Latest news with #SelectUSA
Yahoo
6 days ago
- Business
- Yahoo
Can the US create high-tech manufacturing jobs?
It is hard to imagine exactly how we will know who won the AI arms race. We would need a global consensus about what AI that supersedes human-level intelligence (commonly referred to as artificial general intelligence) looks like, a benchmark that is much harder to pin down than a picture of Neil Armstrong on the moon. Whatever the case, industry and government officials at the SelectUSA Investment Summit agreed: the US wants, needs, to be first. A crucial part of winning the AI race in the US involves creating a high-tech manufacturing industry that will build the thousands of chips and data centres needed to power this technology. The creation of such an industry is aligned with one of the Trump administration's main goals: bringing manufacturing jobs back to the US. However, delegates at the SelectUSA Investment Summit made it clear that this was not an easy task and that the lack of a trained labour force is one of the main obstacles they face. How will the US address its skilled labour shortfall in order to power its AI ambitions? Since 1997, 'the US lost around five million manufacturing jobs', US Labor Secretary Lori Chavez-DeRemer told an audience at the summit. 'Nearly 100,000 factories closed, and we experienced one of the largest drops in manufacturing employment in history.' However, that was all about to change, Chavez said. 'From manufacturing to mining and technology to transportation, our industries are coming back to life because President Trump has sent a clear message: America is open for business.' Much of President Trump's tariff regime, despite the actual consequences it has had so far, has been justified through this goal. Manufacturing jobs left the US when the world embraced globalisation, and the president argues that high tariffs will force companies to build locally, and therefore bring those jobs back to the US. For this, he has received support from unlikely allies such as United Auto Workers President Shawn Fain and the Brotherhood of Teamsters (one of the US' biggest unions). At SelectUSA, state governors from both parties and industry leaders also made it clear that they supported increasing manufacturing with AI integration at its core. Siemens CEO Barbara Humpton said the technological advances in manufacturing reflected an "AI industrial revolution". "There are still old notions of what manufacturing looks like. That it is hot and hard and dirty work, but it is cutting-edge technology," Michigan Governor Gretchen Whitmer said about her state, traditionally the home of US auto manufacturing. There are various objectives at play. There is the political goal of bringing back manufacturing and the industry goal of making these processes more efficient through AI integration. Underpinning both of these is the need to develop a high-tech manufacturing sector that can sustain it all. Developing sensitive technology independently from China seems to be a national security issue everyone can get behind. Since 2020, the US has attracted more than $540bn in semiconductor supply chain investments. The CHIPS and Science Act, passed in 2022, has been a major factor for domestic and foreign companies giving grants, subsidies and other incentives to develop the sector. The CHIPS Act is the first major piece of industrial policy the US has passed since the 1950s. It is a notable effort in a country that is not accustomed to long-term planning. However, it means that the US is catching up with other countries that have spent decades developing a workforce with the necessary skills. Taiwanese companies such as TSMC have been a major source of investment since the passing of the CHIPS Act; the company says its total investment in the US will reach $165bn (T$4.93trn). Even with this policy, however, the US may not necessarily have been an economically logical place for it to build semiconductors. The security guarantee that the US provides for Taiwan also played a role in attracting companies that might have otherwise produced more locally. 'I am not sure that purely on the economics, the US would be a very good bet, even with incentives for building leading-edge fab custody, mostly because of the workforce. We just don't have a tradition of this highly consequential workforce that you really need for the most advanced chip manufacturing,' W. Patrick Wilson, vice-president of government relations at Taiwanese chip company MediaTek, told Investment Monitor. 'We always understood that another component of it was deepening the US-Taiwan partnership.' Whatever the confluence of factors that has led to vast investment in the semiconductor industry, it has meant that foreign companies are now taking on the challenge of building the necessary workforce. The Semiconductor Industry Association predicts a deficit of 67,000 workers within the country's semiconductor industry by 2030. According to GlobalData Strategic Intelligence principal analyst Isabel Al-Dhahir, this gap "is likely to affect not just domestic chip production but also adjacent industries such as data centre construction, potentially resulting in delays and escalating costs'. At the SelectUSA summit, the need for the US to upskill workers was widely acknowledged by both economic development organisations and businesses with major investments in the US. One official who is part of the Tech Hubs Programme, highlighted that in her city, they "put industry in the room first" and asked them "what are your needs for your workforce today? What are they tomorrow?" These conversations happen before they contact technical colleges to work together to develop curricula. Representatives from US and Taiwanese semiconductor companies also expressed frustrations about the skilled labour shortage, particularly as the rise of automation changes the qualifications workers need. 'The area that we really focus on for workforce development is that mid tier. Ours will be the most advanced silicon wafer facility in the world, which means that we are implementing a lot of automation. So, we will have fewer operators. Operators typically have a high school-dependent education, but we will need more technicians with that community college, two-year degree,' said Brent Omhdal, executive vice-president for government affairs at Taiwanese chip company GlobalWafers. While companies are betting that educational initiatives led by private-public partnerships will create this workforce in the long run, their time horizons do not always conform to the speed the industry wants to move at. TSMC, which announced in March that it would invest an extra $100bn to build five more fabs in the US, has already dealt with the consequences of this asymmetry. As of January 2025, half of the 2,200 workers at TSMC's Arizona plant had been brought in from Taiwan. The company realised they could not stay within budget and train a local workforce with the necessary skills on time. This caused pushback from unions, who were promised the plant would create jobs for local workers. The example underscores the difficulties of supercharging the development of an industry without a readily available workforce to match it. Barry Broome, Greater Sacramento Economic Council CEO, says he witnessed 'the destruction of the economic base of the Midwest', while working in Ohio and Michigan earlier in his career. The problem was not free trade agreements like NAFTA, he argues, it was that 'there wasn't an effort to increase US competitiveness'. When Investment Monitor asked whether the simultaneous push to reshore jobs while integrating AI and automation will bring back as many jobs as some people expect, Broome said: 'It won't.' 'I think it will bring back a lot of jobs. I mean, the fact of the matter is, we need a nationwide movement to upskill people, because you are not going to make a living wage unless you are technically skilled,' Broome noted. Increased automation, while it might contribute to the growth of the industry and lower costs, would also undermine the goal of job creation. 'Trump's goals are reshoring and increasing employment in the manufacturing industry," Beatriz Valle, senior technology analyst at GlobalData, tells Investment Monitor. "Trump is cultivating ties with many Big Tech CEOs whose main goal is to grow automation and robotics, which, in some cases, may replace types of manual work, and there is a clear contradiction between these two goals." Wider economic questions also underpin the development of this workforce. Will companies invest more in automation to counteract higher operating costs in the US? What does that mean, in the long term, for the number of jobs that will be created? And, more importantly, will the US be able to pursue all these goals with enough speed to win the global AI race? "Can the US create high-tech manufacturing jobs?" was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Technical.ly
27-05-2025
- Business
- Technical.ly
Industry leaders celebrate Baltimore's ‘bold moves' in biotech, sports and higher ed
A few months ago, one of the region's premier economic development organizations envisioned a dynamic future for Baltimore by announcing a new regional brand: ' Bold Moves.' That nonprofit, the Greater Baltimore Committee (GBC), leaned in further last week, when it convened the region's political, corporate and academic circles for the 2025 Baltimore Region Investment Summit. Designed to provide a snapshot of funding, growth and related opportunities within the city and surrounding counties, the event at Baltimore Center Stage offered leaders in various prominent sectors — including biotechnology, higher education, sports, defense and local government — the chance to celebrate regional wins. It also served as a spinoff event from the federal SelectUSA investment summit. Several of these speakers, including the city's chief executive, took that opportunity to embrace the GBC's messaging while praising its industry assets. 'Baltimore is the place to be for companies looking to make bold moves,' said Mayor Brandon Scott before naming several high-profile local firms (T. Rowe Price, Under Armour, CFG Bank) that built new headquarters in the city over the past few years. The GBC's chief economic officer Lakey Boyd explained that 'Bold Moves' captures Baltimore's identity as a place that drives change, even as it draws from its traditional strengths. It's all part of the GBC's overall goals of building bridges between industries and making the region attractive to outside investors. 'We're partnering public, private, big and small across our region, and we're winning — and those wins are about economic growth and shared prosperity,' Boyd said. 'So the concept of 'bold moves' positions the Baltimore region as a place that not only adapts to change, but drives it.' To that end, people like Deborah Hemingway, managing partner of medical technology-focused VC firm Ecphora Capital; Bob Storey, leader of biotech manufacturing accelerator The Launchport; CEO Ellington West of stethoscope and medical monitoring startup Sonavi Labs; and Tom Osha, executive vice president of research facility real estate firm Wexford Science and Technology all highlighted successes within the region's vibrant and university-driven life sciences sector. Goucher College President Kent Devereaux discussed plans for construction management giant Whiting-Turner to relocate its headquarters to the Towson school's campus. The event ended with a fireside conversation between Orioles owner David Rubenstein, whose private equity connections prompted a protest when he spoke at another event last year, and President Mohan Suntha of the University of Maryland Medical System. The GBC also held this event just a few days after it and UpSurge Baltimore, the startup ecosystem-building entity with whom the GBC pursued a federal Tech Hub bid before the two orgs combined, celebrated UpSurge's 200th Equitech Tuesday. That commemoration also marked the release of UpSurge's 2025 Baltimore Tech Ecosystem Report, which features such data points as $664.7 million in regional venture funding, 10 startup exits and 486 tech startups across the area.
Yahoo
18-05-2025
- Business
- Yahoo
Trump touts flood of foreign investments, but local economic officials aren't yet seeing it
President Donald Trump has claimed his surge of new tariffs will produce trillions of dollars of foreign investments in the U.S. economy. But some of the people working to lure those investments to U.S. cities and states say they're not seeing the investment boom, at least not so far. To the contrary, economic development officials and lawmakers from several states say that the uncertainty fueled by Trump's on-again, off-again trade wars is keeping many foreign businesses from pouring money into the U.S. market right now. And it signals the uneven impact the tariffs are having on reshoring American manufacturing — Trump's stated goal for raising rates to the highest levels in a century. 'One of our contacts described it to me as driving a car in the fog,' Lee Lilley, North Carolina's Commerce Secretary, said in an interview Tuesday at the Commerce Department's SelectUSA Summit, an annual conference aimed at promoting foreign investment in the U.S. 'You're driving along, the fog descends, you slow the car down. Depending on how bad the fog is, you might pull the car over and turn on the blinkers. And we feel like we're in that space a little bit.' Buffeted by news of companies raising prices as a result of the president's dramatic tariff increases, the Trump administration has made economic development pledges a centerpiece of its messaging strategy. As businesses across the country fret over the administration's global trade war, the White House has responded by releasing a running list of billion-dollar commitments from major companies, a sign, the president and his aides argue, that his economic strategy is working by forcing more companies to build their products in the U.S. 'There's never been anything like what's happening right now to the United States, I can tell you. Nothing,' Trump said at a roundtable in the United Arab Emirates, part of a multi-day swing through the Middle East where the president touted a slew of new foreign investments. He claimed that, as a result, the U.S. is headed toward $12 trillion in investments since he took office. 'There's never been anything like it. We're at a level that no country has seen.' The White House, however, is indiscriminate about what announcements it claims come from 'the Trump effect.' Some have been in the works for yearsbefore they are announced. Others are in line with what the company would have invested, regardless of the tariffs. Some are inflated, adding previous investments to new pledges. The reality for economic developers is more complicated. Officials work for years building relationships that can one day, hopefully, translate into hundreds, or even thousands, of well-paying jobs. They go to conferences, chat up companies and foreign investors, tune-up their workforce development programs at community colleges and attempt to carve out a tax landscape that will help lure business. 'These are large investments that businesses are making and they're going to do them thoughtfully and they're going to take time,' said Barbara Coffee, the director of economic initiatives for the City of Tucson, Arizona. 'When they're doing site searches, just to determine the location, it takes years, two and three years.' Some major companies have leaned into Trump's affinity for splashy investment announcements. Apple announced a $500 billion investment in February, promising to expand facilities across nine states and create a new factory in Texas. But that spending may have already been planned, according to the Wall Street Journal. Kush Desai, a spokesperson for the White House, said the administration is focused on laying the groundwork for future investment, noting that gross domestic investment spiked by 22 percent in the first quarter of 2025. That, however, was before most of the president's most dramatic tariff increases took effect. 'The Trump administration is using a multifaceted and nuanced approach to deliver economic relief for the American people while laying the groundwork for a long-term restoration of American Greatness,' Desai said. 'President Trump's tariffs are driving historic investments into the United States in conjunction with a full suite of supply-side reforms, from deregulation to historic tax cuts.' While a favorite benchmark for both Democratic and Republican lawmakers alike, economic development pledges are notoriously difficult to pin down. Companies sometimes fail to follow through with the plan, or spread out the investment over a longer period of time depending on economic circumstances. Congress even passed a law in 1995 that encourages businesses to put a disclaimer on news releases about investment decisions, saying that they are subject to change. The Trump administration has been so eager to show signs of economic growth that it has celebrated companies that are merely 'considering' increasing production in the United States. In April, as the markets were see-sawing after Trump paused his global tariffs, the Trump administration highlighted news articles that French luxury goods giant LVMH was considering expanding its U.S. footprint, that the olive oil company Dcoop was pondering whether to increase U.S. production and that BMW was considering adding shifts to U.S. factories. While BMW has yet to officially add shifts, other auto manufacturers have highlighted similar moves. Last week, Honda announced that it would move production of its popular CRV from Ontario to the U.S., the latest blow to the Canadian auto manufacturing industry as Trump has a 25 percent tariff on vehicles imported into the U.S. But those announcements may conceal the economic reality. Even as the administration has touted decisions from auto companies like Honda and Stellantis to move production to the U.S., auto manufacturing jobs are down 20.8 percent from 2024, according to the Bureau of Labor Statistics. Auto manufacturing jobs fell 4.7 percent between March and April, when Trump's 25 percent tariffs on foreign auto imports went into effect. Other industries are watching the domestic economic and political climate as well. Despite a $50 billion investment pledge, Roche, a pharmaceutical company, said it was evaluating that pledge after Trump issued an executive order aimed at driving down drug prices. 'We still intend to invest $50 billion in pharmaceutical R&D and manufacturing and diagnostics in the U.S.,' said Dean Mastrojohn, a spokesperson for Roche. 'However, should the EO go into effect, the business reality is that the pharma industry would need to review its expenses, including investments.' The sense of economic uncertainty has unsettled lawmakers from both political parties. While Sen. Ron Johnson (R-Wisc.) has thus far been unwilling to sign onto legislation to remove Trump's power to impose tariffs or implement trade deals unilaterally, Johnson said Wednesday at a POLITICO Live event that he's concerned about how uncertainty surrounding tariffs is affecting businesses in his state. 'What I'm hearing from Wisconsin businesses, manufacturers, the National Association of Manufacturers, The Business Roundtable, is right now investment is on hold,' said Johnson. 'Again. I come from the private sector. You want as much certainty and stability' as possible. Despite Trump's fast-changing policies, local economic development officials say businesses continue to express interest in making investments. Officials from several states said in interviews at the SelectUSA Summit that they have plenty of new investment deals in their pipeline, even if they are slower to make a major decision amid the current uncertainty. 'I would say it hasn't come to a full stop,' Michelle Grinnell, the senior vice president for market growth and business attraction in Michigan. 'Some of those timelines have slowed a little bit, especially projects that are maybe earlier in the process are taking a minute. But projects that have been moving forward and are a little more mature in the process, we're seeing those continue.' Still, investments are projected to slow in 2025, according to industry analysts. The consulting firm Deloitte projected that investments would slow slightly from 3.7 percent 2024, before picking up significantly once the upheaval produced by the administration's trade and tax policy fades. That's a hopeful sign for local officials like Lilley, who's eager to bring more jobs to North Carolina's growing population. 'I think the more we can get that certainty back, the more our investors can pencil out the project and decide where it works and when it works and on what timeline,' Lilley said. 'Because the capital is clearly there, the demand is really there.'
Zawya
14-05-2025
- Business
- Zawya
Ajman Chamber promotes investment opportunities at the "SelectUSA" Investment Summit
H.E. Sheikh Sultan Bin Saqer Al Nuaimi, Vice Chairman of the Ajman Chamber's Board of Directors, affirmed that the Chamber's ongoing efforts to enhance the business environment, promote investment opportunities within the emirate, develop international relationship networks, and stimulate intra-regional trade. These endeavors contribute to strengthening Ajman's position as an attractive hub for business and investment, contributing to the goals of Ajman Vision 2030. He clarified that the Chamber's participation in the "SelectUSA" Investment Summit in the United States of America represents a significant step towards exploring new investment prospects and bolstering the presence of the emirate of Ajman on the global economic stage. The summit, taking place from May 11 to 14 in National Harbor, Maryland, is anticipated to host 5,000 participants representing a wide array of nations worldwide. The Ajman Chamber is participating within the United Arab Emirates' delegation at the investment summit in the United States of America with the aim of forging partnerships, developing international cooperation ties, and exploring novel investment opportunities that align with the emirate's strategic directions, as well as gaining insights into global economic trends. Sheikh Sultan Al Nuaimi stated, " Our participation aims to establish strategic partnerships with American and international institutions and companies, and to highlight the promising sectors within the emirate, such as industry, energy, education, healthcare, tourism, innovation, artificial intelligence, advanced industries, construction, and other promising fields." He also emphasized the Ajman Chamber's commitment to leveraging its participation in the investment summit by holding a series of bilateral meetings with representatives of investment institutions and international companies, aiming to create strong cooperation channels and explore potential partnership opportunities. Furthermore, the Chamber seeks to participate in specialized sessions that present the latest global trends and experiences in the field of investment.
Zawya
14-05-2025
- Business
- Zawya
Oman firms seek U.S. deals at Investment Summit
As part of its strategic efforts to boost the international presence of Oman's private sector, the Oman Chamber of Commerce and Industry (OCCI) has led a trade delegation to the United States to participate in the SelectUSA Investment Summit—one of the world's leading platforms for promoting foreign direct investment into the U.S. economy. The opening ceremony of the summit was attended by H.E. Talal bin Sulaiman Al Rahbi, Oman's Ambassador to the United States, while the Omani delegation was headed by Sheikh Saud bin Ahmed Al-Nahari, Member of the OCCI Board of Directors. The delegation also included Eng. Said bin Ali Al-Abri, Board Member and Head of OCCI's North Al Batinah Branch; Abdul Latif Mohieddin Khonji, Board Member and Chairman of the Foreign Investment Committee; and representatives from the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), alongside executives from 11 Omani companies operating in diverse sectors such as technology, manufacturing, services, consulting, and ICT. Strategic Push for Global Integration This participation aligns with OCCI's broader strategy to expand Oman's economic diversification, forge stronger international trade ties, and unlock new markets for Omani enterprises. It also reflects Oman Vision 2040's aspirations to position the Sultanate as a competitive regional and global investment hub. Commenting on the significance of the summit, Sheikh Saud bin Ahmed Al-Nahari said: 'SelectUSA offers a vital platform for identifying investment opportunities in the U.S. market. This is a practical step towards enabling Omani companies to scale globally and build strategic partnerships. We aim to leverage U.S. expertise to enhance Omani exports and attract high-quality investments to Oman. Our participation sends a strong message that Oman's private sector is ready to compete and collaborate on the global stage.' Business Leaders Eye Expansion and Partnerships Sheikh Mohammed bin Saad Bahwan, Board Member at OTE Group, described the summit as a strategic opportunity to explore collaboration in services and logistics: 'We engaged in a series of high-level meetings with officials and economic experts from several U.S. states. The interest in Omani companies was evident—especially in transport, manufacturing, distribution, and trade facilitation sectors. We gained direct insights into the U.S. investment environment and its regulatory landscape.' Kalim bin Mohammed Al-Yaqoubi, CEO of Horwell Integrated, highlighted the promising prospects in technology and logistics: 'We established valuable connections with participating firms, aiming to transfer advanced experiences to the Omani market while building marketing partnerships for U.S. entry. The summit also introduced us to innovative business models that can be adapted to local realities.' Ahmed Al-Shukaili, CEO of InTech for Technology and Security Systems, added: 'SelectUSA provided an ideal platform to showcase our tech solutions developed in Oman. We pursued strategic relationships and explored knowledge exchange opportunities in cybersecurity. Our goal is to align our offerings with U.S. market demands and create added value at an international level.' Global Forum... Strategic Leverage The SelectUSA Investment Summit, organised by the U.S. Department of Commerce, is one of the premier global events dedicated to attracting foreign direct investment. It gathers senior U.S. government officials, state representatives, municipal leaders, and Fortune 500 companies. This year's edition welcomed over 5,000 participants from across the globe, including 2,500 international investors representing more than 90 global markets. Oman's trade delegation included 25 participants, positioning the Sultanate strongly among other competing economies. The joint participation of OCCI, MoCIIP, and private sector companies underscores Oman's commitment to strengthening international partnerships, fostering knowledge transfer, and unlocking strategic investment opportunities—laying a solid foundation for a globally integrated, competitive Omani private sector. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
