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💴 This Week in Manufacturing

American manufacturing is showing steady growth, but the real story is underutilized capacity. While output is rising modestly, manufacturers are still operating below potential amid rising costs, labor constraints, and supply chain friction. At the same time, defense production strategies and advanced investments point toward a more distributed, resilient future. A future that depends less on building new capacity and more on connecting the vast network that already exists.

This week’s headlines highlight further opportunities and challenges across the industry from a rise in battery production and submarine manufacturing to the continued loss of factory jobs and the cost of a broken permitting system.

Our first podcast, from Augmented Ops, covers the power of a regional ecosystem in driving manufacturing success. The second podcast, from The Manufacturing Executive, dives into the ever-present discussion on AI and whether it’s a bubble.

The Social Video and Fun Fact each showcase the power and growth within the defense industry, which has been under the microscope with recent military engagements.

Thanks for joining us!

⚙ Manufacturing Headlines

• Suddenly, the US manufactures a ton of grid batteries [Canary Media]

• U.S. Manufacturing Cyber Defense Requires AI-Native Architectures [Forbes]

• Trump promised a manufacturing boom, but factory jobs continue to decline [PBS]

• Broken Permitting System Costs Manufacturing $8B Annually [CBIA]

• US opens funding tap to boost submarine manufacturing [Naval Technology]

COMMENTARY

♨️ The Capacity Exists: Why U.S. Manufacturing Is Waiting on Collaboration

The fundamental challenge facing American manufacturing right now isn’t a lack of capability—it’s a lack of connection.

This week’s manufacturing signals reinforce a critical reality: the U.S. doesn’t have a capacity problem—it has a coordination problem. Output continues to grow, but most manufacturers remain underutilized as rising costs, labor shortages, and supply chain inefficiencies persist.

Meanwhile, global defense strategies and targeted investments in advanced technologies highlight a shift toward distributed, network-driven resilience. The path forward isn’t about adding more factories—it’s about enabling the 250,000 existing manufacturers to better find, trust, and work with each other in a more connected ecosystem.

Upshot: So we’re in this interesting moment where the capacity exists—but the system isn’t fully synchronized to use it. That’s the tension defining this phase of the manufacturing reshoring story.

FROM THE FEED

📱American and Taiwanese defense companies are working together on drones

🤨Did You Know?

The aerospace and defense industry expects to see an annual earnings growth of

12%

over the next five years.

^{Source: Spartronics}

🎧 Podcasts Worth A Listen