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Massachusetts' economic outlook took a steep turn in February, with the AIM Business Confidence Index dropping from 55.6 to 50.4—its steepest decline since March 2020.
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This downturn reflects growing concerns over new federal policies, including proposed tariffs, tighter regulations on migrant workers, and potential cuts to federal research funding.
AIM pointed to the possible loss of $3.5 billion in NIH funding as a significant threat to the state’s economy, especially impacting Massachusetts’ renowned research institutions and hospitals.
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AND NOW SOME OPERATIONS NEWS |
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This Operations Update is provided with support from: |
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The State of Manufacturing |
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The Manufacturing PMI Index grew for the second month in a row in February, reaching 50.3% — a 0.6% drop from January.
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The New Orders Index fell back into contraction territory, signaling a slowdown in demand for manufactured goods.
The Production Index dropped 1.8 percentage points compared to January’s figure, indicating a slowdown in manufacturing output.
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The U.S. has delayed its planned 25% tariffs on auto imports from Mexico and Canada for one month following negotiations. In response, Mexico agreed to deploy troops to combat drug trafficking, while Canada appointed a 'fentanyl czar' and designated Mexican cartels as terrorist organizations.
Despite this temporary pause, trade tensions persist, with Trump threatening retaliatory tariffs on Canadian dairy and lumber.
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Here are some proactive strategies to help your business navigate and reduce the impact of the current tariff environment:
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For products with non-U.S. components or assemblies: Create a detailed Bill of Materials (BOM) that lists each component’s Country of Origin and HTS code. This will help you quickly assess cost impacts as tariffs continue to shift.
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For electronic components: Identify alternative parts from different countries of origin, as tariff rates often vary by country. Having options in place allows you to switch quickly if it becomes more cost-effective.
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If your contract manufacturer (CM) is based in China: Explore whether they have facilities in other countries. Moving production to a different location where substantial transformation occurs may allow for reclassification under an HTS code with lower or no tariffs.
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Consider U.S.-based suppliers: Get quotes from domestic suppliers for equivalent parts or components and evaluate the “landed cost” — the total cost of getting goods to your location. Local sourcing could minimize tariffs and potentially simplify your supply chain.
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Boston startups raised $626.5 million in February, a $200 million increase from January. The month also saw the emergence of three new unicorns, with funding spread across a range of tech sectors, including quantum computing, fintech, and biotech.
Check out all of Boston's February M&A deals.
Boston-based CyberArk has acquired Zilla Security in a deal worth up to $175 million.
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MassRobotics has announced a strategic partnership with WTWH Media ahead of Boston's upcoming Robotics Summit & Expo.
The event will be held from April 30 to May 1, 2025, at the Boston Convention and Exhibition Center. Registration is now open. Sign up here.
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Massachusetts-based Triumvirate Environmental has secured a private equity investment, valuing the company at $1.8 billion. |
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The Massachusetts Clean Energy Center has unveiled a 10-year plan to position the state as a global leader in climatetech, driving economic growth and advancing net-zero goals.
The strategy focuses on business support, expanded funding, infrastructure investment, market development, workforce training, and raising awareness. With more than 1,300 companies and 35,000 jobs projected, the plan aims to solidify Massachusetts’ role at the forefront of climate innovation.
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In our February survey, we asked how you balance speed, cost, and quality in production.
The results were tied, with both the use of high-quality yet cost-effective materials and lean manufacturing principles to minimize waste and reduce costs each receiving 20.4% of the vote.
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Advanced materials have the potential to revolutionize manufacturing. These innovative materials offer numerous advantages, paving the way for breakthroughs in product design and production. From enhancing strength and durability to reducing environmental impact, each material offers its own distinct set of benefits.
With this in mind, we want to know:
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| Which of the following materials do you believe will have the biggest impact on manufacturing? |
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Clone Robotics, a startup, has created the world’s first bipedal, musculoskeletal android. The Protoclone is a faceless, anatomically accurate synthetic human, featuring over 200 degrees of freedom, more than 1,000 myofibers, and over 500 sensors. MoreMusclesThanEmotions
(Source: Clone Robotics)
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New research reveals that a 10% increase in robot density within manufacturing sectors leads to a 2% reduction in injuries.
MoreRobotsFewerOuchies
(Source: Information Technology & Innovation Foundation)
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Firefly Aerospace has become the first private company to successfully land on the Moon. Its Blue Ghost lander, which carries NASA experiments, is a key part of efforts to advance the lunar economy ahead of astronauts' return in 2027.
ContactLightEngineStop!
(Source: AP News)
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