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Released September 21, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Manufacturing activities in the U.S. have maintained steady growth, although companies and suppliers are struggling to meet increasing demand, according to the Institute of Supply Management's (ISM) (Tempe, Arizona) latest Report on Business.
The ISM's Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S, indicated economic activity in the manufacturing sector grew in August, with the overall economy registering its 15th consecutive month of growth. The PMI of 59.9% was an increase of 0.4 percentage points from the reading in July.
Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said: "All segments of the manufacturing economy are impacted by record-long raw-materials lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products. The new surges of COVID-19 are adding to pandemic-related issues--worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply-chain problems--that continue to limit manufacturing-growth potential."
Among other things hindering manufacturing activity, such as the global chip shortage and supply chain issues, the report's respondents pointed to constrained labor forces, exacerbated by COVID-19, and noted "difficulties in hiring and a clear cycle of labor turnover as workers opt for more attractive job conditions," Fiore said.
This is especially apparent in the construction sector, which is facing a significant labor shortage. According to data from the Bureau of Labor Statistics, the sector is down about 232,000 jobs from February 2020--but the pandemic isn't the only issue. Skilled labor in general is getting harder to come by, as not enough younger people are entering related sectors and older workers are retiring. Only 10% of infrastructure workers are under 25, while 13% of all U.S. workers are in that age group, according to analysis by the Brookings Institution (Washington D.C.). "The challenge is, how are we going to replace--not just grow, but replace--many of the workers who are retiring or leaving jobs?" asked Joseph Kane, a fellow at Brookings.
With that said, tech giant Facebook Incorporated (NASDAQ:FB) (Menlo Park, California) is seeking to expand skilled labor opportunities through its "Hardhat in Hand" nationwide training program--a paid, eight-week training in partnership with the company's data center general contractors. After completing classroom coursework and on-the-job training, "participants can earn full-time employment in fields including electric, carpentry and sheet metal working," the company said. Industrial Info is tracking more than 40 Facebook projects, worth $15.5 billion, in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed reports.
Industrial Manufacturing Projects Under Construction
In all, Industrial Info is tracking about $215 billion in Industrial Manufacturing projects that are under construction in the U.S., of which grassroot projects account for $90 billion. The transportation systems sector outpaces all others by a wide margin, although such projects can take years to complete. For more information, see September 14, 2021, article - California Leads More than $100 Billion in U.S. Transportation Projects Under Construction.
Click on the image at right for a graph showing manufacturing projects under construction in the U.S., by the top five sectors.
In Hawaii, Honolulu Rail Transit is at work on a $4.6 billion commuter rail line. The initial, seven-mile segment, which is part of a broader 20-mile system, will run from East Kapolei to Pearl Highlands and feature seven stations. The project has faced delays, and completion is expected in December 2025. Subscribers to the GMI Database can learn more from Industrial Info's project report.
Apple Incorporated (NASDAQ:AAPL) (Cupertino, California) kicked off construction in late November of a $1 billion grassroot data center in Austin, Texas, which will serve as a data management site. JE Dunn Construction Group (Kansas City, Missouri) is providing general contracting services. For more information, see Industrial Info's project report.
Meanwhile, South Korean battery maker SK Innovation Company Limited (Seoul, South Korea) is at work on a grassroot lithium-ion battery manufacturing plant in Commerce, Georgia, about 65 miles northeast of Atlanta. As part of a two-phase project, the first phase entails constructing a 1.2 million-square-foot facility to produce batteries for Volkswagen's (Berlin, Germany) electric vehicle (EV) production in Tennessee, while a second, 1.5 million-square-foot facility will supply Ford Motor Company's (NYSE:F) (Dearborn, Michigan) EV production in Kentucky. Construction on Plant 1 is expected to be completed in April 2022, and Plant 2 in April 2023. For more information, see Industrial Info's project reports on Plant 1 and Plant 2.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The ISM's Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S, indicated economic activity in the manufacturing sector grew in August, with the overall economy registering its 15th consecutive month of growth. The PMI of 59.9% was an increase of 0.4 percentage points from the reading in July.
Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said: "All segments of the manufacturing economy are impacted by record-long raw-materials lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products. The new surges of COVID-19 are adding to pandemic-related issues--worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply-chain problems--that continue to limit manufacturing-growth potential."
Among other things hindering manufacturing activity, such as the global chip shortage and supply chain issues, the report's respondents pointed to constrained labor forces, exacerbated by COVID-19, and noted "difficulties in hiring and a clear cycle of labor turnover as workers opt for more attractive job conditions," Fiore said.
This is especially apparent in the construction sector, which is facing a significant labor shortage. According to data from the Bureau of Labor Statistics, the sector is down about 232,000 jobs from February 2020--but the pandemic isn't the only issue. Skilled labor in general is getting harder to come by, as not enough younger people are entering related sectors and older workers are retiring. Only 10% of infrastructure workers are under 25, while 13% of all U.S. workers are in that age group, according to analysis by the Brookings Institution (Washington D.C.). "The challenge is, how are we going to replace--not just grow, but replace--many of the workers who are retiring or leaving jobs?" asked Joseph Kane, a fellow at Brookings.
With that said, tech giant Facebook Incorporated (NASDAQ:FB) (Menlo Park, California) is seeking to expand skilled labor opportunities through its "Hardhat in Hand" nationwide training program--a paid, eight-week training in partnership with the company's data center general contractors. After completing classroom coursework and on-the-job training, "participants can earn full-time employment in fields including electric, carpentry and sheet metal working," the company said. Industrial Info is tracking more than 40 Facebook projects, worth $15.5 billion, in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed reports.
Industrial Manufacturing Projects Under Construction
In all, Industrial Info is tracking about $215 billion in Industrial Manufacturing projects that are under construction in the U.S., of which grassroot projects account for $90 billion. The transportation systems sector outpaces all others by a wide margin, although such projects can take years to complete. For more information, see September 14, 2021, article - California Leads More than $100 Billion in U.S. Transportation Projects Under Construction.
In Hawaii, Honolulu Rail Transit is at work on a $4.6 billion commuter rail line. The initial, seven-mile segment, which is part of a broader 20-mile system, will run from East Kapolei to Pearl Highlands and feature seven stations. The project has faced delays, and completion is expected in December 2025. Subscribers to the GMI Database can learn more from Industrial Info's project report.
Apple Incorporated (NASDAQ:AAPL) (Cupertino, California) kicked off construction in late November of a $1 billion grassroot data center in Austin, Texas, which will serve as a data management site. JE Dunn Construction Group (Kansas City, Missouri) is providing general contracting services. For more information, see Industrial Info's project report.
Meanwhile, South Korean battery maker SK Innovation Company Limited (Seoul, South Korea) is at work on a grassroot lithium-ion battery manufacturing plant in Commerce, Georgia, about 65 miles northeast of Atlanta. As part of a two-phase project, the first phase entails constructing a 1.2 million-square-foot facility to produce batteries for Volkswagen's (Berlin, Germany) electric vehicle (EV) production in Tennessee, while a second, 1.5 million-square-foot facility will supply Ford Motor Company's (NYSE:F) (Dearborn, Michigan) EV production in Kentucky. Construction on Plant 1 is expected to be completed in April 2022, and Plant 2 in April 2023. For more information, see Industrial Info's project reports on Plant 1 and Plant 2.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
