U.S. Factory Production Soars
Throughout the United States, construction spending by manufacturers more than doubled through 2022, according to the Census Bureau. Billions of dollars in subsidies handed out by the government have spiked the EV (electric vehicle), semiconductor, and solar panel industries.
Not only did production numbers increase, but factories themselves swelled. Compared to $90 billion in June 2022, the annual rate soared to almost $190 billion by April 2023. Roughly 13 percent of non-governmental construction consisted of manufacturing.
According to the World Bank, China accounts for approximately 30 percent of global manufacturing value, almost double the United States. Approximately 800,000 jobs have been added to the United States manufacturing industry to compete with overseas countries such as China. Amid rising costs and political tensions, a few Chinese companies have pushed their manufacturing to India, Thailand, and Vietnam in response to the 2018 trade war with China.
Since 2021, the United States has employed about 13 million workers and added around 800,000 manufacturing jobs. The manufacturing skills gap highlights the market’s struggle to find qualified workers and could result in 2.1 million unfilled jobs by 2030.
In the past year, 96 percent of American companies are evaluating reshoring operations or outright shifting production to the United States. This percentage was a spike from 2021, when a mere 78 percent of businesses were looking to reshore or bring operations home.
The Inflation Reduction Act was instated in August 2022 with the hopes of creating new jobs in manufacturing, construction, and renewable energy fields. It is estimated that up to 1.5 million jobs will be created by 2030.
Another factor of the manufacturing boom is the CHIPS and Science Act, which provided $280 billion in funding to increase semiconductor manufacturing starting in July 2022.
While factory manufacturing increased, office, healthcare, and educational construction plummeted. Residential construction has also waned after a housing market cooldown.
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Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/