Texas is experiencing a significant industrial construction boom, particularly in the technology and energy sectors, following a pandemic-era surge. This growth has been fueled by federal programs such as the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, and the CHIPS and Science Act, which have collectively stimulated investment in manufacturing and infrastructure [dc576c6e].
From 2020 to 2022, construction contracts for semiconductor plants in the U.S. rose to $11.9 billion, representing over 17% of the national total. In 2023 alone, Texas accounted for over $15 billion in semiconductor manufacturing, which is 23.9% of the U.S. total. This surge has positioned Texas as a leader in the manufacturing sector, contributing 9.6% of the U.S. manufacturing GDP in 2023 [dc576c6e].
Since mid-2022, Texas has secured over $289 billion in construction contracts, with major companies like Texas Instruments and Samsung investing heavily in new manufacturing facilities. The average weekly wage for industrial construction jobs in Texas was reported at $1,927 in 2023, reflecting the high demand for skilled labor in this booming sector [dc576c6e].
Nationally, nearly $1 trillion in private investment projects have been announced since the pandemic, with Texas receiving $165 billion of that total. However, the future viability of these projects may be uncertain due to potential changes in government funding and trade issues, which could impact the ongoing growth of the industrial sector [dc576c6e].
In the broader context of U.S. construction, factory construction spending reached a record $21.1 billion in October 2024, marking a 4.0% increase from September and a 16.3% year-over-year growth. This boom is largely driven by investments in automated manufacturing plants for semiconductors, electric vehicles (EVs), and batteries, supported by the CHIPS Act, which will begin providing funding in December 2024 [c8529532].
Overall construction spending for 2024 is projected to total $234 billion, with manufacturing plants now accounting for 11.1% of total construction spending, up from just 5.5% in October 2019. This shift underscores a corporate strategic rethink driven by tariffs and the risks associated with globalization and dependence on China [c8529532].
As the Federal Reserve cut rates on September 18, 2024, expectations for increased project activity have risen, suggesting a continued upward trajectory for the U.S. construction sector in the coming months [732dd532].