U.S. Factory Construction Boom

There is a U.S. factory construction boom with spending more than doubling in the last 2 years. Some of this is from the Inflation Reduction Act (IRA), and some is companies looking for a better supply chain. There are investment opportunities in both: U.S. green energy and U.S. supply chains. The decline of free-market globalization would be a major macroeconomic shift.

This FT video speaks generally about the effects of the IRA. The final quote in the video says it best:
“America has been the exemplar and the shaper of the world order ever since the second world war. We thought we were in the era of free-market globalisation. And now we’re not.”

How the Inflation Reduction Act changed the world | FT Film, Dec 6, 2023
The US was for decades the exemplar of free market globalisation… Inflation Reduction Act continues the push for re-industrialisation by using tax credits, loans and grants in a bid to create a domestic clean energy supply chain. The FT looks at three companies using IRA incentives to invest in the US and examines whether the legislation signals the end of globalisation

The Eyepopping Factory Construction Boom in the US, Dec 2, 2023
The supply-chain catastrophe in 2020-2021, the edgy US-China relationship, and the scary dependence on China triggered a big corporate rethink.

Total Construction Spending: Manufacturing in the United States (TLMFGCONS)
annual rate: $207B in 2023, about $80B from 2015 to 2021