US factory signals soften, Cotopaxi remediates fees, tariff case narrows

Factory demand softened, an apparel brand moved from a labor finding to worker reimbursement, and a tariff challenge narrowed to a sample case. Together, the developments give procurement teams new evidence on operating pressure, supplier remediation and landed-cost rules.

US factory demand cools as supplier deliveries slow

Supply Chain Dive reports that the Institute for Supply Management's manufacturing PMI reached 54.6% in August, marking an eighth straight expansion month but sitting 1 percentage point below July. New orders fell to 53.7% from 56.7%, while backlogs moved to 51.8% from 55%.

Pricing remained elevated, with the index at 71.1%, unchanged from July. The supplier-deliveries reading rose to 59.3% from 58.9%; for this measure, a reading above 50% indicates slower deliveries.

Why it matters: Buyers should separate modest demand cooling from persistent price and delivery pressure when refreshing volume, lead-time and escalation assumptions.

Cotopaxi reimburses recruitment fees at Taiwan mills

Supply Chain Dive reports that Cotopaxi covered a production-share allocation of predatory recruitment fees for workers at two Taiwan fabric mills. The action followed a forced-labor indicator identified at the mills in 2024 and work to remedy recruitment-fee violations.

A fashion-industry study ranked forced labor as respondents' No. 6 concern for 2026, up from No. 10 in 2025. Cotopaxi also reported third-party audits across all Tier 1 and Tier 2 suppliers, supported by on-site visits.

Why it matters: Procurement teams should define how remedy costs are allocated when several buyers share a lower-tier facility, rather than treating the audit finding as the end of due diligence.

Court selects Learning Resources tariff test case

SupplyChainBrain reports that the Court of International Trade chose Learning Resources as the sample shipper in litigation over tariffs authorized through the Trade Act's Section 301. The duties took effect July 24 with country-specific rates of 10% and 12.5%; the administration tied them to national enforcement of forced-labor import bans.

The panel placed the remaining litigants into a steering committee intended to preserve their arguments. Three shipper cases had been filed, but only the sample is moving first. The court plans a September 30, 2026 summary-judgment hearing in New York.

Why it matters: Importers should model the current duty while keeping legal scenarios separate from the rates used in current landed-cost calculations.

The thread

Each story turns on evidence changing an operating decision: an index mix complicates the demand signal, a labor finding requires a buyer-funded remedy, and a court process may change tariff certainty. The immediate procurement task is to keep the source, effective date and decision owner attached to every risk response.