I saw this news in one of my favorite news sources about funding and building new industrial plants in America due to the Investment Reduction Act. Axios is usually pretty good although it does slip into journalism 101 hype at times. At a time when news only wants to promote divisiveness and negativity, here is reason for us in our market to take heart. This news item is written by Neil Irwin. Click the link to read the entire article.
Why it matters: The 2010s were a period of chronic underinvestment. By contrast, now there are billions flooding into large, expensive megaprojects to manufacture batteries, solar cells, semiconductors and much more.
It is fueled by hundreds of billions of dollars allocated by the Biden administration’s signature legislation — the Inflation Reduction Act, Bipartisan Infrastucture Law, and CHIPS and Science Act — as well as pent-up demand.
It implies sustained upward pressure on demand for workers and raw materials for years to come, and makes a recession less likely by creating a floor of activity under normally volatile industries.
What they’re saying: “We believe the U.S. is in the early stages of a manufacturing supercycle,” wrote Joseph P. Quinlan, head of CIO Market Strategy at Merrill and Bank of America Private Bank, in a report this week.