US Factory Boom Is Back: CNN Business

Since taking office in 2021, US President Joe Biden has signed major spending packages into law, directing billions of dollars toward manufacturing, which includes an infrastructure bill and the CHIPS and Science Act.

Analysts from Goldman Sachs recently estimated that the US manufacturing industry could generate 250,000 jobs over the course of two years. I Photo: Maurizio Pesce Flickr

This has allowed manufacturers to begin planning new factories to scale up production, as per government data. Bryan Mena reported this development for CNN Business.

The infusion of federal funds, coupled with the ongoing shift towards renewable energy, has ignited what some economists are calling a "manufacturing boom" in the US. Notably, Nobel Prize-winning economist Paul Krugman has pointed to this trend.

Analysts from Goldman Sachs recently estimated that the US manufacturing industry could generate 250,000 jobs over the course of two years.

In terms of blue-collar employment growth, President Biden has reasons to celebrate. In July, construction spending by manufacturers surged by approximately 71% compared to the previous year, according to data from the Commerce Department.

Moreover, in August, manufacturers employed 106,000 more individuals than they did a year earlier, despite business surveys indicating a softening in consumer demand.

This stands in contrast to the Great Recession, which lasted from December 2007 to June 2009 and resulted in the loss of over 2 million manufacturing jobs, equivalent to 15% of the industry's workforce, as reported in a 2011 paper by the Labor Department.

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