Talent Talk: Why I’m Optimistic About US Manufacturing in 2025Talent Talk: Why I’m Optimistic About US Manufacturing in 2025

Previously, we looked at how manufacturing and plastics fared in 2024. To say that the industry treaded water would be putting a positive spin on the facts. But the windshield is much bigger than the rearview mirror and there are a lot of reasons to be optimistic about 2025 and beyond.

Let’s start with investment. Talent Talk first noted the rapid acceleration of US manufacturing construction in July 2023. At that time, we reported that the pace of building new factories had more than doubled over the span of just about one year.

Factory construction forges ahead despite high interest rates

In the year and a half since then, despite continued high interest rates and soft demand, we are up another 21%. We are building factories at three times the rate we did three to four years ago. This investment, impressive as it is, does not include the cost of production machinery and equipment, but because construction spending comes first, it is a great leading indicator of the direction and pace of future manufacturing growth.

Public spending carries a cost

Much of this investment is coming from federal government spending, which has not happened without a downside: It contributes to high interest rates and ballooning national debt. That government funding ship has pretty much sailed at this point, and now only economic growth will justify that. But the good news is that there are signs of significant investments coming from the private sector, as well.

Private sector investment steps up

Japan’s SoftBank recently announced plans to invest $100 billion in the United States. Along with that investment comes the promise of 100,000 new jobs. Of course, promises are easier to make than to keep, but SoftBank is not alone in committing to new investments.

Eli Lilly recently announced a $3 billion expansion of its Kenosha County, WI, facility — lots of molded plastics in those injectables — and Boeing plans to spend $1 billion to expand its North Charlston, SC, plant — a 787 is 80% composites by volume. The American Solar Energy Industries Association reports that US solar manufacturers are investing more than $36 billion, which will create over 44,000 manufacturing jobs.

I'll share some more reasons to be optimistic about the new year in the next column.