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

Gallagher elected to serve rest of LaMalfa's term in Congress

Gallagher elected to serve rest of LaMalfa’s term in Congress

By Madeline ShannonThe Center Square California Assemblymember James Gallagher, R-East Nicolaus, has been elected to serve the rest of the late Republican U.S. Rep. Doug LaMalfa's current term. Gallagher is...
Four House Republicans rebel against Trump, help pass War Powers Resolution

Four House Republicans rebel against Trump, help pass War Powers Resolution

By Thérèse BoudreauxThe Center Square In the second congressional rebuke of the Trump administration's mission against Iran, the U.S. House passed a War Powers Resolution when four Republicans joined Democrats...
Hilton, Becerra remain ahead in California gubernatorial race

Hilton, Becerra remain ahead in California gubernatorial race

By Chris WoodwardThe Center Square It still appears that Steve Hilton and Xavier Becerra will advance out of the June 2 primary and into the Nov. 3 general election for...
Budget math undercuts Bessent's deficit reduction pledge

Budget math undercuts Bessent’s deficit reduction pledge

By Brett RowlandThe Center Square President Donald Trump's next budget projects federal deficits running more than double Treasury Secretary Scott Bessent's stated target through at least 2029 while also calling...
State Police, IDOT break ground on $14M training facility

State Police, IDOT break ground on $14M training facility

By Sean Reed | The Center SquareThe Center Square (The Center Square) – The Illinois State Police and the Illinois Department of Transportation broke ground on a joint venture to...
Republican data privacy bill scrutinized in congressional hearing

Republican data privacy bill scrutinized in congressional hearing

By Thérèse BoudreauxThe Center Square Businesses and online privacy advocates hold diametrically opposing views on the wisdom of congressional Republicans’ plans to enact a nationwide framework for consumer data privacy...
World Cup: Economic impact equation includes displaced regular tourism

World Cup: Economic impact equation includes displaced regular tourism

By Kim JarrettThe Center Square Putting a dollar figure on the economic impact of the FIFA World Cup games scheduled for Atlanta is not an exact science, economists say. Eight...
Illinois Quick Hits: Johnson says comptroller running is 'no breaking news'

Illinois Quick Hits: Johnson says comptroller running is ‘no breaking news’

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – Chicago Mayor Brandon Johnson says it’s no breaking news that Illinois Comptroller Susana Mendoza is running for...
Trump targets 60 economies with forced labor tariffs

Trump targets 60 economies with forced labor tariffs

By Brett RowlandThe Center Square The U.S. Trade Representative proposed tariffs of 10% to 12.5% on imports from 60 economies, including Canada, Mexico, Japan and the European Union, arguing that...
Lawmakers probe $1.2B Ohio Medicaid fraud

Lawmakers probe $1.2B Ohio Medicaid fraud

By Christine Johnson and Andrew RiceThe Center Square Federal lawmakers called for greater fraud enforcement in the Medicaid Waiver Program on Wednesday, citing concerns over recent reports of $1.2 billion...
Debt burden, pensions burden Chicago Public Schools

Debt burden, pensions burden Chicago Public Schools

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – The author of a new Civic Federation report says taking on more debt would be a death...
Nearly 100,000 Illinois Uber, Lyft drivers may soon be able to unionize

Nearly 100,000 Illinois Uber, Lyft drivers may soon be able to unionize

By Sean Reed | The Center SquareThe Center Square (The Center Square) – A proposal that would allow many Uber and Lyft drivers to form a sector-wide union and engage...
Michigan lawmakers spar over Rx Kids program amid oversight concerns

Michigan lawmakers spar over Rx Kids program amid oversight concerns

By Elyse ApelThe Center Square Michigan lawmakers are sparring over the future of the state's Rx Kids program, a cash-assistance initiative that has received more than $300 million in taxpayer...
UPDATED: Waters, other incumbents ahead in LA congressional races

UPDATED: Waters, other incumbents ahead in LA congressional races

By Zachery SchmidtThe Center Square Editor's note: This story has been updated with new results from Wednesday morning. Democratic incumbents topped the vote counts in Los Angeles congressional districts in...
GOP rep: New budget shows 'addiction' to taxes

GOP rep: New budget shows ‘addiction’ to taxes

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – Gov. J.B. Pritzker says Illinois’ new budget for fiscal year 2027 protects working families from new taxes,...