Economic Indicators and Stimulus Money Offer New Hope for Manufacturing 

Do you want the good news or the bad news?

Let’s start with the positive. The good news this week is that we avoided a government shutdown – at least in the short-term – and that some economic indicators show signs of relief and growth on the horizon. Stimulus money from the CHIPS and Science Act continues to be pumped into several new projects around the country, revitalizing those communities and reshoring some manufacturing activities.

The bad news is that the union strikes continue to be all the rage. It seems like Hollywood not only sets trends for entertainment and fashion, but has also ignited union strikes in many industries and communities around the country. While the Hollywood writers strike ended, the actors strike continues. This week, the Kaiser Permanente just began the largest-ever healthcare strike. And the United Auto Workers (UAW) strike just got bigger.

UAW Strike Expands

Earlier this week, the UAW added 7,000 workers to its picket lines as it continues negotiations with Ford, GM, and Stellantis. Both a Chicago-based Ford assembly plant and a GM facility in Lansing, Michigan, are now on strike. Apparently, the UAW has been happier with the progress that it's making with Stellantis as no other Stellantis plants were added this week.

That good news for Stellantis coupled with battery-maker Samsung SDI’s plans to invest $1.98 billion in its second U.S. joint battery factory with the manufacturer made it a good week for this auto producer.

But Economic Indicators Show Relief on the Manufacturing Horizon

According to Manufacturing Dive, economic indicators show that manufacturing activity grew in September with an increase in both demand and production. The S&P Global PMI index rose to 49.8 in September, an increase from 47.9 in the month prior, indicating both a growth in hiring and production to boost capacity in the near future.

CHIPS and Science Act Pump Millions Into Economy

This week alone the CHIPS and Science Act has awarded millions to several initiatives around the country. The Department of Defense plans to develop of microelectronics manufacturing hubs at eight locations around the country, awarding $238.3 million this week. These hubs are expected to “focus on electromagnetic warfare, secure computing, the internet of things, artificial intelligence hardware, 5G and 6G wireless and quantum technology.”

In addition, the Department of Commerce has opened up $500 million of CHIPS funding for small-scale supply chain projects and businesses. Geared toward helping companies build, expand, or modernize plants, this money is earmarked for companies producing semiconductor materials and manufacturing equipment. 

And If Earth Doesn’t Provide Enough Opportunities, There’s Always Outer Space

The “space race” is beginning to encompass companies like Northrop Grumman and Merck who are scrambling to build off-Earth production facilities so that manufacturing of semiconductors, pharmaceuticals, and more can take place out of this world. Some believe we might see extraterrestrial manufacturing by the end of the decade.