HIGH MIX: Educating Engineers, Shady Sourcing Agents and Sinking Ships
Reindustrialization news for June 30, 2025
Welcome to HIGH MIX, our weekly newsletter about the reindustrialization of the United States.
“An intelligent, practical path to reindustrialization” MIT TECHNOLOGY REVIEW
I wasn’t smart enough for MIT but I am smart enough to see the value of an initiative like this.
MIT’s Initiative for New Manufacturing (INM) integrates AI, robotics, and social sciences to modernize U.S. factories, emphasizing sustainable production, workforce upskilling, and advanced management training.
Their “factory observatory” program, sending students to real-world plants, isn’t just academic tourism; it’s forging a new generation of engineers, which we can always use more of.
With heavyweights like Siemens and Amgen backing AI-driven seed projects, INM is targeting high-stakes sectors like biomanufacturing, where a single delay can cripple drug supply lines. Their symposia, pulling in industry and academia, spark ideas that could change how we build everything from chips to jets.
Great program, but somewhat expected from MIT. Now I want to see ivy leagues hop on the reindustrialization train.
“American Workers Will Build the AI Age” THE AMERICAN CONSERVATIVE
Palantir’s got their fingers in a lot of pies. Some are pretty controversial (putting it mildly), but their American Tech Fellowship is a great idea. It aims to train U.S. workers in AI and software skills, targeting talent in America’s heartland. (The military-inflected phrase “forward-deployed engineers” has be en vogue the last few months, but when it means “software people working with hardware people in the field” it’s actually a better way of getting real work done than the U.S. tech scene has historically enacted.)
Some VC types might scoff at training “flyover country” workers instead of exclusively Stanford dropouts, but that’s their loss. Palantir’s betting on the grit of shop-floor veterans and community college hustlers, who are more likely to already know how to build real things.
Building on their Meritocracy Fellowship, the program responds to booming demand for AI-savvy engineers, emphasizing automation of tasks and transformation of workflows.
Palantir’s focus on hands-on training—think coders debugging real-time AI models alongside machinists—means shops in places like Ohio or Michigan can lead, not follow.
“Stratasys launches North American Tooling Center of Excellence with Automation Intelligence” THE MANUFACTURER
Stratasys, in partnership with Automation Intelligence, launched the North American Stratasys Tooling Center (NASTC) in Flint, Michigan.
Not just a shiny new facility, it’s meant to be hands-on proving ground where manufacturers can test-drive Stratasys F3300 and F900 3D printers to make jigs and fixtures that slash production downtime. (Additive is never quite as good as other mass production processes in general, but it slays at tooling.)
Fadi Abro, Stratasys’ Director of Global Automotive & Mobility, calls it an “incubator for advanced manufacturing.” The center’s engineering support lets manufacturers iterate designs fast, like end-of-arm tooling for robotic arms and NAAMS blocks that can be tweaked in a matter of hours. By showcasing sample parts and hosting application-focused events, NASTC is meant to create examples of where additive manufacturing isn’t a gimmick but instead a lifeline for factories facing tight deadlines and tighter budgets.
Old-school manufacturers sometimes balk at 3D-printed tooling, preferring to stick with traditional machine-tooled metal fixtures. But there’s a place for additive in tooling and it’s growing.
“Trump and TSMC pitched $1 trillion AI complex — SoftBank founder Masayoshi Son wants to turn Arizona into the next Shenzhen” TOM’S HARDWARE
Masayoshi Son’s “Project Crystal Land” (awesome name by the way, very Sedona) is the latest VC moonshot for American manufacturing. (Open to it!)
The proposed $1 trillion Arizona hub isn’t just a single factory, but a sprawling ecosystem designed to pump out AI-powered industrial robots, with SoftBank-backed outfits like Agile Robots SE setting up shop to build automation tech that could revolutionize assembly lines.
Son’s vision, per Bloomberg, includes production facilities for advanced semiconductors, potentially tapping TSMC’s expertise in crafting Nvidia’s AI chips, though TSMC’s keeping mum on any direct involvement despite its $165 billion Arizona investment.
The pitch to U.S. Commerce Secretary Howard Lutnick for tax breaks shows Son’s playing hardball, massaging federal and state muscle to relax capital chakras.
Son’s history of big bets gone bust, like WeWork’s $47 billion flop, are somewhat concerning. But America needs bold moves like this to compete in AI and robotics, not timid half-steps. If Son pulls this off, it could create an American manufacturing hub at the heart of the automation age, and (hopefully) outpace global rivals who’ve leaned on cheap labor for too long.
“The great reality check” KEARNEY
Kearney’s 2025 US Reshoring Index doesn’t pull punches. The index’s 311-point plunge—driven by a 10% spike in Asian imports to $957 billion against a measly 1% bump in U.S. output—really is a reality-check for American manufacturers and policy makers.
The report’s core offering is a straightforward metric: the manufacturing import ratio, pitting imports from 14 Asian low-cost countries and regions (LCCRs) against domestic production. It shows American shops are still playing catch-up, but the real story is the 50% surge in CEOs citing geopolitical heat—like U.S.-China trade spats—as a reason to bring manufacturing home. That, plus a 15% jump in execs planning to reshore some of their operations in the next three years, proves the will is there.
Kearney’s survey also highlights hurdles: a dire shortage of skilled workers, labor costs, and infrastructure that’s not keeping pace. Nearshoring’s not quite there yet either—Mexico and Canada’s exports to the U.S. dipped, with Mexico’s growth stalling.
But this index isn’t a funeral; it’s a blueprint. It screams for public and private coordination like education programs to churn out AI-savvy machinists or infrastructure investments to optimize the pipeline from shop to market.
“Health care costs: one of the biggest obstacles to reshoring American industry” STAT NEWS
STAT’s deep dive into employer health care costs hits a nerve for American manufacturers.
The article’s core claim—that health care costs, now ballooning to over $16,000 per worker in 2025, drive companies to offshore jobs—is backed by a stark example: a textile firm that ditched 1,500 U.S. jobs to dodge a $1,000-per-employee insurance spike.
That’s not ancient history; it’s a playbook still in use. Trump’s tariffs—25% on Canada and Mexico, 30% on China—are meant to lure jobs back, but STAT warns they could jack up prices for drugs and medical devices, squeezing employers who foot the bill for worker health plans.
[Universal socialized health care is probably so far off the American political table right now to not merit consideration, but health care costs to SMBs is one of the best arguments for it. —Joel]
“Complementarity Mindset: Mexico’s Economy During a U.S. Reshoring Push” CSIS
Mexico can boost U.S. manufacturing with low labor costs, USMCA trade perks, and proximity, per CSIS’s report. I agree with their assessment.
Mexico’s manufacturing capability can be an advantage for American factories, despite what our instincts might tell us. With labor costs a fraction of ours, Mexico churns out simple components quickly, letting U.S. plants focus on high-tech or high-margin products that require more skilled labor.
We (obviously) share a border with Mexico, which avoids the five-week slog across the Pacific from China. Those $475 billion in exports—body panels, widgets, electronics, you name it—come across the border in days, not weeks, keeping production humming without reliance on far-off suppliers.
Sure, Mexico’s got hurdles like pricey energy and crime, but the USMCA’s tariff exemptions give American manufacturers a leg up if they use Mexican components. Allyshoring is going to be an element of the reordering of global manufacturing.
“Massive ship carrying 3,000 cars sinks in international waters” USA TODAY
According to the Coast Guard, the ship carried 1,530 metric tons of very low-sulfur fuel oil, along with 350 tons of marine gas oil. Additionally, it was transporting 3,048 vehicles, including 70 electric and 681 hybrid.
What a mess.
The U.S. Coast Guard sprung into action, saving all 22 crew members with the help of a nearby merchant vessel.
The Morning Midas was transporting vehicles from Chinese brands like SAIC and Chery to Mexico when it sank. There’s not much information about how the fire started, but it’s worth mentioning that lithium (found in hybrid and EV batteries) doesn’t mix well with water. [Tell that to my shrink. —Ed.]
“Chinese Toymaker Takes Drastic Action to Survive Trump’s Tariffs” BLOOMBERG
“We’ve told our factories they need to move and we’ve told them that it’s an urgent matter and we told them we have to move,” [Ah Biao] said. “I don’t know where is safe. I can tell you that the wind is blowing in such a way that I don’t feel secure in my future to have a manufacturer in China — I really don’t.”
Shenzhen Kate’s mad dash to Vietnam shows just how hard tariffs are hitting Chinese manufacturers, and it’s an opportunity for American companies to join the game. When tariffs on Chinese goods jumped from 54% to 145% in April, this toymaker leased a factory in Vietnam.
But Vietnam’s no free lunch—labor costs there are climbing, and logistics problems make it a shaky bet compared to Shenzhen’s well-oiled machine.
While Chinese toymakers are scrambling to avoid tariffs, American manufacturers can step in. It’s not difficult to make action figures and board games; what’s difficult is making them inexpensively enough to still be cheap.
“Sourcing Agent Deceptions: How to Spot, Stop and Prevent International Manufacturing Scams” HARRIS-SLIWOSKI
Picture this: you’re a U.S. manufacturer, thinking you’ve scored a sweet deal with a “factory” in China, only to find out you’ve been fleeced for $2.4 million by a slick-talking sourcing agent operating out of a broom closet with a laptop and a dream. [It’s not a broom closet, it’s my bedroom, thanks. —Ed.]
Harris-Sliwoski’s exposé rips the mask off these scams, showing how agents jack up prices by 30-40% with hidden markups, passing off shoddy goods from cut-rate suppliers while you’re left holding the bag.
It’s like ordering a prime rib and getting served a hot dog. Their example of a home goods company burned by a fake factory hits home—imagine the sting of a major quality flop exposing your “trusted” agent’s lies. “Just trust your agent; it’s easier.”
These scams scream opportunity for American shops—why bleed cash overseas when our factories can deliver quality without the middleman’s con?
Cut the agent, go direct when you can, use a real broker or a service like Noramark.com, and ideally keep the profits stateside where they belong.
“Texas firm aims to build world's largest data energy complex with nuclear, gas, solar” REUTERS
Picture a dusty Texas plain transformed into a humming hive of energy, spitting out enough juice to power 8.2 million homes while feeding the AI data centers that’ll run tomorrow’s world.
Fermi America’s Hypergrid project, led by former Texas Governor and Secretary of Energy Rick Perry, isn’t just a power plant—it’s a stake in the ground for American industry. This 5,800-acre behemoth near Amarillo, blending nuclear, gas, and solar, is set to pump out 11 gigawatts, with 1 gigawatt ready by late 2026.
That’s a lot of watts, and it should be quite reliable. That’s good news for Texas, who suffered a tragic energy grid failure in the winter of 2021, leading to the deaths of 246 Texans. (Surely a reason Texas has given themselves the right to cut datacenter power when necessary.)
Trump’s orders to speed up nuclear permits lit a fire under this, though some critics are concerned about potential safety risks. Nuclear’s tricky, but sitting on our hands while China builds 22 reactors to our zero is a one-way ticket to losing the tech tree. (Although we have no idea why the latest revision of the budget doesn’t just remove renewable incentives but adds a new tax—we need all the power we can generate.)
“Trump's energy dominance plans driving manufacturing renaissance in Milwaukee (Opinion)” MILWAUKEE JOURNAL SENTINEL
EPA Administrator Lee Zeldin visited Komatsu’s Milwaukee campus, a key U.S. manufacturing hub for mining equipment, to promote deregulation aimed at slashing environmental compliance costs.
Komatsu, employing over 1,000 workers, produces massive hydraulic excavators and electric trucks. Zeldin’s contribution to the “one big, beautiful bill” seeks to streamline EPA rules, arguing they burden manufacturers, while critics warn it could weaken air and water protections.
Climate activists aren’t thrilled, saying looser rules might dirty up Milwaukee’s water or air. Come on—Komatsu’s already building electric trucks; they’re not the bad guys. Deregulation done right could mean more jobs and faster production, letting U.S. factories like this one outbuild global rivals without drowning in paperwork.