Flex CEO sees AI and healthcare as US manufacturing bright spots
The CEO of global electronics manufacturer Flex, Revathi Advaithi, sees the most optimism for US manufacturing in sectors tied to AI, data centres, and healthcare, while consumer electronics and automotive continue to face headwinds.
In an interview with Bloomberg Open Interest, Advaithi identified AI infrastructure and medical devices and equipment as key areas of growth, citing continued US infrastructure investment and emerging healthcare needs.
Flex, which operates in sectors such as automotive, cloud, communication, data centres, healthcare, and industrial, has also seen substantial shifts in its supply chain. According to Revathi Advaithi, the company previously sourced around 30% of its materials from China and other parts of Asia, but now procures 45% from North America. She also expects that another 30% of the company’s supply chain will shift to North America in the next few years.
While high-volume consumer electronics like smartphones and laptops are no longer a major part of Flex's portfolio, Advaithi believes that advanced, automated manufacturing can continue to expand in the US , though some limitations remain. She pointed to magnetics, batteries, capacitors and other components as difficult to produce domestically due to raw material and efficiency challenges.
The labour implications of reshoring are also mixed. Flex recently announced a new 500,000 square foot facility in Dallas focused on AI-related power infrastructure, which is expected to create 500 jobs. “It does create new manufacturing jobs,” Advaithi said, though she acknowledged the roles may differ from traditional factory work.
On rare earth elements, critical to sectors such as automotive and clean tech, Advaithi was blunt: “There’s a long ways to go in terms of rare earth,” adding that partnerships with countries outside China, such as those in Latin America, will continue to be important.
