Weekly Updates on Supply Chain and Logistics: September 1st to September 4th, 2025

The U.S. Department of Energy has announced a significant investment of $60 million in two new critical mineral programs. One of these initiatives, MAGNITO, will fund the development of next-generation rare earth magnets through AI and high-throughput experimentation. Another will accelerate ore deposit evaluations using advanced drilling and sensing technologies. These efforts align with a recent executive order from President Trump to bolster national and economic security by securing access to essential materials for manufacturing, defence, and energy sectors.

In the realm of manufacturing, Toto, a leading brand in the sanitary fixtures industry, has opened a $224 million advanced manufacturing facility in Morrow, Georgia. The new factory will produce 300,000 high-end one-piece toilets annually, featuring cutting-edge technology. The move aims to shorten lead times, reduce shipping distances, and carbon emissions, supporting sustainability goals.

Meanwhile, Toto's production is set to be bolstered by a domestic supply chain. UPS has announced 2025 holiday shipping surcharges, which are higher than last year and will take effect from September 28 through January 17, 2026. These surcharges target bulky, oversized, and high-volume packages, with demand surcharges ranging from $0.40 to $8.75 per package depending on customer volume and service type. The initiatives aim to strengthen domestic supply chains and reduce reliance on foreign sources, particularly China.

In the consumer goods sector, Colgate-Palmolive has announced a new three-year, $200-$300 million productivity initiative aimed at optimizing its global supply chain. The move comes in response to rising costs from tariffs, inflation, and raw material prices. Colgate's CEO, Noel Wallace, emphasized the need for agility in responding to shifting consumer preferences and economic volatility. The company's CFO, Stanley Sutula, highlighted the strategic importance of leveraging supply chain capabilities for long-term productivity gains.

On the other hand, the avocado industry in Mexico, a significant player in the global export market, has pledged to eliminate deforestation-linked exports by 2026. This move follows revelations of illegal land clearing, water extraction, and violence in avocado-growing regions. Mexico's avocado industry has aligned its initiative with Mexico's broader goal of deforestation-free produce exports by 2030. The pledge includes traceability systems and certification programs to ensure compliance. Orchards deforested between 2018-2024 may still qualify for export if they restore lost ecosystem services, while land cleared from 2025 onward will be permanently disqualified.

The initiatives by Colgate, Toto, and the avocado industry reflect a broader trend of companies focusing on strengthening domestic supply chains, reducing carbon emissions, and ensuring sustainable practices. These efforts underscore the importance of supply chain resiliency, efficiency, and sustainability in today's business landscape.