HIGH MIX: Alien Dreadnought Factories, Human Dog Beds and a Toaster Update

Reindustrialization news for July 7, 2025

Welcome to HIGH MIX, our weekly newsletter about the reindustrialization of the United States.

“The US needs to reinvent manufacturing for the AI age, or risk losing out to China, Marc Andreessen warns” BUSINESS INSIDER

Marc Andreessen’s got a wild idea: “alien dreadnought” factories—a term coined by Elon Musk that’s gained some traction in Silicon Valley circles. It’s hard to argue with him on this. He warns that without leading in AI-driven robotics, the U.S. risks losing ground to China’s automation push.

Andreessen’s not wrong: China’s “Made in China 2025” plan is flooding their factories with millions of robots, while we’re sweating over a 3.8 million worker shortage by 2033, half of which might stay vacant due to a skilled labor deficit.

These hyper-automated “alien” plants—churning out robots, drones, and EVs—are no sci-fi pipe dream; they’re possible. If he gets his way, it’s the kind of thing that could close the gap to our rival peers.

Why let China’s state-backed robotics plan outpace us when we could build Andreessen’s “dreadnought” plants that make everything from autonomous tractors to medical drones right here?

“Rare earth magnet users jolted into paying premium prices for ex-China supply” REUTERS

China’s April 2025 export restrictions on rare earth magnets slashed exports by 75%, causing auto plant shutdowns and forcing companies to seek non-Chinese sources.

Neo Performance Materials’ new Estonia plant, launched in May, is swamped with demand, charging $10-$30 per kg premiums (EVs use 2-4 kg). Korean firm NovaTech plans a Vietnam plant, with clients paying 15-20% more. Neodymium-praseodymium oxide (NdPr) costs $80/kg outside China vs. $62/kg in China, a 30% premium.

You can see where this is going, but an American innovator has already found a solution: zero rare earth magnets.

Our recent podcast with with Niron Magnetics’ CEO Jonathan Rowntree throws a wrench into China’s rare-earth magnet dominance: their Minnesota-made iron nitride magnets, free of rare earths, hit 2.4 teslas—stronger than neodymium’s 1.4-1.6—using dirt-cheap iron and nitrogen from U.S. waste streams.

Some might argue we should just pay China’s ransom or wait for recycling to catch up. That’s a losing bet—recycling’s stuck at under 1%. Niron’s pilot plant is already churning out 5 tons a year in Minneapolis.

“An Industrial Policy With American Characteristics” FOREIGN AFFAIRS

Imagine a U.S. factory producing EVs as fast as China’s BYD—which owns everything from lithium mines to showrooms, which has allowed them to cut costs via vertical integration. Ma and Lee’s Foreign Affairs piece lays it bare: if we want to match China’s manufacturing muscle, we’ve got to build smarter and faster, not just bigger.

Their call for speed—think Shanghai’s AI accelerator built in 38 days—means slicing through red tape like the National Environmental Policy Act’s burdensome review process. Clustering seems to work too: China’s Hefei, a buzzing EV hub, shows how packing suppliers tightly cuts costs and time.

The United States cannot and should not organize its economy exactly like China’s. It would be prudent, however, for Washington to learn from the world’s manufacturing colossus. Borrowing best practices from competitors is not without precedent: at the height of Japan’s challenge to U.S. industry in the 1980s, the United States leaned in to competition while also adopting elements of the Japanese approach. U.S. auto manufacturers adopted Toyota’s inventory management practices—for example, organizing supply and production “just in time” to meet demand, minimizing factory stockpiles—and American business schools embraced the concept.

I’m against the “in order to beat China, we must become China” mindset but maybe we should indeed “build as fast as China”. American shops can’t just lean on allyshoring either; we need to dig our own raw materials and deploy tech-led manufacturing here in the U.S., and we need to do it yesterday

“Do Trump's tariffs have businesses moving production to US soil?” USA TODAY

In the heart of New Jersey, Cra-Z-Art's factory in Randolph is buzzing with robots, not workers, because let’s face it, paying $45,000 a year per operator isn’t exactly pocket change compared to China’s $15,000. The company makes toys, activities and school supplies.

“I need to control my 102-year-old company’s destiny by controlling its future and not relying on global tariffs when things could change daily,” [Lawrence Rosen, chairman of Cra-Z-Art] said. “By manufacturing in the USA, we save on freight, we save with automation. ... With automation, we can produce many of our products at a similar cost compared to increased costs with even 10% tariffs on freight.”

In a state with over 9,000 manufacturing companies employing hundreds of thousands, the story’s familiar. Gear Motions, up in New York, can’t find U.S. suppliers for 4% of their parts.

Tariffs are pushing local production, but also jacking up costs for imported components, with most businesses passing those to consumers.

New Jersey’s factories are finding ways to adapt, investing in tech and training workers for tomorrow’s jobs. So, while the road’s bumpy, don’t count out the Garden State’s shops just yet.

MITUSA Toaster Update:

“Savannah Bet Its Economy on a Big Hyundai Plant. Now It Has to Find the Workers” BLOOMBERG

Hyundai’s metaplant near Savannah is a high-tech beast, with over 850 robots and 300 AGVs, aiming to produce half a million vehicles a year by 2031. That’s a big bet on American manufacturing—they’ve got 1,400 workers on board already, with plans for 12,500, and they’re searching for people to fill those positions.

But let’s not sugarcoat it. Finding those workers in a region with 2.9% unemployment is like trying to find a parking spot at a sold-out Braves game—tough. Hyundai’s pulling out all the stops, from roadshows to teaming up with colleges for EV training, even reaching out to ex-cons and military vets. It’s a scramble, and it better work, because a shiny plant with no one to run it is sub-optimal.

And then there’s the housing crunch—median sale prices up 55% to $380,000 since April 2020, making it a tough sell for workers looking to relocate. That’s the price of growth, sure, but it’s a real strain on Georgia’s employment metrics, especially with tourism and Gulfstream Aerospace already soaking up workers.

Still, Hyundai’s commitment is a signal: American manufacturing can compete even in a tight labor market, and foreign investment in the U.S. is very welcome.

“They tried Made in the USA. It was too expensive for their customers” REUTERS

Reuters wants you to believe slapping “Made in the USA” on a product is a one-way ticket to bankruptcy. Businesses like Emily Ley’s planner empire or Plufl’s quirky human dog beds are whinging about tariffs, claiming they can’t afford to bring production home. Ley says U.S.-made planners would cost $38 with lower-quality materials, pushing retail to $100. Plufl’s beds? $500 a pop if made stateside.

This sob story is overblown in my opinion.

First off, the “infrastructure’s not there” excuse is tired. Sure, manufacturing infra in the U.S. isn’t like China’s—yet. But domestic production isn’t some fantasy. Look at companies like American Giant or Red Wing Shoes. They’re producing premium goods stateside, and customers happily pay for quality and a patriotic flex. Ley’s planners don’t have to be $100; smart supply chain tweaks and lean production could shave costs. Plufl’s $150-per-unit memory foam? Negotiate harder or source from smaller U.S. suppliers who’d kill for the contract. Reuters acts like these businesses are helpless, but they’re just not hustling.

And let’s talk tariffs. Yeah, 145% stings, but it’s a push to rethink reliance on cheap overseas labor. The White House’s “Big, Beautiful Bill” offers tax breaks for equipment investment—use it! Instead of cutting jobs or ads, as Ley’s doing, invest in automation or local partnerships. Consumers will pay a premium for American-made if you sell the story right—sustainability, jobs, pride.

The article’s defeatist vibe misses the bigger picture: tariffs are a wake-up call. China’s grip on manufacturing isn’t unbreakable, and crying about costs won’t build factories. Small businesses can adapt—find local suppliers, streamline, or market the hell out of “American-made.” The idea that it’s too expensive is a cop-out. You’re telling me Plufl can’t figure out how to make a $299 dog bed for humans in the U.S.? Come on. Get creative, not complacent.

What’s your take—can these businesses step up, or are they doomed to China’s supply chain stranglehold forever?

“Rockford manufacturer behind major brands’ packaging embarks on $10M expansion” ROCK RIVER CURRENT

Forget the naysayers whining about American manufacturing being too pricey—J.L. Clark in Rockford is throwing down $10 million to prove them wrong. This 121-year-old packaging powerhouse, making tins and plastics for big companies like Hershey, Burt’s Bees, and Altoids, is doubling down on its hometown with new high-speed equipment and a 40% workforce boost—70 new jobs, from engineers to toolmakers.

While some businesses kvetch about tariffs and costs, J.L. Clark’s out here investing in robotics and automation, shouting, “The time is now!” as President Bob Morris puts it. It also demonstrates that it’s possible to expand with automation and hire more workers.

And they’re not doing it alone; local contractors and suppliers are getting a piece of the action, creating a ripple effect of jobs and growth. Plus, they’re hooking up the community with grants for shelters and food pantries.

That’s how you play the long game—take care of your people, your town, and your customers, as Morris says, channeling the company’s founder. This is what it looks like when you stop moaning and start building.

“AUSA adds new, rough terrain electric forklift to its line of construction EVs” ELEKTREK

Unlike gas-guzzlers that choke workers with carbon monoxide and carcinogens, the C151E runs clean and quiet, opening up gigs in emission-free zones.

AUSA’s not new to this game—they’re moving 12,000 units a year globally, and this forklift joins their electric telehandler and mini dumpers, rounding out a legit green lineup.

It’s not only about saving the planet (although that’s a nice bonus). Electric gear like this slashes fuel costs and lets you bid on jobs diesel can’t touch, boosting utilization rates and your bottom line. As Electrek puts it, “you can earn more work” with EVs—facts.

“Medical Device Manufacturer to Build Assembly Plant in Indiana” ASSEMBLY

Cook Medical is dropping $135 million on a new 110,000-square-foot assembly plant in Ellettsville, Indiana, like it’s no big deal. This medical device manufacturer, known for making life-saving gear like catheters and stents, is doubling down on American-made embolization coils—those tiny devices that block blood flow to treat aneurysms or tumors. The plant’s set to open in 2026, bringing 190 new jobs to the Hoosier State, from assembly line workers to engineers, with construction kicking off next month.

Indiana’s already a med device hotspot, and Cook’s move signals confidence in the region’s skilled workforce and infrastructure. They’re banking on tax breaks and a state eager to back manufacturing. Cook’s been in Indiana since 1963, and this expansion is about staying ahead of global demand, not chasing cheap labor abroad.

“Pentagon awards $5 billion contract to speed up ship manufacturing” DEFENSE NEWS

The Pentagon just dropped a $5 billion bomb to supercharge U.S. Navy shipbuilding, and it’s about time. The Defense Logistics Agency’s Maritime Acquisition Advancement Contract (MAAC) hands six companies—SupplyCore, Atlantic Diving Supply, Culmen International, ASRC Federal, Fairwinds Technologies, and S&K Aerospace—the keys to ramp up production of everything from aircraft carriers to unmanned vessels.

It’s a bugle call to a Navy that’s been dragging its feet while China’s fleet balloons toward 435 ships by 2030. We’ve been retiring more ships than we build, and that’s gotta stop.

The Navy’s leaning hard into 3-D printing for on-demand components and augmented reality maintenance systems on five vessels to troubleshoot at sea. No more waiting months for a widget while ships rust in port. They’re even sinking $989 million into modernizing 107-year-old drydocks in the 2026 budget. That’s the kind of forward-thinking we need when shipyards are creaking and deliveries are years behind.

As one Reddit user put it, though, this $5 billion won’t mean squat if we don’t get more welders and trade workers in the mix—cash doesn’t weld hulls

Big contracts often balloon into bloated messes, and $5 billion (with options to hit $10 billion) sounds like a lot of room for waste. But by partnering with private industry to streamline parts for destroyers, subs, and carriers, the Pentagon’s finally serious about catching up. The Navy’s “laser-focused” on China, says Acting Chief Adm. James Kilby, and with global threats heating up, they better be.

“Wisconsin's Labor Market Resilience: A Beacon for Midwest Manufacturing Recovery” AINVEST

Wisconsin’s labor market is supercharged. The state’s nonfarm payrolls jumped by 15,100 jobs year-over-year to 3,053,700 in April 2025, even as manufacturing saw a slight 0.7% employment dip. That’s a nice pivot.

Wisconsin’s leaning into automation and efficiency to boost output without bloated headcounts. Add in a 1.5% spike in professional services and 1.6% growth in education and health, and you’ve got a labor market that’s surviving and adapting.

It’s a feel-good story for cheeseheads. Wisconsin’s a beacon for the Midwest’s manufacturing revival, with infrastructure spending and a skilled workforce ready to roll. The state’s not waiting for a bailout—it’s capitalizing on precision machinery and automotive components to stay competitive. Compared to the national scene, where June 2025 saw 147,000 jobs added and unemployment holding tight at 4.1%, Wisconsin’s holding its own in a resilient economy.

What’s the vibe where you’re at? Is your local economy adapting like Wisconsin, or stuck reminiscing about the good old days?