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Yahoo
3 days ago
- Automotive
- Yahoo
How GM + Nvidia are changing the face of the automotive industry
General Motors is making significant strides in revolutionizing its manufacturing processes through a new partnership with chipmaker Nvidia. Announced in March, the collaboration aims to harness the power of artificial intelligence to enhance automation, cut costs and improve efficiency across GM's factories. At the heart of this partnership is Nvidia's advanced computing technology, which GM is leveraging to build custom AI systems for its manufacturing operations. The automaker is using Nvidia Omniverse with Cosmos to create digital twins of its assembly lines, allowing for virtual testing and simulation of production processes before physical implementation. This is JP Hampstead, co-host with Craig Fuller of the Bring It Home podcast. Welcome to the 25th edition of our newsletter, where we go deep into one of the largest-scale tech-industrial partnerships in the automotive industry. 'Using digital twins, we simulate a running production line before it's constructed, optimizing our planning process and allowing us to scale faster while saving time and money,' explained JP Clausen, GM's executive VP of global manufacturing and sustainability. 'It also helps our team members identify and solve problems more effectively.'These digital simulations enable GM to test and refine new production processes without disrupting existing vehicle manufacturing, a critical advantage as the company balances production of both traditional combustion engines and electric vehicles. The partnership extends to training robotics platforms for operations such as material handling, transport and precision welding. Through a combination of AI and machine learning, GM has developed systems that can identify potential issues in manufacturing, such as leaks in battery packs, allowing for quick repairs and supporting quality control. The automotive industry, led by companies like GM, remains the largest user of industrial robots in America. According to Brookings Institute data, nearly half of the 233,305 industrial robots in the United States are employed in auto manufacturing. Michigan, home to GM's headquarters, accounts for nearly 28,000 robots — approximately 12% of the nation's total. Detroit, in particular, stands out as the robot capital of America, with more than three times the number of industrial robots compared to other metropolitan areas. By 2015, the Detroit-Warren-Dearborn area had 15,115 industrial robots in place, or 8.5 per 1,000 workers, a significant increase from 5,753 robots in high concentration of automation has contributed to a dramatic shift in GM's workforce composition over decades. In 1979, GM employed 468,000 American hourly workers, representing 76% of its U.S. workforce. By 2021, that number had dropped to just 45,000 American hourly workers, or 46% of the company's domestic workforce. GM's innovation hub, the Global Technical Center in Warren, Michigan, employs approximately 24,000 people with an average annual salary of $120,000. This facility has become central to developing the company's AI-driven manufacturing technologies. Using both robotics and proprietary AI tools, GM has implemented systems to inspect welds and paint coats, identifying irregularities and anomalies that might affect vehicle quality. This technology not only improves product quality but also enhances workplace safety by automating potentially hazardous tasks. 'We're using AI and advanced software to help our team minimize ergonomic stressors, enable workplace safety and enhance quality in our manufacturing plants,' notes Clausen. 'Investing in our current and future workforce with better technology helps ensure that our teams have the skills and tools needed as we continue to evolve our manufacturing footprint to meet customer demand.' GM's automation advancements come at a critical time as the company navigates challenges in electric vehicle production. In October 2023, GM announced delays in the production of electric trucks, including the Chevy Silverado EV and GMC Sierra EV, pushing the start date at its Orion Assembly plant from 2024 to late 2025. The company cited the need to 'align its capital investments with electric vehicle demand and implement vehicle engineering improvements to boost profitability' as reasons for the delay. GM's partnership with Nvidia aims to address these challenges by improving engineering efficiency and manufacturing processes. Engineers collaborate in real time on digital twins of manufacturing robotics using Nvidia's Omniverse. (Photo: Nvidia) Despite production delays, GM maintains ambitious plans, projecting to have more than 1 million units of EV capacity in North America by the end of 2025 and to convert 50% of its North American assembly capacity to EV production by automation raises concerns about job displacement, GM emphasizes that AI is being implemented to enhance, not replace, its workforce. The company describes its approach as 'people-centric,' using AI to help employees avoid ergonomic stressors and improve workplace safety. 'It's not about automating everything or building more vehicles faster — our winning formula is driven by a combination of flexible manufacturing, advanced technology, and a talented workforce,' states Clausen. Nevertheless, GM's transformation from 'automaker to platform innovator' suggests a continuing shift toward higher-skilled, technology-focused employment. In its presentation to investors titled 'From Automaker to Platform Innovator,' GM projected that software and new business ventures would grow from $2 billion to $80 billion by 2030, indicating a future in which salaried professionals may increasingly outnumber traditional manufacturing workers. The Nvidia partnership positions GM to remain competitive in an increasingly technology-driven automotive landscape. Jensen Huang, Nvidia's founder and CEO, emphasized the significance of the collaboration: 'The era of physical AI is here, and together with GM, we're transforming transportation, from vehicles to the factories where they're made.' GM plans to build next-generation vehicles on Nvidia DRIVE AGX, based on the Nvidia Blackwell architecture, delivering up to 1,000 trillion operations per second of high-performance compute. This technology will not only power manufacturing but also enhance future advanced driver-assistance systems and in-cabin safety features. As automotive manufacturing continues to advance, GM's strategic investments in AI and robotics may provide a competitive edge. The company has maintained its position as the U.S. sales leader for three consecutive years through 2024, offering what it describes as 'the broadest portfolio of electric vehicles in the industry,' with plans to expand to a dozen EV models by the end of 2025. 'The era of physical AI is here.' – Jensen Huang, Nvidia CEO (Image: Fortune Business Insights) GlobalFoundries Announces $16B U.S. Investment to Reshore Essential Chip Manufacturing and Accelerate AI Growth GlobalFoundries (NASDAQ: GFS) (GF), working with the Trump administration and with support from leading technology companies aiming to onshore critical components of their supply chain, has announced plans to invest $16 billion to expand its semiconductor manufacturing and advanced packaging capabilities across its facilities in New York and Vermont. GF's investment is a strategic response to the explosive growth in artificial intelligence, which is accelerating demand for next-generation semiconductors designed for power efficiency and high-bandwidth performance across data centers, communications infrastructure and AI-enabled devices. Kraft Heinz confirms $3B investment in US manufacturing Kraft Heinz will spend $3 billion on its U.S. manufacturing facilities, the company confirmed to Food Dive. It's the largest investment in its plants in decades. Pedro Navio, president of Kraft Heinz's North America operations, told Reuters earlier this month that planned investments could add 3,500 employees to the Lunchables producer's workforce. Rolls-Royce to invest $24 million in US manufacturing Rolls-Royce has announced a $24 million U.S. investment that will more than double production of backup power generation systems for data centers and create more than 100 new jobs in the U.S. The investment includes a new 250,000ft2 Logistics Operations Centre adjacent to the existing manufacturing facility in Mankato, Minnesota. It will enable Rolls-Royce to increase production capacity for its mtu Series 4000 generator sets, which are in high demand from the rapidly growing data center industry. The post How GM + Nvidia are changing the face of the automotive industry appeared first on FreightWaves. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
24-04-2025
- Business
- Yahoo
Design flaws undercut law to bring chip manufacturing back to US, expert says
On the most recent Bring It Home Podcast, host JP Hampstead spoke with Julius Krein, founder and editor-in-chief of American Affairs, about U.S. industrial policy post-CHIPS Act. The CHIPS and Science Act of 2022 aims to bring microchip manufacturing back to the U.S. after several decades of companies offshoring the technology. According to a report by the Council on Foreign Relations – a nonpartisan think tank headquartered in New York – the U.S. produced 40% of the world's semiconductor supply in 1990. Today, the U.S. produces only 12% as Taiwan has ramped up to over 60% of the world's supply of semiconductors. Krein dove into the historical context, challenges and prospects of America's industrial strategy. He described U.S. industrial policy as targeted interventions aimed at boosting specific sectors to improve economic competitiveness and national security. He also critiqued traditional views that often portray such policies as economic externality management, arguing instead that U.S. industrial policy should strategically lower the cost of capital for essential projects to boost growth. Krein said the CHIPS Act has had its limitations, pointing out its short-term focus and lack of a mechanism for ongoing policy adjustments. He said that mechanism would be vital for the long-term competitiveness of the U.S. semiconductor industry. 'I think the CHIPS Act was necessary,' Krein said. 'But in sort of design and execution, I think it had two problems: one in terms of policy design, one in terms of more framing and rhetoric.' 'I think it's a critical sector, but I'd like to think or at least hope that we could do both a lot better on policy design as well as kind of building a larger framework and ecosystem for all of these projects,' he continued. Other headlines discussed in this episode included: Recent announcements of large investments by tech conglomerates in the U.S., including Taiwan Semiconductor Manufacturing Co.'s commitment to extending its semiconductor manufacturing operations with a $100 billion investment. Apple's intention to expand its U.S. manufacturing footprint with a $500 billion investment, focusing on enhancing its supply network. The Stargate project, a joint venture by OpenAI, Softbank and Oracle aimed at developing AI infrastructure with a $500 billion pledge, reflecting broader trends toward investing in AI as a catalyst for new business models. Bring It Home dives into emerging industry trends and the push for reindustrialization in North America. The podcast is available on YouTube, Spotify and Apple Podcasts. The post Design flaws undercut law to bring chip manufacturing back to US, expert says appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Can the US learn from China?
By every metric, China dominates global manufacturing. But how did this country, which was backward and impoverished, with a GDP per capita under $1,000 as late as 1999, transform itself into an industrial powerhouse? And what can other nations, particularly the United States, learn from China's manufacturing success story? This is JP Hampstead, co-host with Craig Fuller of the Bring It Home podcast. Welcome to the 21st edition of our newsletter, where we ask how China did it and what the U.S. can and can't take from the Chinese example. To understand the rise of Chinese manufacturing, we need to go back. In the late 1970s, China began opening up its economy under Deng Xiaoping's leadership. This marked a significant shift from the country's previously closed, centrally planned system to a more market-oriented approach. The timing was perfect: It was the high-water mark of union membership in the U.S., Western companies were seeking ways to reduce production costs, and China offered an abundance of low-cost labor. Initially, China's role in global manufacturing was primarily as a low-cost producer of simple, labor-intensive goods. However, over the decades, the country has transformed its manufacturing capabilities, moving up the value chain to produce increasingly sophisticated products. Today, China is not just a hub for textiles and toys but also for high-tech electronics, automotive parts and advanced aspects of Chinese culture, institutions and public policies have contributed to this manufacturing success. First, there's the cultural emphasis on hard work and collective achievement. The Chinese workforce is known for its diligence and willingness to put in long hours; alternatively, one could speak of the Chinese people's pain tolerance and low expectations for quality of life. Top-down industrial policies from Beijing have been instrumental in China's manufacturing rise. The Chinese government has consistently prioritized industrial development, offering various incentives to attract foreign investment and technology transfer. These include tax breaks, subsidies and the establishment of special economic zones. The government has also invested heavily in infrastructure – including $153 billion for domestic ports between 2012 and 2019 alone – creating an environment conducive to large-scale manufacturing operations. Another key factor is China's vast and well-developed supply chain ecosystem. The concentration of suppliers, assemblers and logistics providers in manufacturing clusters allows for rapid prototyping, efficient production and quick turnaround times. This ecosystem is particularly evident in regions like Shenzhen, which has become a global hub for electronics manufacturing. However, it's important to note that China's manufacturing success hasn't come without high costs. Issues such as intellectual property infringement, labor rights concerns and environmental degradation have been persistent problems. Beijing is still choked with vast what can the United States learn from China? While some aspects of China's approach may not be replicable or desirable in the U.S. context, there are certainly lessons to be drawn. First, the importance of a coherent, long-term industrial policy cannot be overstated. The U.S. could benefit from a more strategic approach to supporting its manufacturing sector, including targeted investments in key industries and technologies. Second, the U.S. could take cues from China's emphasis on vocational education and training. Strengthening partnerships between educational institutions and industry could help create a workforce better aligned with the needs of modern manufacturing. Third, the development of manufacturing ecosystems or clusters, similar to those in China, could enhance efficiency and innovation in U.S. manufacturing. This might involve incentives for co-location of suppliers and manufacturers in specific regions, or even the creation of special economic zones. Balaji Srinivasan recently tweeted in support of a 'special Elon zone' without taxes or regulations around SpaceX's Starbase in Texas. But the U.S. can't simply replicate China's formula for success. Our federal government is divided and often at cross-purposes with itself, making ambitious policies difficult to achieve; our hard-tech sector often bears the cost of R&D that benefits the entire world; American workers have high expectations for their quality of life. So the U.S. must forge its own path to manufacturing competitiveness. While China's manufacturing success story offers valuable insights, the key for the U.S. lies in adapting relevant lessons to its own unique context and perhaps a strategy that leans into innovation rather than sheer scale, automation rather than cheap labor, critical machines rather than retail goods, and sustainable partnerships between labor and management. 'China's door of opening up will not be closed but will only open wider, and our business environment will only get better.'– China Vice Premier Ding Xuexiang at Davos 2025 Nvidia to Manufacture American-Made AI Supercomputers in US for First TimeWithin the next four years, Nvidia plans to produce up to half a trillion dollars of AI infrastructure in the United States through partnerships with TSMC, Foxconn, Wistron, Amkor and SPIL. These world-leading companies are deepening their partnership with Nvidia, growing their businesses while expanding their global footprint and hardening supply chain resilience. Novartis plans to invest $23 billion in US sites as Trump renews drug tariff threats Swiss drugmaker Novartis said on Thursday it plans to spend $23 billion to build and expand 10 facilities in the U.S., as it grapples with renewed threats of drug import duties from the Trump administration. Novartis said it plans to build six new manufacturing plants, some of which will make raw pharmaceutical ingredients, as well as a new R&D site in San Diego. LVMH mulls moving more manufacturing to the US amid continuing tariff chaos On LVMH's first-quarter 2025 earnings call on Monday, the French luxury giant revealed slightly lowered sales while highlighting recent successes like the debut of Sarah Burton designing for Givenchy and Tag Heuer's return to sponsoring Formula 1. But the question on every analyst's mind was: How is LVMH feeling about tariffs? President Donald Trump's rollout of disruptive tariffs has been causing headaches for fashion brands for weeks. LVMH is a leader in the fashion space, and CEO Bernard Arnault has close ties to Trump. The company's reaction to the tariff rollout could serve as an indicator for the rest of the industry of just how dire things could be. The post Can the US learn from China? appeared first on FreightWaves.
Yahoo
08-04-2025
- Business
- Yahoo
Trade policy changes alone won't bring manufacturing back
President Donald Trump has implemented a reciprocal tariff scheme that raises tariffs on imports from other countries that place tariffs on U.S. goods. The stated goal is to level the playing field for American manufacturers and bring factories and jobs back to the United States. The plan targeted industries like steel, aluminum, automobiles and consumer electronics – areas where the U.S. has seen significant manufacturing job losses in recent decades. But it also affected commodities like cocoa and bananas, which are unlikely to be grown in the U.S. in significant numbers, suggesting that at least some of the tariffs are intended to be used as bargaining chips by the administration to get movement on other issues. Because the tariffs have been imposed for different reasons depending on the trading partner and commodity, it's difficult to talk about their effects, intended or otherwise, as a whole. This is JP Hampstead, co-host of the Bring It Home podcast with Craig Fuller. Welcome to the 20th edition of our newsletter, which puts trade policy in the broader context of a comprehensive industrial policy. While tariffs can provide some short-term protection for domestic industries, I believe they're insufficient on their own to reverse the long-term decline in U.S. manufacturing. The reality is far more complex, as outlined in a recent article on X by entrepreneur and Bring It Home podcast guest Molson explains that, while labor costs are a significant factor, they are not the only reason manufacturing has moved overseas. The United States faces several key challenges in reshoring manufacturing. First, there is a considerable lack of manufacturing infrastructure and domestic supplier networks. Over the years, the U.S. has also experienced a loss of essential manufacturing knowledge and skills within its workforce, further complicating efforts to bring production back. Additionally, the costs associated with energy, transportation and regulatory compliance in the U.S. are comparatively high, posing another barrier. Hart also notes that automation is reducing the number of manufacturing jobs even as output increases. So even if production returns, it may not bring back a proportional number of jobs. Personally, I think the 'if the factories come back, they'll be full of robots anyway' argument is overblown. Yes, automotive assembly workers are approximately five times as productive today as they were in the 1950s. The largest automotive plant in the United States by number of assembly workers is Toyota in Georgetown, Kentucky, which employs approximately 9,500 people. It's a much smaller scale in people terms than Ford's River Rouge plant, which employed in excess of 100,000 in the 1930s, but anyone who says 9,500 manufacturing jobs aren't worth pursuing because the numbers are too small is disconnected from reality. It turns out that the median household income in Georgetown is about $78,000 per year, 25% higher than the rest of To truly revitalize American manufacturing, tariffs must be part of a broader, more robust industrial policy. This strategy should encompass several critical areas. Regulatory reform is essential to streamline permitting processes, environmental reviews and other regulations, which would reduce compliance costs and encourage new manufacturing investments. Tax policy should aim to provide incentives for research and development, capital investments in cutting-edge equipment and facilities, and workforce training. This could involve expanding the R&D tax credit and allowing for the immediate expensing of capital investments. Infrastructure investment is another cornerstone, as modernizing transportation networks, energy grids and broadband is necessary to lower logistics costs and enhance competitiveness. Additionally, export promotion efforts should be strengthened by providing resources and support to help small and medium-size manufacturers enter global markets. Strategic industry support is vital in identifying and nurturing industries of the future, such as semiconductors, biotechnology, clean energy and advanced materials. Lastly, implementing 'Buy American' policies through federal procurement can help create markets for domestic manufacturers, particularly in critical industries. This comprehensive approach addresses the root causes of manufacturing decline, fostering an environment where American companies can innovate, boost productivity and generate high-quality jobs. While tariffs can play a role in protecting strategic industries, they are just one tool in what needs to be a much larger toolbox. Without accompanying investments and reforms, tariffs alone risk raising consumer prices (or harshly suppressing demand) without generating sustainable gains in domestic manufacturing. ''Liberation Day' has very likely liberated the US and the WTO from each other for good. Nonetheless, it would be unwise to dismiss these visions. They represent the intellectualization of two ideas that resonate deeply with American voters: that past decades' trade and security policies have been net negatives for Americans, and that they ought instead to produce tangible daily benefits. The longer these ideas are dangled in front of voters, the less likely it is we will see a return to a system in which the US plays by any trade rules at all.' – Heather Hurlburt, associate fellow, U.S. and the Americas Programme, Chatham House A map of automotive production in the United tally: J&J plans $55 billion investment to expand U.S. manufacturing Johnson & Johnson will spend $55 billion in the U.S. over the next four years on manufacturing, research and technology investments, the drug giant said Friday. The company breaks ground Friday on a manufacturing facility in Wilson, North Carolina, to make cancer and other medicines. AI Meets Manufacturing – Nearshore Launches Sourcing Marketplace of Suppliers across the US, Latin America, and Europe Nearshore officially unveiled its AI-powered manufacturing marketplace, connecting businesses with a network of over 2,200 factories across the U.S., Latin America and Europe. Nearshore offers an ecosystem of manufacturing partners across industries such as apparel, electronics and packaging. Iron Prairie Ventures Launches Fund to Capitalize on America's Reindustrialization Iron Prairie Ventures announced it has raised a $15 million fund focused on pre-seed and seed-stage investments in startups fueling the industrial sector's digital transformation. The fund will back companies developing innovative solutions across the construction, manufacturing, infrastructure, logistics and supply chain sectors. The post Trade policy changes alone won't bring manufacturing back appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
Flatbed market anything but flat
Tariffs spike flatbed tender rejections Flatbed tender rejection rates spiked just before North American tariffs took effect in early March, and they spiked again in recent days. (Chart: SONAR) 'What's happening with flatbed rejection rates?' is the question of the hour from SONAR users. It's easy to see why – rates shot up to the mid-30s in early March, ahead of North American tariffs (which were delayed for imports that adhered to the United States-Mexico-Canada Agreement). Flated rejection rates shot up again in recent days to a latest reading of 41.6%, ahead of additional North American tariffs set to go into effect on April 2 that may include lumber, among other things. The SONAR team believes it's all tariff-related. When flatbed tender rejections spiked in early March, I dug into our raw flatbed data with help from our data team. The purpose was, first, to verify that we are, in fact, seeing that spike in the underlying data we are receiving from our data vendor – we are. Second, it was to see if there is evidence of tariffs driving the spike in rejection rates, as the timing suggests. Looking at the individual geographic markets for flatbed tender rejections (which SONAR does not publish) reveals that the spike in flatbed tender rejections is fairly widespread, with multiple markets in the U.S. showing more than one-third of the number of tender rejections we have historically seen, on average, for the U.S. as a whole. The two markets that have the highest total rejections are Dallas and Portland, Oregon. Presumably, movements to avoid tariffs are taking capacity that would normally be available in those areas. Since the SONAR Flatbed Outbound Tender Reject Index's inception, February 2022 was the only other time the index was as high as current levels. (Chart: SONAR) Another factor behind the magnitude of the surge in flatbed tender rejection rates is simply that it is a thin dataset, relative to other equipment types in SONAR, which makes it prone to sharp moves. Not only is there far less flatbed volume than dry van and reefer, it is more likely to move on the spot market, and therefore not go through the tender accept/reject process. According to a SONAR employee with experience brokering flatbed loads, 'Generally, flatbed doesn't move in any sort of contract manner. There are a few contract shippers scattered around the US, but most of that freight is intra-network and agreed upon in an all-in manner.' Truckstop spot rates have risen but not by as much as the spike in rejection rates would suggest. In addition to tariffs, spring is seasonally strong for flatbed as construction projects ramp up. (Chart: SONAR) For more detail on the divergence between rejection rates and spot rates, and why rejection rates are typically a leading indicator for spot rates, see JP Hampstead's latest article. The Stockout x The Logistics of Logistics (Image: Last week, I joined Joe Lynch's The Logistics of Logistics podcast. Lynch is a prolific podcaster but had not had anyone on before to discuss consumer packaged goods supply chains specifically. CPG topics discussed included the impact of tariffs, ingredient inflation, Gen Z buying trends, health trends and how CPG companies are using AI. In addition, we discussed how CPG companies use SONAR for purposes of daily freight management, RFP management and logistics strategy. Listen to the show here or on your podcast service of choice. The Stockout Show: Walmart bolsters capabilities with 3PL division (Image: FWTV) On Monday's The Stockout show, Grace Sharkey and I discussed Walmart getting into brokerage, as well as recent events involving FedEx, Forever 21 and the ocean market. Of those topics, Walmart's actions have the most potential for industrywide impact and are part of a larger trend in which enterprise shippers are enhancing internal logistics capabilities. In recent days, Walmart began emailing a select group of trucking companies about its new 3PL offering, which promises to provide carriers with steady freight flows largely from Walmart Fulfillment Services (WFS). Walmart's ultimate goal appears to be developing a stronger WFS, a competitor to Amazon Marketplace. Amazon Marketplace has faced criticism for imposing fees and requirements that make it difficult for sellers to be profitable on the platform. That may entice sellers to move to WFS or use both show is available on The Stockout YouTube page. To subscribe to The Stockout, FreightWaves' CPG and retail newsletter, click here. The post Flatbed market anything but flat appeared first on FreightWaves. Sign in to access your portfolio
