US officials target supply chain gaps as foreign manufacturing investment rises

US officials are stepping up efforts to close gaps in the domestic manufacturing supply chain as foreign investment in the sector surges. During a visit to the Hanwha Philly Shipyard in Philadelphia, Treasury Assistant Secretary Chris Pilkerton and Small Business Administrator Kelly Loeffler outlined plans to help smaller firms scale up to meet growing demand.

Pilkerton, who also leads the Committee on Foreign Investment in the US (CFIUS), said the administration is focused on ensuring that components and parts are available as new manufacturing projects come online. He pointed to a new Strategic Vendor Program, currently in a pilot phase, designed to strengthen domestic supply chains and support foreign-invested businesses operating in the US.

The visit highlighted the scale of investment flowing into the country. Hanwha Philly Shipyard, acquired by South Korea's Hanwha Group in December 2024 after a CFIUS review, has pledged $5 billion in investment over the coming years. The company says this could expand its workforce from around 2,000 to 10,000. It has already spent more than $200 million on upgrading capabilities and capacity.

Shipbuilding relies on a vast network of suppliers. The company said each vessel it builds requires over 1,000 suppliers, with roughly two-thirds of those based in the US. That share could grow as the yard accelerates production and adopts AI-based shipbuilding technologies already in use in South Korea.

Pilkerton noted that finding domestic suppliers is not always straightforward. He cited a visit to a quantum refrigeration company in Syracuse, New York, acquired by Finland's Bluefors, where executives said they could not find a US-based supplier for dry compressors. "It's one thing to speak about supply chains at a high level," he said. "You need to find the parts."

The administration is also working to make CFIUS reviews more transparent and faster. Treasury launched a new website in July to help companies understand how the panel evaluates foreign acquisitions, and a Known Investor Program aims to speed up reviews for frequent investors after an initial deep dive.

Loeffler said the Small Business Administration provided about $3 billion in funding for manufacturers in 2025, including $32 million for shipbuilders, to help rebuild capacity after decades of factory closures and job losses.