Group 1 - The ADP report indicates a loss of 32,000 jobs, marking the worst performance in a significant period [1] - Goods producing jobs decreased by 3,000, with construction jobs down by 5,000 and manufacturing jobs down by 2,000 [1] - The service industry saw a loss of 28,000 jobs, with notable declines in leisure and hospitality (19,000) and professional and business services (13,000) [2] Group 2 - The only positive sector was education and health services, which added 33,000 jobs for the month [2] - Annual pay for job stayers increased by 4.5%, while those changing jobs received a raise of 6.5% [2] - The previous month's job loss was revised down from 54,000 to a negative 3,000, suggesting a potential shift in forecasts for upcoming non-farm payrolls [3]

Employment Contraction - ADP reports a significant contraction of 32,000 jobs, marking the worst performance in recent times [1] - Goods producing jobs declined by 3,000, with construction sector down by 5,000 and manufacturing down by 2,000 [1] - Service industry jobs decreased by 28,000 [1] - Leisure and hospitality sector experienced a loss of 19,000 jobs, while professional and business services declined by 13,000 [2] - Education and health services showed a positive trend, adding 33,000 jobs [2] Wage Trends - Annual pay for job stayers increased by 45%, while those changing jobs received a 65% raise [2] Data Revision and Forecasts - Last month's figures were revised down to a negative 3,000 job trade, contrasting with the initial 54,000 [3] - The industry anticipates potential revisions to non-farm payroll forecasts for Friday due to the unfavorable ADP data [3]

Core Insights - The ISM manufacturing report indicates a mixed economic outlook, with the manufacturing PMI at 49.1%, slightly better than expectations but still in contraction territory [2][5] - The prices component remains elevated at 61.9%, indicating rising prices but showing signs of deceleration compared to previous months [3][4] - New orders fell to 48.9%, missing expectations and indicating contraction, which is a concerning sign for future manufacturing activity [4][9] Manufacturing Sector Analysis - The manufacturing sector constitutes about 30-35% of the total economy, and the ISM services index carries more weight in overall economic assessments [5] - The S&P manufacturing PMI came in at 52, matching expectations but lower than the previous month, suggesting a stable but cautious outlook [8] - Overall, the manufacturing data presents a murky picture, with no signs of a significant downturn or rapid price increases, but the decline in new orders raises concerns [9][10] Labor Market Insights - The ADP report showed a surprising decline of 32,000 jobs, significantly below the expected increase of over 50,000, indicating potential weaknesses in the labor market [11][19] - The Midwest region experienced a notable job loss of 63,000, which may be an outlier but highlights regional disparities in employment trends [16] - There are concerns regarding the reliability of the ADP data due to missing information from the federal government, which could affect the accuracy of labor market assessments moving forward [18]

Core Insights - The manufacturing industry is experiencing contraction, with the Purchasing Managers' Index (PMI) at 49.1% in September, indicating a slight improvement from August but still below the threshold of 50% that signifies growth [1] Demand Indicators - Demand remains weak, with three out of four subcategories showing poor performance; however, backlog orders increased slightly to 46.2%, potentially due to a rise in new orders in August [2] - New export orders significantly declined by 4.6 points to 43%, reflecting the impact of tariff-related news [3] - The customer inventory index decreased to 43.7%, suggesting a faster rate of contraction, which may lead to increased orders from customers in the future [3] Production and Supplier Performance - Production saw a rise of 3.2 percentage points to 51%, attributed to an uptick in orders from August [3] - Suppliers delivered faster in September, with the supplier deliveries index at 52.6%, although it still indicates slower delivery performance for the second consecutive month [4] Employment Trends - The employment index improved to 45.3%, up 1.5 percentage points from August, but comments from the survey indicate more negativity regarding layoffs than hiring [5] Economic Impact - The manufacturing sector's gross domestic product contracted by 67% in September, a slight improvement from 69% in August, highlighting ongoing struggles due to staff reductions, hiring freezes, and price increases [6]

British factories suffered the sharpest decline in production for six months, as the temporary shutdown of Jaguar Land Rover’s factories added to the sector’s woes https://t.co/UgKJpaLvCz ...

Manufacturing across Asia was split last month, with activity improved in South Korea and steady in Vietnam, a major US supplier, while Trump’s global trade levies appeared to bite into demand from Taiwan and Japan https://t.co/fmHNWFL1yV ...

Confidence among Japan’s large manufacturers improved for a second straight quarter, supporting the case for the Bank of Japan to raise interest rates as early as this month https://t.co/uKToKlBP45 ...

Top Risks for Global Businesses - Geopolitical volatility has cracked the top 10 risks for global businesses for the first time [1] - Regulatory and legislative changes are a significant risk, exemplified by government instabilities like potential shutdowns in the US and reshuffles in the UK [1][2][3] - Government instabilities can drive other issues, including supply chain disruptions and commodity pricing fluctuations [3] - Companies need to respond quickly to increasing risks, as there is little time to recover [4] Risk Exposure and Preparedness - Only 14% of companies track their exposure to these risks [5] - Companies are not adequately looking at their second and third-tier suppliers, creating blind spots in supply chain risk management [7][8] Cyber Security and Data Breaches - Cyber attacks or data breaches are the number one risk for global businesses [8] - Cyber attacks cut across every aspect of the economy, affecting various industries [10] - Financial services and any entity relying on a network are especially at risk due to their dependence on complex global communication [12] - Companies are not spending enough time understanding second and third-degree cyber risks [11]

Core Viewpoint - Stella-Jones Inc. has announced a definitive agreement to acquire Brooks Manufacturing Co. for approximately US$140 million, aiming to expand its product offerings and enhance its market reach in the utility sector [1][3]. Company Overview - Stella-Jones Inc. is a leading North American manufacturer focused on infrastructure products essential for electrical distribution and transmission, as well as railway transportation systems [4]. - The company supplies treated wood and steel utility poles, steel lattice towers, and treated wood railway ties to major electrical utilities and railway operators across North America [4]. Acquisition Details - The acquisition of Brooks, a manufacturer of treated wood distribution crossarms and transmission framing components, is expected to close by the end of the year, pending U.S. antitrust regulatory approval [1][3]. - Brooks reported sales of approximately US$84 million for the year ended December 31, 2024 [3]. - The acquisition will be financed through Stella-Jones' existing revolving credit facilities [3]. Strategic Rationale - The acquisition is seen as a natural fit that enhances Stella-Jones' ability to meet the growing demand from utilities and unlock new growth opportunities [3]. - The move aligns with the company's strategic focus to become a partner of choice for infrastructure customers [3].

Cyber adversaries are judicious when selecting their victims, drawn to targets with the richest treasure and the most exposure, and manufacturing makes the grade for cyber criminals because of the value of the industry’s intellectual property, and due in large part to supply chain vulnerabilities, there are plenty of points of entry. As part of a larger cross-industry study, LevelBlue surveyed executives in 220 manufacturing companies to gauge the state of their cyber resilience strategies in the era of A ...