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Manufacturing PMI® at 49.3%; December 2024 Manufacturing ISM® Report On Business®
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2 years agoon
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New Orders Growing and Backlogs Contracting; Production Growing and Employment Contracting; Supplier Deliveries Slowing; Raw Materials Inventories Contracting; Customers’ Inventories Too Low; Prices Increasing; Exports Unchanged and Imports Contracting
TEMPE, Ariz., Jan. 3, 2025 /PRNewswire/ — Economic activity in the manufacturing sector contracted in December for the ninth consecutive month and the 25th time in the last 26 months, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:
“The Manufacturing PMI® registered 49.3 percent in December, 0.9 percentage point higher compared to the 48.4 percent recorded in November. The overall economy continued in expansion for the 56th month after one month of contraction in April 2020. (A Manufacturing PMI® above 42.5 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index continued in expansion territory for the second month after seven months of contraction, strengthening to 52.5 percent, 2.1 percentage points higher than the 50.4 percent recorded in November. The December reading of the Production Index (50.3 percent) is 3.5 percentage points higher than November’s figure of 46.8 percent. The index returned to expansion after six months in contraction. The Prices Index continued in expansion (or ‘increasing’) territory, registering 52.5 percent, up 2.2 percentage points compared to the reading of 50.3 percent in November. The Backlog of Orders Index registered 45.9 percent, up 4.1 percentage points compared to the 41.8 percent recorded in November. The Employment Index registered 45.3 percent, down 2.8 percentage points from November’s figure of 48.1 percent.
“The Supplier Deliveries Index indicated marginally slower deliveries, registering 50.1 percent, 1.4 percentage points higher than the 48.7 percent recorded in November. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index registered 48.4 percent, up 0.3 percentage point compared to November’s reading of 48.1 percent.
“The New Export Orders Index’s ‘unchanged’ reading of 50 percent is 1.3 percentage points higher than the 48.7 percent registered in November. The Imports Index remained in contraction territory in December, registering 49.7 percent, 2.1 percentage points higher than November’s reading of 47.6 percent.”
Fiore continues, “U.S. manufacturing activity contracted again in December, but at a slower rate compared to November. Demand showed signs of improving, while output stabilized and inputs stayed accommodative. Demand analysis includes: the (1) New Orders Index remaining in expansion territory, (2) New Export Orders Index increasing (up 1.3 percentage points and now ‘unchanged’), (3) Backlog of Orders Index slowing its rate of decline but continuing in contraction territory, and (4) Customers’ Inventories Index dropping into ‘too low’ territory. Output (measured by the Production and Employment indexes) was positive; factory output stabilized compared to November, indicating that panelists’ companies are executing to plan. Employment contracted as final head-count adjustments were likely taken to prepare for 2025. Inputs — defined as supplier deliveries, inventories, prices and imports — generally continued to accommodate future demand growth, with inventories and imports improving marginally (though remaining in contraction), prices increasing and supplier deliveries marginally slowing.
“Demand improved, production execution met November’s performance (and companies’ plans), de-staffing continued (but should end soon), and price growth was marginal. Fifty-two percent of manufacturing gross domestic product (GDP) contracted in December, down from 66 percent in November. The share of manufacturing sector GDP registering a composite PMI® calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 49 percent in December, a 1-percentage point increase compared to the 48 percent reported in November. None of the six largest manufacturing industries expanded in December, down from two in November,” says Fiore.
The seven manufacturing industries reporting growth in December — listed in order — are: Primary Metals; Electrical Equipment, Appliances & Components; Wood Products; Furniture & Related Products; Paper Products; Miscellaneous Manufacturing; and Plastics & Rubber Products. The seven industries reporting contraction in December — in the following order — are: Textile Mills; Fabricated Metal Products; Printing & Related Support Activities; Machinery; Chemical Products; Transportation Equipment; and Nonmetallic Mineral Products.
WHAT RESPONDENTS ARE SAYING
“Slightly lower due to seasonality and end-of-year destocking.” [Chemical Products]”Automotive and powersport volume decreases.” [Transportation Equipment]”We are seeing a softening in sales. This is concerning as it’s our peak season.” [Food, Beverage & Tobacco Products]”We are constrained by technical labor, despite higher-than-normal backlog.” [Computer & Electronic Products]”Significant slowdown in production requirements in the last two months of the year.” [Machinery]”Order levels well below forecast projections.” [Fabricated Metal Products]”The increase in new orders has our plant at full capacity.” [Electrical Equipment, Appliances & Components]”Combo of seasonal factors plus increased demand outlook for 2025.” [Miscellaneous Manufacturing]”There is definitely an uptick this month, though not a stable one.” [Primary Metals]”The orders have increased slightly due to seasonal restocking.” [Plastics & Rubber Products]
MANUFACTURING AT A GLANCE
December 2024
Index
Series
Index
Dec
Series
Index
Nov
Percentage
Point
Change
Direction
Rate of
Change
Trend*
(Months)
Manufacturing PMI®
49.3
48.4
+0.9
Contracting
Slower
9
New Orders
52.5
50.4
+2.1
Growing
Faster
2
Production
50.3
46.8
+3.5
Growing
From
Contracting
1
Employment
45.3
48.1
-2.8
Contracting
Faster
7
Supplier Deliveries
50.1
48.7
+1.4
Slowing
From Faster
1
Inventories
48.4
48.1
+0.3
Contracting
Slower
4
Customers’ Inventories
46.7
48.4
-1.7
Too Low
Faster
3
Prices
52.5
50.3
+2.2
Increasing
Faster
3
Backlog of Orders
45.9
41.8
+4.1
Contracting
Slower
27
New Export Orders
50.0
48.7
+1.3
Unchanged
From
Contracting
1
Imports
49.7
47.6
+2.1
Contracting
Slower
7
OVERALL ECONOMY
Growing
Faster
56
Manufacturing Sector
Contracting
Slower
9
Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes.
*Number of months moving in current direction.
COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY
Commodities Up in Price
Aluminum (13); Caustic Soda (2); Copper (3); Electronic Components; Labor — Temporary; Methanol; Natural Gas (3); Packaging Materials; Steel — General*; Steel — High Carbon; and Steel-Making Elements*.
Commodities Down in Price
Diesel Fuel (2); Plastic Resin (2); Polypropylene Resin; Solvents (2); Steel — General*; Steel — Hot Rolled (2); Steel — Scrap; and Steel-Making Elements*.
Commodities in Short Supply
Electrical Components (51); Electronic Components (9); and Labor — Construction Services and Skilled.
Note: The number of consecutive months the commodity is listed is indicated after each item.
*Indicates both up and down in price.
DECEMBER 2024 MANUFACTURING INDEX SUMMARIES
Manufacturing PMI®
The U.S. manufacturing sector contracted for the ninth consecutive month in December, as the Manufacturing PMI® registered 49.3 percent, 0.9 percentage point higher compared to the 48.4 percent reported in November. “After breaking a 16-month streak of contraction by expanding in March, the manufacturing sector has contracted for the last nine months. Of the five subindexes that directly factor into the Manufacturing PMI®, three (New Orders, Production and Supplier Deliveries) were in expansion territory, compared to only one in November. The Employment Index remained in contraction, but the New Orders Index moved further into expansion in December. Of the six biggest manufacturing industries, none registered growth,” says Fiore. A reading above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting.
A Manufacturing PMI® above 42.5 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the December Manufacturing PMI® indicates the overall economy grew for the 56th straight month after last contracting in April 2020. “The past relationship between the Manufacturing PMI® and the overall economy indicates that the December reading (49.3 percent) corresponds to a change of plus-1.9 percent in real gross domestic product (GDP) on an annualized basis,” says Fiore.
THE LAST 12 MONTHS
Month
Manufacturing
PMI®
Month
Manufacturing
PMI®
Dec 2024
49.3
Jun 2024
48.5
Nov 2024
48.4
May 2024
48.7
Oct 2024
46.5
Apr 2024
49.2
Sep 2024
47.2
Mar 2024
50.3
Aug 2024
47.2
Feb 2024
47.8
Jul 2024
46.8
Jan 2024
49.1
Average for 12 months – 48.3
High – 50.3
Low – 46.5
New Orders
ISM®’s New Orders Index expanded in December for the second consecutive month after seven months in contraction, registering 52.5 percent, an increase of 2.1 percentage points compared to November’s figure of 50.4 percent. The New Orders Index hasn’t indicated consistent growth since a 24-month streak of expansion ended in May 2022. “Of the six largest manufacturing sectors, two (Food, Beverage & Tobacco Products; and Computer & Electronic Products) reported increased new orders. Panelists noted an improved level of demand performance, with a 1.5-to-1 ratio of positive comments versus those expressing concern about near-term demand, an improvement compared to November,” says Fiore. A New Orders Index above 52.3 percent, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).
The six manufacturing industries that reported growth in new orders in December, in order, are: Electrical Equipment, Appliances & Components; Paper Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Primary Metals; and Computer & Electronic Products. The eight industries reporting a decline in new orders in December — in the following order — are: Textile Mills; Printing & Related Support Activities; Nonmetallic Mineral Products; Wood Products; Transportation Equipment; Fabricated Metal Products; Plastics & Rubber Products; and Machinery.
New Orders
%Higher
%Same
%Lower
Net
Index
Dec 2024
21.0
54.9
24.1
-3.1
52.5
Nov 2024
21.0
54.3
24.7
-3.7
50.4
Oct 2024
20.4
50.6
29.0
-8.6
47.1
Sep 2024
17.6
56.1
26.3
-8.7
46.1
Production
The Production Index emerged into expansion territory in December, registering 50.3 percent, 3.5 percentage points higher than the November reading of 46.8 percent. Prior to this month’s reading, the index was in contraction territory for six consecutive months. The last time the index registered above 50 percent was in May (50.2 percent). Of the six largest manufacturing sectors, only one (Computer & Electronic Products) reported increased production. “Production levels were stable to November’s performance, indicating that re-planning factory floor activity has likely been completed, head counts are likely synchronized with factory demand, and panelists are fully staffed and aligned for 2025,” says Fiore. An index above 52.2 percent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures.
The five industries reporting growth in production during the month of December are: Textile Mills; Plastics & Rubber Products; Wood Products; Computer & Electronic Products; and Primary Metals. The six industries reporting a decrease in production in December, in order, are: Printing & Related Support Activities; Fabricated Metal Products; Nonmetallic Mineral Products; Machinery; Chemical Products; and Transportation Equipment. Six industries reported no change in production levels in December as compared to November.
Production
%Higher
%Same
%Lower
Net
Index
Dec 2024
15.3
59.3
25.4
-10.1
50.3
Nov 2024
15.9
63.2
20.9
-5.0
46.8
Oct 2024
16.8
59.3
23.9
-7.1
46.2
Sep 2024
17.6
60.7
21.7
-4.1
49.8
Employment
ISM®’s Employment Index registered 45.3 percent in December, 2.8 percentage points lower than the November reading of 48.1 percent. “The index contracted for the seventh consecutive month and the 14th out of the last 15 months. Of the six big manufacturing sectors, none expanded employment in December. Respondents’ companies are continuing to reduce head counts through layoffs, attrition and hiring freezes. This action is supported in December by the approximately 1-to-2 ratio of hiring versus staff-reduction comments, compared to a 1-to-1.5 ratio the previous month, meaning more workforce reduction activity is occurring as we close 2025,” says Fiore. An Employment Index above 50.3 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.
Of 18 manufacturing industries, the two industries reporting employment growth in December are: Electrical Equipment, Appliances & Components; and Plastics & Rubber Products. The nine industries reporting a decrease in employment in December, in the following order, are: Textile Mills; Fabricated Metal Products; Machinery; Chemical Products; Furniture & Related Products; Food, Beverage & Tobacco Products; Primary Metals; Transportation Equipment; and Miscellaneous Manufacturing. Six industries reported no change in employment levels in December as compared to November.
Employment
%Higher
%Same
%Lower
Net
Index
Dec 2024
7.0
75.3
17.7
-10.7
45.3
Nov 2024
14.2
65.3
20.5
-6.3
48.1
Oct 2024
9.0
70.6
20.4
-11.4
44.4
Sep 2024
8.0
69.3
22.7
-14.7
43.9
Supplier Deliveries†
Delivery performance of suppliers to manufacturing organizations was marginally slower in December, with the Supplier Deliveries Index registering 50.1 percent, a 1.4-percentage point increase compared to the reading of 48.7 percent reported in November. This expansion follows a contraction in November preceded by four consecutive months of slower deliveries, with four straight months of faster deliveries before that. After a reading of 52.4 percent in September 2022, the index went into contraction territory the following month and remained there for 20 out of 21 months (with February 2024 as the exception). Of the six big industries, two (Computer & Electronic Products; and Food, Beverage & Tobacco Products) reported slower supplier deliveries in December. “Supplier deliveries moved into ‘slower’ territory as supplier delivery performance continues to meet the expectations of panelists’ customers,” says Fiore. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.
The six manufacturing industries reporting slower supplier deliveries in December — listed in order — are: Furniture & Related Products; Nonmetallic Mineral Products; Primary Metals; Computer & Electronic Products; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products. The three industries reporting faster supplier deliveries in December are: Fabricated Metal Products; Chemical Products; and Machinery. Eight industries reported no change in supplier deliveries in December as compared to November.
Supplier Deliveries
%Slower
%Same
%Faster
Net
Index
Dec 2024
6.4
87.4
6.2
+0.2
50.1
Nov 2024
5.7
86.0
8.3
-2.6
48.7
Oct 2024
11.9
80.1
8.0
+3.9
52.0
Sep 2024
10.4
83.6
6.0
+4.4
52.2
Inventories
The Inventories Index registered 48.4 percent in December, up 0.3 percentage point compared to the reading of 48.1 percent reported in November. The last time the Inventories Index registered above 50 percent was in August, when it registered 50.3 percent. “Manufacturing inventories continue to contract, though rates have slowed in in the last two months as panelists continue to manage working capital. This month’s index reading indicating a slowing rate of contraction suggests that companies are willing to invest more for the future, to (1) better perform to their customers’ delivery demands or (2) advance material deliveries to avoid potential tariffs, or a combination of both. Of the six big industries, none reported expanding manufacturing inventories in December,” says Fiore. An Inventories Index greater than 44.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).
Of 18 manufacturing industries, the five industries reporting higher inventories in December are: Primary Metals; Wood Products; Furniture & Related Products; Nonmetallic Mineral Products; and Electrical Equipment, Appliances & Components. The eight industries reporting lower inventories in December — in the following order — are: Textile Mills; Fabricated Metal Products; Computer & Electronic Products; Chemical Products; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Machinery; and Transportation Equipment.
Inventories
%Higher
%Same
%Lower
Net
Index
Dec 2024
14.4
64.8
20.8
-6.4
48.4
Nov 2024
15.5
63.2
21.3
-5.8
48.1
Oct 2024
14.2
59.1
26.7
-12.5
42.6
Sep 2024
11.2
66.5
22.3
-11.1
43.9
Customers’ Inventories†
ISM®’s Customers’ Inventories Index registered a reading of 46.7 percent in December, down 1.7 percentage points compared to the 48.4 percent reported in November. “Customers’ inventory levels in December have dropped to the high side of ‘too low.’ Panelists are reporting that the amounts of their products in their customers’ inventories suggest a demand level that is positive for future production,” says Fiore.
The four industries reporting customers’ inventories as too high in December are: Textile Mills; Wood Products; Plastics & Rubber Products; and Miscellaneous Manufacturing. The 10 industries reporting customers’ inventories as too low in December, in order, are: Food, Beverage & Tobacco Products; Paper Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Machinery; Primary Metals; Computer & Electronic Products; Fabricated Metal Products; Transportation Equipment; and Chemical Products.
Customers’
Inventories
%
Reporting
%Too
High
%About
Right
%Too
Low
Net
Index
Dec 2024
78
11.5
70.3
18.2
-6.7
46.7
Nov 2024
77
10.6
75.5
13.9
-3.3
48.4
Oct 2024
80
12.2
69.1
18.7
-6.5
46.8
Sep 2024
76
13.2
73.6
13.2
0.0
50.0
Prices†
The ISM® Prices Index registered 52.5 percent, 2.2 percentage points higher compared to the November reading of 50.3 percent, indicating raw materials prices increased for the third straight month in December after a decrease in September. Of the six largest manufacturing industries, three — Food, Beverage & Tobacco Products; Machinery; and Computer & Electronic Products — reported price increases in December. “The Prices Index indicated increasing prices in December for the third consecutive month, but at weak rates. Aluminum, basic chemicals, copper and natural gas registered increases, offset by steel, plastic resins and diesel fuel moving down in price. Fourteen percent of companies reported higher prices in December, compared to 12 percent in November,” says Fiore. A Prices Index above 52.8 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.
In December, the seven industries that reported paying increased prices for raw materials, in order, are: Primary Metals; Wood Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Machinery; Computer & Electronic Products; and Electrical Equipment, Appliances & Components. The three industries report paying decreased prices for raw materials in December are: Plastics & Rubber Products; Chemical Products; and Fabricated Metal Products. Seven industries reported no change in prices in December as compared to November.
Prices
%Higher
%Same
%Lower
Net
Index
Dec 2024
14.4
76.1
9.5
+4.9
52.5
Nov 2024
12.2
76.1
11.7
+0.5
50.3
Oct 2024
19.8
69.9
10.3
+9.5
54.8
Sep 2024
12.9
70.7
16.4
-3.5
48.3
Backlog of Orders†
ISM®’s Backlog of Orders Index registered 45.9 percent, an increase of 4.1 percentage points compared to the November reading of 41.8 percent, indicating order backlogs contracted for the 27th consecutive month after a 27-month period of expansion. Of the six largest manufacturing industries, two (Food, Beverage & Tobacco Products; and Computer & Electronic Products) reported expanded order backlogs in December. “In December, the index recorded its best performance since April 2024 (45.4 percent), as new orders coupled with stable production levels slowed the rate of declining backlogs,” says Fiore.
Of the 18 manufacturing industries, three reported growth in order backlogs in December: Food, Beverage & Tobacco Products; Computer & Electronic Products; and Electrical Equipment, Appliances & Components. The 10 industries reporting lower backlogs in December — in the following order — are: Textile Mills; Primary Metals; Printing & Related Support Activities; Furniture & Related Products; Plastics & Rubber Products; Wood Products; Machinery; Transportation Equipment; Chemical Products; and Miscellaneous Manufacturing.
Backlog of
Orders
%
Reporting
%Higher
%Same
%Lower
Net
Index
Dec 2024
91
14.9
62.0
23.1
-8.2
45.9
Nov 2024
92
14.5
54.6
30.9
-16.4
41.8
Oct 2024
93
14.1
56.4
29.5
-15.4
42.3
Sep 2024
92
14.5
59.1
26.4
-11.9
44.1
New Export Orders†
ISM®’s New Export Orders Index registered an “unchanged” reading of 50 percent in December, up 1.3 percentage points from November’s reading of 48.7 percent. “The New Export Orders Index reading indicates that export orders were ‘unchanged’ from last month, following six straight months of contraction. New export orders stabilized this month as international trading partners are showing signs of demand recovery as we enter 2025,” says Fiore.
The four industries reporting growth in new export orders in December are: Plastics & Rubber Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; and Miscellaneous Manufacturing. The four industries reporting a decrease in new export orders in December are: Primary Metals; Transportation Equipment; Machinery; and Chemical Products. Eight industries reported no change in exports in December.
New Export
Orders
%
Reporting
%Higher
%Same
%Lower
Net
Index
Dec 2024
74
10.9
78.2
10.9
0.0
50.0
Nov 2024
75
10.6
76.1
13.3
-2.7
48.7
Oct 2024
74
7.7
75.6
16.7
-9.0
45.5
Sep 2024
73
7.2
76.1
16.7
-9.5
45.3
Imports†
ISM®’s Imports Index continued to indicate cooling in December; the reading of 49.7 percent is 2.1 percentage points higher compared to the reading of 47.6 reported in November. “Imports contracted for the seventh month in a row after five consecutive months of expansion, preceded by 14 consecutive months of contraction. Imports moved closer to growth as inventory constraints weaken and panelists act to better absorb any potential tariff impact in the future,” says Fiore.
The seven industries reporting an increase in import volumes in December, in order, are: Wood Products; Plastics & Rubber Products; Furniture & Related Products; Food, Beverage & Tobacco Products; Machinery; Electrical Equipment, Appliances & Components; and Computer & Electronic Products. The five industries that reported lower volumes of imports in December are: Paper Products; Printing & Related Support Activities; Primary Metals; Transportation Equipment; and Fabricated Metal Products.
Imports
%
Reporting
%Higher
%Same
%Lower
Net
Index
Dec 2024
85
12.8
73.8
13.4
-0.6
49.7
Nov 2024
83
10.2
74.8
15.0
-4.8
47.6
Oct 2024
84
11.7
73.1
15.2
-3.5
48.3
Sep 2024
82
10.2
76.2
13.6
-3.4
48.3
†The Supplier Deliveries, Customers’ Inventories, Prices, Backlog of Orders, New Export Orders, and Imports indexes do not meet the accepted criteria for seasonal adjustments.
Buying Policy
The average commitment lead time for Capital Expenditures in December was 175 days, an increase of five days compared to November. Average lead time in December for Production Materials was 81 days, an increase of two days compared to November. Average lead time for Maintenance, Repair and Operating (MRO) Supplies was 46 days, an increase of two days compared to November.
Percent Reporting
Capital
Expenditures
Hand-to-
Mouth
30 Days
60 Days
90 Days
6 Months
1 Year+
Average
Days
Dec 2024
14
5
8
15
30
28
175
Nov 2024
16
4
9
15
29
27
170
Oct 2024
16
5
12
12
28
27
168
Sep 2024
16
3
10
13
30
28
174
Percent Reporting
Production
Materials
Hand-to-
Mouth
30 Days
60 Days
90 Days
6 Months
1 Year+
Average
Days
Dec 2024
7
25
28
27
8
5
81
Nov 2024
8
24
28
27
9
4
79
Oct 2024
9
25
26
26
9
5
81
Sep 2024
7
26
28
27
7
5
80
Percent Reporting
MRO Supplies
Hand-to-
Mouth
30 Days
60 Days
90 Days
6 Months
1 Year+
Average
Days
Dec 2024
30
35
16
13
5
1
46
Nov 2024
30
34
17
13
6
0
44
Oct 2024
30
34
18
12
5
1
46
Sep 2024
27
37
19
11
5
1
46
About This Report
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of December 2024.
The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.
Data and Method of Presentation
The Manufacturing ISM® Report On Business® is based on data compiled from purchasing and supply executives nationwide. The composition of the Manufacturing Business Survey Committee is stratified according to the North American Industry Classification System (NAICS) and each of the following NAICS-based industries’ contribution to gross domestic product (GDP): Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies). The data is weighted based on each industry’s contribution to GDP. According to BEA estimates (the average of the fourth quarter 2022 GDP estimate and the GDP estimates for first, second, and third quarter 2023, as released on December 21, 2023), the six largest manufacturing industries are: Chemical Products; Transportation Equipment; Food, Beverage & Tobacco Products; Computer & Electronic Products; Machinery; and Fabricated Metal Products.
Survey responses reflect the change, if any, in the current month compared to the previous month. For nine indicators (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries, Inventories, Employment, and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher, better and slower for Supplier Deliveries) and the negative economic direction (lower, worse and faster for Supplier Deliveries), and the diffusion index. For Customers’ Inventories, respondents report their assessment of their customers’ stock levels of respondent companies’ products this month (rather than last month): too high, about right, and too low. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive).
The resulting single index number for those meeting the criteria for seasonal adjustments (Manufacturing PMI®, New Orders, Production, Employment and Inventories) is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The Manufacturing PMI® is a composite index based on the diffusion indexes of five of the indexes with equal weights: New Orders (seasonally adjusted), Production (seasonally adjusted), Employment (seasonally adjusted), Supplier Deliveries, and Inventories (seasonally adjusted).
Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Manufacturing PMI® reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. A Manufacturing PMI® above 42.5 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 42.5 percent, it is generally declining. The distance from 50 percent or 42.5 percent is indicative of the extent of the expansion or decline. With some of the indicators within this report, ISM® has indicated the departure point between expansion and decline of comparable government series, as determined by regression analysis. For the Customers’ Inventories Index, numerically, a reading: above 50 percent is “too high,” equal to 50 percent is “about right,” and below 50 percent is “too low.” However, in practice and in the context of other data, customers’ inventories may be considered to be “about right” if the diffusion index is between 52 percent (the high side of about right) and 48 percent (the low side of about right).
The Manufacturing ISM® Report On Business® survey is sent out to Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to report on information for the current month for U.S. operations only. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM® then compiles the report for release on the first business day of the following month.
The industries reporting growth, as indicated in the Manufacturing ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.
Responses to Buying Policy reflect the percent reporting the current month’s lead time, the approximate weighted number of days ahead for which commitments are made for Capital Expenditures; Production Materials; and Maintenance, Repair and Operating (MRO) Supplies, expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six months (180 days), a year or more (360 days), and the weighted average number of days. These responses are raw data, never revised, and not seasonally adjusted.
ISM ROB Content
The Institute for Supply Management® (“ISM”) Report On Business® (both Manufacturing and Non-Manufacturing) (“ISM ROB”) contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, “Content”) of ISM (“ISM ROB Content”). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM ROB Content (excluding any software code) solely for your personal, non-commercial use. The ISM ROB Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM ROB Content.
Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.
You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 309 West Elliot Road, Suite 113, Tempe, Arizona 85284-1556, or by emailing kcahill@ismworld.org. Subject: Content Request.
ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM ROB. Report On Business®, PMI®, Manufacturing PMI®, Services PMI®, Hospital PMI®, and NMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.
About Institute for Supply Management® (ISM®)
Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries manages about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM® Report On Business®, its highly regarded certification and training programs, corporate services, events and assessments. The ISM® Report On Business®, Manufacturing, Services, and Hospital, are three of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit: www.ismworld.org.
The full text version of the Manufacturing ISM® Report On Business® is posted on ISM®’s website at www.ismrob.org on the first business day* of every month after 10:00 a.m. ET. The one exception is in January when the report is released on the second business day of the month.
The next Manufacturing ISM® Report On Business® featuring January 2025 data will be released at 10:00 a.m. ET on Monday, February 3, 2025.
*Unless the New York Stock Exchange is closed.
Contact:
Kristina Cahill
Report On Business® Analyst
ISM®, ROB/Research Manager
Tempe, Arizona
+1 480.455.5910
Email: kcahill@ismworld.org
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SOURCE Institute for Supply Management
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Goodwill Houston and CompuCycle Launch Tech Recycle Workforce Training Program for Students with Disabilities
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October 20, 2026By
HOUSTON, Oct. 20, 2026 /PRNewswire/ — Goodwill Houston and CompuCycle today announced Tech Recycle, a workforce training program that turns school districts’ retired electronics into paid vocational training for transition-age students with disabilities. Goodwill Houston operates the program and pays every student. CompuCycle, a Houston-based electronics recycler, provides certified data destruction and recycling for the districts’ devices.
Tech Recycle is a 12-week paid work-based learning program that helps students on the autism spectrum build skills and prepare for future employment, at no cost to them.
How Does Tech Recycle Work?
Districts send retired electronics to CompuCycle for certified data destruction and receive audit-ready documentation before sending the wiped devices to Goodwill Houston to be used in instruction.Students join a 12-week paid work-based learning program run by Goodwill Houston, gaining hands-on experience and skills that can support future employment.Goodwill Houston funds student paychecks in full, separate from the value returned to districts.CompuCycle recycles the scrap materials in-house at its 130,000 sq ft Houston facility and returns recovered material value to the districts.
From One Classroom to a Regional Workforce Program
Tech Recycle grew out of TechCycle, a program CompuCycle launched with Pearland ISD, supported by seed funding from Texas A&M and covered by ABC13. Goodwill Houston now runs it as Tech Recycle.
“Goodwill Houston saw what it could be across the region and built the training around it. Our job is to keep the recycling secure, certified, and done right here in Houston,” said Kelly Adels Hess, CEO of CompuCycle.
Building a Pathway to Success for Students with Autism
“We have run into so many students who have a passion for telling you how things work and taking them apart. But we did not have a pathway set aside for them. The greatest part about this program is we’re paying these students. They now have certified training and a resume builder,” said Vernee Sampson, Senior Manager of Vocational Rehabilitation Programs at Goodwill Houston.
“Most arrive assuming that they can’t do this or this isn’t for them, but we want them to walk away believing that they can do it,” said Alicia Franklin, Career Coach and instructor for Tech Recycle.
How Can Districts and Organizations Get Involved?
School districts that want to train their students through Tech Recycle can contact Goodwill Houston. Organizations with retired electronics can send them through CompuCycle. Learn more about the CompuCycle and Goodwill Houston partnership.
“Community impact is the point of Tech Recycle. A district retires its devices, we recycle them securely, and Goodwill Houston turns that into paid training for students. When a recycler, a nonprofit, and a school district work together, the whole community benefits,” Hess said.
Join the Conversation at E-Scrap
Kelly Adels Hess will lead a workshop, “Community Partnerships, Real Impact,” at the E-Scrap Conference in New Orleans on October 27 from 8:30 to 9:30 a.m.
About Goodwill Houston
Goodwill Houston is a nonprofit organization dedicated to changing lives through the power of work. Serving individuals and families across the Greater Houston area, Goodwill Houston provides workforce development, job training, career services and other programs designed to help people build skills, overcome barriers to employment and achieve greater independence.
About CompuCycle
CompuCycle is a Houston-based IT asset disposition and electronics recycling company. It holds R2v3, e-Stewards, and ISO 27001 certifications, the only electronics recycler in Texas with all three.
Media Contacts
CompuCycle: Kelly Adels Hess, CEO, khess@compucycle.com, 713-869-6700Goodwill Houston: Mia Brooks, Events and Public Relations Coordinator, MBrooks@goodwillhouston.org, 713-805-7031
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SOURCE CompuCycle
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xTool Launches C1 Color Cutter : The Full-Color Cutting Machine Built to Scan, Print, and Cut with Precision
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October 20, 2026By
PARIS, Oct. 20, 2026 /PRNewswire/ — xTool, a global pioneer in digital fabrication and smart desktop manufacturing, announces today its expansion into the craft cutter market with the launch of the xTool C1 Color Cutter.
Engineered under the slogan “Scan It. Print It. Cut It. Always in One Workflow,” the C1 solves long-standing industry challenges by integrating high-precision CIS scanning, CMYK full-color inkjet printing, and dynamic blade cutting into a single automated desktop workstation.
Starting October 20th, 2026, xTool is launching its official global pre-order campaign, offering an exclusive £10 deposit incentive that provides early buyers with substantial machine discounts, physical material bundles, and livestream giveaway entries.
Beyond Lasers and Printers : The Natural Evolution into Craft Cutting
The launch of the xTool C1 marks a milestone in xTool’s strategy to build a fully integrated hardware and software ecosystem for creators, DIY enthusiasts, and small-business owners. Building on its global leadership in desktop laser engravers and digital printers, xTool is bringing its expertise in precision mechanics and automation to traditional blade cutting.
By combining full-color printing and precision cutting in one compact machine, the C1 eliminates the need for separate printers, manual material transfers, and error-prone registration marks, simplifying workflows for paper crafts, vinyl graphics, HTV, apparel, and stickers.
Designed for Advanced Crafters and Small Businesses
For DIY enthusiasts, its integrated print-and-cut workflow helps reduce material waste, alignment errors, and the need to cut and weed multiple layers of vinyl. Complex projects involving heat transfer vinyl (HTV) for textile customisation, sticker making, and paper crafts become easier to complete.
For entrepreneurs and small businesses producing customised apparel, labels, packaging, or promotional items, the C1 is a valuable addition to their production workflow. It helps improve productivity, reduce manufacturing costs, and deliver professional-quality results.
Seamless Print-and-Cut Workflow
Combining CMYK inkjet printing with precision blade cutting, the C1 prints directly onto materials before cutting, eliminating registration marks, maximizing printable space, and minimizing alignment errors and waste. Its proprietary Duraproof ink produces vibrant, waterproof, fade-resistant graphics that can withstand up to 30 home washes on textiles.
Built-In CIS Scanner and Live Preview
An integrated Contact Image Sensor (CIS) provides a 1:1 live preview, allowing users to position designs accurately, including leftover materials. Additional features include automatic contour extraction, material nesting, and QR-code-based parameter setup.
AI-Powered Atomm Creation Suite
xTool’s Atomm software transforms text prompts and images into ready-to-cut vectors, with tools for background removal, artistic text, line-art conversion, and 3D papercraft templates, reducing design preparation from hours to minutes.
Versatile Materials and Tools
Compatible with Fine-Point, Deep-Point, Rotary, and 3mm Cutting blades, Foil-Transfer tips, and detail pens, the C1 supports paper, cardstock, vinyl, HTV, leather, balsa wood, and fabrics. Optional accessories include an Electrostatic Mat and Roll Holder with built-in trimmer.
Pre-Order Details
Global pre-orders open on October 20th, 2026, with prices starting at £399 and reservations available for a £10 deposit. Several bundles will be offered, including the first-ever C1 bundle with Atomm Membership.
Pre-order customers will receive exclusive £10 Pre-Order Bonus Perks, including a material kit with over 10 crafting materials, a 20% Material Card valid for 180 days across the xTool store, and entry into a livestream giveaway to win a free C1.
Final payments and global shipping begin November 5, 2026. Further details are available at xtool.com.
About xTool
xTool is a brand founded in 2020 that specialises in smart digital fabrication machines. The company’s mission is to foster creativity by developing intelligent, user-friendly tools that leverage advanced technologies to significantly lower the barriers to creation.
The brand primarily serves makers, DIY enthusiasts, and the education sector by combining powerful software with safe, easy-to-use hardware. xTool provides users with new opportunities to bring their creative ideas to life efficiently and professionally.
For more information: xtool.com
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Technology
Green Data Center Market worth $197.02 billion by 2031 – Report by MarketsandMarkets™
Published
5 minutes agoon
October 20, 2026By
DELRAY BEACH, Fla., Oct. 20, 2026 /PRNewswire/ — According to MarketsandMarkets™, the global Green Data Center Market is expanding rapidly, with a projected market size anticipated to rise from about USD 60.77 billion in 2026 to USD 197.02 billion by 2031, featuring a CAGR of 26.5%.
Browse 303 market data Tables and 60 Figures spread through 240 Pages and in-depth TOC on “Green Data Center Market – Global Forecast to 2031”
Green Data Center Market Size & Forecast:
Market Size Available for Years: 2021–20312025 Market Size: USD 48.26 billion2026 Market Size: USD 60.77 billion2031 Projected Market Size: USD 197.02 billionCAGR (2026–2031): 26.5%
Green Data Center Market Trends & Insights:
The global market is gaining momentum as data center operators and enterprises respond to rising energy costs, increasingly stringent sustainability regulations, and growing commitments to reduce carbon emissions.The infrastructure segment is expected to hold the largest market value of USD 39.31 billion by 2026.The building management software is projected to grow at the highest CAGR of 32.1% during the forecast period.Cloud and hyperscale data centers are expected to dominate the market during the forecast period.Retail and e-commerce enterprises are projected to grow at the highest CAGR during the forecast period.North America is estimated to dominate the market with the highest value of USD 25.12 billion by 2026.
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Green data centers are transforming digital infrastructure by integrating technologies such as renewable energy systems, liquid and immersion cooling, and intelligent energy management solutions to enable sustainability at scale. These innovations improve power usage efficiency, reduce carbon emissions, and support compliance with increasingly stringent global sustainability regulations, accelerating adoption across hyperscale facilities, colocation providers, and enterprise data centers. By incorporating energy-efficient and environmentally optimized technologies into core operations, green data centers enhance long-term resilience, regulatory alignment, and cost efficiency for energy-intensive workloads. This infrastructure enables organizations to support AI-driven applications, cloud services, and high-density computing environments more efficiently, while reducing reliance on fossil fuel-based power systems and minimizing overall environmental impact.
By Cooling Infrastructure, Green Air Cooling will register the largest market share during the forecast period
Green air cooling is expected to remain a key thermal management solution in data centers, driven by the growing emphasis on energy efficiency, sustainability, and reduced environmental impact. Key components include Computer Room Air Handlers (CRAH) and Computer Room Air Conditioning (CRAC) units, which use chilled water and refrigerant-based systems, respectively, to maintain optimal temperature and humidity conditions. These systems are increasingly equipped with variable-speed fans, advanced controls, and high-efficiency motors to reduce energy consumption and improve overall cooling performance. Energy-efficient air-cooled chillers further complement these systems by using low Global Warming Potential (GWP) refrigerants and incorporating free-cooling modes that leverage ambient outdoor air to reduce cooling energy requirements. Additional approaches, including hot/cold aisle containment, variable airflow management, and intelligent monitoring systems, enable cooling capacity to be dynamically adjusted according to real-time demand, improving energy efficiency. Emerging vendors and solution providers can capitalize on this trend by developing advanced thermal management technologies. Carrier’s investment in ZutaCore, announced in February 2025, highlights the industry’s increasing focus on advanced cooling solutions. The collaboration aims to deliver scalable and energy-efficient thermal management systems capable of addressing the rising cooling requirements of modern data centers. To capture these opportunities, vendors can focus on developing innovative cooling technologies that improve efficiency and support sustainability objectives. Strategic collaborations, industry partnerships, and continuous technological innovation will remain important for strengthening capabilities in the evolving green data center cooling market.
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Software segment is poised for the fastest growth rate during the forecast period
The software segment is expected to register the highest CAGR in the Green Data Center Market, driven by growing demand for intelligent automation, energy optimization, operational visibility, and regulatory compliance. Data Center Infrastructure Management (DCIM) software provides real-time visibility into power consumption, cooling performance, server utilization, and environmental conditions, enabling operators to identify inefficiencies, optimize resource allocation, and maintain high availability. Building Management Systems (BMS) integrate electrical, mechanical, and HVAC systems to automate energy-efficient facility operations while regulating lighting, temperature, and airflow to minimize energy waste and improve cooling efficiency. Compliance software supports adherence to environmental standards, industry regulations, and sustainability certifications such as LEED and ISO 50001 by automating reporting, documentation, and audit processes, thereby improving transparency and accountability. Specialized software solutions, including AI-driven predictive workload management and energy analytics platforms, can dynamically optimize cooling, power distribution, and IT workloads based on real-time demand, reducing energy consumption, environmental impact, and operating costs. Emerging vendors and solution providers can capitalize on this growth through strategic partnerships, technology integration, and AI-enabled capabilities. For instance, in August 2025, Vertiv acquired Waylay NV, a Belgium-based AI-powered software provider, to strengthen monitoring, optimization, and operational efficiency across data center systems. By developing advanced software solutions, collaborating with established technology providers, and leveraging AI, automation, and analytics, vendors can support sustainable, efficient, and regulatory-compliant green data center operations while addressing the growing demand for intelligent infrastructure management.
North America accounts for the largest market during the forecast period
North America is witnessing measurable growth in green data center activity, driven by corporate decarbonization targets, rising onsite power costs, and the increasing need to deploy high-density computing infrastructure with lower water and energy intensity. According to the US Energy Information Administration, solar power generation in the United States increased by 25% in 2024, while wind power generation grew by 8%, improving the availability of low-carbon electricity for hyperscale and colocation data center campuses. Additionally, Schneider Electric announced collaborative AI data center reference designs with NVIDIA in December 2024 that support liquid cooling at densities of up to 132 kilowatts per rack, highlighting supplier responses to rising rack power densities and efficiency requirements. Federal and commercial developments during 2024 and 2025 are also influencing procurement timelines and technical specifications. The White House issued an executive order in July 2025 aimed at accelerating federal permitting for large data center projects and supporting infrastructure. By streamlining approvals for facilities exceeding 100 megawatts or involving capital expenditures of at least USD 500 million, the order supports faster deployment of next-generation data centers, enabling integration of renewable power, liquid cooling systems, and energy-efficient designs. Schneider Electric also introduced and validated new electrical and liquid cooling reference designs through 2024 and 2025, creating standardized deployment pathways for integrators and data center owners. Vendors and solution providers are increasingly focusing on liquid cooling systems, modular electrical skids, facility-level heat recovery, and advanced DCIM capabilities to address evolving procurement requirements amid faster permitting processes and increasing renewable power availability.
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Top Companies in Green Data Center Market:
The Top Companies in Green Data Center Market are Schneider Electric (France), Vertiv (US), Eaton (US), Daikin (Japan), ABB (Switzerland), Delta Electronics (Taiwan), Siemens (Germany), Carrier (US), and GE Vernova (US).
Green Data Center Market – Investment & funding +Merger & Acquisition
Investment and Funding Context
The global Green Data Center Market is attracting strong investment from hyperscalers, cloud providers, colocation operators, and enterprises seeking sustainable ways to expand capacity for AI, high-performance computing, and edge workloads. Investment is increasingly directed toward energy-efficient power and cooling systems, eco-friendly IT modules, high-density green AI pods, and sustainable manufacturing capacity.
Capital is also flowing toward companies developing technologies that address the power, cooling, and energy-efficiency requirements of sustainable AI infrastructure. For example, Eaton completed its USD 9.5 billion acquisition of Boyd Thermal in March 2026, adding liquid cooling and thermal management capabilities for high-density, energy-efficient data centers. Similarly, Vertiv agreed in September 2026 to acquire UtilityInnovation Group for approximately USD 1.45 billion to add microgrid controls, on-site generation orchestration, and behind-the-meter power architecture that shorten time to power. Schneider Electric completed the acquisition of a 75% controlling interest in Motivair for USD 850 million in February 2025 to strengthen its liquid cooling portfolio for AI data centers. These investments and strategic transactions demonstrate the increasing emphasis on energy-efficient, low-carbon, and rapidly deployable power and cooling infrastructure across the green data center ecosystem.
Revenue Shift Context
The market is shifting from conventional, energy-intensive data center infrastructure toward energy-efficient, low-carbon, and sustainability-oriented architectures as operators seek to reduce power consumption, operating costs, and carbon emissions. The rapid growth of AI and high-performance computing is accelerating this transition by increasing power density and cooling requirements, creating greater demand for efficient power distribution, advanced thermal management, renewable energy integration, and intelligent energy management. Technologies such as liquid cooling, high-efficiency UPS systems, renewable-powered generation, energy storage, and intelligent monitoring platforms are increasingly being integrated into data center infrastructure to improve energy utilization and support sustainability targets. Operators are also adopting modular and prefabricated solutions that improve deployment efficiency while incorporating energy-efficient power and cooling systems.
Revenue opportunities are consequently expanding beyond conventional energy-efficiency equipment toward integrated green infrastructure solutions, including renewable energy systems, liquid and immersion cooling, energy storage, high-efficiency power systems, AI-enabled energy management, DCIM platforms, carbon monitoring, and heat recovery technologies. The growing deployment of high-density AI infrastructure is particularly increasing demand for liquid cooling, optimized power architectures, and real-time energy monitoring capable of maintaining performance while controlling energy consumption.
Mergers and Acquisitions
Mergers, acquisitions, and strategic investments are increasingly shaping the Green Data Center Market as infrastructure providers seek to strengthen capabilities across energy-efficient power systems, advanced cooling, renewable energy integration, and intelligent energy management. Recent activity is focused on expanding sustainable technology portfolios, enhancing vertical integration across critical infrastructure components, and accelerating the development and deployment of energy-efficient solutions for AI-ready and high-density data center environments.
GREEN DATA CENTER MARKET: MERGERS AND ACQUISITIONS, AUGUST 2025–SEPTEMBER 2026
Month and Year
Deal Type
Company 1
Company 2
Description
September 2026
Acquisition
Eaton (Ireland)
COL Group (Italy) (from Oaktree)
Eaton signed a deal to buy COL Group at an enterprise value of about EUR 810 million. COL makes medium-voltage distribution equipment, including SF6-free switchgear, grid automation, and modular power systems. The deal expands Eaton’s European manufacturing for data center and utility customers.
September 2026
Acquisition
Vertiv (US)
King Environmental Services (KES) (Ireland)
Vertiv agreed to buy this Europe-based provider of fluid management, commissioning, and load-testing services for liquid-cooled data centers. It extends Vertiv’s thermal services into EMEA, building on PurgeRite in North America.
April 2026
Acquisition
Vertiv (US)
BMarko Structures (US)
Vertiv acquired BMarko to bring structural fabrication in-house and expand capacity for manufactured, prefabricated, and converged infrastructure solutions.
November 2025
Acquisition
Eaton (Ireland)
Boyd Thermal (US)
Eaton announced the USD 9.5 billion purchase of Boyd’s thermal business, which closed on March 12, 2026. It adds liquid cooling and thermal components for data centers, and about 80% of Boyd’s business serves that market.
Company Revenue Share Details
The global Green Data Center Market is led by established power, cooling, and electrical infrastructure providers competing across energy-efficient power distribution, power backup and energy storage, green air and liquid cooling, and DCIM and energy management software. Major participants include Schneider Electric, Vertiv, Eaton, ABB, and Hitachi Energy, alongside other global and regional players such as Daikin, Delta Electronics, Siemens, Carrier, and STULZ. Competition is increasingly shaped by the ability to offer integrated power and cooling portfolios that lower PUE, support renewable and low-carbon power integration, and handle the higher rack densities of AI workloads.
Competition is also shifting toward vertical integration and end-to-end offerings that span grid interconnect to chip. Recent transactions demonstrate this focus on liquid cooling, thermal management, and sustainable power distribution. For example, Eaton’s USD 9.5 billion acquisition of Boyd Thermal added liquid cooling capabilities. Its agreement to acquire COL Group (EUR 810 million enterprise value) adds SF6-free medium-voltage switchgear.
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Data Center Rack Market by Rack Type (Open Frame, Enclosed), Type (Server Racks, Network Racks), Rack Height (42U & Below, 43U up to 52U), Rack Width (19 Inch, 23 Inch), Data Center Type (Enterprise, Colocation, Hyperscale) – Global Forecast to 2030
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