Emma’s Note: Emma Walsh here, managing editor at Rogue Economics.
One key lesson the world learned over the last 18 months is not to depend on fragile global supply chains for your most needed goods.
At the height of the pandemic last year, manufacturing plants shuttered, container ships were grounded, and around the world, shelves emptied. And we continue to feel the effects of that today.
In response, an important transition is taking place. American companies are rushing to build out manufacturing capacity here in the U.S.
It’s what this week’s guest editor, Jeff Brown, calls the “American manufacturing renaissance.” I’ll let Jeff tell you all about it – and the under-the-radar company he has found to play this trend – below…
The world has spent the last three decades focused on globalization. We built global supply chains, often making decisions based on the lowest cost of production.
And manufacturing became centralized in certain regions… driving down prices with low-cost labor.
The world became more interconnected and interdependent than ever.
As a result, many countries experienced a new period of growth, improved quality of life, and previously unseen access to goods and services at affordable prices.
Yet since early 2020, we’ve begun feeling the consequences of our global supply chains in a whole new way.
When the pandemic lockdowns hit, manufacturing hubs shut down. Container ships sat in ports without loading new cargo.
Even now, we’re seeing the headlines about our ports, which are still backed up from the confusion over a year ago.
And countries began experiencing shortages of many key products… medical equipment, home appliances, even cars.
The world realized just how fragile our supply chains are…
And that’s why things are beginning to change. The world now understands the risks that come with a heavily centralized global supply chain network…
That means we’re on the cusp of an important transition…
Follow the Money
One of the best ways to spot a trend in motion is to follow the money… And right now, an incredible amount of money is flowing into the trend of bringing manufacturing back to America. It’s what I like to call the “American manufacturing renaissance.”
And it’s fast becoming a race to see which industries can quickly build out production capacity onshore…
A perfect example is the pharmaceutical industry.
With most key pharmaceutical ingredients and drug manufacturing controlled by China and India, the developed world saw major drug shortages at the height of the lockdowns. This led to people not getting the prescription medicines they needed. And that put many lives at risk.
But new companies like National Resilience are stepping up, building a network of manufacturing solutions in order to ensure that our medicines can be made quickly, safely, and at scale. The most modern pharma manufacturing plants will be built right here in America.
Since it was founded in late 2020, National Resilience has already seen a massive $1.1 billion of investment pour into it as a result – over a billion dollars in a year.
And this kind of movement is happening in all kinds of industries…
Made in the USA
As another example, semiconductor giant Taiwan Semiconductor Manufacturing (known as TSMC) is in the process of building a new $12 billion fabrication facility in Arizona…
The global semiconductor industry relies on TSMC to manufacture chips for just about any kind of electronics we can imagine. The semiconductors TSMC makes are used in smartphones, watches, laptops, game consoles, cars, and much more. Without them, these products simply couldn’t be manufactured.
And now, these chips will start being made in the U.S.
Likewise, prominent server manufacturer Supermicro just built a new manufacturing plant in the United States.
And we’re not talking about small semiconductors here. Supermicro produces large server hardware that goes into data centers. It’s an intensive manufacturing process. And now, it’s added a 200,000 square foot manufacturing building to its San Jose campus.
Automotives are another industry where we’re seeing this manufacturing trend take place.
Electric vehicle (EV) companies like Tesla and Lucid Motors have spent millions expanding their manufacturing hubs in the U.S. over the years.
In fact, Tesla’s Nevada-based Gigafactory stands as one of the most robust manufacturing hubs in the entire world… and its Austin Gigafactory will soon expand to volume production of Tesla’s cars – and the upcoming Cybertruck.
And even legacy automotive players are jumping on this trend.
In October, Ford announced it would be building an $11.4 billion electric vehicle assembly plant in Tennessee and two EV battery factories in Kentucky.
Ford is also investing heavily in its other domestic plants in Michigan and Ohio, employing cutting-edge manufacturing processes like 3D printing to produce its components.
I love what Ford is doing here.
It’s implementing a decentralized manufacturing model, where smaller, highly automated plants can produce goods closer to the markets they serve.
This approach is robust and far more efficient. And it’s also better from an environmental standpoint. That’s because it simplifies shipping and logistics, requiring the goods to travel far fewer miles.
This is just the beginning. With the rise of technologies like 3D printing, we’re going to see more and more manufacturing plants for all kinds of products newly located close to their end markets. We’ll be able to create fully customizable products on demand.
And that leads me to some big news…
Igniting the Renaissance
I’ve tapped into all the connections I’ve made during my three decades in high technology. And in doing so, I’ve found a company sitting right at the heart of this situation.
It’s flying under the radar… but I believe it could really ignite this new renaissance in American manufacturing.
That’s because this company provides a key technology powering everything from the next generation of the internet to the consumer electronics we use every day.
Its products are quickly becoming an absolute necessity in the world of wireless technology. The reality is that not using this company’s technology will be a competitive disadvantage.
And for this story, I’m going right to the source. I’ve secured a level of access that no other analyst has gotten.
I’ve toured this company’s fabrication facility – located here in the States, not somewhere offshore – and had a sit-down meeting with this micro-cap’s CEO to talk frankly about the progress his company is making… and the state of the industry as a whole.
Critically, I believe this tiny company could be on the verge of a buyout… meaning there’s little time to spare.
If you’d like to make sure you’re one of the few in the know about this time-sensitive opportunity, then please, simply click here to get the full story.
Editor, The Bleeding Edge
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