AI in Manufacturing: Securing American Leadership in Manufacturing and the Next Generation of Technologies

US-China Technology CompetitionHouse Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade · February 12, 2025 · 119th Congress
The Commerce, Manufacturing, and Trade Subcommittee held its first hearing of the 119th Congress to examine how artificial intelligence — distinguishing "industrial AI" from consumer AI — is transforming American manufacturing, supply chains, and workforce needs. Begins at ▶ 0:18:30
Transcript
Highlights

Title

AI's role in revitalizing American manufacturing and supply chains

Purpose

The Commerce, Manufacturing, and Trade Subcommittee held its first hearing of the 119th Congress to examine how artificial intelligence — distinguishing "industrial AI" from consumer AI — is transforming American manufacturing, supply chains, and workforce needs. Four witnesses (Jason Oxman of ITI, Dr. Elisabeth Reynolds of MIT, Jeff Kinder of Autodesk, and Barbara Humpton of Siemens USA) testified on AI applications like predictive maintenance and digital twins, while members clashed over the Trump administration's funding freezes, tariffs, and the CHIPS/IRA programs. Begins at▶ 0:18:30

Who spoke

• Chairman John James (Bilirakis)▶ 0:18:30: Opened the 119th Congress's first subcommittee hearing, framed AI's applications beyond generative AI including autonomous vehicles and supply chain mapping▶ 0:22:04▶ 0:23:35, and later asked Siemens about distinguishing industrial from consumer AI▶ 1:04:34.

• Ranking Member Jan Schakowsky (D-IL)▶ 0:26:37: Raised concerns about tech accountability, children's privacy, and the Consumer Financial Protection Bureau's $20 billion consumer return being at risk▶ 0:31:10; later questioned Dr. Reynolds on getting more women into manufacturing (currently ~30% of the workforce)▶ 1:11:06 and on job-loss fears from AI▶ 1:13:37.

• Chairman Brett Guthrie (R-KY), Full Committee Chair▶ 0:32:11: Described his family's history in Kentucky's foundry industry and the disruption of plant closures▶ 0:32:41, arguing AI can make American manufacturing more productive and competitive with China▶ 0:33:41.

• Vice Chair Russ Fulcher (R-ID)▶ 0:34:42: Cited China outproducing the US in nine of the top 11 manufacturing industries▶ 0:35:42 and stressed AI's role in predictive maintenance and worker safety▶ 0:36:44.

• Ranking Member Frank Pallone (D-NJ)▶ 0:37:44: Criticized Elon Musk's access to HHS, CMS, and Treasury data as a "privacy disaster"▶ 0:38:14; cited the $52 billion CHIPS Act and $369 billion IRA investments as being threatened by Trump administration funding freezes▶ 0:40:16.

• Jason Oxman, ITI President and CEO▶ 0:42:47: Outlined five recommendations including R&D tax credit restoration, workforce development, and revisiting the AI diffusion rule▶ 0:46:20; cited Ericsson's Texas smart factory achieving 120% output improvement per employee and 65% reduction in manual material handling▶ 1:09:05.

• Dr. Elisabeth Reynolds, MIT▶ 0:48:23: Cited $450 billion in private semiconductor investment across 40+ facilities and $80 billion in clean energy investment since 2021▶ 0:49:23; warned of a potential shortage of nearly 2 million manufacturing workers by 2033▶ 0:51:24; later warned Trump administration funding freezes put roughly $50 billion in annual exports at risk if paused (citing Johns Hopkins estimates)▶ 1:26:44.

• Jeff Kinder, Autodesk EVP▶ 0:53:56: Described AI reducing a NASCAR brake pedal's weight by 32% while making it 50% stiffer▶ 0:56:28; said engineers spend up to 40% of their time on manual 2D documentation that Autodesk AI now automates▶ 0:57:29.

• Barbara Humpton, Siemens USA President and CEO▶ 0:59:00: Said Siemens has invested $650 million in US manufacturing plants and $10 billion in US software since 2007▶ 1:00:02; described an AI predictive-maintenance model detecting machine failures up to six months in advance▶ 1:01:02; cited a new Fort Worth, TX facility creating 480 jobs plus 320 more▶ 1:03:34.

• Rep. Robert Garcia (Mr. Cárdenas/referenced as "Mr. oal") — not clearly identified by name; described as a California member questioning AI regulation▶ 1:38:50.

• Rep. Jay Obernolte (R-CA)▶ 1:38:50: Asked Oxman about Congressional regulatory approaches and referenced his AI task force report, urging focus on energy and permitting for data centers▶ 1:42:21.

• Rep. Yvette Clarke (D-NY)▶ 1:44:52: Highlighted the CHIPS Act's creation of 115,000 jobs nationally and 34,000 in New York▶ 1:45:53; asked Dr. Reynolds about steps to support industry stability▶ 1:46:54.

• Rep. John James (R-MI)▶ 1:49:56: Warned that without US AI leadership, "the Chinese Communist Party will have all the brain power"▶ 1:50:56; announced launch of a bipartisan Reindustrialize Caucus▶ 1:51:26; asked about Siemens' Navy shipyard digital twin▶ 1:54:00.

• Rep. Debbie Dingell (D-MI)▶ 1:56:32: Criticized removal of supply chain provisions from the year-end continuing resolution after Musk's opposition▶ 1:57:32; stressed labor must have "a seat at the table" in advanced manufacturing▶ 1:59:34.

• Rep. Russell Fry (R-SC)▶ 2:02:37: Discussed GE Healthcare's AI-enhanced MRI manufacturing in Florence, SC▶ 2:03:07; asked about regulatory fragmentation across states▶ 2:04:38.

• Rep. Marc Veasey (D-TX)▶ 2:08:41: Highlighted Dallas-Fort Worth's manufacturing growth▶ 2:08:41; raised concerns about Trump's AI executive order "removing barriers" undermining protections▶ 2:09:42; asked about cybersecurity risks▶ 2:10:12.

• Rep. Laurel Lee (R-FL)▶ 2:13:44: Asked Humpton for examples of AI assisting rather than replacing workers▶ 2:14:14; discussed University of Florida industrialized construction partnership with Kinder▶ 2:16:46.

• Rep. Jennifer Kiggans/referenced as "Miss Tryan" — questioned supply chain mapping▶ 2:19:17.

• Rep. Robin Kelly (D-IL)▶ 2:19:17: Referenced prior work with Sen. Lisa Blunt Rochester on supply chain legislation covering over 160 stakeholders▶ 2:19:48; asked Reynolds about federal supply-chain vulnerability mapping post-COVID▶ 2:20:18.

• Rep. Andy Kim (D-NJ), "Mr. King"▶ 2:24:52: Asked about the Manufacturing Extension Partnership and policy tools for small/medium manufacturers▶ 2:25:23; asked Oxman about the LIFT AI Act and the Stargate project's $500 billion investment target▶ 2:28:57.

• Ranking Member Frank Pallone (second round)▶ 2:29:58: Pressed Reynolds on tariff impacts, noting Mexico supplies 42% and Canada 13% of US auto industry intermediate goods▶ 2:34:32.

• Rep. Brittany Pettersen/referenced as "Evans"▶ 2:35:32: Asked about AI protecting critical infrastructure like cranes from foreign adversaries▶ 2:36:03 and grid/microgrid management with Humpton▶ 2:40:07.

• Rep. Lori Trahan (D-MA)▶ 2:41:38: Discussed Massachusetts public-private partnerships (UMass Lowell)▶ 2:43:10; warned that federal funding freezes threaten university research budgets planned years in advance▶ 2:44:40.

• Rep. Craig Goldman (R-TX)▶ 2:47:42: Asked Oxman about Lockheed Martin's AI use in Fort Worth and Humpton about data center manufacturing▶ 2:48:12; asked about autonomous ("lights out") manufacturing facilities▶ 2:51:13.

• Rep. Kim Schrier (D-WA)▶ 2:52:44: Cited Siemens' Bothell, WA ultrasound AI technology for fatty liver disease diagnosis▶ 2:54:14; questioned Humpton on steel/aluminum tariff impacts on Siemens' German supply chain▶ 2:54:45.

• Rep. Kat Cammack (R-FL)▶ 2:56:16: Opened the floor for witnesses to add unaddressed points; Oxman raised the expired R&D tax deduction from the 2017 Tax Cuts and Jobs Act as critical▶ 3:00:49.

• Rep. Victoria Spartz/referenced as "Miss Hoan"▶ 3:02:20: Noted manufacturing is 28% of Indiana's GDP; asked Kinder about small/medium manufacturer challenges▶ 3:03:51.

• Vice Chairman John Joyce (R-PA)▶ 3:07:24: Discussed Pennsylvania nuclear energy deals (Talen/AWS at Susquehanna, Constellation/Microsoft at Three Mile Island) powering AI data centers▶ 3:09:25; asked about competing against countries with subsidized industry and IP theft▶ 3:12:27.

Key moments

• Humpton distinguished industrial AI from consumer AI, explaining manufacturers use controlled sensor data rather than broad internet data sets, calling trust "the foundation of our future work"▶ 1:05:34▶ 1:06:34.

• Oxman cited National Association of Manufacturers data: 72% of manufacturers deploying AI reported reduced costs, 51% improved operational visibility, 41% improved process optimization▶ 1:07:35.

• Humpton detailed Siemens' new Fort Worth, TX facility, built using a digital twin, creating 480 new jobs with 320 more coming, staffed partly by former high school teachers with no manufacturing background▶ 1:03:34▶ 1:04:04.

• Reynolds warned that halted IRA/clean energy funding could cost the US roughly $50 billion in annual exports as China fills the gap, citing over 400 announced clean energy projects not yet broken ground▶ 1:25:44▶ 1:26:44.

• Pallone and Reynolds detailed tariff risks to the auto supply chain, noting Mexico supplies about 42% and Canada about 13% of US auto intermediate goods▶ 2:34:32.

• Humpton described Siemens' Navy shipyard digital twin revealing that presumed repair bottlenecks were not the actual problem, potentially saving billions of dollars in misdirected spending▶ 1:54:31.

• Kinder said AI-generated design reduced a NASCAR brake pedal's weight by 32% while making it 50% stiffer without sacrificing safety▶ 0:56:28.

• Dingell said a bipartisan supply chain provision negotiated for the year-end continuing resolution was removed after Elon Musk tweeted opposition▶ 1:57:32.

• Oxman disclosed that ITI member companies (OpenAI, Oracle, SoftBank) announced the Stargate project on the second day of the Trump administration, targeting $500 billion in US AI infrastructure investment and 40,000 jobs from the first campus alone▶ 2:28:27▶ 2:29:27.

• Reynolds noted manufacturing represents just under 10% of US jobs but carries a large economic multiplier, and that US small/medium manufacturers (250,000 firms) remain far behind larger firms in technology adoption▶ 2:01:05▶ 2:23:21.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade
Chamber / CongressHouse · 119th Congress
DateFebruary 12, 2025
TypeHearing
Witnesses
Jason Oxman — President and CEO, Information Technology Industry Council (ITI)
Jeff Kinder — Executive Vice President, Product Development and Manufacturing Solutions, Autodesk
Elisabeth Reynolds — Professor of Practice, Massachusetts Institute of Technology
Barbara Humpton — President and CEO, Siemens Corporation
Videoyoutube
Transcript350 caption blocks · 28,168 words · 3:14:50 runtime
EventCongress.gov 117884