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Call it an AI double-header: On Wednesday, 51�Թ��� President and CEO Jay Timmons and Manufacturing Institute President and Executive Director Carolyn Lee spoke at two different AI-focused events—one hosted by Siemens and Widehall and the other hosted by NVIDIA—where they outlined manufacturers’ policy and workforce priorities.

• Siemens and Widehall: Timmons and Lee both participated in a fireside chat at Shaping an AI Ready Workforce, part of a series of events called AI for Real: DC that is sponsored by Siemens and Widehall.
• NVIDIA: Later in the day, Timmons spoke on a panel called “How AI Factories Can Drive Local Economic Development” at NVIDIA’s GTC DC conference.

Policy environment: Timmons said, of the current policy environment, “If you look back on 2017 and the tax reform plan that was put in place, the president actually announced his plan at our board meeting, and he said at the time it would be rocket fuel, and it really was….That was very important in terms of investment opportunities and job creation, regulatory certainty and modernization, [which are all essential for] energy policy.”

• “We’re very pleased that the administration is focused on energy—they call it energy dominance. That is going to be incredibly important for AI data centers [and AI-enabled factories].”
• “We want everybody to know what manufacturing is all about, why it’s modern, why it’s sleek, why it’s technology driven, and very different from [when] my grandfather was in manufacturing.”

Workforce outlook: Lee joined Timmons onstage at the Siemens-Widehall event:

• “We have to change the narrative around manufacturing. Part of that is seeing facilities like Siemens that are bright and clean and full of technology, and we know that the students today actually gravitate to that. They’re digital natives. I’m not. Most of us in this room are probably not. So [we need to] lean into that and let them see that there’s an opportunity for them, and in doing so, they’re strengthening their communities.”

AI and the workforce: Lee also addressed how the workforce can adapt to the advent of AI, saying “It is about learning the skills. It’s about adapting. It’s making sure that manufacturing and our communities can be competitive…. None of us can do this alone. All of us need to come together.”

• “As much as policy can enable this, policy is not going to solve this. We need to have employers first [drawing up] the agenda, working with the educational institutions to make sure that our education partners understand what is happening in our industries and training to those needs.”
• “We run the most successful multi-employer apprenticeship program that’s operating now in 20 states, and it continues to grow…. Companies see that coming together to build the solutions and train the common core of the workforce is good for all of us.”

At NVIDIA: Timmons again addresses the use of AI in manufacturing at NVIDIA’s conference, saying, “The truth of the matter is, every form of technology through decades has begun with manufacturing. Right now, we have about 50% of manufacturers across America [that] have AI in their operations.”

The roadmap to AI and Energy Dominance: “Today, we came out with a about AI and energy dominance, the manufacturer’s roadmap, and basically it’s [saying] that we need an incredible amount of additional capacity on the grid to be able to power these AI factors or data centers and in order to serve the needs of the broader economy.”

Policy fixes: Timmons spoke of the need for bipartisan agreement, and for certain commonsense policy changes.

• “[I]f we turned on every factory right now in this country, and we put every manufacturing worker on the line, we could only produce 84%of the critical inputs necessary to build a new factory right here in United States…. So at a minimum, we have to import 16% of those critical inputs.”
• “What we need to see is some sort of a , to provide duty free access to those critical inputs for additional manufacturing capacity until we can build it here ourselves.”

The last word: “We need to have a nonpolitical and very much a policy century,” Timmons said in conclusion.

ICYMI: Read our on the Manufacturing’s Roadmap to AI and Energy Dominance.

The 51�Թ��� called on Congress this week to reform the 340B program, which drives up health care costs—one of manufacturers’ top concerns as reported in the .

What’s going on: On Thursday, the Senate Health, Education, Labor and Pensions Committee held a hearing titled “The 340B Program: Examining Its Growth and Impact on Patients.” In advance of the hearing, the 51�Թ���  for Chairman Bill Cassidy (R-LA) how the program has increased health care costs for manufacturers.

• The 51�Թ��� noted that “the expansion of this program was associated with approximately $23 billion in additional employer-based health care expenses in 2023, of which employees paid about $4.5 billion per year in added insurance premiums. That equals approximately $137 in additional annual premium costs for single coverage and $415 for family coverage.”

Congressional intent: The 340B program was created “to provide lower cost medicines and expand care for low-income and underserved patients, but many covered entities have taken advantage of the program to increase their profits, which has in turn increased the cost of [employer-sponsored insurance].”

• “Manufacturers believe the 340B program is an important tool in expanding care for underserved communities, and we urge fundamental changes that would restore this program to its core purpose.”

Solutions oriented: The Health Resources and Service Administration is in the process of standing up a 340B Rebate Model Pilot Program, on which the 51�Թ��� �����dz�����Գٲ�.

• “This pilot program is a critical first step in enhancing program integrity and transparency in a way that makes the 340B program work for everyone but will not be fully sufficient in reforming the 340B program,” the 51�Թ��� told the HELP Committee.

Next steps: The 51�Թ��� suggested that reforms to “current fee structures, third-party administrator behavior, sub-grantee eligibility and how patients benefit from the program.”

• “Additional reforms, such as patient definition and child site eligibility, will also return the program to the intent with which Congress created it.”

WASHINGTON, D.C.—Today, 51�Թ��� President and CEO Jay Timmons released the following statement celebrating plans to reopen the former Mead paper mill in Chillicothe, Ohio, under new ownership by U.S. Medical Glove Company.

“Never bet against the people of Chillicothe and Ross County. And never bet against the vibrancy of manufacturing in the United States.

“As a proud son of Chillicothe, Ohio, and the proud grandson of someone who supported and sustained his family through a manufacturing career that spanned four decades on the shop floor of the paper mill, I am thrilled to see that Mead has found new life.

“But I am not surprised.

“Manufacturing in the United States is anchored in the qualities that make this country exceptional. Those qualities that define us—those qualities that define our industry—include the values of innovation, resilience and reinvention. This is the story not only of Chillicothe’s comeback but the ever-larger leadership of our nation’s indispensable sector: U.S. manufacturing.

“And the success of our industry depends on leaders who invest in the workers, the facilities, the communities and the policy that our sector needs to propel our nation as the best place on Earth to build, grow, invest and hire. Because when we invest in manufacturing, we not only strengthen the hand of the United States on the world stage. We invest in the American people.

“Manufacturing opens doors—to strong, secure and prosperous families, to greater investments in our parks, roads, bridges and schools, and to the optimism at the heart of the dignity of work. And under the ownership of U.S. Medical Glove Company, those doors in Chillicothe swing wide open again.

“I congratulate the great people of Chillicothe and Ross County—and give my thanks to all of the leaders who made this possible, including Ross County Commissioners, Chillicothe Mayor Luke Feeney, Ohio Gov. Mike DeWine, Attorney General Dave Yost, Sens. Bernie Moreno and Jon Husted, as well as Congressman Dave Taylor.

“To Sen. Moreno—who wrote letters, held rallies and shaped negotiations to find a new owner to keep the mill open—you in particular have reminded us that our nation’s prosperity does not guarantee itself. Leaders do. And you have led, like all of the manufacturing champions in our nation have led, to make sure that manufacturing in this country, in Chillicothe and so many communities like it, beats on as a powerhouse of prosperity.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

Manufacturers are increasingly adopting and using generative artificial intelligence, and it is changing their businesses for the better. But for the use of GenAI to be truly transformative, company leadership must ensure their strategy builds on six specific pillars, according to a in the Manufacturing Leadership Council’s ML Journal.

1. Establish an AI control tower: Many businesses are spending money needlessly on duplicative GenAI initiatives. Instead, they should set up an AI “control tower,” a centralized hub for AI tools and use cases that lets them reuse assets to save money and speed up implementation.
2. Reimagine future business models and functions: Rather than implementing piecemeal updates, companies should consider larger, full-scale revisions with AI. Those that don’t innovate risk being left behind.
3. Ensure confidence in AI: Keeping human team members in the loop as GenAI deployments happen will ensure employee confidence in the transformation—as will having a clearly defined set of processes and rules in place to govern algorithm and model creation and use.
4. Address talent and tech gaps: Even as the newness of GenAI implementation wears off, it’s important to continue to provide training. A recent  survey found that 80% of workers would feel more comfortable using AI if they were trained on it.
5. Develop an ecosystem of alliances: To stay ahead of the curve, manufacturers must establish partnerships. These will be critical in filling gaps in their capabilities in an evolving landscape. Specifically, alliances in these four categories are recommended: technology, professional services, academics and data.
6. Drive focused data maturity to be AI-ready: When it comes to data maturity, company leaders should aim to be smart and focused. Not every piece of data needs to be pristine to be included in your models. Rather, a firm’s data strategy should be governed by how the data will be used.

The benefits: This strategy should address seven key needs: accessibility at scale, visibility, timeliness, openness, reliability, expansiveness and trust and security.

Nominations are open: The MLC, the 51�Թ���’s digital transformation arm, is now accepting nominations for the 2026 Manufacturing Leadership Awards. Learn more .

For the U.S. is to continue its “rich history of innovation, production and global leadership,” it will require a comprehensive 5G wireless network strategy with more licensed spectrum—and soon, according to a new from the 51�Թ��� and CTIA.

What’s going on: The report, “How 5G Is Modernizing Manufacturing,” looks at ways manufacturers and wireless providers are using commercial 5G networks to power Manufacturing 4.0 and improve safety, efficiency and innovation at American factories—while making the U.S. more secure and prosperous.

• “5G is vital to the Manufacturing 4.0 movement that’s propelling America to be the global hub for smart, modern manufacturing,” 51�Թ��� President and CEO Jay Timmons said. “By enabling real-time actions and supporting new technologies like AI, 5G is giving manufacturers more tools to sharpen our competitive edge, support more people and secure America’s leadership in the global economy.”

Standout takeaways: Among the salient findings from the paper:

• More than 50% of manufacturers already use artificial intelligence in their operations, with 61% expecting investment in AI will increase by 2027; and
• The impact of AI on operational performance, cost savings and worker productivity/efficiency is above 60%.

In real life: The report includes examples of how 5G is changing manufacturing, including:

• Powering VictoryXR and Taqtile’s augmented reality headsets to provide immersive training;
• Providing Hitachi with a real-time, high-definition monitoring system that uses machine learning to improve quality control by identifying defects at a sub-millimeter level;
• Safeguarding Cummins’ intellectual property using highly secure 5G networks that power robotics to detect product defects, enhance employee training and monitor equipment through sensor systems, among other applications; and
• Supporting innovation and productivity on the factory floor at numerous other manufacturers, such as Newport News Shipbuilding, General Motors, Rockwell Automation, Ericsson, Samsung and more.

Why it’s important: 5G networks will add $1.5 trillion in GDP and 4.5 million in jobs to America’s economy in this decade alone, Boston Consulting Group found.

The Environmental Protection Agency is planning to use artificial intelligence models to speed up the chemical review process (, subscription). The only catch? The models don’t yet exist.

What’s going on: “EPA is eyeing development of an ‘AI Chemist Assistant’ that ‘will help chemical reviewers search various repositories to identify chemical and chemical analog information used in [Toxic Substances Control Act] submission reviews and risk evaluations, possibly saving hundreds of staff hours per review/evaluation.’”

• Another tool listed on the EPA’s internal AI use case inventory, “EcoVault,” is meant to summarize key information from scientific studies and other long, unstructured documents.
• Though the technology for these models is already in play, “experts … caution that the agency still faces significant hurdles in data quality and trust.”

How it could help: For years, the chemical sector has been beset by lengthy, complex review processes that hamper innovation.

• EPA Administrator Lee Zeldin has called expediting these processes a priority, and he told Congress in May that he was “confident” his agency could successfully get through review backlogs—thanks in part to AI use.
• The strategy is part of a larger use of AI in the EPA under the current administration.

A caveat: “The problem is nobody has found everything yet, nobody has compiled it yet, in the way that we have been doing over the last five to six years,” Arizona State University chemical engineering professor Bhavik Bakshi told the news outlet.

• And the EPA’s AI policy prohibits it from relying on AI-generated responses “without thorough verification.”

As Congress prepares the next surface transportation reauthorization package, lawmakers and the Department of Transportation must implement policies that will support manufacturing in the U.S., the 51�Թ��� .

What’s going on: “It is vital that Congress—supported and informed by DOT—continue to reauthorize surface transportation programs that support manufacturing in the U.S.,” the 51�Թ��� told Transportation Secretary Sean Duffy last month in response to a DOT request for public input on the legislation.

• Surface transportation authorization, which is typically renewed every five years, sets funding levels and can include policy changes.
• This year’s reauthorization provides an opportunity to build on recent bipartisan infrastructure measures, including the Infrastructure Investment and Jobs Act, the Fixing America’s Surface Transportation Act and the Moving Ahead for Progress in the 21st Century Act, the 51�Թ��� told Secretary Duffy.

What should be done: To make the most of this year’s legislation and ensure strong growth of manufacturing in the U.S., Congress and the DOT should “consider several policy proposals,” 51�Թ��� Vice President of Domestic Policy Chris Phalen said. These include:

• Continuing strong investment levels for federal infrastructure;
• Strengthening transportation supply chains; and
• Reforming onerous permitting laws and regulations.

The details: “Manufacturers encourage continuing current spending levels for highway programs, consistent with the scope of the reauthorization language,” Phalen said, adding that the legislation should also continue support for transit and certain energy technologies.

• To mitigate supply chain problems and boost manufacturing competitiveness, the reauthorization measure “should continue to expand highway capacity, increase connectivity and build on the progress made since [the 2012 reauthorization] to improve our nation’s freight network.”
• And when it comes to permitting, “[m]anufacturers request that DOT work with other agencies and … Congress to undertake … commonsense permitting reforms that will make it possible to grow manufacturing operations, modernize infrastructure, shore up supply chains, create jobs and ensure responsible American energy dominance.”
• Specific reforms include expedited judicial review, the creation of enforceable deadlines and the unlocking of access to domestic minerals.

Johnson & Johnson recently a $2 billion investment, which will expand its operations in North Carolina with a 160,000+ square foot manufacturing facility at FUJIFILM’s new biopharmaceutical manufacturing site in Holly Springs.

• The investment will bring about 120 new jobs to the area.

Thanks to tax reform: In its announcement, the company explicitly attributed this investment to the recent passage of legislation that secured pro-growth, pro-manufacturing tax provisions—a victory for the 51�Թ��� and all manufacturers in the U.S.

• “Johnson & Johnson has more manufacturing facilities in the U.S. than in any other country, and we continue to strengthen our presence here,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. “With the recent signing of the One Big Beautiful Bill Act, we continue to expand our investment in the U.S. to lead the next era of healthcare innovation.”

Previous investment: Johnson & Johnson in March that it would invest more than $55 billion in its U.S. operations over the next four years.

51�Թ��� and J&J: The new investment was also celebrated by Johnson & Johnson Executive Vice President, Chief Technical Operations & Risk Officer and 51�Թ��� Board Chair Kathy Wengel.

• “Today marks an exciting milestone for [Johnson & Johnson] and for the future of healthcare innovation in the United States. We’re proud to be building capabilities and partnerships that enable faster, flexible expansion of our manufacturing to meet the needs of patients who rely on us every day, and create high-paying jobs here in the U.S.,” she said.

The last word: “Johnson & Johnson continues to expand manufacturing in America, creating new jobs and increasing investments. As 51�Թ��� Board Chair, Kathy worked tirelessly to ensure Congress and the administration delivered the pro-growth tax policies our industry needs to grow, compete and win,” said 51�Թ��� President and CEO Jay Timmons.

Exxon Mobil is urging the Supreme Court to hear a Colorado case that allowed a local climate change lawsuit against it and Suncor Energy to advance in state—rather than federal—court (POLITICO Pro’s , subscription).

What’s going on: The two companies “filed a petition with the high court Friday, asking it to review a Colorado Supreme Court decision that allowed a climate lawsuit brought against the companies by a local city and county to proceed to state court.”

• The petition, which holds that climate change is a federal matter, says that by reviewing the state court’s decision, the high court could “determine whether dozens of similar lawsuits filed in state courts should be heard in federal court.”
• The Supreme Court hears approximately 1% of the petitions it receives.

Why it’s important: “No state has the authority to govern, let alone impose liability on, the production and use of energy in other states and countries around the world,” Phil Goldberg, special counsel for the 51�Թ���’s Manufacturers’ Accountability Project, told the news outlet, adding that such litigation “could impose significant and unwarranted costs on all American consumers for their essential energy needs.” The Colorado case is one of more than 20 such lawsuits that have been brought by states and municipalities.

• In May, the Colorado Supreme Court sided with the local Colorado governments, “rejecting the industry’s contention that the lawsuit involves global greenhouse gas emissions and should be barred by federal law.”
• Next month, the 51�Թ��� Legal Center will file an amicus brief urging the Supreme Court to grant certiorari and resolve this longstanding issue.

Other recent cases: In March, the Supreme Court rejected a request by 19 Republican state attorneys general to end a set of climate suits against the traditional energy sector.

• And in January, the high court declined to hear an appeal from energy companies to dismiss a lawsuit by Honolulu, Hawaii, alleging they had misled the public for years about the perils of climate change.
• Meanwhile, earlier this month a South Carolina court dismissed a climate change lawsuit against oil and gas companies by the city of Charleston.

New White House, new priorities: While the previous administration asked the court not to intervene in the cases, the current one “has aggressively sought to curtail the lawsuits, starting with an executive order in April that targeted state climate efforts.”

• It has also filed preemptive suits against Hawaii and Michigan, seeking to stop those states from going to court.

Manufacturers in Pennsylvania and New Jersey welcomed Republican representatives to their facilities this week, thanking them for delivering a landmark for manufacturers: the passage of H.R. 1.

• House Republican Conference Chairwoman Lisa McClain (R-MI) and local Reps. Tom Kean (R-NJ-7), Rob Bresnahan (R-PA-8) and Ryan Mackenzie (R-PA-7) participated in the factory tours as part of Chairwoman McClain’s One Big Beautiful Tour.

51�Թ��� in action: 51�Թ��� Executive Vice President Erin Streeter accompanied lawmakers, highlighting how the Manufacturing Law is already having positive impacts on local manufacturing.

• “Manufacturing is the backbone of the American economy—and with the leadership of Chairwoman McClain, Reps. Kean, Bresnahan, Mackenzie and their colleagues in Congress—that foundation is stronger than ever,” following the visits.
• “By championing the Manufacturing Law, Congress has protected nearly 6 million jobs and more than $500 billion in wages for hardworking Americans. We thank them for their leadership.”

New Jersey: Chairwoman McClain and Rep. Kean , a manufacturer of precision automation systems in Phillipsburg, New Jersey. The company specializes in complex metal stamping, forming and assembly solutions, serving industries such as automotive, medical and consumer products.

• “Manufacturers thrive when we have the certainty we need to plan major investments in our facilities and our people. That’s exactly what this tax package delivers,” said Bihler CEO Maxine Nordmeyer.
• “We thank our partners in Congress and the administration—and we look forward to working with them on a full comprehensive manufacturing strategy. Through energy, trade and workforce policies that drive our competitiveness, deliver certainty and empower manufacturers, we will build on the success of the One Big Beautiful Bill.”

Pennsylvania: Rep. Bresnahan joined Chairwoman McClain for a , a manufacturer of flexible polymers in Mountain Top, Pennsylvania. The company produces custom polymer films and sheets used in a variety of applications, including agriculture, construction, packaging and geomembranes.

• “Manufacturers are innovators. By restoring immediate R&D expensing for manufacturers across America [a key provision of the OBBBA], Congress has empowered manufacturers like i2M to innovate and create,” said i2M Founder Chris Hackett.
• “That’s how we keep our competitive edge—not just as a company, but as a country.”

Pennsylvania, round 2: At another stop in the Keystone State, Rep. Mackenzie joined the in Palmerton. The visit highlighted the company’s recent expansion, including a new state-of-the-art production line that will create new jobs and boost aluminum powder output for global markets.

• “Thanks to this transformative tax legislation, U.S. Metal Powders has already broken ground on adding another production line—which will soon double the company’s workforce. This is pro-growth tax policy in action,” Pennsylvania Manufacturers’ Association President and CEO David N. Taylor said in response to the visit.

51�Թ��� in the news: The White House’s rapid response account on X Rep. Bresnahan’s visit to Pennsylvania and appearance on the area’s .

• Fox Business Network’s Maria Bartiromo on the tour in an interview with Chairwoman McClain.
• The House GOP X account shared a of Streeter talking about the facility visits.
• Chairwoman McClain posted about her visits to , and on X. Chairwoman McClain, along with Reps. Bresnahan and Kean, also amplified the 51�Թ���’s own social posts.
• WVIA the visit to i2M.