HIGH MIX: Drug Shortages, Custom Chandeliers and Miserly Economists

Reindustrialization news for June 23, 2025

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

“Wisconsin’s small, independent bike manufacturers stake their niche” GAZETTE XTRA

While some manufacturers churn out disposable bikes by the millions overseas, Wyatt and Small Town are forging hand-built rides with soul, right in America’s heartland.

This isn’t just about two-wheelers. It’s a push against to the race-to-the-bottom global economy that’s gutted small U.S. factories for decades. (Although the USA should also be able to make millions of its own mass market bicycles if it wants to succeed.)

By keeping production local, these builders create jobs and tap into a growing hunger for authentic, durable goods like bikes that don’t fall apart after a season.

“I'm a family-owned American manufacturer. Being made in the US hasn't been easy but it's paying off.” BUSINESS INSIDER

Excel Dryer’s commitment to American manufacturing is a blueprint for reshoring success. Sticking with domestic suppliers keeps their costs steady and builds trust with buyers who value quality.

A great example of a U.S. factory that can compete globally, create jobs and prove that making it here isn’t just tough—although it’s tough—it’s also possible.

“Want to dodge tariffs and buy an all-American car? A Tesla remains your best bet.” BUSINESS INSIDER

All Tesla vehicles sold in the U.S. are built in factories in California and Texas, giving them an edge as 25% tariffs on imported cars and parts disrupt the auto industry. With 100% U.S. assembly and a parts supply chain leaning heavily domestic, they’re sidestepping the tariff storm better than Detroit’s Big Three (for now).

It’s a reminder that vertical integration and local sourcing can be a manufacturing superpower. (We’ll ignore that the Shanghai Megafactory ended up being a finishing school for BYD and other Chinese car makers’ engineering teams.)

“How a Chinese-Owned Battery Maker’s Bet on U.S. EVs Went Wrong” WSJ

AESC, a Chinese-owned company, has paused construction on its $1.6 billion battery plant in South Carolina due to U.S. tariffs on Chinese equipment and unclear policies. The plant was set to supply batteries for BMW’s electric vehicles, but delays hit as AESC’s Kentucky facility also stalls.

In a rush to meet the expected surge in EV manufacturing, AESC started construction and ordered machinery before finalizing the layout of the Kentucky and South Carolina factories, according to current and former employees.

They got way ahead of themselves, while taxpayers are footing the bill to accommodate the factory:

Elected officials in Kentucky provided AESC with more than $100 million in state money to help finance the plant. The city of Bowling Green and Warren County spent more than $50 million on real estate for the factory and road and utility work for the industrial park in which it is located, said Alcott, the Bowling Green mayor.

American battery makers like Pure Lithium are already proving they can compete with local innovation (and domestically sourced lithium), but AESC’s pause shows the challenges of building in America when relying on foreign equipment. Direct foreign investment isn’t inherently a bad thing—it is better for American workers and the overall market to encourage foreign companies to produce their products to be sold to Americans here—but as the global economy and power structures reorder into…whatever it is that is happening…there will need to be new frameworks for domestic business structures that incorporate foreign capital.

“Trump’s $499 smartphone will likely be made in China” CNBC

Despite the “Made in USA” pitch (which may turn out to be bullshit), the T1 smartphone’s story underscores the gap in America’s electronics manufacturing.

Producing complex devices—such as the T1 with its AMOLED display—domestically remains a challenge without a robust domestic tech base. There are a handful of smartphones built here, like Purism’s Liberty Phone, but they simply can’t compete with the likes of Apple (yet).

Walk the walk!

“How Apple turbocharged China's development” NPR

Patrick McGee’s barnstorming book Apple in China revealed how Apple’s offshoring boosted Chinese manufacturing by training their workers and funding factories, potentially at the cost of U.S. innovation. Apple’s heavy bet on China built their factories into juggernauts, but it left U.S. manufacturing playing catch-up.

Offshoring tech production didn’t just shift jobs, it has put American innovation lead in key sectors and security at risk.

Reshoring electronics manufacturing, with support from domestic supply chains, is the only way to reclaim America’s industrial edge and ensure we’re not reliant on foreign tech for the next iPhone. But boy do the majority of economists and financiers still think it’s not practical. (They can be wrong especially if American electronics companies simply make them wrong by doing it.)

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Desk Jockeys Prioritize GDP Over US Industry:

“Aggressive reshoring of supply chains risks significant GDP loss, warns OECD” FINANCIAL TIMES

An OECD report “warns” that rapid reshoring of manufacturing could cut global GDP by 1.2% and reduce trade by 18% (boo-hoo), citing higher costs and inefficiencies. It suggests gradual localization to avoid economic disruption.

The OECD’s GDP-focused warning misses the bigger picture: reshoring isn’t just about dollars—it’s about rebuilding America’s industrial strength.

Higher costs? Sure, but local production ensures security and innovation. Global trade dips? That’s a small price to pay for reducing reliance on foreign factories.

U.S. manufacturers are already proving reshoring works, creating jobs and tech that drive long-term growth over short-term GDP stats. It’s not that we don’t believe macroeconomic factors are real; it’s that we’ve been told our entire lives that they were only real if they led to the offshoring of America’s industrial base. Our position is equally pig-headed: bringing back American manufacturing will be extremely hard but with such obvious benefits that it’s our duty to figure out these hard problems.

“The world must escape the manufacturing delusion” THE ECONOMIST

The Economist argues manufacturing is overrated, claiming service economies drive growth and reshoring wastes resources. They dismiss industrial policies as nostalgic and inefficient, urging focus on digital and financial sectors.

Calling reshoring a “delusion” is deluded in itself. Their push for services over industry glosses over real-world American wins—like advanced robotics or precision machining—which keep this country resilient.

Misleadingly framing manufacturing as outdated, they conveniently ignore its role in tech breakthroughs and creating the economic stability necessary to sustain their precious service industry.

America’s reindustrialization isn’t nostalgia—it’s building a future where we make, not just trade.

“The economic cost of a U.S. manufacturing renaissance” GIS

Yet another economist waving the GDP flag of surrender while hand-waving away the possibility of America’s industrial comeback.

GIS parrots the tired line that making stuff here costs too much, whining about $200 more for a washing machine. A strong U.S. factory base isn’t simply about pinching pennies—it’s about power, security, and pride.

Their automation obsession ignores how tech like robotics can amplify skilled workers to allow greater efficiencies in volume production. Which—wouldn’t you know it?—can lead to price efficiencies.

And shrugging off trade deficits? That’s like saying it’s fine to bleed out slowly because you’re still breathing.

While they fetishize consumer savings, they’re blind to the cultural rot of outsourcing our know-how to rivals. American shops are ready to crank out world-class goods. We have to believe we can out-build anyone when we bet on ourselves. And “we” has to include American customers, too.

“US retail sales fall as Americans turn cautious after spending early to beat tariffs” ABC NEWS

Americans aren’t dumb—we gobbled up goods before tariffs jacked up prices, and now we’re slamming our wallets shut. This isn’t just a retail blip; it’s a signal the U.S. economy’s hooked on cheap imports.

While economists whine about GDP dips, clever domestic manufacturers can seize this moment, churning out products stateside. (The stutter-step of the administration’s tariffs application, not to mention an industrials and components supply chain with real holes in it, obviously makes this challenging in the short term.)

Tariffs are messy, sure, but they’ve also exposed the contours of our supply chain and manufacturing landscape.

“US Manufacturing Expands While Inflation Measures Accelerate” BLOOMBERG

U.S. manufacturing grew in June, the fastest pace since May 2022, per the Institute for Supply Management. New orders and production surged, though prices paid and received rose, hinting at tariff-driven cost pressures.

While economists clutch pearls over GDP and tariffs, U.S. factories are fighting back. Sure, prices are up, but that’s part of the cost of breaking free from cheap foreign labor.

Pundits biting their nails about inflation rarely mention the other side of the bet: a nation that controls its own future doesn’t beg for scraps from rivals. U.S. shops are doing the work, and that’s a legacy that will show up on any economist’s spreadsheet after it’s done.

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“America’s Drug Shortage Isn’t a Supply Problem—It’s a Production Crisis” COALITION FOR A PROSPEROUS AMERICA

A Coalition for a Prosperous America report reveals that U.S. drug shortages stem from a lack of domestic production, not just supply chain issues.

Overreliance on foreign active pharmaceutical ingredients (APIs), especially from China, leaves critical drugs like antibiotics vulnerable.

The collapse of domestic pharmaceutical manufacturing is not accidental. It is the result of decades of unguarded trade liberalization, sustained price pressure from imports, and the absence of a national production strategy.

A 2024 FDA report notes 60% of drug shortages are tied to foreign sourcing disruptions. Bringing API production home could leverage advanced biotech, like continuous-flow synthesis, to boost efficiency and security.

Time to rebuild America’s pharma backbone.

“Fabricator creates chandeliers for the Ohio Governor’s Residence” THE FABRICATOR

Rose Iron Works in Cleveland crafted custom chandeliers for the Ohio Governor’s Residence, blending traditional blacksmithing with modern fabrication to match the 1925 home’s historic style. Their work, inspired by early 20th-century designs, showcases hand-hammered textures and period-specific details.

There’s a real loss of what we sometimes call “The American Heirloom Industries”: businesses that show both timeless skill of modern American workers by creating goods that are built to live for generations.

“The $10 Billion Proposal to Speed Up U.S.-Mexico Trade” WSJ

Green Corridors, an Austin startup, won U.S. approval to build a $10 billion “guideway” for autonomous hybrid shuttles to move freight between Mexico and Texas. Yes—ROBONAFTA. (While we’re historically sour about the impact of NAFTA and similar agreements to manufacturing, it’s not like having trade with Mexico is 1. going away tomorrow or 2. should go away forever.)

By boosting “allyshoring” (a term I learned from our recent podcast with Elaine Dezenski), Green Corridors’ makes moving parts and finished goods in both direction more efficient.

“Yaskawa America to build US$180 million manufacturing facility in Wisconsin” PV TECH

Yaskawa America, a subsidiary of Japan’s Yaskawa Electric, will invest $180M to consolidate its Illinois and Wisconsin operations into a new 800,000-square-foot campus in Franklin, Wisconsin, creating over 700 jobs. The facility will produce solar inverters, robotics, and motion control products.

Yaskawa’s investment in Wisconsin is a win for American manufacturing. As we alluded to earlier, we’ll take foreign direct investment over offshoring any day.

“TerraPower lands $650M from NVIDIA’s investment fund, Bill Gates and others” GEEK WIRE

TerraPower’s massive funding boost is another forward tick for U.S. investment in clean energy. There’s no future growth in American manufacturing with more power—and that almost certainly means deploying advanced nuclear reactors stateside at scale.

If all we get out of the AI boom is a new nuclear boom, then it will still be a great thing.

“MI Hub for Manufacturing opens in Detroit helping small, mid-size businesses” FOX2 DETROIT

Detroit’s MI Hub equips smaller shops with the tools and skills to compete. By sparking job growth and innovation in one of the core manufacturing cities of the U.S, it helps build a stronger, more self-reliant industrial base.