Build to build

Production bottlenecks, labor shortages and security considerations have driven renewed interest in automation, shortening supply chains & reshoring manufacturing closer to home.  In the US, reshoring announcements are up 4-fold versus pre-Covid levels in 2019. While the desire to reinvigorate domestic manufacturing is not new, follow through with significant investment spending has been less robust until recently. In April, construction spending within the US manufacturing sector more than doubled to a record USD 190 billion according to the US Census Bureau.  With increased government incentives to produce key components like semiconductors, electric vehicles, related key components and other green focused technologies, the recent manufacturing construction trend is likely to continue.

Source: US Census Bureau, June 2023.