US manufacturers are confronting a fresh wave of supply chain inflation driven by higher energy costs from Donald Trump's Iran policies, tariffs raising import prices, and AI-driven demand for electronics. Input costs are rising at double-digit rates, forcing companies like Ohio-based Earth Quaker Devices to raise prices twice this year. CEO Julie Robbins said, "We just need to spend more and more money for the same stuff." The Institute for Supply Management's August survey showed more than a dozen industries reporting rising raw material prices, with none reporting declines.

ISM's price index has risen for 23 consecutive months. Bureau of Labor Statistics data shows intermediate processed goods up 11.5% year-over-year and unprocessed goods up 12.8%. Diesel hit a record $6.23 a gallon, while freight costs rose 16% in August.

Wyoming Machine co-president Traci Tapani reported "disruption" securing steel. The US 10-year yield reached 5% for the first time since 2023, prompting bets the Federal Reserve will raise rates. Association of Equipment Manufacturers' Kip Eideberg noted the shift "from scarcity to cost as the primary concern," though electronics face both availability and price challenges from the AI boom.