — 89 % of manufacturers can’t fill skilled positions. Supply-chain volatility — global instability and rising costs push more operations to reshore. Productivity gaps — U.S. SMBs operate at roughly 50 % of the productivity of large firms, compared with 60 % in other advanced economies. MRO inefficiency — 95 % of SMBs don’t use an MRO platform, and 82 % suffer recurring unplanned downtime, costing the average plant $328 K per year in lost output. Why AI-Driven MRO Matters Amid record growth and margin pressure, AI is the equalizer. MROplan.ai was built specifically for SMB manufacturers who must modernize fast — without enterprise complexity or cost. Our AI-driven maintenance planning and documentation engine: Automates OSHA/ISO machine-maintenance compliance Predicts and prevents unplanned downtime Provides real-time visibility into equipment performance Reclaims lost revenue — often 300× ROI per plant The result? Suppliers that stay compliant, productive, and on the OEM “preferred” list. The 2025 Outlook Revenue growth: + 4.2 % Capital investment: + 5.2 % as modernization accelerates Employment: + 0.8 pp, with 3.8 M new jobs needed through 2033 AI adoption: now the central lever for closing the SMB productivity gap The energy at WEST 2025 was electric — from fabricators to OEM suppliers, everyone understands that AI-driven maintenance and documentation are now table stakes for competitiveness. A special thanks to our partners and new connections — especially the teams at CNC Machines, whose precision systems embody the uptime discipline MROplan.ai is built to enhance. Here’s to a smarter, faster, and more resilient U.S. manufacturing ecosystem. #MROplanAI #SmartManufacturing #WEST2025 #AI #CNC #MaintenancePlanning #USManufacturing #OEM #Productivity #ManufacturingTechnology https://lnkd.in/e9DjK7CP

While all of this news suggests manufacturing expansion in the U.S., unfortunately the exact opposite is happening. The sector has contracted for 5 of the last 6 months and 12,000 manufacturing jobs were lost in August alone.

𝗪𝗵𝘆 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗿𝗲𝗺𝗮𝗶𝗻𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 Manufacturing has become both bigger and smaller. Between 2000 and 2017, the worldwide value of manufactured products has more than doubled, from $6.1 trillion to $13.2 trillion. Meanwhile, the relative importance of manufacturing is dropping fast, retracing the earlier retreat of agriculture (now just 4% of the world's economic product). Based on the United Nations' uniform national statistics, the manufacturing sector's contribution to global economic product declined from 25% in 1970 to less than 16% by 2017. The decline has registered in the stock market, which values many service companies above the largest manufacturing firms. At the end of 2019, Facebook-that purveyor of constant selfies—had a market capitalization of almost $575 billion, nearly three times more than Toyota, the world's premier maker of passenger cars.And SAP, Europe's largest software provider, was worth about 60% more than Airbus, Europe's largest maker of jetliners. And yet manufacturing is still important for the health of a country's economy, because no other sector can generate nearly as many well-paying jobs. Take Facebook, which at the end of 2019 had about 43,000 employees versus the 370,000 or so that Toyota had during the 2019 fiscal year. Making things still matters. The top four economies remain the top four manufacturing powers, and accounted for about 60% of the world's manufacturing output in 2018. China was at the top of the list with about 30%, followed by the United States (about 17 percent), Japan, and Germany. 𝗤𝘂𝗼𝘁𝗲𝗱 𝗳𝗿𝗼𝗺 𝗽𝗮𝗴𝗲 𝟴𝟮 "𝗡𝘂𝗺𝗯𝗲𝗿𝘀 𝗗𝗼𝗻'𝘁 𝗟𝗶𝗲 ( 𝟳𝟭 𝗧𝗵𝗶𝗻𝗴𝘀 𝗬𝗼𝘂 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 𝗔𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗪𝗼𝗿𝗹𝗱) 𝗯𝘆 𝗩𝗮𝗰𝗹𝗮𝘃 𝗦𝗺𝗶𝗹.

𝗦𝗺𝗮𝗿𝘁 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗶𝘀𝗻’𝘁 𝗳𝘂𝘁𝘂𝗿𝗲-𝗳𝗼𝗰𝘂𝘀𝗲𝗱 𝗮𝗻𝘆𝗺𝗼𝗿𝗲 — 𝗶𝘁’𝘀 𝗵𝗼𝘄 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝗮𝗿𝗲 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝗻𝗴 𝘁𝗼𝗱𝗮𝘆. Manufacturers are under pressure to stay agile, efficient, and precise — all while navigating unpredictable supply chains and evolving customer demands. Here’s what we’re seeing on the ground: - Data-driven automation is enabling real-time responsiveness. With adaptive control and predictive analytics, production lines can shift faster, reduce downtime, and maintain consistency — even in high-mix environments. - Precision engineering is no longer a niche requirement. As mass customization becomes the norm, scalable CNC machining and tight-tolerance fabrication are critical to delivering quality at volume. - Supply chain resilience now depends on strategic integration. The right partners bring not just capacity, but flexibility and speed to your entire operation. At Inlution Technologies, we’re helping manufacturers modernize with smart automation, precision manufacturing, and integrated production strategies. See how we're helping manufacturers here: https://inlutiontech.com

Despite policy moves like tariffs aimed at protecting domestic industries, manufacturing jobs have stagnated. Higher costs, global supply chain shifts, and automation are reshaping the landscape faster than protectionist measures can adapt. The takeaway? Policy alone can’t solve workforce challenges—we need innovation, investment in skills, and strategic workforce planning. #ManufacturingJobs #USEconomy #Tariffs #FutureOfWork #Automation #Reskilling #LaborMarket #PolicyVsProgress

If you assume labor-intensive manufacturing is moving out of China because wages have increased 1000% since 2000, you are wrong! China is doubling down and winning. Here's the data that surprised me: China deployed more industrial robots last year than the rest of the world combined. Not just more total robots - more than everyone else put together. While competitors debate moving production to Vietnam or Bangladesh, China automated the problem away. The result? Even in "labor-intensive" industries like textiles and electronics assembly, China continues gaining market share. Here's what most people miss: Labor costs are only 15-30% of total production costs typically, even in labor-intensive industries. The other 70-80% comes from: - Raw material procurement - Logistics optimization   - Supply chain coordination - Quality systems - Speed to market China has optimized these non-labor costs to a level no other country matches. More and more production lines look more like Tesla plants than traditional manufacturers. AI-powered quality control systems.  Robotic arms handling precision assembly.  Predictive maintenance preventing downtime. But these aren't high-tech companies. I'm seeing this automation in factories making basic consumer goods - phone cases, kitchen utensils, simple electronics. The competitive moat isn't just lower costs anymore. It's integrated ecosystems that can't be replicated overnight. Example: A client needed a product modification that required four different suppliers - injection molding, metal stamping, electronic components, and packaging. In China: All four suppliers were within 30 minutes of each other. The modification was prototyped and approved within 48 hours. Try coordinating that across Vietnam, Bangladesh and the Philippines. The automation story gets even more interesting when you look at the numbers: - China produces 54% of industrial robots used domestically - Average robot density increased ~300% in five years   - Manufacturing productivity per worker increased 40-60% since 2015 They are creating production capabilities that other economies can't match regardless of their labor costs. Countries trying to "take manufacturing from China" are fighting yesterday's war. They're optimizing for low labor costs while China builds tomorrow's factories. The irony: Western countries tried to stop China through “technology transfer restrictions”. China responded by investing in technology. Competitors responded by keeping things manual and cheap. Guess who's winning now? After almost two decades of helping companies source globally, I can tell you: The cost advantage is becoming the smallest reason to manufacture in China. The speed, quality, and ecosystem advantages? Those are growing every year. What's been your experience with China's evolution?