AGP Executive Report

Manufacturing Investment: AB InBev is putting more than $20M into its St. Louis and Arnold, Missouri operations, including a new technical skills training center aimed at upskilling most of its manufacturing workforce over the next five years. Industrial Restructuring: Groupe Beneteau says it will end production at its Cadillac, Michigan boat plant in Q3 2026 and seek a buyer, citing weak bowrider and jet-boat demand and Middle East-driven uncertainty. Supply Chain & Trade: S&P Global reports U.S.-bound containerized imports rose 13.5% year over year in May—the first annual gain in 13 months—pointing to earlier peak-season shipping and inventory front-loading ahead of potential late-July tariffs. Workforce & Skills: Mississippi State is launching a $2.6M, 10-week leadership and project-management credential program for trade workers in manufacturing and energy, funded through 2029. Policy & Legal Risk: The U.S. House passed the DOMINANCE Act to counter China’s rare-earth processing monopoly, targeting chokepoints that affect defense and advanced manufacturing. Food & Consumer Manufacturing: An AP report warns protein ingredient demand is outpacing food-grade whey supply, pushing prices higher and raising availability concerns for manufacturers.

Rare-Earth Security Push: The U.S. House passed the DOMINANCE Act (H.R. 7037) to break China’s near-total grip on rare-earth processing, using allied supply hubs to reduce the risk of production and defense bottlenecks. Tariff Refund Reality Check: After the Supreme Court struck down key Trump tariffs, major firms are filing for refunds—USA Today reports at least 90 companies seeking billions, with UPS signaling customer pass-through while the rest remains uncertain. Connected-Car Crackdown: Two Michigan lawmakers introduced a bill to block Chinese-connected vehicles entering via Canada and Mexico, citing data collection and remote tampering risks. Data-Center Friction: New York lawmakers approved a one-year moratorium on large data centers (20+ megawatts) while the state studies power, water, and rate impacts—an AI infrastructure flashpoint. Industrial Supply Chain Tie-Up: Argonaut and Ensera announced a partnership to streamline drug-device manufacturing by combining sterile fill-finish with device assembly and packaging. Manufacturing Workforce & Labor: UAW President Shawn Fain seeks re-election amid organizing and management concerns, with Detroit automakers watching closely. Food & Pharma Alerts: FDA recalled Nara Organics baby formula after a multistate infant botulism outbreak; separate recalls hit Alfredo sauce and mac-and-cheese over contamination and allergen risks.

Critical Minerals Push: The U.S. House passed the DOMINANCE Act (H.R. 7037) to break China’s rare-earth processing grip and build allied processing capacity for defense and manufacturing. Manufacturing Inputs: IperionX agreed to buy rare-earth assets in Tennessee, adding pre-processed stockpiles and equipment to strengthen its U.S. critical minerals platform. Defense Industrial Base: Defense Secretary Pete Hegseth disputed claims of munitions shortages, calling it a “manufactured story,” while the Pentagon floated changes that would loosen lobbying “cooling off” rules for some senior defense officials. Regulatory/Compliance: HUD proposed updates to manufactured housing rules that could allow multi-story units without a permanent chassis, aiming to expand affordable supply. Food Safety: FDA/CDC-linked recalls hit infant formula over botulism risk (Nara Organics) and also flagged an Oregon smokehouse inspection; CPSC recalled 254,000 pool dive sticks over impalement hazards. Workforce & Industry: Louisiana Community & Technical Colleges highlighted training partnerships tied to data-center construction, reflecting ongoing demand for skilled trades.

Rare-Earth Security: The U.S. House passed the DOMINANCE Act (H.R. 7037) to break China’s near-total grip on rare-earth processing, using allied networks to diversify extraction and processing for defense and manufacturing. AI Export Controls: Anthropic cut off foreign access to its most advanced AI models after a U.S. order, underscoring how frontier AI is becoming a strategic, export-controlled asset. Missile Industrial Bottleneck: A new CSIS report says solid rocket motors are a bottleneck as the Pentagon ramps interceptor production—targets are far above what the current industrial base can deliver. Defense Supply Chain Readiness: The same missile push highlights broader readiness gaps in U.S. munitions production capacity. Food Supply Disruption: Nara Organics recalled its whole milk organic powdered infant formula nationwide after a multistate infant botulism outbreak tied to the product. Consumer Protein Crunch: Whey protein shortages are driving record prices as food makers add protein to everything from cereals to snacks, straining dairy supply. Connected-Vehicle Trade Fight: U.S. lawmakers introduced a bill to block Chinese-connected vehicles from entering via Canada and Mexico over data and security risks.

Critical Minerals: The House passed the DOMINANCE Act (H.R. 7037) to break China’s near-total grip on rare earth processing, using allied “buy vs. build” partnerships to keep defense and manufacturing from a single-point supply shock. Trade & Tariffs: A federal appeals court let Trump’s 10% global baseline tariff stay in place while legal fights continue, a move that could keep pressure on U.S. input costs and sourcing decisions. Industrial Costs: U.S. plastic suppliers say they’re running out of room to absorb higher resin costs tied to Iran-linked supply disruptions, raising the odds of price hikes across auto, appliances, and food packaging. Energy & Data Centers: Pacific Northwest National Laboratory published a guide for data center developers on siting, cooling, and grid integration as AI demand accelerates power needs. Manufacturing & Policy: Boeing withdrew from the U.S. Navy’s trainer competition, underscoring ongoing procurement and industrial-base strain. Pharma Manufacturing: Dr. Reddy’s launched Bosutinib Tablets 400mg in the U.S., expanding generic oncology supply via MSN’s development and manufacturing. Small Business/Shipyards: MARAD is reviewing far more Small Shipyard Grant requests than available FY 2026 funding, with FY 2027 support already in play.

Reshoring Watch: Harley-Davidson says it’s bringing back motorcycle production to its York, Pennsylvania and Wisconsin facilities, returning machining, powertrain assembly, painting, and final assembly to the U.S. and targeting 100,000+ bikes in 2027. Trade & Supply Chains: Lawmakers push to keep Chinese-connected “connected vehicles” out of the U.S. via a bill aimed at data-collection and remote-tampering risks, with authorization only under strict oversight. Critical Minerals: The House passed the DOMINANCE Act to counter China’s rare-earth processing dominance by building allied extraction and processing capacity. Defense Industrial Base: A bipartisan group backs a National Commission on Robotics to assess U.S. competitiveness and recommend policies to strengthen robotics leadership and domestic supply chains. Manufacturing Risk & Compliance: A Medline warehouse fire in Tracy destroyed a large medical distribution center; investigators cite sprinkler and water-system failures as major factors. Consumer Safety: Crayola magnetic building cubes are recalled due to magnets loosening and posing an ingestion hazard. Policy/Legal: Pesticide makers lobby for state “liability shield” laws as the Supreme Court prepares to rule on whether federal law blocks state failure-to-warn lawsuits.

Critical Minerals Law: The U.S. House passed the DOMINANCE Act (H.R. 7037) to counter China’s rare-earth processing dominance, aiming to build diversified extraction and processing with trusted allies so defense and manufacturing aren’t held hostage. Defense Industrial Base & Munitions: A new analysis warns the Western precision-guided munitions stockpile could run out in about a month in a conflict scenario, highlighting pressure on U.S. production capacity and readiness. Geopolitics Hits Supply Chains: Reporting on the U.S.-Iran escalation says the Strait of Hormuz disruption is spreading into energy, shipping, fertilizer, food, and financial shocks that could linger through 2027. Food Safety Recalls: Beekeeper’s Naturals recalled a specific lot of saline nasal spray sold on Amazon after yeast and possible Aspergillus contamination; FDA also flagged a Farm Rich frozen pizza snack recall over possible metal fragments. Manufacturing & Trade: Google will shut down its CBRS spectrum access system in 2027, while GM plans to discontinue its heaviest Silverado trucks tied to an International plant deal—signaling shifting demand in medium-duty commercial vehicles. Workforce Pressure: Arizona is pushing reskilling as it expects a wave of 700,000 new jobs by 2030, with employers already reporting major talent shortages.

Nuclear Power Race: A new analysis says China is on track to overtake the U.S. as the world’s top nuclear power generator within five years, driven by AI-driven electricity demand and faster, cheaper reactor builds. AI Infrastructure Push: China is also planning a $295B, state-directed buildout of interconnected AI data centers over five years, aiming to rely heavily on domestic chips and suppliers. Defense Industrial Base Pressure: A separate report warns Western precision munitions could run out in about a month in a conflict scenario, highlighting how drone-heavy, mass production can expose U.S. manufacturing gaps. Tariffs in the Courts: An appeals court allowed some Trump-era 10% Section 122 tariffs to stay in place while legal challenges continue. Manufacturing Inflation Watch: U.S. producer prices rose 1.1% in May, with energy costs tied to the Iran war driving much of the jump. Logistics & Ports: The Port of Savannah will expand container capacity via major Ocean Terminal renovations, boosting annual throughput from 200,000 to 1.75M units. Workforce & R&D: UConn launched a shipbuilding initiative to coordinate research, workforce development, and supply-chain programs for the U.S. maritime industrial base.

Defense Industrial Base & Readiness: A new Navy industrial base review flags a projected 174,000-worker shortfall, underscoring how labor gaps are hitting aircraft readiness and depot repair workflows. Semiconductors (Sovereign Manufacturing): GlobalFoundries and Qualinx say they completed the first fully European, end-to-end semiconductor manufacturing flow for security-critical chips at GF’s Dresden fab, backed by the EU Chips Act. Semiconductor Policy: EE Times reports Chips Act 2.0 shifts Europe’s focus from pure capacity to demand, design, scale-ups, and supply-chain visibility—aimed at closing AI-chip dependence. Antitrust/Procurement: Iowa’s Des Moines sues fire truck makers, alleging anti-competitive “parasitic” pricing and market roll-ups that drove overcharges and longer delivery times. Critical Minerals & Recycling: Aqua Metals was named an industrial partner on a DOE-funded Idaho National Laboratory program to advance domestic battery-material refining via electrochemical separation. Trade/Tech Security: A bill would block Chinese-connected vehicles entering the U.S. through Canada and Mexico, citing data collection and remote tampering risks. Energy & Supply Chain: The U.S.-Iran strike cycle continues, with Strait of Hormuz disruption again in focus—raising energy-price pressure that feeds into manufacturing input costs.

Defense Industrial Base Under Strain: U.S. Central Command says it has begun strikes against Iran after an Apache crash off Oman, while analysts warn a depleted U.S. precision-munitions stockpile could run out in weeks—raising pressure on domestic production. Trade & Security: A bipartisan U.S. bill would block Chinese-connected “connected vehicles” entering via Canada/Mexico, citing data collection and remote access risks. Semiconductor Supply Chain: Taiwan is reviewing tighter AI-chip export controls to China to match U.S. rules, potentially increasing compliance burdens for server assemblers. Manufacturing Innovation: DOE’s Argonne launched a National Science-at-Scale Collaborative to help companies scale critical materials and chemical manufacturing faster. Workforce & Risk Management: Living Security added cybersecurity and risk leaders to its advisory board focused on AI-enabled human risk in manufacturing and other sectors. Chemicals & Compliance: Federal agents served a search warrant at GKN Aerospace in California tied to a methyl methacrylate tank incident that triggered mass evacuations. Regulatory Watch: FDA approved bemotrizinol (BEMT), the first new OTC sunscreen active ingredient in 20 years. Environmental Health: A study says communities near industrial waste sites face higher exposure to cancer-causing chemicals, with underserved areas hit hardest.

Defense Industrial Base & Munitions Readiness: A new analysis warns the U.S. precision-guided munitions stockpile could run out in about 25 days in a conflict with Iran, highlighting how fast drone production and cheap mass firepower can overwhelm depleted inventories. Middle East Escalation: The U.S. began strikes on Iran after an Apache crash near the Strait of Hormuz, while Iran floated a four-stage deal proposal amid attacks that hit civilian infrastructure in Kuwait. Connected Vehicle Security: Michigan lawmakers introduced a bill to block Chinese-connected vehicles from entering the U.S. via Canada and Mexico, citing data collection and remote tampering risks. Medical Supply Manufacturing: Medline marked its 60th anniversary, touting $28.4B in 2025 net sales, 30 manufacturing sites, and a large distribution footprint. Automation & Motion Control: AutomationDirect added RBS ball screws and nuts for OEM and maintenance motion-control applications. Energy & Materials: Research points to a new sodium-ion battery cathode designed for fast charging and cycle stability, aimed at lower-cost grid storage. Trade & Industrial Policy: A DMCC report says AI, tariff volatility, and critical-minerals competition are reshaping global trade flows.

Defense & Supply Chain Shock: The U.S. began strikes against Iran after an Army Apache crash near the Strait of Hormuz, with a drone boat recovering the two aviators; the incident is tied to wider regional disruption that’s already been pushing up energy and basic goods costs. Maritime Infrastructure: The Army Corps of Engineers cleared a key hurdle for the Port of Gulfport’s $548M channel deepening/widening plan, moving it toward congressional authorization. Solar Manufacturing Push: Qcells started making solar cells at its Cartersville, Georgia site, aiming to be the first U.S. factory producing major PV module components under one roof. Battery Circularity: GM expanded its Redwood Materials partnership across scrap recycling and second-life storage, adding a 1.5MW/7.2MWh system at a Michigan plant. Logistics & Industrial Scaling: Bayou Metals launched a dedicated line to accelerate HII’s Romulus USV production, while RK Logistics hired Evan Braun to build out freight forwarding and brokerage. AI for Industry Finance: Trad.Fi and W3 plan $650M in onchain private credit for equipment buyers, using AI to speed underwriting and pricing. Workforce Planning: Radford University won an ARC POWER grant to map AI-enabled career pathways, including advanced manufacturing.

Battery & Electrification Supply Chain: PlugVolt’s Battery Seminar 2026 returns in San Jose (July 14–16) with a three-day focus spanning battery science, electrified mobility, and North American supply chain buildout—now adding electrified aviation, drones, defense, robotics, and autonomous platforms. Corporate Battery Scale-Up: COnovate named battery veteran Craig Rigby CEO to accelerate commercialization and scale-up of its eCOphite anode materials, with founder Carol Hirschmugl shifting to chief technology officer. Semiconductor Power Hardware: Wolfspeed unveiled Gen 5 silicon-carbide MOSFETs aimed at improving efficiency and enabling more compact traction inverters for automotive and industrial systems. Grid Bottleneck Watch: Virginia Transformer’s planned Muscle Shoals plant (1,100 jobs) lands in a transformer supply crunch where lead times have stretched dramatically. Workforce Pressure: HVAC’s labor shortage is widening beyond technicians to instructor shortages, threatening training pipelines. Strategic Trade & Security: The Pentagon expanded its China-linked “military companies” list to include BYD, Alibaba, Baidu and others under NDAA Section 1260H. Connected-Vehicle Controls: Two lawmakers proposed blocking Chinese-connected vehicles entering via Canada/Mexico, citing data collection and remote access risks. Food Safety: CDC is investigating a multistate listeria outbreak tied to recalled Clover Hill Dairy soft ricotta/requesón. Critical Minerals: U.S. tungsten recyclers say Chinese buyers are outbidding them for scrap, driving a “secret war” over a strategic metal.

Data Center Supply Chain Boost: Amazon and Corning announced a multibillion-dollar fiber agreement that will expand U.S. fiber optics manufacturing and create 1,000 jobs in North Carolina, with training support via Catawba Valley Community College. Trade Policy—Metals Tariffs: President Trump issued another adjustment to Section 232 metals tariffs, expanding temporary rates and tightening “made entirely” thresholds for U.S.-origin aluminum, steel, and copper. Connected Vehicle Security: Two U.S. lawmakers introduced a bill to block Chinese-connected vehicles from entering via Canada and Mexico, citing risks from data collection and potential remote access. Food Safety Recall: Go Raw LLC expanded a freeze-dried chicken recall after potential low thiamine (Vitamin B1) levels. FDA Recall—Baby Wipes: Target’s Up & Up fragrance-free and cucumber baby wipes were recalled over Burkholderia contamination that can be life-threatening for infants and immunocompromised kids. Manufacturing Jobs & Growth: Mama’s Creations reported a 50% revenue jump in Q1 and highlighted new retailer launches, while Oil-Dri posted improved sales and earnings in its fiscal 2026 results.

Semiconductor Workforce Push: NSF and Commerce are expanding the CHIPS & Science Act’s National Network of Microelectronics Education with four regional nodes to better align training with industry needs. AI Power Demand: DOE projects data centers could hit up to 12% of U.S. electricity demand by 2028, spotlighting the grid buildout manufacturers and suppliers will need to support. Semiconductor Sales Strength: SIA says April global chip sales rose 11% month-to-month to $110.5B, with AI infrastructure demand driving growth. Auto Supply Chain & Security: Two U.S. lawmakers unveiled a bill to block Chinese-connected vehicles from entering via Canada and Mexico, citing data collection and remote access risks. Nissan Plant Flexibility: Nissan is exploring partnerships to build other automakers’ vehicles at its underutilized Canton, Mississippi plant, including potential pickup production. Defense Drone Manufacturing: NorthStrive Defense Tech signed a binding term sheet for an exclusive license tied to autonomous, buoyancy-assisted drone payload transport across air and water. Energy Storage & Solar Industrial Base: SUNation and Suniva signed a definitive reverse merger to expand U.S. solar manufacturing, while FuelCell Energy reported Q2 results and progress on manufacturing capacity expansion. Critical Minerals: Deep Sea Minerals says it submitted a NOAA application and achieved substantial compliance in its offshore regulatory pathway; American Battery Technology Company won reinstatement of a DOE grant for a $115M lithium refinery project.

Defense & Industrial Base: The House Armed Services Committee advanced FY27 NDAA provisions, including expanded right-to-repair authority and added counter-drone oversight tied to legacy aircraft like the A-10. Missile Manufacturing: Lockheed Martin is set to begin flight testing PrSM Increment 4 for HIMARS in fall 2026, targeting a range over 1,000 km. Shipbuilding Gap: A new report revisits how U.S. commercial shipbuilding is nearly extinct versus China’s output, with the Philly shipyard still relying on decades-old equipment. Critical Minerals & Trade Politics: Sen. Jon Ossoff questioned Kazakhstan’s tungsten deal after it became linked to Trump sons, while the U.S. pushes rare-earth mining and processing to reduce China’s dominance. Semiconductors & AI Supply Chain: ASML says Elon Musk will join a closed-door tech conference tied to Terafab, underscoring how chipmaking equipment is central to U.S. AI manufacturing plans. EV & Charging Hardware: Foxconn unveiled the Cavira EV SUV aimed at Tesla’s Model Y segment, and Wisconsin-based FTI launched a ready-to-install EV charging product as it steps out as an OEM. Food Supply Costs: Restaurant operators report sharp wholesale price spikes since the Iran war, raising fears of further menu price pressure. Regulatory/Compliance: FDA warned against “sexual chocolate” products with undisclosed ED drugs, and Target recalled specific Up&Up baby wipes over contamination concerns.