Discussion Paper
From Plans to Starts: Examining Recent Trends in Manufacturing Plant Construction
Abstract: Manufacturing structures investment is the largest component by value of U.S. nonresidential structure investment and has been growing quickly in the post-pandemic period. Figure 1 documents the significant extent to which the construction of manufacturing plants has contributed to growth in overall nonresidential construction. The surge in investment in manufacturing construction has occurred despite the higher interest rate environment, driven by government incentives associated with the Inflation Reduction Act (IRA) and the CHIPS and Science Act (CHIPS), and market forces such as increased demand for semiconductors and batteries and the re-shoring of supply chains.
https://doi.org/10.17016/2380-7172.3667
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Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: FEDS Notes
Publication Date: 2025-01-14
Number: 2025-01-14