The United States experiences a surge in construction activity.

Manufacturing Boom in the United States

Introduction

According to a new report from the Department of the Treasury, the United States is currently experiencing a manufacturing boom. The report reveals that manufacturing construction spending has doubled since the end of 2021.

Reasons for the Boom

There are several factors contributing to this manufacturing boom. One major reason is that companies are bringing manufacturing back to the U.S., which is largely made possible by taxpayer support.

Hot Sectors in Corporate Site Selection

“Two of the hottest sectors in the corporate site selection and economic development world today are semiconductors and the EV industry,” said John Boyd of the Boyd Corporation.

Government Support

This boom is further fueled by the billions of dollars available through the CHIPS Act, the Inflation Reduction Act, and the infrastructure package. President Biden has emphasized that these investments will promote the growth of future industries within the country.

Competition Among States

States are competing fiercely to attract companies by offering additional subsidies and incentives. Economic development has become a highly competitive arena, often referred to as the “Second War Between the States.”

Impact on Schools and Inequality

A nonprofit organization tracking corporate subsidies reported that 2022 set a record for the number and overall cost of deals. Approximately 80% of this funding is directed towards electric vehicle and semiconductor production. However, experts in government policy highlight that these subsidies primarily apply to property taxes, which are crucial for funding schools. This situation can potentially harm school districts and create issues of inequality, as small businesses that do not qualify for these tax credits or benefits may suffer.

Electric Vehicle Battery Manufacturing

Experts suggest that states with an established automotive industry, such as Alabama to Michigan, are likely to excel in electric vehicle battery manufacturing. This region is sometimes referred to as the “battery belt.”

Infrastructure Funding in Maine

In 2022, Maine secured funding for 390 new projects through the infrastructure package, totaling around $319 million. Notably, about $19 million of this funding was specifically allocated for the development of charging stations for electric vehicles in Maine. To learn more about other projects funded in Maine, click here.

Read More of this Story at www.wmtw.com – 2023-07-02 13:03:00