According to the latest quarterly survey from the National Association of Manufacturers (NAM), US manufacturer confidence is on the rise, even as trade uncertainties persist. Companies now expect sales and production to grow by 3.8% and 3.5% respectively, both up from previous forecasts.

That said, supply chain concerns remain. More than half of respondents said they source key inputs from Canada or Mexico, making the review of the USMCA agreement a critical factor in maintaining North American supply chain stability.

Cost pressures aren't letting up either. Raw material and input costs are expected to continue rising at around 4.1%. Trade continues to be the top concern, with over 70% of manufacturers citing global uncertainty as a major challenge for the fifth straight quarter.

Rising healthcare and insurance costs are also weighing on operations; roughly seven in ten companies flagged this as a top worry. In response, NAM has proposed an investment acceleration plan that includes tariff relief and tax credits to support domestic manufacturing expansion.

Overall, while manufacturers are more upbeat about growth prospects, policy uncertainty, cost pressures, and supply chain stability will remain key factors shaping the sector's trajectory in 2026.