The construction industry for manufacturing infrastructure is on the rise as the U.S. reached record numbers on spending on plants.
- U.S. production capacity has struggled to grow since China entered the World Trade Organization in 2001.
- However, the nation may finally be experiencing some growth in the sector as more companies invest in manufacturing infrastructure, evidenced by increased construction spending.
- Production capacity in the U.S. reached its highest level since 2015, just last year, The Hustle reports.
- Demand for semiconductor chip manufacturing facilities and electric vehicle (EV) battery and parts manufacturing has driven the increase.
Why it’s news
After chip shortages brought on by supply-chain disruptions during the pandemic, the U.S. began reevaluating its dependencies on valuable products such as semiconductor chips. Through the CHIPS and Science Act and similar legislation, the federal government has emphasized U.S.-based supply chains and strengthened the country’s production capacity.
Other legislation, like the Inflation Reduction Act, has strongly emphasized developing EV batteries in the U.S. Multiple manufacturers have taken advantage of the incentives offered through these pieces of legislation and started building massive facilities.
Semiconductor and EV battery manufacturing accounted for over half of all U.S. manufacturing construction in 20022. More construction is on the way as these same companies plan out new facilities and ways to grow.