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Released May 03, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Manufacturing activity in the U.S. contracted in April, following the first month of expansion in March since September 2022, according to a survey report by the Institute for Supply Management (ISM). However, Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said although demand dipped month-over-month, it still "remains at the early stages of recovery, with continuing signs of improving conditions." Despite any negative sentiment, Industrial Info's project data for the U.S. Industrial Manufacturing Industry shows robust project activity.
The ISM's April Purchasing Manager's Index (PMI), which tracks 18 industry sectors in the U.S., registered 49.2%, down from 50.3% in March; February and January's PMI reached 47.8% and 49.1%, respectively. Any reading under 50% indicates contraction in the manufacturing economy.
Fiore said the New Orders Index contracted after two months of expansion, although that was offset by survey respondents' "fewer comments regarding 'softening'." He also said output, which is measured by the Production and Employment indexes, accounted for a combined 2.1% downward impact on the PMI calculation.
"Although demand improvement slowed, output remains positive and inputs stayed accommodative," Fiore said, adding later, "Production execution continued to expand in March, but at a slower rate of growth than in prior months."
Despite any headwinds affecting manufacturing activity, Industrial Info's North American Industrial Construction Starts Index for the U.S. Industrial Manufacturing Industry for March indicated 1,274 construction starts, with a project value of $34.3 billion--a vast increase from the 1,216 starts worth $11.8 billion in February. March 2023 saw 1,250 starts worth $26 billion.
Industrial Info is tracking more than $300 billion worth of U.S. Industrial Manufacturing Industry projects under construction, nearly one-third of which is attributed to semiconductor-related projects.
Micron Technology Incorporated (NASDAQ:MU) (Boise, Idaho) is constructing a $15 billion expansion of its Boise Fab 4 Memory and Semiconductors Campus in Boise, Idaho, to produce memory chips for the automotive industry, data centers and mobile devices. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read a detailed project report.
Late last month, Micron announced it signed a "non-binding Preliminary Memorandum of Terms (PMT)" with the Biden administration to receive $6.1 billion in funding under 2022's CHIPS and Science Act to support the project construction and another semiconductor memory chip-manufacturing facility in New York. The four-phase project is in the planning stage.
Click here for reports related to the proposed four-phase New York project, which Micron expects will kick off in 2025.
For more information on the CHIPS Act and other U.S. semiconductor projects, see Industrial Info's December 13, 2023, article - Biden Administration Allocates First CHIPS Act Semiconductor Project Funding.
For more information on global investments in semiconductors, see May 1, 2024, article - Semiconductor Sector Eyes 103 Million-Square-Foot Capacity Boost.
Meanwhile, the automotive sector is another mainstay of the U.S. Industrial Manufacturing Industry, and under-construction project activity is buoyed by electric vehicle (EV)-related projects.
This includes LG Energy Solution's (Seoul, South Korea) $1.7 billion expansion of its lithium-ion battery-manufacturing plant in Holland, Michigan, which is expected to quintuple the plant's capacity to 25 gigawatt-hours (GWh) of production. LG has an agreement in place with Toyota Motor Corporation (NYSE:TM) to supply the automaker with 20 GWh of nickel-cobalt-manganese-aluminum (NCMA) battery modules per year, starting in 2025. Click here to read the project report.
Two other sectors--transportation systems and data centers--account for a combined one-third of the investment value of U.S. Industrial Manufacturing Industry projects under construction.
Transportation projects include the $4.5 billion construction of an automated people-moving train system at the Los Angeles International Airport, which will connect the airport's central terminal area with a nearby rail line and car-rental facility. Construction is expected to wrap up in mid-2025. Click here to read more project information.
Data-center project activity in the U.S. is attributed to a variety of companies, especially data giants such as Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California). Meta expects construction of its $750 million grassroot data center Phase 1 in Mansfield, Georgia, named Project Baymare, will wrap up in late 2026; the initial data center building will feature 900,000 square feet. Subscribers can read the related project report.
Subscribers can click here for a full list of U.S. Industrial Manufacturing Industry projects under construction.
Subscribers to the GMI Database can click here for a look at all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The ISM's April Purchasing Manager's Index (PMI), which tracks 18 industry sectors in the U.S., registered 49.2%, down from 50.3% in March; February and January's PMI reached 47.8% and 49.1%, respectively. Any reading under 50% indicates contraction in the manufacturing economy.
Fiore said the New Orders Index contracted after two months of expansion, although that was offset by survey respondents' "fewer comments regarding 'softening'." He also said output, which is measured by the Production and Employment indexes, accounted for a combined 2.1% downward impact on the PMI calculation.
"Although demand improvement slowed, output remains positive and inputs stayed accommodative," Fiore said, adding later, "Production execution continued to expand in March, but at a slower rate of growth than in prior months."
Despite any headwinds affecting manufacturing activity, Industrial Info's North American Industrial Construction Starts Index for the U.S. Industrial Manufacturing Industry for March indicated 1,274 construction starts, with a project value of $34.3 billion--a vast increase from the 1,216 starts worth $11.8 billion in February. March 2023 saw 1,250 starts worth $26 billion.
Industrial Info is tracking more than $300 billion worth of U.S. Industrial Manufacturing Industry projects under construction, nearly one-third of which is attributed to semiconductor-related projects.
Micron Technology Incorporated (NASDAQ:MU) (Boise, Idaho) is constructing a $15 billion expansion of its Boise Fab 4 Memory and Semiconductors Campus in Boise, Idaho, to produce memory chips for the automotive industry, data centers and mobile devices. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read a detailed project report.
Late last month, Micron announced it signed a "non-binding Preliminary Memorandum of Terms (PMT)" with the Biden administration to receive $6.1 billion in funding under 2022's CHIPS and Science Act to support the project construction and another semiconductor memory chip-manufacturing facility in New York. The four-phase project is in the planning stage.
Click here for reports related to the proposed four-phase New York project, which Micron expects will kick off in 2025.
For more information on the CHIPS Act and other U.S. semiconductor projects, see Industrial Info's December 13, 2023, article - Biden Administration Allocates First CHIPS Act Semiconductor Project Funding.
For more information on global investments in semiconductors, see May 1, 2024, article - Semiconductor Sector Eyes 103 Million-Square-Foot Capacity Boost.
Meanwhile, the automotive sector is another mainstay of the U.S. Industrial Manufacturing Industry, and under-construction project activity is buoyed by electric vehicle (EV)-related projects.
This includes LG Energy Solution's (Seoul, South Korea) $1.7 billion expansion of its lithium-ion battery-manufacturing plant in Holland, Michigan, which is expected to quintuple the plant's capacity to 25 gigawatt-hours (GWh) of production. LG has an agreement in place with Toyota Motor Corporation (NYSE:TM) to supply the automaker with 20 GWh of nickel-cobalt-manganese-aluminum (NCMA) battery modules per year, starting in 2025. Click here to read the project report.
Two other sectors--transportation systems and data centers--account for a combined one-third of the investment value of U.S. Industrial Manufacturing Industry projects under construction.
Transportation projects include the $4.5 billion construction of an automated people-moving train system at the Los Angeles International Airport, which will connect the airport's central terminal area with a nearby rail line and car-rental facility. Construction is expected to wrap up in mid-2025. Click here to read more project information.
Data-center project activity in the U.S. is attributed to a variety of companies, especially data giants such as Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California). Meta expects construction of its $750 million grassroot data center Phase 1 in Mansfield, Georgia, named Project Baymare, will wrap up in late 2026; the initial data center building will feature 900,000 square feet. Subscribers can read the related project report.
Subscribers can click here for a full list of U.S. Industrial Manufacturing Industry projects under construction.
Subscribers to the GMI Database can click here for a look at all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
