June 4, 2026 in Articles
US Manufacturing Bets Big as China’s Factory PMI Slips
Manufacturing is sending mixed signals. New plants are being announced, and capital is moving into assembly lines, steel processing, dairy production, electric bikes, and industrial parts sourcing. However, factory hiring is still soft. China’s SME manufacturers are losing ground, and transport markets are reacting faster than demand can fully recover.
Although more stakeholders are bringing production closer to demand, the operating environment remains uneven. Tariffs, fuel costs, the war in Iran, regulatory pressure, and early peak-season activity are all shaping decisions across factories, ports, and trucking networks. The result is a market that looks confident on paper but cautious in motion.
We have curated some of the critical stories shaping the industry. Keep reading to find out more.
Manufacturing Growth Reaches Highest Level Since 2022
According to the Institute for Supply Management’s PMI, U.S. manufacturing activity expanded for a fifth straight month in May, rising to 54%, the highest since May 2022. S&P Global’s manufacturing PMI also rose to 55.1, indicating continued industrial expansion despite persistent geopolitical and pricing pressures. Demand indicators improved during the month, with the New Orders Index increasing to 56.8% and the Production Index rising to 54.3%.
ISM said customer inventories remained “too low,” suggesting future production demand could be solid. However, manufacturers remain concerned about the war in Iran, tariffs, and rising costs. Concerns about Iran were mentioned in 42% of survey comments, and 57% of respondents cited pricing volatility as a challenge. Other companies reported shipping delays and rising fuel and raw-material costs.
Still, U.S manufacturing investments have soared past the $3.5 billion mark. This includes Toyota’s planned $2 billion expansion of its San Antonio plant that could add a new assembly line and 2,000 jobs by 2030. MISUMI Americas also launched a $1 billion growth plan that combines industrial parts sourcing with Fictiv’s digital manufacturing tools. Walmart has broken ground on a $350 million milk plant in Texas. XPEL, Ferrosource, LEV Manufacturing, and CEP USA announced new facilities in Texas, Arkansas, and Tennessee.
But the picture for labor is less certain. U.S. factories shed 2,000 jobs in April. And in motor vehicles and parts manufacturing, 3,000 jobs were shed after adding more than 5,000 in February.
China’s Factory PMI Slips as Cost Pressure Hits Smaller Manufacturers
China’s manufacturing PMI was at 50.0% in May, down 0.3 percentage points from April, leaving the sector on the dividing line between growth and contraction. The division of the data is revealing. Big companies climbed to 51.1%, but small and midsize companies dropped to 48.6% and 48.5%, suggesting softer conditions outside China’s biggest manufacturers.
Production remained positive at 51.2%, while new orders slipped to 49.9%, indicating that demand is cooling. Supplier delivery times lengthened, and raw material inventories and employment were also below 50%. Cost pressure is still a huge strain. The purchase price index soared following the start of the Iran war, at 63.9 in March, 63.7 in April, and 60.5 in May.
China Tightens Ocean Rate Filing Rules
China’s Transport Ministry is intensifying its crackdown on ocean rate filings, placing carriers and freight forwarders under greater scrutiny of the pricing data they submit for international shipments. The move comes after penalties and warning letters were issued to nine carriers and seven NVOCCs following officials’ findings of filing discrepancies in Guangzhou, Ningbo, and Qingdao.
Implicated carriers include ONE, Hapag-Lloyd, CMA CGM, MSC, Evergreen Marine, and Wan Hai Lines. Stricter checks may lead to higher internal costs and make pricing more transparent. And the smaller operators may feel the most pain. Enforcement used to be lax, but has tightened since Shanghai’s 2024 inspection blitz.
Dry Van Rates Rise Before Freight Volumes Fully Recover
DAT’s latest dry van report indicates a freight market with soft shipment demand and higher prices. The April Cass Freight Shipment Index was down 4.4% year over year, despite three straight months of gains. However, the Cass Truckload Linehaul Index was up 3.2% from March and up 5.6% from a year ago, its best year-over-year performance since August 2022.
DAT said the pressure appears to be more of a supply issue than a demand rebound, with tighter capacity moving from dry van into reefer and flatbed. National dry van linehaul rates increased 5 cents to $2.27 per mile, up 36% from last year. Load-to-truck ratio fell 6% to 12.04, but equipment availability was still 41% below the long-term average.
Ship Seamlessly With APL Logistics
Shipping internationally means coordinating freight, customs, warehousing, and last-mile delivery, often with different providers who don’t communicate with each other. With operations in more than 60 countries and over 200 facilities, APL Logistics brings all of that under one roof. This way, you are not chasing updates across four different vendors or finding out about problems after the fact. Contact us today to get started.