Why is manufacturing construction spending so high?
Why is manufacturing construction spending so high?
In May 2023, there was 194 billion in construction spending in the United States.
This is primarily a semiconductor, computer, and electrical related manufacturing investment being driven by the CHIPS Act, which includes batteries. This sector was a relatively small share of manufacturing construction in the past decades but now it is the dominant component.
This government backed demand to build chip fabrication plants, battery plants, and renewable energy facilities is fueling construction spending for the manufacturing industry. You also have companies that are leaving China to de-risk and diversify manufacturing.
It is important to adjust for price increases because construction costs have risen sharply in recent years. Nominal spending should not be misconstrued for increased physical construction.
The boom in the computer / electronic segment has not been offset by reduced spending on other segments which have been largely consistent over time.
Works Cited:
https://home.treasury.gov/news/featured-stories/unpacking-the-boom-in-us-construction-of-manufacturing-facilities
Tags:
construction spending, construction, us construction spending, construction spending rises, construction (industry), u.s. manufacturing rebounds; construction spending falls, us construction, u.s. construction, 2022 construction, construction cosmos, construction insurance new jersey, consumer spending, us manufacturing construction, construction materials, construction technology, new jersey construction insurance, construction materials (trbc), spending rises
-
3:00
The Last Capitalist in Chicago
6 months ago $0.08 earnedCan a company cut your pay?
239 -
LIVE
Akademiks
48 minutes agoKendrick Lamar Responds to Drake with song called 'Euphoria'. GOES ALL THE WAY IN. Who won 1st round
13,752 watching -
LIVE
TheAlecLaceShow
3 hours agoGuests: Riley Gaines | Steve Cortes | Protecting Women | DeSantis Backs Trump | The Alec Lace Show
473 watching -
59:05
The Dan Bongino Show
3 hours agoCampus Nazis Run Wild As Biden Cowers (Ep. 2240) - 04/30/2024
291K743 -
2:28:31
Mostly Sports With Mark Titus and Brandon Walker
19 hours agoMostly Sports With Mark Titus and Brandon Walker Presented by Jägermeister | EP 157 | 4.30.24
11.2K1 -
50:55
The Rubin Report
2 hours agoHost Goes Quiet as His Question for Jerry Seinfeld Blows Up in His Face
35.8K43 -
LIVE
jeffahern
2 hours agoTrending Tuesdays with Jeff Ahern (9am Pacific)
455 watching -
1:21:54
Trumpet Daily
1 hour agoTrumpet Daily | Apr. 30, 2024
5.61K -
The Shannon Joy Show
3 hours ago🔥🔥The Attempted Color Revolution Comes To College Campuses Across America. Don’t Play.🔥🔥
16.6K13 -
1:24:34
Benny Johnson
2 hours ago🚨 Judge Finds Trump In CONTEMPT, Prison?! TRUMP Speaking LIVE Right NOW: 'I Will Run From JAIL'
45.5K71