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Trade Wars
Maritime Industrial Base (MIB) Announces Supplier Development Funding
The new and updated Fiscal Year 2027 (FY27) Supplier Development Funding (SDF) Proposal Portal is open as of November 21st. Supplier Development Funding is for projects or efforts at a supplier which will increase capacity/capability of the supply chain to support the goal of 1+2 for submarine production, increased surface ship production and sustainment. SDF is typically used for CAPEX but the MIB would evaluate the proposal in light of how it helps the Navy achieve its production and sustainment goals.
Suppliers don’t need to have a Navy contract already but they will need to become a Navy supplier i.e. have a CAGE code in order to be considered for and receive funding. This year the Supply Chain team will be reviewing proposals on a rolling basis with all stakeholders via a working group process which we will initiate in January. The Maritime Industrial Base (MIB) Program leads the U.S. Navy's effort to revitalize America's shipbuilding and repair capabilities. Established in September 2024, the program strengthens and expands the industrial base that builds and maintains surface ships, aircraft carriers, and submarines vital to national defense.
Learn more about MIB
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Community Colleges Are Training The Next Generation Of Manufacturing Workers
The manufacturing industry has long bemoaned the decline of its workforce. Yet today’s manufacturing educational pathways look much like they did in the ’80s, when hiring numbers began declining. Apprenticeship programs remain scarce, with just 678,000 apprentices registered nationwide (in comparison, Germany’s labor force is less than a third of the U.S.’ yet maintains 1.22 million apprentices). And according to one Dewalt survey, students believe that trade schools are costly and offer limited networking opportunities.
One underrated option may hold the most promise for workforce growth: the local community college. That’s according to a series of reports by The Rutgers Education and Employment Research Center released in October, which examines the “hidden innovative structure” of America’s community colleges. Community colleges excel in ways conducive to a successful manufacturing career, said Shalin Jyotishi, founder of the Future of Work & Innovation Economy Initiative at think tank New America. The schools are accessible, closely plugged into the local manufacturing industry and usually more affordable. For many people, Jyotishi said, a community college is the best way to enroll in a program that offers all the benefits of an apprenticeship.
Read more at Manufacturing Dive
FedEx Expects $175M Impact From MD-11 Fleet Grounding
FedEx is expecting a $175 million headwind to its adjusted operating income this fiscal year due to the grounding of its MD-11 fleet, EVP and CFO John Dietrich said on a Q2 earnings call Thursday. The carrier already incurred $25 million of that amount in November, with the remainder projected to take place in the third quarter, Dietrich said. The CFO noted that FedEx will face “significantly higher costs” in December in particular due to expenses associated with securing third-party air cargo capacity.
“It’s an expensive time of year to be getting outsourced lift to begin with, let alone when you have fleet grounded,” Dietrich said. FedEx’s current financial outlook accounts for its MD-11 aircraft to return to service in Q4, which begins March 1, he added. FedEx and UPS paused operations of their MD-11 aircraft last month at manufacturer Boeing’s recommendation after the deadly crash of an aircraft of that type. The Federal Aviation Administration also issued an emergency directive prohibiting MD-11 flights until inspections and corrective actions take place, straining both carriers’ air cargo capacity during the busy holiday shipping season.
Read more at Supply Chain Dive
Ford Cancels $6.5B Battery Supply Contract With LG Energy Solution One Week After Cancelling SK Joint Venture
Ford Motor Co. has terminated its multi-billion dollar supply deal with South Korea-based LG Energy Solution for 75 gigawatt hours of battery cells for its electric vehicles, according to a Dec. 18 regulatory filing by the battery maker. The value of the supply contract for the European market was worth 9.6 trillion won ($6.5 billion) according to the filing, which was based on the battery selling price when the deal with Ford was executed on Oct. 14, 2024. The contract’s termination was effective Dec. 17.
The cancellation of Ford’s supply contract follows a major strategic move announced by the company this week to revise its previous electrification goals and focus more launching more affordable hybrid vehicles and others with highly efficient, internal combustion engine powertrains. According to LG Energy Solution’s regulatory filing, Ford’s decision was based on its plans to cancel certain EVs models, changes in the policy environment and weakening EV demand. The automaker also announced this week that it was canceling the electric F-150 Lightning due to sluggish sales.
Read more at Ward’s Auto
Unions Come Out Against Rail Giants' $85B Merger
The proposed $85 billion merger of Union Pacific and Norfolk Southern railroads has lost the support of two unions that represent more than half their workers over concerns it will jeopardize safety and jobs, raise shipping rates and consumer prices, and cause significant disruptions. The Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes Division are among the most prominent critics of the deal to create the nation’s first transcontinental railroad. When they officially announce their decision Wednesday, they will join the American Chemistry Council, an assortment of agricultural groups and competing railroad BNSF in raising concerns the merger would hurt competition.
After months of meetings with Vena and other executives, the presidents of the Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes Division unions — both affiliated with the Teamsters — said they have serious doubts about the potential benefits, and warned the promises Vena made to preserve jobs aren’t detailed enough to be reliable.
Read more at The AP
Sikorsky Reupped for More Black Hawks
Sikorsky Aircraft has drawn a $433.2-million adjustment to an existing U.S. Army contract that will cover the delivery costs for a total of 15 new Black Hawk helicopters, nine UH-60M and 15 HH-60M aircraft. The Pentagon’s announcement of the award notes it also will fund 18 months of Black Hawk program management, from July 2026 through December 2027. In addition to Sikorsky, a Lockheed Martin holding, the UH-60 Black Hawk program’s major suppliers include GE Aerospace (turboprop engines), Honeywell Aerospace (avionics and electronics), Curtiss-Wright, Goodrich, and Hamilton Sundstrand.
The UH-60M is the current version of Sikorsky’s long-established Black Hawk multi-purpose utility helicopter, incorporating digital avionics, powerful engines, and enhanced lift/range for troop transport, medical evacuation, command-and-control, and search-and-rescue missions. According to Lockheed it is “the world’s most versatile helicopter.” The HH-60M is the U.S. Army's dedicated medevac version of the UH-60M that incorporates onboard oxygen, litter lifts, and an infrared camera for day or night, all-weather casualty transport from battlefields and disaster zones. It’s also serviceable as a search-and-rescue helicopter.
Read more at American Machinist
TSMC To Install Cutting-Edge 3-Nm Chip Tools In Arizona Next Summer
TSMC is reportedly moving to accelerate advanced U.S. chip production. According to Nikkei, sources say the company plans to begin moving chipmaking equipment into its second Arizona plant around the summer of 2026, setting the stage for 3nm manufacturing in 2027. Sources say equipment installation is expected in the July–September quarter of 2026. The report notes that once tools are installed at a chip plant, it can take up to a year to qualify production lines and ramp up output. However, it adds that more advanced chips may require additional time, as manufacturing now involves more than 1,000 steps and requires extensive work to transfer and validate processes at a new facility.
TSMC’s first overseas advanced chip plant, located in Arizona, has already begun producing some chips for Apple as well as NVIDIA’s latest Blackwell AI processors. The report highlights that once the $165 billion project is completed—including five chipmaking plants, two advanced packaging facilities, and an R&D center—TSMC expects around 30% of its most advanced chips to be manufactured in the U.S.
Read more at Trendforce
Micron Says Memory Shortage Will ‘Persist’ Beyond 2026
Micron, the maker of memory chips posted record revenue and operating income for its fiscal first quarter late last week; revenue jumped 57% year over year to $13.6 billion. That follows several quarters of strong growth for both metrics. Fueling the growth: demand for artificial intelligence systems that is sharply boosting sales of the specialized type of memory those products need. And the party seems far from over. Micron projected that sales will more than double to a record of $18.7 billion in the current quarter ending in February, while adjusted operating income will surge more than fivefold to $11.3 billion.
The company’s report also portends challenges in the year ahead for everyone who needs memory chips—that is to say, everyone who uses a PC, smartphone, tablet, game console or other electronic device. The brains of those devices, generally called central processing chips or CPUs, all require memory to function. And there is only so much memory to go around. Soaring demand for AI systems is soaking up more of the available memory supply. That, in turn, is driving up prices across the board. Micron CEO Sanjay Mehrotra noted that the company is planning to break ground on a new memory fab in upstate New York early next year. Supply from that fab isn’t expected until 2030, though. Micron has other efforts under way to increase production. And the company plans to spend a record $20 billion in the current fiscal year to further that effort.
Read more at The WSJ
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