U.S. Infrastructure Outlook: Megaprojects Will Define the Industry in 2024
Though a recession seemed certain in 2023, the United States managed to pull off a “soft landing” in the end, boosting consumer spending and instilling confidence in entertainment developers. A substantial amount of funding was unlocked over the past year for critical projects aimed to modernize our nation’s infrastructure.
This has created a demand for mega projects (builds that exceed $1 billion in budget). Such projects are expected to define 2024.
According to Mile High CRE, one of the sectors to watch this year is, Renewable Energy: Semi-conductors power everything from cellphones to cars, and East-Asia produces 75% of the world’s supply. After decades of sending manufacturing facilities overseas, a new urgency to re-shore operations has resulted in manufacturing construction starts skyrocketing 156% over 2019 levels, according to data analysis from Construction Dive. The $39 billion in funding for manufacturing from the CHIPS Act is far from drying up, fueling growth in the sector. In 2022 alone, the U.S. completed $108 billion in factory construction.
Coupled with the Infrastructure and Reinvestment Act, this creates a perfect storm of U.S. smart manufacturing investment. With continued green energy investment in solar photovoltaic panel plants, electric vehicle and battery plants, the U.S. is on track to becoming the global leader in advanced manufacturing in the next 5-10 years. This will create good-paying, advanced manufacturing jobs and security for U.S. supply chains.