A number of factors are impacting the U.S. manufacturing sector at present, including heightened trade tensions and a skills gap that continues to grow as the U.S. unemployment rate hits a 50-year low.
The Trump administration recently increased tariffs on Chinese imports from 10% to 25%, after once hopeful trade talks between the U.S. and China took a negative turn.
Many manufacturers are expressing concerns over Brexit, while others are eyeing potential supplier delivery issues at the U.S./Mexico border.
Yet, despite all of this, U.S. manufacturing has grown at a record pace over the past few years, and in recent months, the growth continues, albeit at a slower rate.
The ISM index indicates that the U.S. industrial sector has grown for 38 straight months. Bright spots on the trade front, announced Friday, included the USTR’s plans to postpone tariffs on automotive parts for six months, as well as successful negotiations to lift tariffs on steel and aluminum imported from Canada and Mexico.
Recent reports by MNI find states with manufacturing sectors that have been losing jobs in recent years, such as Rhode Island and North Carolina are now recovering, revamping their industrial sectors to meet today’s demands of advanced and high-tech manufacturing.
New plants and expansions are being announced every day, including an increasing number of high-tech enterprises.
From Detroit to Baltimore to Augusta, Georgia, here are just a few of the major manufacturer announcements made in May.
Motor City gets Googled
Waymo, a subsidiary of Alphabet, recently announced it has chosen a previously-shuttered American Axle & Manufacturing Holdings plant to integrate production of its driverless car technology.
Alphabet, a holding company for Google, announced it would be equipping Fiat Chrysler and Jaguar Land Rover vehicles with the new technology. The project aims to create hundreds of jobs over the next few years.
According to Waymo, as reported by Fortune Magazine, the company chose Detroit for its large pool of local talent, as well as its inclement weather, which helps to create more diverse road condition on which to test the new technology.
Biotech Companies in Maryland/DC Continue to Multiply
Pharmaceutical company Precigen Inc, recently opened a new gene and cell therapy manufacturing plant in the greater D.C. area. The new 5,000-square foot plant in Germantown, MD will manufacture gene therapy vectors and cell banks, the Washington Business Journal reported.
The facility will also be used to produce other types of biopharmaceutical products.
Maryland has emerged in recent years as a major manufacturing hub for biotech, which has led to a growing industrial workforce.
MNI recently reported that the Maryland/DC area added a record number of manufacturing jobs in 2018.
Other highlights for the region’s biotech sector included the growth of vaccine maker Emergent Biosolutions in Baltimore.
IndustryNet reported in April that biologics contract development and manufacturing organization Paragon Bioservices, would be establishing a 150,000 square-foot manufacturing facility near Baltimore.
As reported by the Baltimore Business Journal, Paragon is among state’s fastest-growing, ranking #8 on the Journal’s list of the region’s 50 fastest-growing private companies in 2018. The company blossomed from 225 to 400 employees in 2018.
By the end 2019, Paragon is expected to employ 500 local workers.
In addition, Life Sprout, a John Hopkin’s-based startup that makes synthetic human tissue, recently announced it would be setting up shop at a new medical device accelerator space in South Baltimore.
As reported by Technical.ly the new facility will focus on developing and refining its processes, with plans to soon establish clinical trials and regulatory approval.
"Great Day for Georgia" as Spanish Auto Supplier Drives Into Town
Spain-based Acoustics & Insulation Techniques, which produces insulation for the automotive and construction industries, announced May 6th that it would be establishing its first U.S. facility in Augusta, Georgia.
The new $12 million venture is expected to result in 45 new high-tech jobs for the city and production will begin in July of this year.
“It’s a great day in Georgia when we can announce an international company has chosen to locate its North American headquarters here,” said Governor Brian P. Kemp in reference to the announcement.
New Water Bottling Facility Planned for KC
California-based bottled water company Niagara Bottling, announced plans to locate its new manufacturing and distribution facility in Kansas City, MO.
If approved by the city council, the new 426,349 square-foot facility will hire 100, according to the Kansas City Business Journal.
Kentucky Town Gets New Propane Tank Plant
Manchester Tank & Equipment, a division of McWane Inc., announced recently that its will be establishing a new propane tank facility in Campbellsville.
The new facility will represent a $10 million investment on McWane’s part, and the company has been approved for $2 million in incentives through the Kentucky Business Investment Program.
Historic Pennsylvania Metals Company Adds Additive to its Repertoire
The Reading Eagle reported this month that Carpenter Technology, a 130-year-old maker of specialty cast, wrought & powder metallurgy alloys, plans to create a business unit dedicated to 3-D printing, called the Carpenter Additive business unit.
This new development highlights the emerging challenges and opportunities longstanding manufacturers face as industrial production becomes more and more high-tech.
Carpenter has come a long way towards adopting advanced manufacturing processes, investing more than $50 in research and development in that area.
The company also acquired a number of entities to further its mission, including CalRAM LLX, and Puris, a West-Virginia manufacturer of powdered titanium used in 3-D printing.
From Back Yard Shack to Precision Part Giant, IPSUM Grows in South Carolina
IPSUM Technologies, a manufacturer of precision parts for a wide range of industries, including defense and pharmaceuticals, recently announced plans to break ground on a new $19.2 million facility in South Carolina.
The new operation will employ 55. According to the Greenville News.
IPSUM, a family business, began as a 12 x 12-foot shed in the back yard of the founder, John Heaton’s, Anderson, SC home, where he worked nights to produce equipment for Owens Corning.
Czech Gun Manufacturer Targets Little Rock for New Plant
Czechoslovakia-based CA-USA plans to establish its North American headquarters in Little Rock. The site will include a 265,000 square-foot production facility, with plans to hire 565, reports the Associated Press.
CZ-USA has two exiting sites in the U.S., including a Dan Wesson factory in Norwich, NY. CZ-USA will invest $90 million in the Little Rock plant.
The Arkansas Economic Development Commission has committed to a generous incentive package, including $18 million in loans and $6 million in grants.
The project should take 6 years to complete.
Finding Domestic Suppliers
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Visitors can set up a free user account, build custom lists of potential suppliers, send quote requests, download catalogs, view company photo and video libraries, and more.
IndustryNet is also a direct path for U.S manufacturers to increase their visibility among domestic industrial procurers.
