BD plans to invest $19 billion in the United States over several years under an agreement with the federal government to expand domestic manufacturing of medical consumables. The total includes capital, operational and supply chain spending, with $3 billion allocated to manufacturing expansion.
The company intends to increase end-to-end U.S. production by approximately 5 billion medical consumables annually. That expansion would raise the domestically supplied share of its essential medical consumables to roughly 80%, according to BD.
The agreement also calls for BD to manufacture all of its needles used in the United States domestically, using American-made steel. Manufacturing investments will focus on strategic production sites across the country.
In return, the agreement provides relief from future tariffs imposed under Section 232 on covered BD products and inputs. That relief is subject to the final scope and implementation of any future tariff actions, as well as BD meeting agreed milestones.
BD said it is not quantifying the agreement’s financial impact because final tariff rates, product coverage and effective dates have not been determined. It expects to provide additional information once Section 232 tariffs are finalized.
The company’s existing U.S. manufacturing network includes facilities in Columbus and Broken Bow, Nebraska; Canaan, Connecticut; Añasco, Puerto Rico; Sandy, Utah; El Paso, Texas; Covington, Georgia; and Sumter, South Carolina.
Chairman, Chief Executive and President Tom Polen said the partnership is intended to expand manufacturing capacity and improve reliable access to medical products. BD said its essential medical consumables are used in approximately 90% of U.S. hospital visits.
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