IPC International Community magazine an association member publication
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IPC COMMUNITY 12 SPRING 2024 nies that make electric lighting fixtures, house- hold appliances, and various other electrical equipment and components, many of which are driving the green revolution. Combined, these manufacturing industries increased construction spending from $38.4 billion in 2022 to roughly $106 billion in 2023. Electronics and electrical manufacturing accounted for 54% of total manufacturing con- struction spending in 2023. These investments are set to catalyze a long-term transformation in manufacturing, as they go beyond merely replacing current capacity. Instead, they are establishing new forms of capacity, laying the groundwork for innovative production meth- ods and capabilities. This shift is not just an expansion; it's a redefinition of manufacturing's future landscape, embracing modern technolo- gies and processes. International interest and investment are significantly supporting this transformative approach to enhancing manufacturing capabil- ities and building new types of capacity. Some of the growth in manufacturing construction is being fueled by foreign direct investment (FDI). In 2022, manufacturing attracted $55.2 billion in new FDI, representing 31% of total new FDI in the United States. In 2022, investment out- lays for greenfield projects—funds allocated for launching new U.S. ventures or enlarging foreign-owned businesses already operating in the U.S.—reached $8.1 billion. Within this, the manufacturing sector accounted for the lion's share of greenfield investment, with $5.3 bil- lion directed toward it. The computer and elec- tronic products category attracted $1.8 billion of that total. Although capital expenditure growth is expected to decelerate this year following the 63% surge last year, purchasing and supply exec- utives anticipate a continued increase in capital expenditures, with projections of an approxi- mately 12% rise in 2024, according to the latest semiannual economic forecast from the Insti- tute for Supply Management. Even with a slow- down in growth rates, the momentum in manu- facturing investment activities is anticipated to persist, demonstrating confidence in long-run manufacturing dynamics. This optimism seem- ingly downplays any immediate risks associated with a decrease in demand. Investment in manufacturing capacity is indicative of a broader trend toward reindustri- alization and technological advancement in the United States. The strategic focus on sectors such as computer and electronic product man- ufacturing reflects a deliberate move toward enhancing the U.S.'s competitive edge in high- tech industries. Moreover, the continued com- mitment to expanding manufacturing capacity, despite potential short-term demand fluctua- tions, signals a strong belief in the fundamental strength and future potential of the American manufacturing landscape. The remarkable surge in electronics manu- facturing investment, coupled with the diverse factors fueling this growth, underscores a piv- otal moment for the U.S. manufacturing sector. This robust influx of capital, both domestic and international, into modern, sustainable, and technologically advanced manufacturing facili- ties, signals a strategic shift toward reimagining the industry's future. With a clear focus on inno- vation, sustainability, and resilience, the sector is poised to not only meet the current demands but also shape future trends and opportuni- ties. This forward-looking investment strat- egy demonstrates a collective commitment to ensuring the U.S. remains a global manufactur- ing leader, ready to navigate the complexities of the 21st century. The continued evolution of the manufacturing landscape will undoubtedly play a critical role in driving economic growth, fostering technologi- cal innovation, and enhancing the nation's com- petitive edge on the global stage. " ...a pivotal moment for the U.S. manufacturing sector. "