AGP Executive Report

AI Policy & Industry: Trump’s new “Super Intelligence Force” names Jay Clayton as AI czar, aiming to coordinate federal efforts to keep the U.S. ahead in advanced AI. Drug Safety & Manufacturing Quality: The FDA expanded a chlorthalidone recall after more bottles were found to have tablets that don’t dissolve properly, classified as moderate risk. Trade & Supply Chains: The U.S.-Canada tariff fight is escalating, with battleground states warned of higher costs and delayed manufacturing investments. Energy Investment: South Korea plans $200B in U.S. energy projects, including Alaska LNG and major nuclear and power builds. Manufacturing & Jobs: Quantinuum secured $100M in CHIPS R&D funding to scale trapped-ion quantum computing manufacturing and strengthen onshore supply chains. Workforce & Immigration: New H-1B data shows Delaware’s manufacturing employers filed 196 petitions in 2025 (796 approved, 38 denied), while education-heavy states like Connecticut and Minnesota also saw high approval rates. Permitting Reform: West Virginia manufacturers are watching a bipartisan permitting reform push aimed at speeding energy infrastructure projects.

Defense & Energy: Ukraine says it will intensify strikes on Russian oil refineries after Moscow’s “new doctrine” expands attacks on infrastructure and cities, while insisting it won’t target civilians. Trade & Supply Chains: The U.S. says it’s “severely disappointed” that G20 talks failed to agree on action against excess industrial capacity and forced labor tied to global supply chains. Semiconductors & Capital Spending: Northrop Grumman’s YFQ-48A Talon Blue completed its first fully autonomous flight, a step toward U.S. Air Force collaborative combat aircraft production. Critical Minerals: DoD backs Supra Elemental Recovery with an SBIR contract to improve scandium extraction from industrial byproducts, aiming to reduce reliance on foreign sources. Manufacturing Jobs: Packaging Corporation of America plans to lay off about 90 workers at its Middletown, Ohio plant as it closes the facility. Pharma Manufacturing: Bayer announced a $2.2B Ohio investment for a new drug manufacturing site in New Albany, targeting about 600 high-skilled jobs. Port Economics: China’s weight at the Port of Long Beach and Port of Los Angeles remains a key factor for U.S. manufacturing logistics and jobs.

Defense Manufacturing Expansion: The U.S. Air Force has started construction of a new B-21 Raider final assembly line at Plant 42 in Palmdale, aiming to boost annual production capacity by 25%. Missile Production Push: The Pentagon awarded Raytheon a $24.4B, five-year deal to accelerate SM-6 “three-in-one” missile output and expand manufacturing throughput. Supply-Chain & Workforce Shock: Navistar’s Springfield, Ohio truck plant is closing, with nearly 1,400 layoffs just days before a Trump rally—another hit to the region’s manufacturing jobs. Advanced Manufacturing Investment: Amazon will invest $100M+ in an advanced manufacturing facility in Greenwood, Indiana, targeting 300 skilled jobs by 2028. Magnet Manufacturing Growth: Magnet Applications (Bunting Magnetics) bought a 40,000-square-foot DuBois, Pennsylvania facility to expand domestic magnet production. Policy & Costs Watch: A key U.S. manufacturing gauge showed factory input costs jumped 10% in September, with prices paid rising sharply as demand stays strong.

Steel Investment Push: Iowa Gov. Kim Reynolds signed HF 2801 to expand its MEGA tax incentives, clearing the way for Mesabi Metallics’ planned $15B steel mill in Lee County—aimed at thousands of construction jobs and 1,700+ permanent roles. Robotics Manufacturing: Yaskawa America plans a major robotics manufacturing expansion at a new Franklin, Wisconsin campus, bringing high-volume robot production to the U.S. to cut lead times and boost capacity. Industrial Capacity & Supply Chain: Pirelli will invest $1.2B to expand its Rome, Georgia tire plant, targeting 6M tires/year and adding about 1,000 jobs as it ramps premium production. Aerospace/Defense Production: Bodycote is upgrading East Coast heat-treatment capacity, including new vacuum equipment and expanded HIP, to support aerospace and defense schedules. Trade Controls: The U.S. is reportedly slowing aircraft-part exports to China, tightening licensing and limiting shipments as negotiations continue. Jobs Watch: September hiring cooled—29,000 jobs added and unemployment rose to 4.2%—with manufacturing up 9,000. Pharma Manufacturing/Clinical Updates: Pfizer advanced LITFULO Phase 3 results for nonsegmental vitiligo, while Travere pushed new FILSPARI data for IgA nephropathy and FSGS.

Skilled Trades Pipeline: A new report warns the U.S. will need 1.7 million skilled-trades openings per year through 2035, but training and apprenticeship completion lag—less than half finish apprenticeships and under 30% enter a trade within five years. Labor Market Pressure: September added just 29,000 jobs and unemployment ticked up to 4.2%, with major revisions to prior months—another reminder that hiring is cooling even as manufacturing employment held up. Semiconductor Materials Push: EMD Electronics opened a new 38,000-square-foot R&D facility in Sheboygan Falls, part of a $200 million Wisconsin investment aimed at scaling advanced semiconductor materials. Industrial Finance: 6K Additive secured a $27.4 million EXIM loan to expand U.S. production of metal powders and critical materials for aerospace, defense, and advanced manufacturing. Policy & Regulation: A coalition of states is seeking court approval of a $400 million settlement over alleged generic-drug price manipulation, while attorneys general also sued to challenge weakened fuel-economy rules. Trade Ripples: Great Lakes ports reported sharp drops in iron ore and steel shipments tied to the U.S.-Canada tariff fight.

Manufacturing Pulse: The S&P Global U.S. Manufacturing PMI jumped to 55.9 in September, the strongest since May 2022, as new orders, output, and hiring accelerated—while exports stayed weak under tariffs and high shipping costs. Additive Manufacturing: Fives AddUp plans to industrialize its FormUp 750 large-format laser powder bed fusion system in Ohio starting in 2027, aiming to bring big-part additive production closer to North American customers. Steel & Industrial Expansion: Trump’s announced $15B Mesabi Metallics steel mill in Iowa could make the state a top U.S. producer, with major job creation and multi-phase output ramp. Energy & Grid Buildout: Hitachi Energy is investing $528M to expand transformer manufacturing in Mississippi, adding 654 jobs, as grid modernization and data centers drive demand. AI Infrastructure in the U.S.: JERA, Dell, and RHAELM are backing a reusable AI data-center model in Japan starting with a $15B Chiba project, underscoring how power availability is becoming the key constraint. Trade & Diplomacy: Mexico and the U.S. are coordinating at the G20, with talks focused on resolving open issues and protecting Mexico’s access to the U.S. market. Supply Chain Risk: U.S. authorities arrested a tech CEO accused of smuggling $300M in restricted GPU servers to China, alleging false records and third-country routing. Consumer Safety: Kobayashi Consumer Products recalled about 77,000 HotHands rechargeable hand warmers due to lithium-ion overheating and fire/burn hazards.

Defense Supply Chain & Tech: SRC won a $37M Air Force contract to develop and integrate its Ghost Mantis Gen 3 sensing tech for the Large Aircraft Survivability System, aiming to improve long-range threat detection for mobility aircraft. Industrial Expansion: SANY Nutrition Group opened a new Jonesboro, Arkansas food facility, investing $30M+ and targeting 150+ jobs over three years, with Beyond Resilience protein snacks rolling into Walmart stores. Energy Storage Manufacturing: Stryten Energy completed its acquisition of C&D Trojan, expanding to 18 battery facilities across the U.S., Mexico and China and positioning for more domestic capacity in transportation and defense markets. Grid-Scale Batteries: Inlyte Energy and CutPeak Energy announced an 80 MWh iron-sodium battery project at Berkshire East, targeting an online date in 2028. Trade/Regulatory Pressure: Reuters reports the U.S. is using tighter export licensing for aviation parts to China as leverage in trade talks. Auto Demand Signals: GM said U.S. Q3 sales fell 5.5% as EV demand dropped and some models were discontinued. Local Economic Development: Leaders at a Pennsylvania economic summit highlighted workforce housing and manufacturing expansion risks, including a $200M Victaulic project tied to job growth.

U.S.-China Auto Policy: A bipartisan Senate bill to permanently ban Chinese vehicles in the U.S. stalled as lawmakers negotiated around a lone holdout, setting up a likely delay until after the November elections. Defense Manufacturing: The Air Force awarded Boeing a $2.38B contract for 22 F-15EX jets, citing affordability and production continuity amid industrial-base pressures. AI Data Center Supply Chain: LG Electronics will invest $110M (150B won) to build a new chiller factory in Windsor, Virginia, targeting AI data center cooling demand, with production slated for 1H 2027. Industrial Reliability Tech: Kuraray America is using AI-driven failure prediction at its PVOH plant in La Porte, Texas, aiming to cut downtime and improve mechanical integrity. Transit Procurement Under Tariffs: New York’s MTA warned tariffs could add $1B to subway and bus purchases and asked the Trump administration to exempt the projects. Manufacturing Economics: A Philadelphia Fed study argues official manufacturing productivity stats may understate real gains after adjusting for consumer price and quality improvements. Steel Market Strain: Canadian steel producers are still short on hot-rolled supply, with tariff-driven turmoil contributing to layoffs and idled operations. Business Climate Signals: Japan’s BOJ survey showed large manufacturers’ sentiment rising for a sixth straight quarter, supported by AI and semiconductor demand.

EV Battery Push: GM’s Ultium Cells plans a $1B upgrade in Spring Hill, Tennessee to mass-produce lithium manganese rich prismatic cells (plus LFP), aiming to boost energy density and strengthen domestic battery manufacturing. Grid Reliability Funding: The U.S. Department of Energy awarded Entergy $13.7M under SPARK to deploy advanced dynamic line rating across 1,000+ miles of transmission in Arkansas, Louisiana, and Mississippi. Manufacturing Jobs in Kentucky: Speed Kentucky will invest $1.47M in Owsley County, creating 60 jobs to build and distribute utility task vehicles, with an enclosed side-by-side planned for late 2027. Defense Industrial Base: AIA and Bain warn the defense sector faces “funding gaps” that block private investment, especially for critical inputs, scaling sub-tier manufacturing, and moving tech from prototype to production. Automation & Shop-Floor Tech: FABTECH 2026 in Las Vegas (Oct. 21-23) spotlights automation, robotics, AI, and precision manufacturing as manufacturers make capacity and sourcing decisions. Autonomous Trucking: Daimler Truck says Torc is building the full autonomous trucking stack, targeting driverless public-road freight in 2027. Workforce & Pay Trends: ADP reports private-sector employment rose by 90K in September, with base pay up 3.2% and manufacturing adding 17K jobs.

Industrial Innovation Funding: Michigan LIFT (Whitmer, Ford, JPMorganChase, Michigan Central, Newlab) launches “Open Calls” to match manufacturers’ supply-chain needs with innovative suppliers, aiming to scale production and strengthen U.S. competitiveness. Fusion Supply Chain: Commonwealth Fusion Systems signs a major HTS tape deal with Fujikura, with Fujikura expanding capacity to deliver 10,000+ km of tape for ARC power plant rollout. Defense Manufacturing: The U.S. Navy selects Boeing for the F/A-XX sixth-generation carrier fighter, a $20B+ program to replace F/A-18s and integrate with uncrewed systems. Steel Investment: Trump announces Mesabi Metallics’ ~$15B integrated steel plant in Iowa, targeting 10M tons annually and thousands of construction jobs. Semiconductor Research: A new Arkansas institute, ARIES, opens to advance power electronics, cybersecurity/AI, photonics, and RF/microwave tech. Policy Shock for Auto: CAFE standards are rolled back to about 34.9 mpg by 2031, reshaping EV and hybrid production plans for automakers like Hyundai and Kia. Trade/Geopolitics: U.S. sanctions add 13 individuals/entities tied to Iran weapons procurement, including firms in Russia, China, Hong Kong, and Pakistan. Global Manufacturing Pulse: China’s official factory PMI rises to 50.1 in September, signaling expansion after months of contraction.

Steel Investment Push: Trump unveiled a $15B Iowa steel mill plan, billed as the largest in U.S. history, with Mesabi Metallics-led capacity growth and major job claims—another high-profile bet on domestic metals. EV Batteries: GM and LG Energy will upgrade their Tennessee Ultium Cells plant to make lower-cost LMR prismatic battery cells, targeting future GM EVs and adding 500 jobs. Tariffs & Drug Manufacturing: New Section 232-style medicine tariffs expanded to mid-sized and smaller drugmakers, raising pressure on sourcing, onshoring plans, and pricing for already strained prescription costs. Fuel Costs Politics: The White House urged the EU to draw down emergency diesel inventories to cool global prices, amid talk of export limits and supply moves ahead of midterms. Workforce Training: Ohio Manufacturers’ Association wrapped a $23.4M federal Good Jobs Challenge early, reporting thousands of credentials and manufacturing job placements. Cybersecurity Rules: A new bill would boost SBA cybersecurity guidance for small businesses, including help tied to federal contracting needs. Data Center Debate: New York communities are clashing over data center growth, with residents weighing jobs against water, power, and pollution concerns. Automation Supply Chain: Salient Motion set up precision ball/roller screw production in Michigan for aerospace, defense, and robotics, aiming for scale by 2027.

U.S.-China AI governance: The White House and Beijing launched a new U.S.-China “Super Intelligence Dialogue,” set a next meeting for November 2026, and agreed on a bilateral channel for AI incidents, aiming to keep cooperation from going dormant. Solar manufacturing: Terawatt PV Research put 22 U.S. solar PV makers into a Q3 2026 “ratings pyramid,” with First Solar the only AAA and the top group covering 95%+ of domestic production output and capex. Steel push in Iowa: Trump’s team announced a $15B Mesabi Metallics steel plant in Lee County, targeting ~10M tons annually by 2030 and thousands of jobs, while Iowa lawmakers react. EV policy shift: Reports say Trump approved new fuel-economy standards that effectively end the “EV mandate,” pushing Hyundai and Kia to rebalance toward hybrids/ICE and local production. Trade friction with Canada: The U.S. moved ahead with an early ban on nearly $1B of Canadian imports (alcohol, dairy, motorcycles), raising stakes in the broader tariff fight. Defense manufacturing: Taiwan’s defense chief said the U.S. showed goodwill over late F-16V Block 70 deliveries, with talks focused on support rather than penalties. Cold-chain packaging M&A: Eutecma acquired Tempaid to build a full cold-chain packaging line from bulk shippers to last-mile patient mailers.

Steel Reshoring: Trump is set to announce a $15B mega-steel plant in Iowa, backed by Mesabi Metallics (Essar Group), with claims it will be the largest in U.S. history and start producing in 2030. Trade Policy: The U.S. and China agreed to tariff cuts on $60B of goods after Xi’s visit, with reductions aimed at “non-sensitive” items to improve market access. Automation & Robotics: IFR reports industrial robots hit a record 5M units in 2025, with 9% growth driven by new factory installations. Regulatory/Competition: The FTC and states reached a proposed settlement with Corteva to dismantle a pesticide loyalty program that blocked cheaper generics, aiming to lower prices for farmers. EV/Fuel Economy: The administration rolled back Biden-era fuel-efficiency standards, cutting the 2031 target to 34.9 mpg and removing EV-production requirements. Manufacturing Tech & Capital: NEMI named Kevin Flick CFO to accelerate AI adoption in physical manufacturing; MetaOptics began trading OTCQX ADSs to broaden U.S. investor access. Infrastructure: Amtrak’s new U.S.-built Airo trainsets debut on the Pacific Northwest Cascades route.

Advanced Materials Software: QuesTek is rolling out its Niobium Suite inside the Icmd platform, adding niobium-specific models to speed alloy design and cut trial-and-error for aerospace, energy and additive manufacturing. Robotics Market Access: ANSCER Robotics says it received U.S. conditional approval for autonomous mobile robot platforms, clearing a key FCC-related step for selling into U.S. industrial sites. Manufacturing Operations Tech: DELMIA highlights why multi-plant material visibility breaks down—MES can’t coordinate inventory across facilities—pushing MOM as the fix for network-level planning gaps. Energy & Grid Buildout: A South Korea-linked report points to a Texas gas plant plus battery storage plan aimed at stabilizing power for fast-growing AI data centers. Auto Policy Shock: Trump’s fuel-economy rollback lifted shares of Stellantis, GM and Ford, with automakers pitching more U.S. production as standards loosen. Industrial Investment: Amazon will invest $100M+ in a Greenwood, Indiana manufacturing facility for robotics and fulfillment systems, targeting 300 jobs by 2028. Supply Chain/Compliance Watch: An EPA vinyl chloride risk review could affect pipe and PVC-related specifications as regulators revisit carcinogen risk under TSCA.

PFAS Accountability: North Carolina’s AG announced a nearly $600M Chemours/DuPont settlement tied to river pollution, with residents and advocates split over whether the payout matches the scale of harm. Defense Industrial Base: Poland floated building Patriot-related production in “safe territory” if Ukraine gets U.S. licenses, while the U.S. also moved to secure 67 F-35 AN/APG-85 radar sets via long-lead procurement. Workforce & Training: Phillips Corp. will open a $2M hands-on maintenance and mechatronics center near Norfolk Naval Shipyard to speed up technician training for shipbuilding and manufacturing. Auto Manufacturing Demand Shift: Trump’s fuel-economy rollback could reshape Michigan jobs as buyers lean toward hybrids, not full EVs. Supply Chain Security: Aerospace suppliers are scrambling to replace China-dependent yttrium used in jet-engine coatings, testing older alternatives and recycling. Tech & Industrial Logistics: Amazon will let sellers run one inbound shipment to a single U.S. facility and distribute to eight countries, aiming to cut storage costs and speed replenishment.

Aviation Oversight: The FAA is investigating a Boeing 737 MAX software glitch that could disengage VNAV during a missed-approach go-around, prompting a Corrective Action Review Board and potential immediate action if safety concerns emerge. Auto Policy: President Trump approved major rollback fuel-economy standards, aiming to end Biden-era EV mandate pressure; the reported 2031 target would drop sharply, shifting incentives back toward gasoline vehicles. Defense Manufacturing: The U.S. Navy released footage of its Blackbeard hypersonic strike missile integrated on an F/A-18E/F, with carrier integration aimed for limited service by 2028. Industrial Tech & Supply Chains: LG Innotek’s stake in U.S. lidar maker Aeva jumped about 60% as the partners move toward mass production of 4D lidar for robots and European automakers. Maritime Production Expansion: HII expanded its Pocasset, Massachusetts site by 25% to boost output of Lionfish, REMUS, and ROMULUS components for Navy unmanned missions. Healthcare Manufacturing Demand: ST Pharm says big oligonucleotide API orders are rising as RNA therapeutics scale into commercial use. Workforce & Training: A new clean-transport training push highlights a looming shortage of skilled manufacturing and zero-emission vehicle technicians.