US Manufacturing and Foreign Technology: A House Oversight Committee Hearing

Reliance on Foreign Technology

• 💡 A question was raised regarding whether American manufacturing stands on the shoulders of 3D printing technology developed by other governments, specifically Japan.
• 🎯 The company Divergent 3D's printing machine is stated to be based solely on US inventions, an US supply chain, and built in US factories, not on Japanese patents.

Countering High Labor Costs

• 🚀 The strongest counterargument to the claim that manufacturing can't return to the US due to high labor costs is that American innovation can create tools allowing workers to produce goods faster, better, and cheaper.
• 🔑 This innovation can lead to a competitive manufacturing infrastructure and help rebuild global manufacturing market share, provided it's based on new, leapfrog technology.
• 🇪🇺 Examples of US companies with American workers shipping to European luxury car makers like Aston Martin, Bugatti, McLaren, Mercedes, and Porsche are cited.

Supply Chain and Core Materials

• ⚠️ Concerns exist regarding core materials for manufacturing, such as aluminum, noting the closure of the last US aluminum smelter in Missouri.
• 🇺🇸 Divergent 3D focuses on using US allied suppliers for materials like aluminum alloys, high-temp materials for hypersonics, and high-strength materials for munitions.
• 🏭 It's suggested that with abundant energy, the US could re-establish atomization production of metal powders and scale it.

Energy Costs and Facility Location

• ⚡ Energy costs and regulations are significant factors in deciding where to locate new factories in the United States.
• ⏳ Permitting processes for electricity hookups can be a major barrier to the speed of building factories in certain states.
• 💰 Compared to China, US energy costs can be 10 to 20 times higher without subsidies, and energy constitutes 95% of the cost of materials like aluminum.
• 💡 Affordable, scalable, and clean power is crucial for running factories, enabling energy grids to support advanced manufacturing, and reducing raw material costs.