The agreement with the federal government includes $3 billion earmarked for domestic manufacturing expansion and will raise BD’s share of domestically supplied essential medical consumables to roughly 80%.
BD (Becton, Dickinson and Company) has entered into a partnership with the US government to expand domestic manufacturing and strengthen supply chain resilience for essential medical consumables, the company announced.
Under the agreement, BD intends to invest $19 billion in the US over several years, with $3 billion directed specifically toward expanding manufacturing at strategic production sites across the country. The company says the investment will expand end-to-end US production by approximately 5 billion essential medical consumables annually, raising BD’s share of domestically supplied essential medical consumables to roughly 80%.
BD also committed to manufacturing 100% of its needles used in America domestically, using American-made steel.
The partnership aligns with the Trump administration’s effort to expand domestic manufacturing capacity and ensure a resilient supply chain for products critical to patient care and healthcare preparedness. BD is the nation’s largest manufacturer of essential medical consumables, which the company says are used in approximately 90% of US hospital visits.
“This agreement reflects a shared commitment between the US Government and BD to strengthening America’s healthcare infrastructure, expanding US manufacturing capacity, and supporting reliable access to essential medical technologies, ultimately building a more resilient healthcare system for the future,” says Tom Polen, chairman, CEO and president of BD, in a release. “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 US manufacturing footprint.”
Tariff Relief Tied to Manufacturing Milestones
The agreement provides relief from future tariffs imposed under Section 232 on covered BD products and inputs, subject to the final scope and implementation of any future Section 232 actions and BD’s achievement of agreed milestones. The company says the arrangement provides greater long-term certainty for manufacturing and supply chain planning as it advances investments in US production.
Because the final tariff rates, product scope, and effective timing have not yet been determined, BD is not currently quantifying the financial impact of the agreement. The company expects to provide additional information when the Section 232 tariffs are finalized.
Existing US Manufacturing Footprint
BD’s US 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.
The company, which has operated for nearly 130 years, developed the first disposable syringe that helped advance the fight against polio and delivered more than two billion additional devices during the recent pandemic.
“For nearly 130 years, BD has partnered with health systems and governments in the US and around the world to meet critical healthcare challenges,” says Polen in a release. “We are proud to build on that legacy through significant investment in US manufacturing and innovation, while continuing to advance healthcare and serve patients, providers, and communities around the world who depend on us.”
Photo credit: BD
