As the new year progresses and many narrow down their top predictions for industrial manufacturing trends 2024, three major pieces of U.S. legislation continue to spur growth in the manufacturing sector, namely the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, the Infrastructure Investment and Jobs Act (IIJA), and the Inflation Reduction Act (IRA).
New tax credits and incentives to invest in semiconductors, clean energy components, electric batteries, and raw materials needed to manufacture required components have encouraged private sector investments in manufacturing, construction spending, and reshoring, bringing an increasing number of foreign operations back home.
Challenges caused during and after the COVID-19 pandemic, including supply chain disruptions and labor shortages, are showing signs of stabilizing, and the industry is poised to experience positive shifts in growth and development in 2024 due to the onshoring of supply networks, expected fed tax rate cuts, and increased infrastructure spending.
Further, the use of sustainable and more efficient manufacturing processes and advanced technologies are expected to play continuing roles in helping companies buffer the effects of limited resources and instability.
Is Manufacturing Slowing Down?
Industrial manufacturing experienced slow growth and challenges throughout 2023. However, experts predict continued growth and investment in the manufacturing sector throughout 2024. Leading indicators are mostly positive. Productivity, labor markets, and the supply chain are stabilizing, indicating a return to their pre-pandemic levels. All things considered, any major shift in geopolitical events could lead to unexpected market instability in 2024.
What Is the State of US Manufacturing?
Many manufacturers express continued concern about a looming recession, and optimism continues to be low. Layoffs, workforce shortages, and retaining employees remain top concerns across the industry. Many trends from 2023 are expected to carry over into the next; the main industrial manufacturing trends 2024 have been listed below for consideration.
What Is the Future of the Manufacturing Industry?
According to recent research, over 86% of manufacturing executives believe smart solutions will be the primary drivers of competitive advantage over the next five years. In the face of ongoing challenges, technology-enabled business transformation will continue to encourage companies to become more efficient, predictive, and streamlined.
To overcome higher prices due to inflation, taxes, and labor shortages, sustainability and lean initiatives are expected to increase interest across the board, whether through adopting automated predictive technologies backed by AI and machine learning or using manufacturing and construction methods that are leaner and reduce waste, such as modular (offsite) construction.
What Is the Reshoring Trend in 2024?
The reshoring trend in the U.S. manufacturing sector is expected to rise into 2024, fueled by the CHIPS Act. This legislation, designed to create incentives for semiconductor production, is attributed to having successfully encouraged industry giants like Intel and IBM to announce projects in Ohio and New York.
Nearshoring, which involves relocating manufacturing operations to nearby countries such as Mexico, has also gained traction. Significant forces driving this trend include increased supply chain resilience, proximity to US markets, and lower operational costs. Expect the reshoring and nearshoring trends to continue into 2024 and beyond.
H+M Industrial EPC—Industrial Manufacturing Trends 2024
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H+M Industrial EPC specializes in providing exceptional capital project execution from concept to start-up for clients in Houston, South Texas, and Corpus Christi, TX, USA. For over three decades, we have provided end-to-end solutions for a wide range of project sizes within the energy, chemical, terminals, and logistics industries.
We are dedicated to providing trust, experience, and efficiency through all stages of engineering, procurement, and construction through our proven strategic EPC approach. Our comprehensive services, including detailed engineering and design, front-end planning, procurement, fabrication, and construction, allow us to take your project from conception to completion, tailoring engineering and design solutions to meet your unique needs.
