US officials work to close supply chain gaps as foreign investment grows

U.S. officials are collaborating with foreign investors to pinpoint weaknesses in the U.S. manufacturing supply chain and support small- and medium-sized enterprises as investments from overseas rise. Assistant Secretary of the Treasury Chris Pilkerton and Small Business Administrator Kelly Loeffler informed Reuters that President Trump's tariffs on imports and deregulation have spurred foreign participation in the manufacturing sector.

During a tour of a Philadelphia shipyard owned by Hanwha Ocean and Hanwha Group since December 2024, Hanwha Philly Shipyard CEO David Kim revealed plans to invest $5 billion over the next few years, potentially increasing employment at the site to 10,000 from a current 2,000. Over 1,000 suppliers provide materials for each large ship constructed by the company, with two-thirds of these suppliers based in the U.S. The company aims to augment this network and incorporate AI-driven shipbuilding technologies from South Korea.

Pilkerton, who previously acted as SBA administrator during Trump's final year, unveiled a pilot "Strategic Vendor Program" to reinforce domestic supply chains and bolster the enduring prosperity of foreign-owned businesses in the U.S. The program is currently under pilot stage, with no specific guidelines provided for vendor selection.

He recounted visiting a Syracuse, New York quantum refrigeration firm taken over by Finnish firm Bluefors, where executives encountered difficulty identifying a local supplier for dry compressors. Pilkerton highlighted the importance of locating parts for supply chains, stating, "It's one thing to talk about supply chains at a high level.

I think everybody wants it, but you know, you need to find the parts." The Trump administration is also striving to render reviews of foreign investments by the Committee on Foreign Investment in the U.S. (CFIUS) more transparent and expeditious. Treasury unveiled a new website in July to assist businesses, investors, and their legal representatives in comprehending how the committee assesses possible foreign acquisitions and investments.

Additionally, a "Known Investor Program" was established to recognize and expedite the clearance of companies frequently participating in such investments. Loeffler mentioned that the SBA allocated $3 billion in funding for manufacturers in 2025, including $32 million for shipbuilders, to aid in rebuilding capacities following the loss of approximately 90,000 factories and 5 million manufacturing jobs over the past four to five decades.