This Week in Quality – January 5, 2026

BOK Financial projects American manufacturing resurgence will drive 2026 economic growth through federal policy incentives. Trane tripled data center manufacturing capacity in France. Howmet Aerospace acquired Consolidated Aerospace Manufacturing for $1.8 billion. Aurora, Continental and NVIDIA partnered for 2027 driverless truck production.

Here are the top five stories in manufacturing from the week.

American Manufacturing Resurgence Driven by Reshoring Policy and Federal Incentives

BOK Financial projects American manufacturing resurgence will drive 2026 U.S. economic growth through federal policies including 21% corporate tax rates, immediate expensing of facility construction costs and strategic tariffs encouraging domestic production of semiconductors, pharmaceuticals and defense technologies. Chief Investment Strategist Steve Wyett identified reshoring momentum stemming from pandemic supply-chain lessons and national security considerations.

The resurgence targets semiconductors, pharmaceuticals, aerospace components and defense technologies where intellectual property protection and supply-chain security are paramount. Construction of new facilities will generate employment for skilled trades and advanced manufacturing jobs, though labor shortages from retiring Baby Boomers and immigration policies present constraints affecting data center construction and power availability.

Trane Triples Data Center Manufacturing Capacity at France Facility

Trane Technologies welcomed more than 70 stakeholders from the European data center sector to its Charmes, France facility from December 9-11, inaugurating a new dedicated assembly line for data center solutions that nearly triples manufacturing capacity. The expansion supports growing demand for thermal management technology across Europe, Middle East, Africa, Australia and New Zealand.

The event showcased expanded portfolio for edge, colocation and hyperscale data centers, including Computer Room Air Handlers, fan wall units, high-efficiency chillers, precision cooling systems and heat recovery technologies designed to reduce power usage effectiveness and advance decarbonization efforts.

Howmet Aerospace Acquires Consolidated Aerospace Manufacturing for $1.8 Billion

Howmet Aerospace Inc. announced the acquisition of aircraft fastener maker Consolidated Aerospace Manufacturing from Stanley Black & Decker in an all-cash transaction valued at $1.8 billion, with Jefferies estimating the deal could add approximately 2% to 2026 earnings per share. Management expects Consolidated Aerospace Manufacturing to generate fiscal year 2026 revenue between $485 million and $495 million.

The acquisition reflects approximately 20% year-over-year revenue growth from Stanley Black & Decker’s fiscal year 2025 outlook of $405 million to $415 million. Howmet simultaneously raised its 2025 revenue forecast to $8.18 billion to $8.2 billion and adjusted earnings expectations to $3.66 to $3.68 per share.

Aurora, Continental, NVIDIA Partner for 2027 Driverless Truck Production

Aurora Innovation, Continental and NVIDIA announced a long-term strategic partnership to deploy driverless trucks at scale powered by the next-generation NVIDIA DRIVE Thor system-on-a-chip, with Continental planning to mass-manufacture the Aurora Driver beginning in 2027. The Aurora Driver is equipped with sensors including lidar, radar and cameras enabling safe highway-speed operation.

Aurora plans to launch its driverless trucking service in Texas in April 2025, with Continental developing reliable, serviceable, cost-efficient Aurora Driver hardware specifically for high-volume manufacturing. Production samples of DRIVE Thor are expected in the first half of 2025, with Continental testing prototypes of the future hardware kit in coming months.

Generac Expands Commercial Manufacturing Footprint with New Wisconsin Facility

Generac Holdings Inc. announced the acquisition of a new facility in Sussex, Wisconsin to expand manufacturing capacity for Commercial & Industrial products, with global demand for data center capacity projected to more than triple by 2030 according to McKinsey. The company sees potential to double Commercial & Industrial product sales in the next three to five years.

The Sussex facility will add over 100 new manufacturing positions when it opens in the fourth quarter of 2026. Combined with Generac’s state-of-the-art plant in Beaver Dam, Wisconsin and expanded operations in Oshkosh, Wisconsin, the facility supports aggressive investment in serving the rapidly growing data center market and existing backup power verticals.