Ignited by the pandemic, interest in the “onshoring” of manufacturing, has resulted in the current construction boom. Suddenly, it seems, top notch, modern facilities cannot be built fast enough. Indeed, analysts report that manufacturing is lifting the industry, despite the ongoing challenges in the residential market.
Forging Forward
As forecast, although hiring remains a challenge, manufacturing projects, including those funded by the CHIPS and Science Act, along with infrastructure and green energy builds, are driving the action for contractors. Construction Dive shares these highlights:
“Nonresidential construction spending increased for the 10th time in the past 11 months,” said Anirban Basu, ABC chief economist. “As has been the case for the past several months, though, the expansion in nonresidential investment is attributable to manufacturing,”….The sector posted a 4.6% increase in March, and without those manufacturing construction projects, the nonresidential category would have posted flat results….
The manufacturing construction boom, which has been spurred by the onshoring movement born during the pandemic, is “really helping construction weather the softening residential and other nonresidential markets,” said Stephen Sandherr, AGC CEO…. Nevertheless, even as overall demand continues to increase, most firms continue to report challenges around hiring enough workers to keep pace with that demand, said Sandherr.
Contractors looking to get in on the action can learn more about some of the current federally funded building initiatives here and about the CHIPS Act in particular here. Note that when it comes to manufacturing, plumbers, electricians and other trade partners, are currently in big demand, given the particular requirements involved in building semi-conductor facilities. With all the state and federal dollars afloat, if you’re a contractor and find yourself suffering from FOMO, it might not all be in your head: you actually could be missing out. Start your growth spurt with The Partnership Account® for Contractors. Once qualified, contractors get:
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Up, Up, and Away?
In addition to the boom of manufacturing builds, airports across the country are expanding and modernizing, with many state and local governments committing big dollars, driven by confidence in regional growth. Since most of our nation’s airports were built well over 40 years ago, attention is needed to both form and function. As work ramps up, thoughtful designs and big budgets are instilling airports with a sense of place and the thrill of taking off. Pragmatics like more runways, enhanced safety and a focus on sustainability are at the forefront too. Bottom line: building at airports across the country is providing contractors with a plethora of new opportunities:
Airport projects of all sizes and geographies are getting a boost from the Infrastructure Investment and Jobs Act, which designates $15 billion over five years for runways, safety and sustainability efforts, terminals, airport-transit connections and roadway projects.
$2.89 billion has been made available for airport projects in fiscal year 2023, and in February, the Federal Aviation Administration awarded nearly $1 billion to 99 airports across the country. Even airport overhauls without federal funding are lifting off this year.
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