AGP Executive Report

Defense Production: The Army plans a “manufacturing rodeo” early next year to identify weaknesses in its industrial base, while L3Harris won a $250 million contract to make GMLRS rocket motors at a new Camden, Arkansas, facility. Factory Investment: Prysmian is set to break ground on a $100 million expansion of its Jackson, Tennessee, plant, doubling its footprint and adding about 100 jobs to meet demand for fiber cables. Bayer also chose central Ohio for a $2.2 billion pharmaceutical manufacturing site. Industry Pulse: A survey reports U.S. manufacturing is in expansion, and metalworking machinery orders rose more than 36% in August. Auto Watch: Stellantis shipments fell 12% in North America in the third quarter, with planned production shutdowns weighing on volume.

Factory Investment: Jamison Door and parent BMP broke ground on a 355,000-square-foot plant near Hagerstown, the first phase of a planned 58-acre North American campus. Biomanufacturing: GSK pledged $800 million to expand biologics production in Pennsylvania, while UCB dedicated a site for a new Georgia campus. Semiconductors: Gudeng Precision opened a component facility in Glendale, Arizona, as TSMC secured U.S. supply for a key AI-chip component and GlobalFoundries announced a $2 billion boost to U.S. chip packaging. Defense Production: L3Harris won a solid-rocket-motor contract tied to record output, and construction began on a $3.2 billion Texas shipyard. Workforce and Costs: North Texas manufacturers face skills shortages even as interest in manufacturing grows; tariff-driven cost pressures and layoffs are adding strain on factory workers.

Factory Operations: Vertiv named Michael Resha to lead global manufacturing as demand for AI and data-center infrastructure grows, with a mandate to expand capacity and improve operations. Energy Supply Chain: Gaon Cable plans to add nuclear-grade cable production at its North Carolina plant, positioning the facility to serve U.S. reactor and small modular reactor projects. Electric Trucks: Tesla and Pilot opened their first joint heavy-duty charging site in Georgia; Tesla says its Nevada factory can produce up to 50,000 Semis a year. U.S. Investment: Bayer is building a $2.2 billion pharmaceutical plant in Ohio, while UCB has dedicated a new biologics manufacturing campus in Georgia. Medical Manufacturing: Atlanta-based OXOS Medical won up to $24.4 million from BARDA to develop and seek FDA clearance for a portable X-ray system. Trade Pressures: Factory workers are voicing concern that tariffs may cost jobs rather than revive manufacturing, as manufacturers also face rising costs.

Auto Manufacturing: Hyundai’s Georgia Metaplant has 4,420 jobs across its on-site companies and is adding hybrid production while keeping its 2031 targets of 500,000 vehicles a year and 8,500 jobs. Volkswagen has begun building the 2027 Atlas in Chattanooga. Trade and Costs: Tariff fears are weighing on factory workers: a Michigan clockmaker closed its plant and laid off nearly 200 people. Diesel prices remain 71% above a year ago, raising costs for manufacturing and freight. Semiconductors: GlobalFoundries and TSMC signed a five-year, $2 billion deal to make silicon interposers in the U.S., boosting domestic capacity for advanced chip packaging. Industrial Investment: Bayer plans a $2.2 billion pharmaceutical plant in Ohio, while more than 70% of announced U.S. solar manufacturing expansions are still unfunded.

Aerospace Manufacturing: SeAH’s $110 million Texas superalloy plant is set to begin commercial production in the first half of next year, supplying materials for aircraft and space engines as the company eyes customers including SpaceX. Steel Investment: Essar is planning an $18 billion U.S. steelmaking push spanning Minnesota and Iowa. Solar Reality Check: More than 70% of announced U.S. solar factory expansions remain unfinanced, casting doubt on how much planned capacity will be built. Domestic Supply Chains: TSMC is turning to GlobalFoundries for a $2 billion U.S. investment in advanced chip packaging, while UCB has dedicated a new biologics manufacturing campus in Georgia. Medical Manufacturing: BD’s $19 billion U.S. investment, including more than $1 billion planned for Nebraska, aims to expand domestic medical-supplies production.

Steel Investment: Essar-backed Mesabi Metallics unveiled an $18 billion plan linking Minnesota iron-ore operations with a proposed $15 billion steel complex in Iowa, aiming to build a domestic supply chain. Solar Manufacturing: More than 70% of announced U.S. solar factory expansions remain unfunded, highlighting the gap between expansion plans and committed capital. Chips & Medical Manufacturing: GlobalFoundries will make silicon interposers in the U.S. under a five-year, $2 billion agreement with TSMC. BD announced a $19 billion U.S. manufacturing investment, including $1 billion in Nebraska. New Capacity: Bayer broke ground on a $2.2 billion pharmaceutical plant in Ohio, while Hertha Metals began work on what it calls the first U.S. commercial plant for magnet-grade high-purity iron. Defense Production: Anduril and the Navy announced a $6.6 billion effort to expand the U.S. submarine industrial base.

Critical Materials: U.S. defense buyers are putting money behind domestic tungsten supply, with a stockpile contract valued at up to $2 billion and a separate $450 million investment in a supplier. Biomanufacturing: UCB dedicated a new biologics campus in Georgia, while Bayer is building a $2.2 billion pharmaceutical facility in Ohio. Semiconductors: GlobalFoundries will make silicon interposers for TSMC in the U.S. under a five-year, $2 billion agreement, bolstering domestic capacity for advanced AI packaging. Defense Production: Anduril and the Navy are investing $6.6 billion in a Maryland submarine yard; Camden has also delivered its first U.S.-made Tamir missile interceptor. Workforce: Nebraska launched training grants for key industries, and Polk State added free evening CNC classes to make machining training more accessible.

Pharma Investment: Bayer selected central Ohio for a $2.2 billion pharmaceutical manufacturing facility, adding significant U.S. drugmaking capacity. Advanced Chips: GlobalFoundries and TSMC struck a $2 billion deal to produce silicon interposers in the U.S., expanding domestic capacity for advanced AI chip packaging. Defense Production: Raytheon won a contract worth up to $6.3 billion for SM-3 interceptors, while Camden, Arkansas, delivered its first U.S.-made Tamir interceptors. Workforce & Jobs: Manufacturers face a steep skills gap, with 1.7 million skilled-trade openings projected each year through 2035; thousands of manufacturing layoffs were also announced in September.

Semiconductors: GlobalFoundries will expand its Malta, New York, facility to make silicon interposers for TSMC’s AI chip packaging, with production expected to ramp in 2028. Factory Growth: Webco plans to restart steel-processing operations at Port Muskogee, Oklahoma, creating up to 60 jobs; Nucor will invest $105 million to expand its Indiana utility-structure plant and add up to 100 jobs. Domestic Supply Chains: The Pentagon has offered Wolfspeed a conditional $1.5 billion loan to strengthen U.S. production of silicon carbide and gallium nitride. BD’s $19 billion federal manufacturing agreement includes more than $1 billion in planned Nebraska investment, while Bayer plans a $2.2 billion pharmaceutical plant in Ohio. Industry Watch: The FTC and USDA are seeking public input on competition and business practices in agricultural equipment manufacturing and distribution.

Factory Investments: Novelis has produced its first aluminum coil at its $5 billion Alabama plant. BD announced a $19 billion U.S. manufacturing investment, including more than $1 billion planned for Nebraska. Defense Production: Anduril plans to invest $3.7 billion in a Maryland shipyard to expand submarine production, while HITT broke ground on a $500 million solid-rocket-motor facility. Wolfspeed also secured a $1.5 billion Defense Department loan for semiconductor production and research. Chip Supply: GlobalFoundries agreed to establish a U.S. supply of silicon interposers for advanced AI packaging. Factory Pressures: U.S. factory backlogs rose again in August, but shipments stalled as manufacturers reported rising freight and steel costs and worker shortages. Reshoring: A new survey finds more manufacturers are bringing production back to the U.S., though significant hurdles remain.

Factory Expansion: Viakable will invest $55 million to expand its La Salle, Illinois, cable plant, adding 50 jobs. In North Carolina, Aluma-Form plans to invest $6.7 million and create 100 jobs at a new facility. Alabama Aluminum: Novelis has produced the first coil at its $5 billion Bay Minette plant, which will add 600,000 tonnes of annual capacity and up to 1,000 jobs when fully operational. Commercial shipments are targeted for 2027. Semiconductors: Wolfspeed received a conditional federal loan commitment of up to $1.5 billion to boost U.S. silicon-carbide and gallium-nitride production for defense and other strategic markets. Major Projects: BD announced a $19 billion U.S. investment, including more than $1 billion in Nebraska, while Bayer plans a $2.2 billion pharmaceutical manufacturing campus in Ohio. Anduril and the U.S. Navy are also advancing a $6.6 billion Maryland shipyard to expand submarine production. Workforce: An ASU-TSMC Arizona training program is preparing equipment technicians for semiconductor jobs, with more than 100 positions expected to be filled by year-end.

Defense Manufacturing: Anduril and the Navy plan a $6.6 billion Maryland shipyard to make submarine components, creating more than 3,100 jobs by 2034. The Navy also awarded Textron $230 million to build two landing craft in Louisiana and contracts totaling $207 million for solid-rocket-motor development. Factory Investment: BD and the federal government launched a $19 billion partnership to expand U.S. manufacturing, including $1 billion in Nebraska; Bayer plans a $2.2 billion pharmaceutical manufacturing campus in Ohio. Calgon Carbon is nearly doubling reactivated-carbon output at its Texas facility. Automotive & Workforce: Toyota opened a Michigan center to test batteries from raw materials through recycling. GE Aerospace Foundation will invest $1 million in Alabama training for aerospace and advanced-manufacturing careers. Trade Pressures: Packaging maker Supremex says tariffs will cut annual operating earnings by $10 million to $12 million and plans to eliminate 60 jobs while consolidating facilities in the U.S. and Canada.

Defense Industrial Base: The U.S. Navy and Anduril launched a $6.6B push for a new “Arsenal-2” shipyard at Sparrows Point, Maryland, to build Virginia-class submarine components and expand autonomous underwater vessel production, with thousands of jobs promised. Trade & Manufacturing Economics: New Commerce data says the U.S. trade deficit hit a 17-month high in August, widening to $105.6B as imports—especially petroleum, gold, and AI-related chips—outpaced exports. Semiconductors & Geopolitics: Intel shares slid after Elon Musk floated a potential TSMC role in his Terafab chip venture, raising questions about Intel’s position in the project. Workforce & Training: Iowa community colleges won $656K to expand short-term healthcare and advanced manufacturing training through a broader Workforce Pell-eligible initiative. Industrial Steel Upgrade: Cleveland-Cliffs’ Butler Works secured $75M in federal support tied to a $200M hot-mill upgrade aimed at boosting grain-oriented electrical steel output and cutting emissions. Energy Storage Policy: A look at sodium-ion batteries shows how U.S. domestic-content and foreign-entity rules are reshaping procurement and project design for grid storage. Solar Manufacturing: Commentary argues the U.S. solar race is less about picking cell tech and more about building high-quality domestic fabs that can sustain long-term output. Regional Defense Tech: Huntsville and Colorado Springs are coordinating on Golden Dome missile defense, with local aerospace and defense firms positioned to benefit.

Defense Shipbuilding Push: Anduril plans a $3.7B Maryland shipyard at Sparrows Point to manufacture Virginia-class submarine components, with a potential $6.6B total deal as the Navy tries to lift output. Submarine Supply Chain Expansion: The administration also announced Anduril’s new Baltimore-area facility (Arsenal-2) to speed production of complex parts like torpedo tubes and air flasks for Electric Boat and Huntington Ingalls. Workforce Training: Alpena Community College partnered with IACMI’s America’s Cutting Edge to expand CNC and machining training, funded through the Office of Industrial Base Policy. Manufacturing Materials & Inputs: Florence Copper launched commercial production at its Florence, Arizona in-situ copper recovery operation—the first major new U.S. copper mine in ~20 years. Industrial Automation Benchmark: A new robot-density ranking puts the U.S. at 307 industrial robots per 10,000 manufacturing employees (about one per 33 workers). Food & Label Compliance: PepsiCo recalled 122,000+ Gatorade cases in 37 states over undeclared synthetic dyes, tied to labeling rules. EV Charging Snapshot: Vermont’s EV market share rose to 5.55% in Q2 2026, but charging availability remains tight at 14 EVs per public port.

Defense Manufacturing: BAE Systems won a $16M Collins Aerospace contract to design and develop M-Code GPS for the U.S. Navy, supporting JPALS modernization at BAE’s Cedar Rapids facility. Aerospace & Production: Deutsche Aircraft opened the final assembly line in Leipzig/Halle for the D328eco, aiming for up to 48 aircraft annually and marking aircraft manufacturing’s return to Saxony. Advanced Components for AI: Samsung Electro-Mechanics signed a 290 billion-won (about $216M) deal to supply multilayer ceramic capacitors for AI servers in 2027–2028, underscoring demand for next-gen electronics manufacturing. U.S. Defense Supply Chain Expansion: Advanced Navigation will build a Positioning, Navigation and Timing (PNT) Centre of Excellence in Huntsville, Alabama, to produce components for classified and security-sensitive programs. Energy & Industrial Policy: A $120B U.S. nuclear build tied to long-lead equipment procurement is moving forward with South Korea and the U.S. pursuing a framework for eight large reactors, highlighting how manufacturing timelines could make or break schedules. Biopharma Access: A JAMA-cited analysis says biosimilars delivered nearly $20B in savings in 2024, as the U.S. pushes more affordable biologic manufacturing and competition. Regulatory/Quality in Pharma: HLB said a second manufacturing site for its liver cancer drug rivoceranib cleared an FDA review, easing uncertainty after a prior Complete Response Letter.

Defense Manufacturing: Boeing won a roughly $14.7B Lockheed Martin contract to scale PAC-3 MSE seeker output, aiming to triple production over a seven-year framework. Pharma Manufacturing Expansion: Bayer will invest $2.2B in a New Albany, Ohio drug manufacturing campus, targeting module starts in 2031 and 2034 and creating hundreds of jobs plus construction work. Semiconductor Supply Chain & Materials: EMD Electronics opened a new Sheboygan Falls R&D facility tied to a $200M Wisconsin investment to support advanced semiconductor materials manufacturing. Energy Storage & Industrial Tech: GE HealthCare agreed to buy Sofie Biosciences for $945M, expanding U.S. radiopharmaceutical manufacturing and distribution for F18 PET imaging. Critical Minerals: A new USGS critical mineral map nearly doubles listed deposits, underscoring domestic supply potential for minerals tied to manufacturing and defense. Trade & Costs: New York’s MTA asked for tariff exemptions after a report warned federal tariffs could add $1B to rolling stock upgrades. AI on the Factory Floor: Geocarbonite highlighted how AI is helping technicians work smarter, while a separate report notes agentic AI adoption is rising but scaling remains hard.