Private investment in manufacturing structures in the US - Data and Analysis (1980-2032)

Private investment in manufacturing structures is projected to reach $122.1 billion in 2026, an 11.3% decline from the prior year. Sunsetting CHIPS Act funding for the semiconductor industry accounts for much of the drop, as that support largely reached its end this year. Anirban Basu, chief economist at Associated Builders and Contractors, said in July 2026 that the largest manufacturing facilities are moving from construction into installation and commissioning, which tempers funding growth as these build phases wind down. CHIPS Act dollars had funneled megaprojects through prior years, so the sunset hits this index hard in 2026. The role of factories is also evolving. Fewer are being built even as production holds steady, since automation delivers efficiency gains that reduce the need for new floor space and additional facilities. Outsourcing remains a risk that further complicates demand for domestic manufacturing construction, leaving the index without a replacement for federal support.From 2021 to 2026, investment in manufacturing facilities expanded at an estimated CAGR of 12.4%. The period began with subdued growth in 2021, up by 3.2% as the sector continued recovering from the pandemic's impact, followed by a significant rebound in 2022 with growth of 24.2%. Unprecedented supply chain disruptions during the pandemic highlighted vulnerabilities in foreign-sourced inputs, leading to an accelerated push for domestic resiliency and reshoring. The introduction of major policy interventions, including the CHIPS Act and the Inflation Reduction Act, offered substantial incentives, such as tax breaks and subsidies, spurring private sector participation in new construction. During 2023, sector investment surged by 45.0%, reflecting a convergence of legislative impacts, heightened demand for advanced manufacturing, and further modernization efforts. Momentum persisted in 2024 as annual growth registered a 20.4% rise, maintaining an elevated investment environment.Additional macroeconomic trends include continuing advancements in manufacturing technologies, such as the integration of robotics and artificial intelligence, which are vital in reducing operational costs and increasing output efficiency. Labor shortages and rising material costs have posed constraints, yet these challenges have reinforced the move toward greater automation and technological adoption, which are central to modern manufacturing strategy. Collectively, these factors have contributed to a renewed emphasis on domestic capacity and operational longevity in the manufacturing sector.Over the five years to 2026, legislative support, technological evolution, and global supply chain realignment have underpinned a strong expansion in private investment in manufacturing structures. As companies adapt to new market realities and future-proof their operations, this period has marked a substantial and sustained commitment to upgrading and expanding the nation's industrial base.