Manufacturing Rises in January 2026 (Mariam Thinks of Investing in Escanaba-Possible Supply Chain Benefits)

(Illustrative Only)
Mariam invented and designed
a new product that helps
move equipment around a
shop floor. It is in high
demand and she is considering
scaling up production
and needs a new facility.
She is thinking of
moving to a place 
like Escanaba where
the land is cheaper, labor
is skilled, local government
works with poeple and
shipping infrastructure and
transportation strong
(Rail, road, air, port and data.).
 Infrastructure can reduce
cost.

Enhancing Entrepreneurial Clusters

Supply Chain Integration

Manufacturing remains a vital pillar of the U.S. economy, so any improvement in production and export capacity is encouraging. Although the job market has shifted more toward services in recent employment metrics, the recent uptick in manufacturing activity is a noteworthy development. Ideally, increased production will translate into stronger exports and contribute positively to the trade balance, though that will depend on trends in the months ahead.

Maintaining a strong central position within the global supply chain is essential for long-term economic competitiveness, as this is where significant value is generated. While services add important complementary value, manufacturing creates the foundational products that drive both domestic demand and service-sector activity. 

The highlights below summarize key points from the latest report, which you can review for a more detailed understanding.

Manufacturing PMI® at 52.6%; January 2026 ISM® Manufacturing PMI® Report

• Manufacturing PMI at 52.6% in January 2026 — up from 47.9 in December, indicating the sector expanded after months of contraction.

• First expansion in manufacturing in 12 months after 26 consecutive months below 50.

• Overall U.S. economy continued expanding, with January marking the 15th straight month of growth.

• New Orders Index jumped to 57.1%, the highest since early 2022, signaling stronger demand.

• Production Index climbed to 55.9%, also at its highest level since early 2022.

• Backlog of Orders Index rose to 51.6%, showing more unfinished orders.

• Prices Index at 59.0%, reflecting continued increases in input costs.

• Employment Index at 48.1%, still below 50, meaning manufacturing employment remains in contraction but improved.

• Inventories and Customers’ Inventories remained in contraction, with customer inventories “too low,” which can prompt future orders.

• The PMI reading suggests roughly 1.7% annualized GDP growth based on historical PMI–GDP relationships. 

Escanaba Investment Information Information:

Some information on Escanaba that might help. 

The city has secured more than $100 million in recent infrastructure investments and is seeing a “small business renaissance,” with 15–20 new businesses opening.

Redevelopment & Housing: Efforts are underway to convert vacant properties into mixed-use, commercial, or residential developments, supported in part by state programs like the Revitalization and Placemaking (RAP) grant. Revitalization and Placemaking (RAP) program.

Industrial Incentives: To encourage growth, the city provides Industrial Facilities Tax Exemptions (IFE) for manufacturing, renovation, and expansion projects, particularly within designated Industrial Development Districts (IDD). The City provides Industrial Facilities Tax Exemptions (IFE)