MT Newsletter May 2025

Hello,

We’ve got some great updates lined up. Check out today’s highlights:

• Manufacturing momentum returns, inflation casts long shadow
• China’s exports to US fall as tariff tensions rise
• Tariff pressures create opportunity for Puerto Rico’s industry
• Rural factories may hold key to shrinking US trade deficit
• Our insights in accessible mobility solutions, aerospace manufacturing, the future of metal manufacturing and innovation in the packaging industry

Top stories:

US manufacturing rebounds in May, but inflation tempers optimism

The latest data from the Institute for Supply Management show that the US manufacturing sector has rebounded modestly in May, with the Purchasing Managers' Index climbing above the critical 50-mark for the first time in months. However, that optimism is tempered by rising inflation, which continues to affect input costs and supply chain predictability. 

Rising tariffs drive downturn in China-US trade flows

US tariffs are increasingly affecting Chinese export dynamics, with recent data showing a sharp drop in shipments to the US. As trade tensions persist, Chinese manufacturers are shifting their strategies, either by seeking alternative markets or relocating production.

US tariff strategy opens door for Puerto Rico’s factory revival

Puerto Rico is seizing the moment to revitalize its manufacturing base as shifting US tariffs reshape the global trade landscape. With its unique position as a US territory, it offers an attractive nearshoring solution for companies seeking to avoid international tariffs while maintaining proximity to mainland markets.

Tapping rural manufacturing could rebalance trade

The US could reduce its trade deficit and enhance domestic resilience by investing in rural manufacturing, a sector often overlooked in policy discussions. With lower operational costs, strong local workforces, and untapped potential, rural regions offer a viable path to reshoring production and increasing exports.

Curated insights:

Driving accessible innovation and growth in mobility solutions

GM Coachwork, founded in 1988, specializes in adapting minibuses to improve mobility and enhance independence for wheelchair users. With investments in advanced manufacturing, a growing focus on sustainability, and a strong partnership with Motability, GM Coachwork continues to lead the way in accessible transport while expanding bespoke services and market reach. 

The company’s growth has been driven by a commitment to innovation, sustainability, and exceptional customer service. The company is embracing the transition to electric vehicles, focusing on battery safety and staff training while integrating sustainable practices like using recycled materials and solar energy.  

Building strength and scale in aerospace manufacturing

Sigma Aero Group, a leader in precision aerospace components, has rebounded post-pandemic with strong growth, strategic investments, and expanded capacity. Focused on airframe, engine, and services segments, Sigma supplies major OEMs and aims to double in size over five years while maintaining its core values of integrity, quality, and customer partnership. 

Shaping the future of metal manufacturing

Alloy Precision Technologies is driving growth through smart manufacturing, automation, and innovation. With roots dating back to 1935, the company specializes in metal bellows and precision assemblies, serving customers in the energy, aerospace, medical, and defense sectors.  

Disrupting the packaging industry with fiber-based tech

Pulpex is preparing to revolutionize packaging with its fiber-based alternative to glass and plastic. Backed by years of R&D, its sustainable, scalable solution suits existing production lines and supports circularity. With a Glasgow factory underway and global interest rising, Pulpex aims to reshape fast-moving consumer goods packaging.