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Tech manufacturing is causing a boom in non-residential construction

Mitchell Hartman Aug 1, 2023
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Biden speaks during a visit to a General Motors electric vehicle assembly plant in Detroit, Michigan. Mandel Ngan/AFP via Getty Images

Tech manufacturing is causing a boom in non-residential construction

Mitchell Hartman Aug 1, 2023
Heard on:
Biden speaks during a visit to a General Motors electric vehicle assembly plant in Detroit, Michigan. Mandel Ngan/AFP via Getty Images
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We got the latest snapshot on construction spending — for June — this morning. 

Home building is doing okay, but what’s really keeping the sector alive is a surge in non-residential construction. Especially factories. These are being boosted by Biden Administration policies to reshore high-tech supply chains and accelerate the transition to electric vehicles.  

Investment in U.S. manufacturing is being pumped up by billions in new government spending, loans and tax incentives, said Joe Brusuelas at consulting firm RSM.

“Public policy to manufacture semiconductor chips, rebuilding American infrastructure, and environmental incentives are combining to stimulate a true manufacturing construction boom,” he said.

Year-over-year, construction of manufacturing facilities is up more than 75%. The rest of non-residential construction, including offices, schools, hospitals, and transit systems, is up less than 20%.  

The Louisville area is getting new electric-vehicle factories that’ll employ thousands, said Michael Gritton at KentuckianaWorks.

“It’s raising skill levels, and we as a region are hoping that we also get a lot of spin-off effects from suppliers,” he said.

Meaning more building of distribution centers and warehouses, and community college classrooms to train new workers.

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