Nolan’s Notes: Everyone Has Their Eye on India
Standard of Excellence: The Human Touch in an Automated World
The Government Circuit: Navigating New Trade Headwinds and New Partnerships
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.
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
Kitron Reports Initiation of Share Buyback Program
09/08/2025 | KitronKitron ASA has decided to initiate a share buyback program of up to 16,000 of its own shares for a total maximum amount of NOK 900,000. The buyback program may be carried out in the period from this announcement and until 12 September 2025.
SisTech Manufacturing Elevates PCB Assembly Services with Cutting-Edge Innovations
09/08/2025 | Globe NewswireSisTech Manufacturing, a leader in precision electronic manufacturing services, has announced it will enhance its capabilities in printed circuit board assembly.
Hitachi Unveils $1B U.S. Investment in Critical Grid Infrastructure
09/05/2025 | Hitachi EnergyHitachi Energy, a wholly owned subsidiary of Hitachi, Ltd., and global leader in electrification, today announced a historic investment of more than $1 billion USD to expand the production of critical electrical grid infrastructure in the United States.
NOTE Appoints Bahare Mackinovski Chief Sales and Marketing Officer
09/04/2025 | NOTEAs part of NOTE’s strategic focus on growth and customer value, the company is now strengthening its executive management team by appointing Bahare Mackinovski as Chief Sales and Marketing Officer.
Pentalogix Launches ViewMate Essentials to Ensure PCB Designs are Manufacturing-Ready
09/03/2025 | PentaLogixPentalogix, Inc., a leader in PCB design solutions, announced the launch of ViewMate Essentials, an advanced CAM package designed to enhance the workflow of PCB designers. Available starting September 2nd, 2025, ViewMate Essentials enables designers to view, edit, and manage PCB manufacturing files with exceptional precision, facilitating seamless collaboration with PCB fabricators and assemblers.