BD has entered into a partnership with the U.S. government that includes plans for the medical technology company to invest $19 billion in the United States over several years, with $3 billion specifically directed toward expanding domestic manufacturing.
The agreement is intended to strengthen U.S. healthcare supply chains and increase domestic production of essential medical consumables used by hospitals and healthcare providers.
BD, formally Becton, Dickinson and Company, said the broader $19 billion commitment will include capital, operational and supply chain investments across its U.S. business.
Of that total, $3 billion is expected to support manufacturing expansion at strategic production sites across the country.
The company plans to expand end-to-end U.S. production by approximately 5 billion essential medical consumables annually.
That additional capacity is expected to increase BD’s share of essential medical consumables supplied domestically to roughly 80%.
BD also intends to manufacture 100% of the needles it supplies for use in the United States domestically, using American-made steel.
The partnership reflects efforts by the federal government and BD to increase domestic production capacity for medical products considered important to healthcare delivery and emergency preparedness.
BD is the nation’s largest manufacturer of essential medical consumables, and the company said its products are used in approximately 90% of U.S. hospital visits.
The agreement also provides BD with relief from future tariffs imposed under Section 232 on covered products and manufacturing inputs.
That tariff treatment remains subject to the final scope and implementation of any future Section 232 actions and BD’s achievement of agreed milestones.
Because tariff rates, covered products and implementation timing have not yet been finalized, BD is not currently estimating the financial impact of that portion of the agreement.
The company expects to provide additional information once the Section 232 tariffs are finalized.
BD already operates a substantial U.S. manufacturing network, with facilities in locations including Columbus and Broken Bow, Nebraska; Canaan, Connecticut; Añasco, Puerto Rico; Sandy, Utah; El Paso, Texas; Covington, Georgia; and Sumter, South Carolina.
The new investment is intended to further expand that domestic footprint while increasing the resilience of the company’s supply chain.
BD has operated for nearly 130 years and has a long history of supplying essential medical products during major healthcare events.
The company cited its development of the first disposable syringe used in efforts against polio and the delivery of more than 2 billion additional devices during the recent pandemic as examples of its role in responding to large-scale public health needs.
BD said the new commitments are expected to help establish one of the world’s most resilient manufacturing bases for essential medical consumables while improving the reliability of supplies available to U.S. healthcare providers.
The partnership also forms part of BD’s broader strategy of investing in innovation, manufacturing and healthcare infrastructure while maintaining its global operations.
BD employs more than 60,000 people worldwide and develops technologies across medical essentials, connected care, biopharma systems and interventional care.
KEY QUOTES:
“This agreement reflects a shared commitment between the U.S. Government and BD to strengthening America’s healthcare infrastructure, expanding U.S. manufacturing capacity and supporting reliable access to essential medical technologies, ultimately building a more resilient healthcare system for the future. The administration recognizes the importance of investing in a stronger, more secure healthcare supply chain, and BD is uniquely positioned to help bring that vision to life through our scale, innovation expertise and longstanding U.S. manufacturing footprint.
For nearly 130 years, BD has partnered with health systems and governments in the U.S. and around the world to meet critical healthcare challenges. We are proud to build on that legacy through significant investment in U.S. manufacturing and innovation, while continuing to advance healthcare and serve patients, providers and communities around the world who depend on us.”
Tom Polen, Chairman, CEO and President of BD
