S&P Global’s August 2026 Manufacturing PMI Summary is Optimistic

Looking at S&P Global’s August 2026 Manufacturing PMI summary, the overall picture is fairly optimistic. Manufacturing activity remained solid, with production and new orders continuing to grow. However, output expansion slowed so we will see if the momentum is short or long-lived.

Supply chain issues also continue to affect manufacturers, particularly the cost and availability of materials and other goods needed for production. In response, some companies appear to be purchasing materials in advance and building inventory cushions to protect against potential disruptions.

The positive side is that business confidence remains relatively strong. If that optimism continues, it could eventually translate into increased investment and hiring in the manufacturing sector. For now, though, we will have to wait and see whether these positive trends continue and ultimately translate into stronger employment and sustained manufacturing growth.

S&P Global US Manufacturing PMI® - August 2026

• The headline S&P Global US Manufacturing Purchasing Managers' Index remained unchanged at 53.9 in August 2026, signaling a solid expansion in the US manufacturing economy.

• Production volume and new orders both continued to grow, but output expansion slowed to its weakest rate since February while export sales declined due to tariffs.

• Supply chain delays deepened, with lead times worsening alongside input cost inflation driven by tariffs and ongoing conflict in the Middle East.

• Companies engaged in inventory building of inputs and finished goods to hedge against future price increases and supply disruptions.

• Business optimism reached a three-month high, which drove the fastest rate of job creation recorded in the year 2026 so far.

S&P Global. (2026, September 1). S&P Global US Manufacturing PMI®: Solid improvement in business conditions masks slower demand and output growth as supply issues persist. S&P Global Market Intelligence. https://www.pmi.spglobal.com/Public/Home/PressRelease/bfb270a44c2b4490a0f1adb76b8e8f9f

Business Models and Business Innovation

People who exhibit these types of behaviors tend to approach problems systematically and look for ways to solve them in the marketplace. That is, ultimately, what businesses do: they continually identify inefficiencies, pursue innovation, and operate within markets that they must understand.

This is where frameworks such as game theory and the Nash bargaining framework can be useful. These models help us understand how different players position themselves in relation to products, supply, payoffs, advantages, and competitors. They can help determine whether an outcome is efficient or whether one company is gaining an advantage from a particular situation.

Of course, you can develop your own ideas and approaches without relying on formal frameworks. However, researchers and economists study these models to determine how effectively they explain and predict outcomes. Those insights can then help businesses make better decisions.

In this sense, models provide more formalized ways of organizing and evaluating ideas and concepts. The more models you understand, the greater your ability to select and apply the one that best fits a particular situation. Successful businesses are essentially sequences of choices, and models can help guide those choices.

At the same time, you should not rely so heavily on a model that you abandon good judgment. Models are developed under specific assumptions and within particular parameters. When a real-world situation does not fit those assumptions perfectly, it may be appropriate to consider multiple models, adapt them, or construct a different approach that produces a more optimal outcome.

Business Model Innovation: A Review of the Process-Based Literature

• Business model innovation involves creating or substantially changing how a firm creates, delivers, and captures value in the marketplace.
• The authors reviewed 114 academic papers to organize and clarify the research on business model innovation processes.
• Five major processes were identified: cognition, knowledge shaping, strategizing, value creation, and evolutionary learning.
• Business model innovation is not necessarily a linear process. The authors emphasize that organizations often use experimentation, feedback, adaptation, and interconnected decision-making.
• Effective innovation requires organizations to understand markets, evaluate alternatives, learn from experimentation, and continually adjust their business models as conditions change.

Andreini, D., Bettinelli, C., Foss, N. J., & Mismetti, M. (2022). Business model innovation: A review of the process-based literature. Journal of Management & Governance, 26(4), 1089–1121. https://doi.org/10.1007/s10997-021-09590-w

Rowing As World Class Workout for Endurance (Morning Coffee and a Little Sculling)

 Rowing is a great full-body sport, and I try to do it from time to time because I like to stay active. When I’m in California, I generally try to row two or three times a week. In Michigan, there really isn’t much opportunity to get out on the water and row, but that’s what the erg machine is for. It may not be as scenic, but at least you don’t have to worry about steering.

Rowing is excellent for cardiovascular fitness, and you don’t have to be competitive to enjoy it. There are rowing clubs and teams if you want to take things seriously—I was even on a small team for a while. But eventually you have to decide whether you’re a competitive rower or a recreational rower. I’m firmly in the recreational camp. I row for fitness, for fun, and because I enjoy being on the water. I’m not exactly trying to win the Olympic gold medal before breakfast.

And really, what’s a better way to start your morning? Get up early, watch the sun come up, head down to the water, climb into a shell, and start rowing. It’s cool and quiet for a little while. Nature is waking up, and you get a chance to enjoy it before the rest of the world gets busy.

Maybe a seagull swoops down and lands nearby. You look out across the bay, watch people beginning their day, and think, “This is pretty nice.” Then you remember that you’re exercising, which is even better because it feels like recreation rather than punishment.

And there’s another advantage to rowing early: you get out there before the beach crowd arrives. Once everyone else shows up, you can head home, have your coffee, and feel like you’ve already accomplished something before most people have found their sunglasses.

I’m a certified fitness trainer and yoga instructor, although I do this primarily as a hobby and side activity. If you’d like some virtual help with improving your fitness, send me a message. We can work something out—and I promise I won’t make you row at sunrise unless you actually want to.

Why Rowing Is a World-Class Workout for Endurance and Full-Body Fitness

• Rowing combines cardiovascular exercise with full-body muscular engagement, requiring the legs, core, back, shoulders, and arms to work together during each stroke.
• Research discussed in the article indicates that rowing can improve aerobic capacity (VO₂peak), making it an effective form of endurance training.
• Rowing provides a demanding workout while remaining relatively low impact because the exercise is performed from a seated position rather than through repetitive running or jumping.
• Although rowing develops muscular endurance and work capacity, it should not be considered a replacement for progressive resistance training when the goal is maximal strength or muscle hypertrophy.
• The article also emphasizes the technical and mental aspects of rowing, including rhythm, pacing, coordination, and maintaining movement quality as fatigue develops.

NordicTrack Editorial Team. (2026, January 28). Why world-class athletes choose rowing: The benefits of rowing workouts. NordicTrack. https://www.nordictrack.com/blog/why-world-class-athletes-choose-rowing-the-benefits-of-rowing-workouts

Economic Clusters: From Local Businesses to National Innovation

We talk about economic clusters on this blog from a historical and research perspective, looking at how they can develop vertically and horizontally, both organically and through deliberate planning.

This matters because many small towns and downtowns have declined (i.e. rural economy), while wealth and economic influence have become increasingly concentrated among a smaller group of stakeholders and consolidating businesses. Strong small businesses can strengthen downtowns, retain wealth locally, and build more resilient communities. It is something large companies are going to struggle with.

Clusters may also contribute to national innovation by connecting businesses, talent, institutions, and resources in ways that accelerate economic development. By studying existing research, we can develop models that may eventually be tested—or perhaps emerge naturally. The goal is to explore economics through a broader lens by including elements of philosophy that touch on human and social development.

Ultimately, the goal is to create competitive, connected communities that build on their strengths, preserve their heritage, and create opportunities for local growth. That can have an influence on local wealth and decision making. Economic clusters may be part of that solution, although reasonable people can—and should—disagree.

The U.S. Economy Depends on Thriving Cluster Cities

• Economic clusters concentrate talent, capital, knowledge, and specialized skills, creating well-paying jobs, innovation, and spillover benefits for other industries.
• Traditional U.S. clusters such as Hollywood, Silicon Valley, and New York finance are facing greater competition as high costs, remote work, tax policies, and quality-of-life concerns encourage businesses and workers to relocate.
• Despite these pressures, established clusters remain difficult to replace because their networks, talent pools, financing, and accumulated expertise create strong economic advantages.
• Emerging clusters in places such as Atlanta and Texas are becoming more competitive, demonstrating that industries can develop outside traditional economic centers once they reach a sufficient critical mass.
• A broad shift away from major clusters could reduce innovation, tax revenues, and economic competitiveness, suggesting that maintaining strong cluster ecosystems remains important to the U.S. economy.

Schrager, A. (2026, August 31). The U.S. economy depends on thriving cluster cities. FA Mag. https://www.fa-mag.com/news/the-us-economy-depends-on-thriving-cluster-cities-88288.html?section=40

Why Do Yoga?

Why do yoga? Well, you can go to the gym and pump iron, play sports and discover muscles you didn't know you had, or jump on a treadmill and run until your brain starts negotiating with your legs. One or the other will give out.

But yoga can bring a lot of those things together.

IlIustrative Only
Meant to be a little
funny.

Depending on how you practice, yoga can include strength, cardio, flexibility, balance, endurance, and all those little stabilizer muscles that tend to get ignored until they suddenly decide to complain. You can hold poses longer to build strength, add resistance bands or weights, or turn up the pace and get your heart working.

And the best part? You don't need much equipment. You don't need a fancy gym, a complicated machine, or a membership card that mysteriously keeps charging you every month. You can do yoga almost anywhere. Technically, you don't even need a mat. If you want to get really rustic, find a patch of grass and have at it.

Now, I'm not saying the gym is bad. Quite the opposite. Gyms are great, and there's something motivating about being around other people who are exercising. But a well-designed yoga routine can complement almost any fitness program by improving strength, flexibility, balance, mobility, endurance, and cardiovascular fitness.

Yoga and Healthy Aging: Growing Evidence for Mind-Body Health

• The World Health Organization (WHO) highlights yoga as an adaptable mind-body practice that can support physical and mental health across the lifespan.
• Research increasingly suggests that yoga can help reduce stress and anxiety while improving strength, flexibility, balance, mobility, and overall functional fitness.
• Emerging evidence also points to potential benefits for brain health, including memory and cognitive function, as well as improvements in mood and fatigue among some populations.
• One randomized trial found that a 12-week yoga program for people with chronic lower back pain was comparable to physical therapy, with benefits continuing for up to a year.
• WHO emphasizes that yoga's accessibility and adaptability make it particularly relevant to healthy aging, allowing people with different ages, abilities, and mobility levels to participate while supporting independence and quality of life.

Kuruvilla, S. (2026, June 26). Yoga for healthy ageing: Global practice and clinical evidence. World Health Organization. https://www.who.int/news-room/commentaries/detail/yoga-for-healthy-ageing-global-practice-and-clinical-evidence

Survey Indicates that Justice and Fairness is Not What is Expected (Natural Systems and Unwritten Rules)

Let us continue the conversation about the value of institutions and why they matter to society. Strong institutions depend on people who are willing to encourage growth, address long-standing problems, and make meaningful changes when existing systems fail. The issue is not how often a system fails—whether rarely or frequently—but whether it has the capacity and willingness to recognize failures and correct them.

As a society, we want institutions—especially the justice system—to be effective, fair, and accountable. They should distinguish right from wrong and protect people from corruption, hatred, bigotry, and abuse. Strong checks and balances are essential. It keeps judges less focused on their ideologies and political parties and more focused on their essential purpose as an institution as an extention of the people's will. 

The Allegory of the Clan, a learning thought experiment, illustrates what can happen when institutions protect insiders rather than the public. In the example, minorities are targeted, friends receive preferential treatment, victims and whistleblowers are undermined, and wrongdoing is excused. People are damaged and left to deal with the corruption on their own. 

Those who reported wrongdoing were allegedly placed on secret target lists, while individuals involved in corruption used intimidation, threats (i.e. A report of corruption leads to that same officer parked outside the victims home to threaten their safety or life), harassment, and false investigations to protect insiders, damage reputations, and enrich their associates. Even when misconduct was exposed, the hypothetical system continued to blame and dehumanize the victims rather than hold those responsible accountable.

We hear this story over and over and over and no lasting change so we better start thinking of who we are placing in leadership positions.......

The decision-makers in this example came to view anyone advocating for a stronger and more effective system as a threat who should be mistreated or removed. Fundamental principles—including freedom of speech, freedom of religion, constitutional rights of recourse, and the rule of law—were treated as though they had little meaning. The thought experiment example raises a profound question about what happens when institutions intentionally abandon the values they were created to protect. This is why we should elect the best and brightest who understand those values and minimize the influence of those who don't. 

One is trying to encourage its purpose and the other fosterer "unwritten rules" of hate and corruption. This is why courts should not be tools of politics, ideology, or social groups. They should be anchored true north in values. Most be that way but even if there are a few who don't then we need to find ways to improve.

The lesson is that stopping misconduct when it is discovered is not enough. Institutions must acknowledge failures, accept responsibility, and change. This is not a liberal or conservative issue. A fair and accountable justice system should matter to everyone. When institutions fail to correct themselves, the consequences can become generational and undermine public trust for decades, generations, centuries. The study below indicates there are natural systems are in place and checks-n-balances, and correction of wrongdoing are needed to raise trust levels. 

Institutions become stronger when they embrace ethics, integrity, impartiality, and accountability. Their purpose is not to protect themselves or their insiders; it is to protect the principles and people they were created to serve.

The Allegory of the Clan is a hypothetical learning thought experiment to see what a complete default and misuse of institution looks like. In the end it is reversed and justice with a focus on our generational values restored. Take with a grain of salt. There is no right or wrong answer. If you thought about it, whether you agree or disagree, that is enough. 

 Unequal and Unjust: Americans Question the Fairness of the Justice System

• A national survey by Equal Justice Works found widespread skepticism about whether the U.S. justice system delivers equal and fair treatment, with 79% of Americans describing the system as unfair. The survey included more than 1,600 respondents.

• Access to legal representation remains a major concern. Only 32% of respondents believe the legal system is fair to people without attorneys, while just 50% are confident they would personally receive fair treatment from the courts.

• Economic circumstances appear to shape public perceptions of justice. Sixty-two percent of respondents believe income affects whether people receive fair treatment, while nearly half believe race can influence legal outcomes.

• Many Americans misunderstand when they are entitled to legal representation. Respondents frequently believed that courts provide attorneys in civil matters such as discrimination cases, child custody disputes, and traffic court, even though the constitutional right to appointed counsel generally applies to indigent defendants in criminal cases.

• The findings suggest that improving access to justice requires more than reducing legal costs. Lack of information, uncertainty about legal rights, and fear of the legal system can also prevent people from seeking assistance. Equal Justice Works argues that expanding access to public-interest lawyers and improving public understanding of legal rights are important steps toward restoring confidence in the justice system.

Equal Justice Works. (2026, April 14). Unequal and unjust: Public perceptions of justice. https://www.equaljusticeworks.org/news/unequal-and-unjust-public-perceptions-of-justice/

What Do Employees Really Want in 2026

 We’ve thought a little bit about what characteristics make strong CEOs. Remember, the strength of a CEO is not simply what they can do individually; it’s their ability to build teams and leverage the skills and abilities of many other people. That leads us to the question of what employees want.

There has been a lot of discussion in the news, economic reports, and other places about employees having different views on technology, compensation, work expectations, and how effort should be distributed. Understanding these perspectives helps us gauge what employees value, and that is an important component of building strong organizations and, ultimately, a strong economic system.

The good news is that employee satisfaction remains relatively high according to the study below. We hear a lot about dissatisfaction in the workplace, but the data suggests that, for the most part, employees are reasonably satisfied. They value pay, work-life balance, and, perhaps most importantly, feeling valued.

Being valued means more than simply receiving a paycheck. Employees want to feel that their contributions matter and that they are part of a team—people working together toward a common purpose and looking out for one another. That is also why meaningful work matters. Organizations are ultimately collectives of people, and their success depends on how effectively those people work together.

Employees also want their voices to be heard. If they have advice or feedback, they want organizations to listen and take it seriously. They should, because some of the best decisions are made when leaders listen to a broader group of stakeholders and ask, “What’s working, and what isn’t?”

Technology is another interesting part of this discussion. Employees generally believe technology can work on their behalf, but they also want human interaction. Technology can make work more efficient, but it doesn’t necessarily replace the need for communication, collaboration, recognition, and relationships.

And then we have AI adaptation, which is becoming an increasingly important issue. Economists and business leaders are talking extensively about how AI will change the workplace. Yet around 30% of employees don’t believe AI is particularly useful or necessary in their current roles. That tells us something important: technological change may be inevitable, but adoption is not automatic. Organizations have to demonstrate how these tools actually improve people’s work and help employees adapt to a changing world.

What Employees Really Want in 2026: Pay, Balance, Trust, and Human Connection

1. Employee satisfaction remains relatively strong, with 71% of U.S. employees reporting that they are satisfied at work. However, nearly one in five employees are neutral, suggesting that organizations have an opportunity to strengthen engagement before dissatisfaction develops.
2. Pay, work-life balance, and feeling valued are the strongest predictors of employee satisfaction. Nearly half of employees say they would leave their current position for better pay, reinforcing the importance of competitive compensation, pay equity, and transparency.
3. Employees want organizations to act on their feedback. Only about one in ten employees believe their feedback always leads to action, creating a gap between employee listening and organizational follow-through that can weaken trust.
4. Technology is valuable, but employees still want human connection. While 61% say technology improves their workday, 38% want more human interaction, particularly in areas such as recognition, communication, and collaboration.
5. AI adoption requires a thoughtful approach. About 30% of employees do not believe AI is useful or necessary in their roles, highlighting the need for training, clear communication, and implementation that complements rather than replaces human interaction.

Nezich, H. (2026, January 13). New report highlights what employees really want in 2026. American Society of Employers. https://www.aseonline.org/News-Events/Articles/new-report-highlights-what-employees-really-want-in-2026