Industrial policy meets private capital
Since 2021, U.S. manufacturing construction has tripled, reaching $220 billion annually—the highest in history. Semiconductor, EV, and clean-energy plants dominate new projects, concentrated in the Midwest and southern states.
Table 1. U.S. Manufacturing Construction Outlays ($ B)
| Year | Total | % Change YoY | Manufacturing Share of Total Construction (%) |
|---|---|---|---|
| 2021 | 73 | — | 6.0 |
| 2023 | 188 | +158 | 12.4 |
| 2025 (f) | 220 | +17 | 13.6 |
Source: Census Bureau; BEA.
Table 2. Regional Distribution of New Plants (2023–25 Pipeline)
| Region | Share of Projects (%) | Avg. Project Value ($ B) |
|---|---|---|
| Midwest | 33 | 1.8 |
| South | 42 | 2.1 |
| West | 17 | 1.6 |
| Northeast | 8 | 1.2 |
Source: Brookings Metro Industrial Tracker.
Economic and labour impacts
Reshoring supports roughly 450,000 new jobs through 2026, but skilled-labour shortages risk delays. Supply-chain localization boosts resilience yet lifts input costs by 5–8 percent relative to Asian sourcing.
Action point
Manufacturers should form workforce alliances with technical colleges and automate bottleneck tasks early. Site-selection models must balance logistics savings against higher domestic labour and energy costs.