Fact of the Week: Spending on Manufacturing Construction Increased Nearly 100 Percent Since the End of 2021

Source: “Unpacking the Boom in U.S. Construction of Manufacturing Facilities,” United States Department of Treasury, June 27, 2023.

Commentary: A recent White House report noted that inflation-adjusted spending on manufacturing construction increased nearly 100 percent since the end of 2021 after decades of stagnant investment growth. However, the United States Department of Treasury found that construction for computer, electronics, and electrical manufacturing is the driving force behind the growth in spending. The Treasury article found that since 2022, real spending for construction for computer, electronics, and electrical manufacturing has quadrupled. More specifically, construction for computer and electronic manufacturing is now the dominant component of manufacturing construction. This sudden growth in spending for these types of construction is partially due to the passing of the CHIPS Act in August 2022, which spurred the construction of semiconductor factories. Since its passing, over 50 new semiconductor projects have been announced.