Is the US the New Global Factory? Kraft Heinz, Carrier, and Big Pharma Bet Big on America

With President Donald Trump encouraging national and global companies to set up their production units in the United States, multinational Carrier and Kraft Heinz have announced their financial pledges to boost manufacturing in the country.

United States has witnessed a surge in domestic production investment pledges, totalling over £3.76 trillion ($5 trillion) within his first 100 days in office.

Kraft Heinz' Massive $3 Billion Investment

Kraft Heinz has announced a £2.26 billion ($3 billion) investment to upgrade its 30 US manufacturing plants, marking its most significant domestic investment in a decade. The initiative aims to enhance operational efficiency, reduce production costs, and support long-term food production amid economic uncertainties and recent tariffs imposed by the US government, including a 10% levy on all imports.

Despite decreasing consumer sentiment and revised sales and profit forecasts, the company views the upgrade as essential to defending its market share and fostering product innovation. Most of its products, including Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese, are manufactured domestically using homegrown ingredients.

The investment is expected to generate around 3,500 new construction jobs.

Carrier's Production Investment

On its part, Carrier Global Corporation has announced a £750 million ($1 billion) investment over the next five years to expand its US manufacturing footprint, marking a significant commitment to domestic production and workforce development.

The investment will fund the expansion of existing facilities and the construction of a new state-of-the-art manufacturing site focused on producing components for heat pumps and battery assemblies, which are essential to Carrier's Home Energy Management System (HEMS).

Moreover, this initiative is expected to create 4,000 jobs across research and development, manufacturing, and field service roles, including hiring 1,000 US service technicians and training over 100,000 climate solutions service and sales professionals.

Pharma Companies Also Pouring In

Under President Donald Trump's renewed push for domestic pharmaceutical production, several major drugmakers have also announced substantial US investments. Eli Lilly leads with a £20.33 billion ($27 billion) commitment to more than double its domestic manufacturing capacity. Novartis follows with a £17.31 billion ($23 billion) plan to build or expand ten US facilities.

Meanwhile, AbbVie has pledged £7.53 billion ($10 billion) over ten years to add four new manufacturing plants, and Roche announced a £37.64 billion ($50 billion) investment over five years, aiming to create over 12,000 jobs.

On the other hand, Bristol Myers Squibb plans to invest £30.11 billion ($40 billion) in US operations, while Johnson & Johnson tops the list with a £41.40 billion ($55 billion) commitment over four years. These investments align with Trump's executive order to lower drug prices and reduce reliance on foreign manufacturing.

A Surge in Domestic Pledges

Aside from the pledges above, there was also the £376.39 billion ($500 billion) Stargate AI infrastructure initiative by OpenAI, SoftBank, and Oracle. Additionally, Saudi Arabia has pledged £451.67 billion ($600 billion) in investments to the US, encompassing energy, defence, and technology sectors.

These investments are pivotal for revitalising American industry, reducing reliance on foreign supply chains, and bolstering economic growth. They aim to create thousands of jobs, enhance national security, and position the US as a leader in innovation and manufacturing excellence.