Growth Potential: Electronics Manufacturing Driving Massive Surge in Manufacturing Investment
April 22, 2024 | Shawn DuBravac, IPCEstimated reading time: 1 minute
In the early months of the pandemic, investment in manufacturing infrastructure, such as plants and production facilities, declined sharply. Real investment dropped over 11%, before finally recovering to pre-pandemic levels in the first half of 2022. Over the past two years, however, several factors have combined to drive manufacturing investment to record levels.
In 2023, manufacturing investment in plants and other production facilities in the United States rose nearly 63%, the biggest yearly gain since 1951. This surge in investment underscores an unparalleled confidence in the growth potential of the U.S. manufacturing sector that looks beyond any short-term variability.
Several factors are contributing to the increase in manufacturing construction spending, including:
- Government incentives: Three major legislative acts enacted in 2021 and 2022—the Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act, and the Inflation Reduction Act (IRA)—are propelling the increase in manufacturing construction spending by allocating hundreds of billions of dollars of incentives to the sector.
- Technological advancements: The integration of new technologies into manufacturing processes, such as automation, robotics, and artificial intelligence, necessitates the construction of modern facilities equipped to handle these advancements.
- Supply chain resilience: The pandemic highlighted vulnerabilities in global supply chains, prompting companies to invest in domestic manufacturing facilities to ensure more resilient and reliable supply chains.
- Sustainability and green manufacturing: There's a growing emphasis on sustainable and environmentally friendly manufacturing practices, driving the construction of green facilities that adhere to these principles.
- Green transition infrastructure needs: The push toward a green transition necessitates the manufacturing of essential components such as batteries and chargers, driving the construction of facilities dedicated to producing these key elements needed to fuel sustainable energy solutions.
- Shift toward customization: The demand for customized products is leading to the need for more versatile manufacturing facilities that can quickly adapt to changing production requirements.
- Pandemic-related investment catch-up: The postponement of investments during the pandemic is now being addressed, with companies undertaking previously delayed projects to upgrade and expand their manufacturing capabilities.
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
EMS and ODM Market Size to Surpass USD 1589.62 Billion by 2033, Rising at 7.40% CAGR
11/04/2025 | Globe NewswireAccording to the SNS Insider, “The EMS and ODM market size was valued at USD 900.09 Billion in 2025E and is projected to reach USD 1,589.62 Billion by 2033, growing at a CAGR of 7.40% during 2026–2033.”
Electronics Manufacturing Powers U.S. Growth, Supporting 5.2 Million Jobs and $1.8 Trillion in Output
11/03/2025 | Global Electronics AssociationNew report from Global Electronics Association shows electronics industry contributes $853 billion to GDP and delivers average annual wages exceeding $156,000, reinforcing its role as a pillar of U.S. economic resilience.
Nolan’s Notes: Is Mexico the Pulse of Electronics in the Americas?
11/04/2025 | Nolan Johnson -- Column: Nolan's NotesLast year, I attended SMTA Guadalajara, where I saw the results of the Mexican investment in electronics manufacturing. The U.S. was still operating under the Biden administration, and while Mexican EMS companies had expanded capacity to support EV manufacturing, the demand dropped significantly. In my conversations at the show, the sentiment was one of patience. They knew the EV business would likely come back. However, they didn’t expect an overhaul of U.S. trade agreements and tariffs that would shift a more diversified portfolio in Mexico’s direction.
TTM Technologies Receives Two Awards from the Global Electronics Association at the 2025 IPC CEMAC Conference
11/03/2025 | Globe NewswireTTM Technologies, Inc. announced that two of its team members received prestigious Asia Steering Committee Outstanding Service Awards from the Global Electronics Association (formerly named IPC connecting global electronics industry) at the 2025 IPC CEMAC Electronics Manufacturing Annual Conference in Shanghai.
SMT007 Magazine November 2025: Inside Mexico’s Rise as an Electronics Manufacturing Leader
11/04/2025 | I-Connect007 Editorial TeamMexico isn’t just part of the electronics manufacturing conversation—it’s leading it. From growing investments to cross-border collaborations, Mexico is fast becoming the center of electronics in North America. In this issue, we uncover why Mexico is earning global recognition. From top-ranked manufacturing capabilities to expanding partnerships that reach far beyond the U.S.