The manufacturing sector in the construction industry is witnessing a significant boom, with spending reaching new heights since the CHIPS Act was signed into law in August 2022. This growth spurt is not just about numbers; it’s reshaping the landscape of manufacturing, from chip fabrication and electric vehicle batteries to consumer goods and automobiles.
Key Projects Underway
A variety of major manufacturing projects are underway, showcasing the sector’s expansion:
- Whiting-Turner’s initial sitework on the John Palmour Manufacturing Center for Wolfspeed.
- Evans General Contractors’ involvement in a $1 billion BMW EV plant in Spartanburg, South Carolina.
- McCarthy’s $400 million ICL manufacturing facility project in St. Louis, Missouri.
- Tippman Group’s contract on the $205 million SK Food Group’s manufacturing facility in Cleveland, Tennessee.
Staggering Growth Statistics
According to an analysis by the Associated Builders and Contractors, manufacturing construction spending surged by 61.9% over 12 months. By August, the sector’s spending reached a seasonally adjusted annual rate of approximately $198.45 billion. Public funding is being funneled into manufacturing and infrastructure sectors, leading to dramatic growth over the last year.
The CHIPS Act’s Impact
The CHIPS Act, with its $52.7 billion allocation for American semiconductor research, development, manufacturing, and workforce development, has been a catalyst for this expansion. It includes $39 billion in manufacturing incentives, $13.2 billion for research and development and workforce development, and $500 million to strengthen global supply chains. Furthermore, the Act offers a 25% investment tax credit for semiconductor manufacturing, propelling the sector forward.
The pipeline for the remainder of the year remains robust, with several $1 billion-plus manufacturing projects. This ongoing surge in manufacturing construction is not just a transient phase but a transformative era for the construction industry, marked by innovation, investment, and growth.
The manufacturing sector within the construction industry is booming, driven by significant public investment and legislative support. This growth is not only a testament to the sector’s resilience but also an indicator of the evolving landscape of construction and manufacturing in the United States.