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Released April 03, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Manufacturing activity in the U.S. expanded in March for the first time since September 2022, according to a survey report by the Institute for Supply Management (ISM). Industrial Info's data shows project investment in the U.S. Industrial Manufacturing Industry remains robust.
The ISM's March Purchasing Manager's Index (PMI), which tracks 18 industry sectors in the U.S., registered 50.3%, indicating expansion after 16 straight months of contraction (including 47.8% in February and 49.1% in January.) Any reading under 50% indicates contraction in the manufacturing economy.
"Demand remains at the early stages of recovery, with clear signs of improving conditions," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee. "Production execution surged compared to January and February, as panelists' companies reenter expansion."
Fiore said the New Orders Index moved back into expansion territory at 51.4%, 2.2 percentage points higher than February. He also said output, which is measured by the Production and Employment indexes, jumped a combined 7.7 percentage points month-over-month.
"Of the six biggest manufacturing industries, four--food, beverage & tobacco products; fabricated metal products; chemical products; and transportation equipment, which account for a combined 54% of manufacturing gross domestic product (GDP)--registered growth in March," Fiore said.
Industrial Info's project data, which includes the North American Construction Starts Index, also reflects positively on the U.S. Industrial Manufacturing Industry. The monthly index for February 2024, which accounts for the latest data, indicated 1,216 construction starts, with a project value of $11.8 billion--up from 848 starts worth $5.1 billion in January. February 2023 saw 1,140 construction starts worth $9.9 billion.
Industrial Info is tracking about $330 billion worth of U.S. Industrial Manufacturing Industry projects under construction. The following sectors account for about 88% of the spend: semiconductors & computers ($92 billion); transportation systems ($85 billion); automotive ($71.6 billion); and data centers ($38.6 billion).
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list of projects.
That includes two major projects from Intel Corporation (NASDAQ:INTC) (Santa Clara, California) that are expected to wrap up around the end of the year. The company is adding two semiconductor fabrication (fab) plants at its campus in Chandler, Arizona, on the southeastern outskirts of Phoenix. The project, which has an investment value of $30 billion, will entail constructing a total of 670,000 square feet and bring the total number of fabrication plants at the site to six.
Meanwhile, a $3.5 billion upgrade project at its chip-manufacturing complex in Rio Chancho, New Mexico will make the site Intel's global manufacturing hub for its new Foveros chips, which can be vertically stacked, providing a smaller usage footprint. Subscribers can read more information on the Arizona and New Mexico projects.
Last month, Intel and the U.S. Department of Commerce signed a non-binding preliminary agreement to provide Intel with up to $8.5 billion in direct funding for semiconductor projects under 2022's CHIPS and Science Act. This includes support for Intel's investments in Arizona and New Mexico, as well as Ohio and Oregon. Click here for a full list of active U.S. semiconductor projects from Intel, and click here for a December 13, 2023, article on the CHIPS Act funding and other semiconductor projects.
It is no surprise electric vehicle (EV)-related projects dominate the automotive sector's project spending. One such project comes from a U.S.-focused EV-battery joint venture between Hyundai Motor Group (Seoul, South Korea) and SK On, a subsidiary of SK Innovation Company Limited (Seoul). The joint venture's $5 billion lithium-ion battery-manufacturing plant in Barstow County, Georgia, is planned to produce up to 30 gigawatt-hours (GWh) of battery cells per year, enough for 300,000 EVs. Construction is expected to wrap up in mid-2025. Click here to read the project report.
Data-center project activity in the U.S. is attributed to data center developers and major technology companies, especially giants such as Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington). Meta expects construction of its $800 million grassroot data center Phase 1 in Kansas City, Missouri, named Project Velvet, will wrap up in August; the initial data center building will feature more than 600,000 square feet.
Meanwhile, Amazon is in the process of expanding its data center campus in Boardman, Oregon, which entails adding a 215,000-plus-square-foot data center to increase regional cloud data services. Subscribers can read more information on the Meta and Amazon projects.
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 March Purchasing Manager's Index (PMI), which tracks 18 industry sectors in the U.S., registered 50.3%, indicating expansion after 16 straight months of contraction (including 47.8% in February and 49.1% in January.) Any reading under 50% indicates contraction in the manufacturing economy.
"Demand remains at the early stages of recovery, with clear signs of improving conditions," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee. "Production execution surged compared to January and February, as panelists' companies reenter expansion."
Fiore said the New Orders Index moved back into expansion territory at 51.4%, 2.2 percentage points higher than February. He also said output, which is measured by the Production and Employment indexes, jumped a combined 7.7 percentage points month-over-month.
"Of the six biggest manufacturing industries, four--food, beverage & tobacco products; fabricated metal products; chemical products; and transportation equipment, which account for a combined 54% of manufacturing gross domestic product (GDP)--registered growth in March," Fiore said.
Industrial Info's project data, which includes the North American Construction Starts Index, also reflects positively on the U.S. Industrial Manufacturing Industry. The monthly index for February 2024, which accounts for the latest data, indicated 1,216 construction starts, with a project value of $11.8 billion--up from 848 starts worth $5.1 billion in January. February 2023 saw 1,140 construction starts worth $9.9 billion.
Industrial Info is tracking about $330 billion worth of U.S. Industrial Manufacturing Industry projects under construction. The following sectors account for about 88% of the spend: semiconductors & computers ($92 billion); transportation systems ($85 billion); automotive ($71.6 billion); and data centers ($38.6 billion).
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list of projects.
That includes two major projects from Intel Corporation (NASDAQ:INTC) (Santa Clara, California) that are expected to wrap up around the end of the year. The company is adding two semiconductor fabrication (fab) plants at its campus in Chandler, Arizona, on the southeastern outskirts of Phoenix. The project, which has an investment value of $30 billion, will entail constructing a total of 670,000 square feet and bring the total number of fabrication plants at the site to six.
Meanwhile, a $3.5 billion upgrade project at its chip-manufacturing complex in Rio Chancho, New Mexico will make the site Intel's global manufacturing hub for its new Foveros chips, which can be vertically stacked, providing a smaller usage footprint. Subscribers can read more information on the Arizona and New Mexico projects.
Last month, Intel and the U.S. Department of Commerce signed a non-binding preliminary agreement to provide Intel with up to $8.5 billion in direct funding for semiconductor projects under 2022's CHIPS and Science Act. This includes support for Intel's investments in Arizona and New Mexico, as well as Ohio and Oregon. Click here for a full list of active U.S. semiconductor projects from Intel, and click here for a December 13, 2023, article on the CHIPS Act funding and other semiconductor projects.
It is no surprise electric vehicle (EV)-related projects dominate the automotive sector's project spending. One such project comes from a U.S.-focused EV-battery joint venture between Hyundai Motor Group (Seoul, South Korea) and SK On, a subsidiary of SK Innovation Company Limited (Seoul). The joint venture's $5 billion lithium-ion battery-manufacturing plant in Barstow County, Georgia, is planned to produce up to 30 gigawatt-hours (GWh) of battery cells per year, enough for 300,000 EVs. Construction is expected to wrap up in mid-2025. Click here to read the project report.
Data-center project activity in the U.S. is attributed to data center developers and major technology companies, especially giants such as Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington). Meta expects construction of its $800 million grassroot data center Phase 1 in Kansas City, Missouri, named Project Velvet, will wrap up in August; the initial data center building will feature more than 600,000 square feet.
Meanwhile, Amazon is in the process of expanding its data center campus in Boardman, Oregon, which entails adding a 215,000-plus-square-foot data center to increase regional cloud data services. Subscribers can read more information on the Meta and Amazon projects.
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).
