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a day ago
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Trump promises 50% tariffs on steel
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. President Donald Trump announced he's increasing steel tariffs from 25% to 50% during remarks at a U.S. Steel factory in Pittsburgh on Friday. Trump said that raising the tariffs, which are not impacted by this week's court ruling blocking many of his levies, would further protect the U.S. steel industry. 'At 25%, they can sort of get over that fence. At 50%, they can no longer get over the fence," Trump said. Trump imposed a 25% blanket tariff on steel and aluminum imports in March. He also targeted steel and aluminum imports during his first term, levying 25% tariffs on five classifications of steel articles and a 10% tariff on six types of aluminum products in 2018. Trump was in Pittsburgh to tout Japan-based Nippon Steel's pending acquisition of U.S. Steel. During his remarks, Trump maintained that the American steel company will remain controlled by the U.S. The president also promised workers at U.S. Steel a $5,000 bonus and to keep jobs in the country. Trump has additionally touted that Nippon will invest $2.2 billion in U.S. Steel's Pennsylvania plant. "We're here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company," Trump said in his remarks. Nippon initially announced plans to acquire U.S. Steel for $14.9 billion in December 2023 but faced opposition from the Biden administration and the United Steelworkers. Trump initially opposed the acquisition, saying he would block the deal. Then-President Joe Biden blocked the deal in January, citing national security concerns and a negative impact on domestic steel production. USW shared the same views, saying the deal would also impact job security. Trump revived talk of the deal in April, when he ordered the Committee on Foreign Investment in the United States to review the proposal. Earlier this week, Trump announced he supported the deal, calling it a "planned partnership." Recommended Reading Trump backs Nippon-US Steel 'planned partnership' Sign in to access your portfolio
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2 days ago
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Motorola to acquire defense radio maker for $4.4B
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Motorola Solutions is set to acquire defense radio maker Silvus Technologies for $4.4 billion, the Chicago-based technology, communications and security company said Wednesday. The all-cash agreement, expected to close by the end of 2025, would expand Motorola's portfolio to include technologies that address safety, security and defense use cases for autonomous systems and secure high-bandwidth communications. Silvus, based in Los Angeles, could also receive an additional payout of $600 million based on its business performance through 2027 and 2028 as part of the deal. Motorola, which spun off and sold its cell phone business to Google in 2012, pivoted to focus on public safety technology and has reaped strong returns over the past decade. The company recently reported first quarter sales of $2.5 billion, up 6% from last year. That marked sizable growth from Q1 2015, when Motorola reported sales of $1.2 billion. Additionally, earnings per share has ballooned from 40 cents to $2.53 over the 10-year period. However, tariffs are driving up costs and challenging the company. During an earnings call May 1, Motorola EVP and CFO Jason Winkler said the company is expecting a tariffs impact of close to $100 million this year. The company is implementing supply chain adjustments and cost-savings measures to mitigate the effects of the dynamic trade backdrop, he said. Motorola contracts with manufacturers around the world for most of its products, including facilities in Mexico, Malaysia and Canada, according to its annual investor filing. It also owns or leases operations in Illinois, Florida and Texas. Motorola's success over the years has stemmed largely from focusing on rugged, weather-proof technologies used across industries, such as radios and video surveillance systems, as well command center and support services software. Acquiring Silvus would expand Motorola's portfolio to include devices with mobile ad-hoc network technology, also known as MANET, which can transmit data, audio and video without any pre-existing network infrastructure. The technology is currently used in military and law enforcement use cases. 'This acquisition underscores our unwavering conviction that technology is the bedrock for protecting communities, securing borders and defending against today's ever evolving threats, whether in the air, on the ground or in the water,' Greg Brown, chairman and CEO of Motorola, said in a statement. Silvus is on track to generate $475 million in revenue this year with an adjusted earnings margin of roughly 45%, according to Motorola's investor presentation Wednesday. It could be accretive to Motorola's earnings per share within the next 12 months. Motorola is expecting rapid customer adoption with this move. Silvus' devices use high-bandwidth, private, mobile mesh data networks and radio frequency sensing technologies for data transmission and communication, according to the presentation. They are different from competitors' offerings in that their anti-jam techniques can support high data throughput for a large number of nodes in congested environments. The companies plan to combine their engineering teams and leverage Motorola's size and scope to reach global customers. Silvus was previously owned by TJC LP, formerly known as The Jordan Company. Recommended Reading Samsung to acquire cooling systems provider FläktGroup to meet data center demand Sign in to access your portfolio
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2 days ago
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Power enclosure maker AVL to establish its first US plant
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Canada-based AVL Manufacturing has agreed to invest $56 million to establish its first U.S. production facility in Charlotte, North Carolina, to make industrial enclosures for large-scale power generators. The 232,000-square-foot plant, expected to open in September, will create about 300 jobs for the area, according to AVL. Hiring is set to begin in June. AVL's custom enclosures are part of a growing market segment in North America, fueled by the proliferation of data centers to meet surging artificial intelligence demand. Industrial enclosures are often used by technology companies to protect their generator sets — also known as 'gensets' — from weather, dust and other environmental factors. Data centers rely on these enclosures for their backup power. The global genset market was valued at $66.84 billion last year and is projected to cross $130.8 billion by 2037 due to increasing demand for power, according to Research Nester, a market research group based in New York City. The North American market is likely to account for 45% of global revenue in the next 12 years, driven by the huge number of data centers across the continent, according to Research Nester. These data centers, which support cloud computing and internet connectivity, consume roughly 10 times more power than the average American household. Some of the major players in the U.S. market are Schneider Electric, Emerson Electric Co. and Hubbell Inc. Additionally, Switzerland-based ABB recently pledged to invest $120 million in two U.S. manufacturing sites. It has a strong relationship with China, previously landing a contract to make genset enclosures for the country's largest shipping company. AVL, headquartered in Hamilton, Ontario, is expanding into the United States as chipmakers, drug companies and others pledge to expand or relocate their operations domestically in the face of volatile tariffs. 'After considering many markets, we are thrilled that AVL's entrance into the US market is in Charlotte, a vibrant, tech-forward city perfect for us to lay down roots,' AVL President Vince DiCristofaro said in a statement. 'We are excited to tap into this talent pool as we establish our state-of-the-art manufacturing facility and create meaningful careers for the residents of this city.' The company established its AVL USA division as part of the move. It will receive a performance-based grant of $100,000 from the One North Carolina Fund, after creating 122 jobs in the Charlotte area, according to the state's commerce department. The average salary for those jobs will be about $90,000 compared to the average Mecklenburg County wage of $86,830. Recommended Reading Samsung to acquire cooling systems provider FläktGroup to meet data center demand Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
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4 days ago
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Trump backs Nippon-US Steel ‘planned partnership'
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. U.S. Steel and Nippon will enter into a "planned partnership" as part of a $14 billion deal, President Donald Trump announced Friday. The agreement, detailed by the president in a Truth Social post, will create at least 70,000 jobs. The bulk of the investment is expected to come in the next 14 months. Trump also teased an upcoming rally at U.S. Steel's headquarters in Pittsburgh on Friday. The president clarified to reporters on Sunday that the agreement "will be controlled by the United States, otherwise I wouldn't make the deal," according to a Reuters report. This could include granting the U.S. government "golden shares" of the company, according to a Nikkei Asia report. Golden shares give the shareholder veto power over key aspects of a company, including board members, which could give the administration more sway in the future of the steel company. Nippon Steel and U.S. Steel did not immediately reply to requests for comment. The developments are the latest updates to months of speculation over the future of the steel deal. Last month, Trump ordered a review from the Committee on Foreign Investment in the United States of the deal to determine possible future actions. The deal has been controversial since Nippon first moved to buy U.S. Steel in December 2023. President Joe Biden blocked the deal before leaving office in January, citing national security concerns. However, Trump has been publicly optimistic about the potential deal since taking office. Recommended Reading Trump orders review of Nippon-US Steel deal Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 days ago
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US tractor sales continue to fall amid trade concerns
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. U.S. sales of tractors and combines continued to fall in April as farm equipment manufacturers navigated ongoing headwinds from a mix of tariffs, high interest rates and increased input costs. The total number of two-wheel- and four-wheel-drive tractors sold for the month fell 12.3% to 22,201, according to recent data from the Association of Equipment Manufacturers, a difference of 3,116 units. From January to April, industry sales declined 13.3% year over year to 58,964 tractors, AEM data show. Meanwhile, Combine sales plummeted 48.3% to 936 units over the same period. For the month of April, they were down 31.9%, or by 194 units. As farmers take a more cautious approach to capital spending, Curt Blades, senior vice president of the AEM, said in a statement that he is hopeful for a market rebound as demand picks up in the warmer months. 'With planting season underway, we remain optimistic the ag economy will improve, leading to a strengthening of the ag equipment market,' Blades said. U.S. tractor sales typically peak ahead of the spring harvest months with a later spike in October during fall harvest, according to AEM data. While market trends have been consistent since 2020, demand has significantly weakened since the tractor boom of 2022. In response, equipment giants such as Deere & Co. and CNH Industrial have significantly cut their production output and laid off droves of manufacturing workers. Since March 2024, the John Deere tractor maker has laid off 1,866 people across its factories and offices in Iowa alone, as of February. Earlier this year, CNH notified workers at plants in North Dakota and Minnesota of 373 job cuts, citing 'current and anticipated market conditions.' Despite gloomy sales and projected tariff impacts across the industry, Deere executives were optimistic on a May earnings call about conditions improving this year. Chairman and CEO John May said the company saw sales momentum carry forward into the second quarter from the first quarter, citing $10 billion in federal emergency relief payments to farmers as a potential catalyst. Markets in Canada are already showing signs of recovery. Total tractor sales from January to April increased 3.4% over last year, according to AEM data for the country. This was driven in part by renewed demand for four-wheel-drive tractors, which resulted in a sales increase of 46.3% year-to-date. The global tractor market is expected to be valued at $89.8 billion this year and is on track to reach $119.6 billion by 2030, according to market research group Mordor Intelligence. The Asia-Pacific and North American markets are positioned to drive much of the growth as farmers incorporate more machinery into their agricultural practices amid labor shortages and rising costs. Recommended Reading Deere details $500M tariffs impact Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
