Editor’s note: Welcome to So That Happened, our editors’ takes on things going on in the manufacturing world that deserve some extra attention. This will appear regularly in the Member’s Only section of the site.

Boston Scientific Hack Will Affect Profits 

Medical device manufacturer Boston Scientific announced on August 25 that it had been the target of a cyberattack that took networks offline and impacted the processing and shipping of customer orders.  

The company promptly filed a Form 8-K with the SEC, revealing that the disruption of its IT systems was global and “the full scope, nature and impacts, including operational and financial impacts, of the incident are not yet known,” reads the report. 

On August 27, Boston Scientific revealed that the incident affected access to “certain operating systems…including the ability to manufacture products.”  

Well, now there’s no doubt the hack had a material impact.  

On Monday, in a second Form 8-K filing, Boston Scientific confirmed the incident will likely have a material impact, specifically on the company’s projected third quarter and full-year 2026 results. 

No further news on just how much damage the hack did logistically, but we should find out more on October 28 when the company reports third-quarter results. 

— Dennis Scimeca 

Made in the USA: Reshoring on the Rise; Satisfaction Less So 

Tariffs and geopolitical risk are the leading reasons manufacturers are reshoring, according to the 2026 Reshoring Survey Report conducted by the Reshoring Initiative and Regions Recruiting. OEMs say tariffs (65%) and geopolitical risk (60%) are their primary reshoring drivers, and 53% of contract manufacturers (CMs) cited both tariffs and geopolitical risk.  

The survey collected responses from 249 U.S. respondents, including 118 OEMs and 131 CMs. For OEMs, 36% of respondents have reshored or are actively executing additional reshoring, compared to 29% in 2025. In addition, 63% of OEMs plan on U.S. capital investments to support reshoring or domestic expansion in 2026 or 2027.  

For OEMs, the positive impacts or reshoring outpace the negative impacts 2-to-1. The top positive impacts are improved speed to market (70%) and better fulfillment/on-time delivery (65%). 

For CMs, companies that have reshored or are actively reshoring is 31%, down from last year’s 42%. However, the amount of CMs currently quoting reshoring projects has doubled from 16% in 2025 to 32% in 2026. 

Some manufacturers do note some downsides to reshoring. For example, 94% of CMs say price is a primary reason for losing orders to an import, dramatically outpacing the second highest reason of delivery/lead time at 17%. Also, 57% of CMs say the increase in steel and aluminum tariffs has hurt their ability to compete with imports. 

“Manufacturers can adjust to known costs and opportunities. What is much harder to manage is a moving target. The survey shows that reshoring interest and investment are there, but companies need greater predictability to commit capital and develop supply chains for the long term,” says Harry Moser, founder and president of the Reshoring Initiative. 

Satisfaction from reshoring results is down year-over-year for OEMs, from 96% in 2025 to 65% in 2026, suggesting “first-year results are running into challenges: labor costs, vendor gaps, inflation and general implementation and adjustment pains,” writes to the report. 

Workforce challenges have also been a burden on manufacturers who have reshored. 35% of OEMs report negative impacts from increased labor/overhead costs, and 64% of CMs say they have had some difficulty recruiting or retaining labor as a result of deportations. 

For OEMs and CMs combined, 66% of respondents say hiring technicians is very difficult, and 60% say the same for maintenance/repair techs. 

In order to mitigate labor difficulties, OEMs and CMs are investing in resources like trade schools/vocation schools (61%), internal upskilling/reskilling programs (58%) and community college partnerships (51%). 

—Anna Smith

The Housing Hurt is Spreading

We’ve regularly passed along word of how the artificial intelligence-fueled boom in data center construction has flowed through to many manufacturers. (As a very recent example, see Flex’s $4.4 billion deal for EPC Power, a power conversion gear manufacturer that’s expected to grow 40% next year.) Being in the right place at the right time can create a lot of shareholder value.

We’ll spare a thought, though, for some companies on the other end of the vibes spectrum. Manufacturers tied to the housing cycle have it rough these days, which was exemplified by the news last week from Louisiana-Pacific executives that they’re planning to curtail an East Texas plant focused on oriented strand board and lay off about 150 workers. The move planned for October will sideline about 11% of LP’s North American capacity to make OSB but LP CEO Jason Ringblom said it’s not a reflection of the team in Jasper, northeast of Houston.

“While the near-term environment for OSB remains challenging, we are confident in LP’s strategy and our ability to create long-term value,” Ringblom said in a statement. “Taking action now allows us to operate efficiently through the cycle while maintaining the flexibility to respond as market conditions improve.”

Also suffering during this housing slump is Builders FirstSource, which runs about 565 distribution and manufacturing locations in 43 states. A month and change after the Texas-based company reported second-quarter results showing a 9% drop in sales from a year earlier and margins falling to 8.5% from 12%, the stock index builders at S&P Dow Jones on Friday said Builders FirstSource will be elbowed out of the benchmark S&P 500 later this month.

Heading into the Labor Day weekend, Builders FirstSource shares (Ticker: BLDR) had lost more than 30% of their value since Jan. 1 and they’re understandably slipping more on the heels of the S&P news. As of the afternoon of Sept. 8, they’re down 57% year-over-year, a slide that has cut the company’s market capitalization to about $6.8 billion.

CEO Peter Jackson and his team have their work cut out for them to regain some of that value. The first steps on that journey: They’ll report Q3 results around Halloween and follow that up with an investor day in mid-November.

— Geert De Lombaerde

Investors Feel the Pull of Rare-Earth-Free Magnets

High-performance magnets free from rare-earth minerals are having a moment. Count Honda’s Xccelerator Ventures and a Dakota Sioux tribe among the latest round of investors in Niron—a company scaling up its proprietary technology in iron nitride magnets for use in automotive, aerospace, data centers and other applications. 

Niron just broke ground on a 287,000 plant in Sartell, Minnesota, to manufacture the magnets. The 287,000 square-foot plant, when at capacity, expects 175 full-time jobs and magnet production of 1,500 tons. Plans for an additional plant with 10,000 tons of capacity are already in the works, with site selection in progress and a projected groundbreaking in 2028.

The Shakopee Mdewakanton Sioux Community, which has been investing revenue from its gambling operations in Niron’s magnetic technology since 2016, provided a $150 million, 20-year loan to further the plant’s construction. “We prioritize investments that align with our Dakota values—including being a good steward of the earth,” tribe representative Cole Miller told Minnesota Public Radio in August.

Niron Ventures spun out of Department of Energy research in 2013 to “commercialize iron nitride magnet technology,” according to its website. The U.S. Department of Defense plans to extend a $150 million conditional loan to accelerate production. GM and Stellantis ventures are also Niron investors.

The vast majority of mining and production for high-performance magnets involves rare-earth minerals and happens overseas. Demand for the magnets is expected to grow 8.5% per year through 2030.

—Laura Putre

GE Aerospace to Buy Castings Supplier for $11.75B

One means to ensure access to key materials needed to manufacture your product is to buy a supplier of said material. That’s exactly what Cincinnati-based GE Aerospace did Sept. 8 with the announcement that it would purchase Consolidated Precision Products for $11.75 billion.

CPP manufactures highly engineered castings and subassemblies, primarily for the commercial aerospace and defense markets. GE Aerospace is quite familiar with the Cleveland-based manufacturer, having been a customer for more than 15 years.

Of the acquisition, GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, “Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense. By combining GE Aerospace’s technology capabilities and FLIGHT DECK [GE’s lean operating model] with CPP’s manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms.” 

CPP employs about 6,600 people across more than 20 facilities.

GE Aerospace purchased the castings manufacturer from investment firms Warburg Pincus and Berkshire Partners. The transaction will be financed with $7 billion in cash, with the rest in new debt.

The deal is expected to close in the second half of 2027, subject to normal regulatory approvals and typical closing conditions.

 — Jill Jusko