Hello friends,
Welcome to the May/June 2025 issue of BIC Magazine.
Trump’s energy policy has often been summed up by the phrase "drill, baby, drill." He has signed several executive orders specifically to boost the supply side of the industry. His executive order, "Unleashing American Energy," outlines a federal agenda aimed at establishing American energy dominance through several new policy actions and by rescinding energy-related executive orders from the Biden administration. This order directs actions that support traditional energy E&P, reassess regulations that might hinder energy and economic development and revises the permitting process to fasttrack traditional energy projects.
The "Declaring a National Energy Emergency" executive order seeks to address the crisis by expediting energy and infrastructure projects and facilitating the supply, refinement and transportation of energy. It aims to utilize domestic energy resources and international alliances to create more jobs, improve the energy trade balance and safeguard the U.S. against potential threats.
All this support to expand energy production is needed and welcomed. This support will help you, our loyal readers, to produce the power, fuel and chemicals necessary to raise the standard of living for all humanity. Still, this is only the supply side of the supply-demand equation. Our industries rely heavily on a broader manufacturing base to use the plastics, fuel and power we produce — at a fair price.
That’s why I’m optimistic about an upcoming manufacturing revival coming to America.
Since Donald Trump’s return to the White House in January, his administration has focused efforts on securing significant manufacturing investments in the U.S. and deregulating to unleash economic growth.
There are new trade policies, tax reforms, deregulation, infrastructure development and national security priorities quickly underway. These strategies have led to nearly four trillion dollars in commitments from both domestic and foreign companies to bolster U.S. manufacturing capacity.
Since Donald Trump’s reelection in 2024, several foreign nations have committed large sums to U.S. industries, aligning with the administration’s "America First" policies aimed at attracting foreign investment. Below are some notable examples:
- The United Arab Emirates (UAE) has pledged to invest $1.4 trillion in the U.S. over the next decade, particularly in sectors like AI, energy and data centers. This includes a $25 billion investment in energy infrastructure and aluminum smelters. The UAE’s investment is part of its strategy to access advanced U.S. technologies.
- Saudi Arabia’s Public Investment Fund (PIF) has committed to $10 billion for U.S. infrastructure projects, focusing on transportation, energy and telecommunications. Additionally, the PIF has invested in U.S. technology companies, especially in AI and clean energy sectors as part of Saudi Arabia’s Vision 2030.
- South Korea has committed $7 billion to expand semiconductor production in the U.S. Hyundai Motor Company announced a $21 billion investment in the U.S. to strengthen the steel supply chain. This move is seen as a strategy to avoid potential tariffs threatened by President Trump.
- Japanese companies have committed $4.5 billion to expand their manufacturing footprint in the U.S., focusing on EVs and hybrid cars. Toyota committed $1.3 billion to build a hybrid vehicle plant in Princeton, Tennessee, creating over 2,000 jobs.
- While relations between the U.S. and China are tense, some Chinese companies have still made investments in U.S. industries. Alibaba has pledged $1.5 billion for data centers and cloud computing infrastructure in the U.S. to capitalize on growing demand for digital services.
- Germany’s BASF announced a $2 billion investment to expand its production facilities in Geismar, Louisiana, focusing primarily on materials for the automotive and construction industries. Volkswagen has also committed $3 billion for a new EV production facility in Chattanooga, Tennessee, reinforcing its U.S. manufacturing base.
- Taiwan Semiconductor Manufacturing Company is building a $12 billion semiconductor manufacturing plant in Arizona. Also, Taiwan’s Foxconn revealed a $1 billion investment in Wisconsin to produce advanced display panels for electronics.
- France’s Schneider Electric, an energy management and automation company, is investing $700 million by 2027 to improve U.S. energy infrastructure, including projects related to AI development and renewable energy. This investment includes upgrading and opening facilities in multiple states, which is expected to create over 1,000 jobs.
These foreign investments reflect the growing interest in the U.S. market under Trump’s second term, driven by favorable policies, such as tax reforms, deregulation and the emphasis on infrastructure. The aim is to foster closer economic ties while securing technology, manufacturing capacity and energy resources in the U.S.
U.S. companies have likewise announced expansions in manufacturing investments:
- Tech giant Nvidia announced a $500 billion investment to build AI supercomputers in the U.S. for the first time.
- U.S. Steel announced a $1.5 billion investment to expand domestic production, including reopening its plant in Granite City, Illinois, and upgrading other Midwest plants.
- Nucor, another major steel producer, committed $1.2 billion to a new mill in Brandenburg, Kentucky, driven by tariff-driven shifts in the steel market.
- Intel committed $20 billion to build a semiconductor plant in New Albany, Ohio, addressing the global chip shortage.
- General Motors announced a $2 billion investment to expand its EV operations in Michigan, including a new battery production facility in Detroit, as part of its shift to EVs.
- Lockheed Martin committed $3 billion to expand its F-35 production in Marietta, Georgia, bolstering defense manufacturing.
In only three and half months, the Trump administration has secured trillions in manufacturing investments, driven by tariffs, tax incentives, deregulation and infrastructure improvements. These investments have created thousands of jobs and expanded domestic production capacity in key sectors of our economy. All these projects will require some combination of power, fuel and chemistry.
While the short-term gains are visible, challenges and global competition may limit the manufacturing revival envisioned by the administration. Many economists doubt that the use of tariffs can ever have a net positive economic effect.
The full effects of Trump’s policies will continue to unfold in the coming years, but the reshoring of manufacturing and the massive investments being made are sure to have a positive impact.
This issue features a wealth of leadership insights as we spotlight individuals shaping our industry’s future, including profiles on LYB’s Equistar Pipeline Site Manager Ruan Farmer and BASF Freeport’s Production Manager James Thornley.
Additionally, we examine various applications of AI in the industrial sector, leadership in action, improving safety culture, lessons on empowering fenceline communities and much more.
