Businesses call for domestic AI, manufacturing

Spread the love

Business leaders on Wednesday called for increased domestic manufacturing and a focus on artificial intelligence in U.S. supply chains.

Melody Richard, vice president of Pantry at Walmart, highlighted the supermarket chain’s $350 billion commitment to U.S. manufacturing through 2031. The commitment is part of a vast array touted by President Donald Trump as part of his effort to bring manufacturing back to the United States.

The administration has touted more than $10.6 trillion in U.S. and foreign investments in what it calls “The Trump Effect.” The investments range from $1.4 trillion from the United Arab Emirates to $600 billion from Apple.

Walmart is not included on the list provided by the White House but Richard said the company is committed to partnering with domestic suppliers in the country.

“I like to think our collaboration is about creating accessibility and affordability, and then exciting customers with great new products, and it happens all the time,” Richard said.

One of those collaborators is Ferrero, a business focused on small packaged sweet snacks like Nutella and Kinder. Michael Lindsey, president of Ferrero North America, said the company has hired more than 1,000 new employees in North America to manufacture more products throughout the country.

“It doesn’t make sense to be shipping sweet packaged foods from around the world into the U.S. environment, so we need to manufacture in the U.S. with U.S. tastes in mind,” Lindsey said.

Lindsey also said he is looking into investments in agriculture to bring more of the supply chain to the United States. He said the company has sought to purchase hazelnuts from Oregon in order to reshore consumer demand.

“Just to set the expectation for where hazelnuts are, we need to grow them in America,” Lindsey said. “Ferrero buys 1/3 of the world’s hazelnuts. So we’ve invested in a big way in hazelnuts in Oregon.”

Leaders also called for a greater reliance on artificial intelligence to increase access to the supply chain. Dayna Grayson, co-founder of Construct Capital, said physical AI and robotics is the biggest area where companies are looking to invest.

However, Grayson said robot development in the supply chain is still in the early stages and not yet capable of replacing humans.

“It’s the ability to replicate what only humans can do, which is very, very hard if you think about it; the way we sense, the way we touch, the way we lift,” Grayson said. “AI has been a big word in the digital space for three or four years. It has been a sort of elusive word in the manufacturing and the physical industry spaces, and now I think it’s becoming a big word.”

However, Kevin O’Hanlan, vice president of North America Government Relations at the Global Electronics Association, said manufacturing resources to invest in AI and robotics will be difficult.

O’Hanlan said President Donald Trump’s tariffs on foreign countries like Vietnam have made it difficult for the U.S. to move away from manufacturing in China. He said companies appear to be waiting on the Trump administration’s tariff policies to end rather than making investments in new areas.

“A lot of companies are making a very difficult decision to deal with this delay in getting products to market versus trying to make an uncertain investment decision,” O’Hanlan said.

O’Hanlan pointed out that many graduates in the United States are not interested in electronics manufacturing, which he said has contributed to overseas investments. He said most people are drawn to big companies like Apple, Google and Meta, which leaves smaller electronic companies without workers to develop.

“Frankly, we just need more people, and that’s part of what we’re doing in the association, it’s not just the people, but demystifying the career path,” O’Hanlan said. “This is a career field where you’ve got infrastructure, you’ve got mobility, you’ve got the ability to really, really build a good life where you want to build a good life with the skill set.”

Leave a Comment





Latest News Stories

Pew: U.S. immigrant population declines for first time in nearly 60 years

Pew: U.S. immigrant population declines for first time in nearly 60 years

By Caroline BodaThe Center Square The U.S.’s foreign-born population shrunk this year for the first time since the 1960s, new data released Thursday from the nonpartisan Pew Research Center found....
European Union says U.S. consumers will end up paying tariffs

European Union says U.S. consumers will end up paying tariffs

By Brett RowlandThe Center Square European Union leaders detailed the terms of a trade deal they struck with President Donald Trump on Thursday, making sure to point out who will...
WATCH: Illinois’ FY23 financial audit released amid criticism of tardy reports

WATCH: Illinois’ FY23 financial audit released amid criticism of tardy reports

By Greg Bishop | The Center SquareThe Center Square (The Center Square) – Illinois taxpayers can now look at how the state spent their money in the fiscal year that...
Illinois quick hits: Anti-SLAPP bill signed; Chicago schools settles meditation case

Illinois quick hits: Anti-SLAPP bill signed; Chicago schools settles meditation case

By Jim Talamonti | The Center SquareThe Center Square Anti-SLAPP bill signed Gov. J.B. Pritzker has signed legislation to protect news media from strategic lawsuits against public participation (SLAPP). The...
U.S.-EU trade deal includes ceiling for European pharmaceutical imports

U.S.-EU trade deal includes ceiling for European pharmaceutical imports

By Morgan SweeneyThe Center Square The European Union has escaped a potential 250% pharmaceutical tariff and instead has secured a maximum 15% levy with the U.S. according to a joint...
Supreme Court allows Trump to block DEI funding

Supreme Court allows Trump to block DEI funding

By Andrew RiceThe Center Square The U.S. Supreme Court, in a 5-4 decision on Thursday, allowed President Donald Trump to cut hundreds of millions of dollars in federal research grants....
Trump to probe Smithsonian museums for 'woke' ideology

Trump to probe Smithsonian museums for ‘woke’ ideology

By Andrew RiceThe Center Square President Donald Trump has promised to crack down on “woke” ideas promoted in museums across the United States, including the federally funded Smithsonian museums in...
Director: Nation’s largest outdoor ag show brings economic impact to central IL

Director: Nation’s largest outdoor ag show brings economic impact to central IL

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – The nation’s largest outdoor agricultural show is set for next week in Central Illinois. The Farm Progress...
Personnel cuts to national intelligence office will save taxpayers $700 million

Personnel cuts to national intelligence office will save taxpayers $700 million

By Thérèse BoudreauxThe Center Square The Office of the Director of National Intelligence is set to undergo a massive overhaul and cut 40% of its workforce, continuing the Trump administration’s...
Redistricting would split cities, counties throughout CA

Redistricting would split cities, counties throughout CA

By Dave MasonThe Center Square Lodi, a Northern California city of 66,000 people, will be divided among three congressional districts if a Democratic Party-backed redistricting map goes into effect. And...
Pritzker: Fair maps in Illinois would be 'disarming' to Democrats

Pritzker: Fair maps in Illinois would be ‘disarming’ to Democrats

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – Illinois Gov. J.B. Pritzker says Democrats would be “disarming” if they agreed to fair maps state by...
NY appeals court overturns Trump's civil fraud penalty

NY appeals court overturns Trump’s civil fraud penalty

By Chris WadeThe Center Square A New York appeals court has tossed out a $454 million civil fraud verdict against Donald Trump and his family business over charges he broke...
Casey Police Graphic Logo

Casey Police Department to Add New Officer

Article Summary: The Casey Police Department will soon have a new officer on its roster after the City Council unanimously approved the hiring of Tommy Starks. The approval follows a...
States sue over Victims of Crime Act grant funding

States sue over Victims of Crime Act grant funding

By Elyse ApelThe Center Square Colorado Attorney General Phil Weiser has joined a 20-state coalition and Washington, D.C., suing the Trump administration over restrictions it has put on Victims of...
White House backs off hefty EU tariff threats, EU eliminates industrial tariffs

White House backs off hefty EU tariff threats, EU eliminates industrial tariffs

By Caroline BodaThe Center Square After striking a framework trade deal with the European Union in July, the White House added more details to what the agreement entails Thursday. Most...