Applied innovation is accelerating across the economy. New technologies are reshaping markets, business models, and the products and services we will all have access to. In that kind of environment, avoiding financial “FOMO” becomes essential by staying disciplined and research-driven rather than reacting to headlines or speculative narratives. As your advisor, we are excited to review and evaluate these developments alongside our corresponding research analysts and Janney’s analyst team, and to discuss with you many of the emerging technologies we expect to see over the coming years. Our priority remains consistent by focusing on technologies and infrastructure that can build durable, measurable value over time. This paper highlights one disruption we believe has particularly long-lasting staying power. The new industrial investment cycle is translating research into real-world results through domestic production, supply-chain redesign, advanced machinery, and robotics.
LOCALIZING MANUFACTURING OPERATIONS
WHY BRING PRODUCTION HOME
• Over several decades, U.S. companies shifted production overseas to lower costs, weakening domestic manufacturing capacity and increasing exposure to global disruptions.
• The COVID-19 pandemic and subsequent supply-chain shocks highlighted the vulnerability of long, internationally concentrated production networks.
• In response, manufacturers are increasingly prioritizing operational resilience alongside cost efficiency.
• Toyota, for example, committed nearly $912 million to expand advanced powertrain and hybrid production across U.S. facilities, strengthening domestic supply reliability and reducing supply-chain risk (Toyota motor corporation, 2024–2025 disclosures).
DOMESTIC INVESTMENT AND ECONOMIC UPSIDES
• Federal and state incentives have made domestic capital investment more financially attractive, particularly for advanced manufacturing and industrial infrastructure.
• In 2025, GE Appliances announced a $490 million expansion at its Appliance Park headquarters in Louisville, Kentucky, reshoring appliance production and creating approximately 800 full-time manufacturing jobs (Kentucky Cabinet for Economic Development, 2025).
• Apple has committed $2.5 billion to manufacture iPhone and Apple Watch cover glass at Corning’s Harrodsburg, Kentucky facility. The expansion is expected to increase the plant’s workforce by roughly 50 percent, adding approximately 250 jobs (Leahy, 2025; Essex, 2025).
• These investments illustrate how innovation often delivers its greatest impact through tangible assets that generate measurable economic and employment outcomes.
BOOSTING THE EFFICIENCY OF U.S. SUPPLY CHAINS
SHORTER SUPPLY LINES, FASTER DELIVERY
• Domestic production shortens transit routes, reduces dependence on ocean freight, and lowers exposure to port congestion and shipping delays.
• Shorter supply lines allow firms to respond more quickly to shifts in demand, improve inventory management, and maintain more reliable delivery schedules.
FINANCIAL PREDICTABILITY AND COMPETITIVENESS
• More localized supply networks reduce transportation volatility and mitigate disruptions that can destabilize margins and cash flows.
• Manufacturers that redesigned supply chains during recent inflationary periods have been better positioned to maintain cost control and operational continuity, reinforcing long-term competitiveness.
ADVANCED TECHNOLOGICAL MANUFACTURING SYSTEMS
CAPITAL EFFICIENCY IN A HIGH-WAGE ENVIRONMENT
• Higher U.S. labor costs have accelerated capital investment in advanced manufacturing infrastructure, including precision machining, digitally integrated production lines, sensor-driven quality systems, and real-time process controls that raise output per dollar of fixed assets deployed.
• The strategic objective is asset productivity, not labor substitution. Manufacturers are using advanced machinery to increase throughput, reduce cycle times, and improve equipment utilization rates, allowing existing facilities to produce more without proportional increases in operating costs.
• Heavy-equipment manufacturers exemplify this shift. John Deere has committed billions to modernizing U.S. facilities through precision manufacturing, advanced tooling, and digital production systems designed to reduce downtime and stabilize operating margins across business cycles (John Deere investor disclosures; 2024-2025 earnings materials).
INDUSTRIAL ROBOTS
WORKFORCE TRANSFORMATION AND SAFETY
• Industrial robots perform repetitive or hazardous tasks, improving safety while maintaining high levels of speed and accuracy.
• Robotics adoption allows firms to stabilize production quality and throughput while reducing dependency on manual repetition.
A SKILLED WORKFORCE AND A STRONGER INDUSTRY
• Rather than eliminating jobs, robotics reallocates labor toward higher-value roles such as maintenance, programming, quality control, systems oversight, and technical support.
• At Corning’s Harrodsburg facility, Apple’s investment is expected to expand engineering, manufacturing, and technical roles, demonstrating how advanced production increases demand for skilled labor (Apple Newsroom, 2025).
• By removing routine tasks from the production process, robotics enables workers to focus on innovation-driven functions such as process optimization, product design, and systems integration, where human judgment remains essential.
WHAT THIS MEANS FOR THE U.S. ECONOMY
Applied industrial innovation represents a long-term structural opportunity whose impact tends to build through steady adoption rather than sudden disruption. Local production, more efficient supply chains, advanced machinery, and robotics together create a durable foundation for U.S. industrial growth. Over time, these shifts can support higher output per worker, shorter production lead times, and sustained domestic investment in modern manufacturing capacity. Historically, periods defined by productivity gains and consistent capital investment have often aligned with stronger GDP growth, rising wages in skilled roles, and greater economic resilience, reinforcing long-term momentum rather than short-term speculative cycles.
BIBLIOGRAPHY
Apple Inc. (2025, August 6). Apple and Corning partner to manufacture 100 percent of iPhone and Apple Watch cover glass in Kentucky [Press release]. Apple Newsroom. https://www.apple.com/newsroom/2025/08/apple-corning-to-manufacture-all-iphone-apple-watch-cover-glass-in-kentucky/
Essex, K. (2025, September 12). Apple bringing $2.5B investment to Harrodsburg, Kentucky, as Corning ramps up production. WDRB News. https://www.wdrb.com/news/business/apple-bringing-2-5b-investment-to-harrodsburg-kentucky-as-corning-ramps-up-production/article_d3f3d3abe381-410b-bb04-e177f74d148c.html
Kentucky Cabinet for Economic Development. (2025, June 26). GE Appliances to invest $490 million, create 800 jobs in Louisville. https://newkentuckyhome.ky.gov/Newsroom/NewsPage/20250626_GEAppliances
Leahy, S. (2025, August 6). Apple announces $2.5 billion investment to bring iPhone and Apple Watch glass manufacturing to Kentucky. Courier-Journal. https://www.courier-journal.com/story/money/companies/2025/08/06/apple-announces-investment-to-bring-glass-manufacturing-toharrodsburg/85551244007/
Toyota Motor Corporation. (2024–2025). U.S. manufacturing and powertrain investment disclosures [Corporate filings and press materials]. https://global.toyota/en/newsroom/
John Deere. (2024–2025). Manufacturing modernization and automation investments [Investor disclosures]. https://www.deere.com/en/investor-relations/
