The Pentagon’s New Plan For U.S. Drone Makers

Good morning, MFG’s!

The Pentagon is pushing to accelerate the production of military drones with a major new directive. The plan is designed to bolster domestic manufacturing and get unmanned technology into the field much faster by cutting through traditional red tape.

By reclassifying small drones as rapidly replaceable munitions and offering direct financial backing, the government is creating a significant new market for U.S. suppliers. But will this top-down approach be enough to jump-start a truly competitive domestic industry that can outpace global rivals?

In today’s MFG recap:

• The Pentagon’s new push for US drone makers

• Nissan and Honda explore a US production alliance

• JLR and Pirelli partner on sustainable tires

• Iconic clockmaker Howard Miller ends manufacturing

Pentagon's Drone Manufacturing Push

The Pentagon has issued a major new directive to fast-track the production and deployment of military drones, aiming to bolster U.S. manufacturing and unmanned warfare capabilities.

Unpacked:

• The directive reclassifies small drones as “cheap, rapidly replaceable” munitions, encouraging commanders to bypass legacy procurement policies for faster adoption.

• To support this, the Pentagon will establish three national test sites within 90 days and create a digital “Blue List” of approved vendors and components.

• The plan aims to jump-start domestic drone manufacturing with direct loans, capital incentives, and advance purchase commitments for U.S. suppliers.

Bottom line: This directive cuts through bureaucratic red tape, creating significant new opportunities for U.S.-based drone makers and component suppliers. It signals a strategic pivot to accelerate unmanned warfare capabilities and achieve domain dominance by 2027.

Rivals Exploring US Partnership

Japanese auto rivals Nissan and Honda are reportedly in talks for a US-based manufacturing partnership. The potential deal is a strategic response to looming tariffs on Japanese-made vehicles.

Unpacked:

• The arrangement would allow Honda to enter the popular full-size pickup segment, which makes up about 20% of new car sales in the US, without investing in new facilities.

• For Nissan, the deal helps boost output at its Canton, Mississippi, plant, which is currently operating at just 57% capacity, improving efficiency and its bottom line.

• This move aligns with Nissan's broader financial strategy, as the company also recently successfully priced bonds to fund its “Re:Nissan” recovery plan and invest in future tech.

Bottom line: This potential alliance shows automakers are using creative partnerships to adapt to trade pressures and optimize existing infrastructure. It may signal a growing trend of "co-opetition" where rivals collaborate to navigate shared challenges like high costs and electrification.

The Road to Greener Tires

Jaguar Land Rover is partnering with Pirelli to equip its Range Rover with new P Zero tires made from over 70% renewable and recycled materials. This move pioneers a significant shift toward sustainable material sourcing and production in the luxury automotive sector.

Unpacked:

• Instead of conventional petroleum and mined resources, the new tires use silica from rice husks, recycled carbon black from old tires, and plant-based resins.

• The natural rubber used is now Forest Stewardship Council (FSC)-certified, ensuring it meets strict standards for responsible sourcing from harvesting to the factory.

• JLR and Pirelli are overhauling industrial processes to produce these eco-friendly tires at scale without compromising the high performance expected for a luxury vehicle.

Bottom line:

This partnership demonstrates how automakers can collaborate with suppliers to integrate sustainable materials directly into production, moving circularity from a concept to a reality. For the industry, this sets a new benchmark for reducing environmental impact throughout a product's entire lifecycle, from manufacturing emissions to microplastics released during use.

A Clock Stops Ticking

After nearly a century, iconic clock and furniture maker Howard Miller Co. is ceasing its manufacturing operations by the end of the year, citing a mix of economic headwinds.

Unpacked:

• The company points to tariffs, furniture industry uncertainty, and other economic factors as the primary drivers for the shutdown.

• The decision impacts three factory locations across Michigan and North Carolina, though workers will receive severance packages and job placement support.

• A manufacturing legacy spanning nearly a century, the company will continue retail operations into 2026 to sell existing inventory while its foundation remains active.

Bottom line: The closure of a legacy brand like Howard Miller underscores the immense pressure traditional manufacturers face from global economic shifts. This move highlights a difficult path where companies must pivot away from production to focus on brand management and retail to survive.

The Shortlist

Rockwell announced that Swiss pharmaceutical company Sintetica adopted its FactoryTalk PharmaSuite manufacturing execution system (MES) to enhance quality and shorten time-to-market for new therapies.

Kulicke partnered with Lavorro Inc. to deliver smart manufacturing solutions for the semiconductor industry, using an AI platform with virtual assistants to diagnose issues, optimize recipes, and automate maintenance workflows.

NEO-SMART aims to transform Northeast Ohio's manufacturing sector by expanding innovations in AI, energy-efficient processes, and recycling techniques as a semifinalist for the National Science Foundation's $160 million innovation fund.