Five years into the current reindustrialization cycle, U.S. manufacturing investments are increasingly moving from announcements into construction and production. After peaking in 2022, pledged manufacturing investment regained momentum in 2025, supported primarily by large-scale semiconductor and biomanufacturing projects. This sustained capital deployment reinforces manufacturing’s role as a key driver of industrial demand across both established and emerging markets.
During the last few years, the mix of investment has shifted with the growth in biomanufacturing and high-tech manufacturing supporting generational AI infrastructure build-out offsetting a moderation in automotive and EV investment. As activity scales, constraints around power, labor, land and capital are becoming more pronounced, elevating the importance of markets that can support megaprojects and their supplier ecosystems. These dynamics are increasingly important factors for job growth, industrial leasing activity and long-term market performance.
Key Takeaways:
- The more than 500 major U.S. manufacturing projects announced since 2020 represent approximately $772 billion in investment and are tied to 350 million square feet of real estate expansion.
- Nearly 80% of announced projects have proceeded, with the majority either being operational or actively in development.
- High-tech manufacturing such as semiconductor fabs and biomanufacturing are leading the next phase of growth, while automotive and EV investment has softened.
- Some manufacturing-heavy markets are recording above-average job growth and industrial leasing activity, reflecting a strong multiplier effect.
- Access to capital and supply chain integration are emerging as critical considerations alongside power and labor.
