Trump 2.0: The First 100 Days | United States

Reshoring Manufacturing Inflation-adjusted Spending on New Manufacturing Construction

Impact on CRE

• President Trump campaigned on a priority of reshoring many forms of manufacturing.

$250

• So far, President Trump has paused funding disbursements related to the Infrastructure Investment and Jobs Act and the IRA. He also wants to scrap the CHIPS Act, which was generally understood to have played an important role in the uptick in manufacturing construction under President Biden. The act has propelled almost $450 billion in commitments to build factories nationwide. • However, the Chips Act has broad support from Congress. Republican districts which were selected for factory sites have also backed the Act, so it is unlikely that material changes are made. • As mentioned before, President Trump is forming more favorable tax policy for domestic producers and using tariffs as a means to encourage reshoring. • The U.S. will need much more manufacturing space if there is going to be a significant increase in reshoring. Spending on manufacturing construction has risen markedly since 2021, especially for computer & electronics which made up almost 60% of the share in 2023.

$200

$150

$100

$50

President Trump Inaugurated

$0

CHIPS Act & IRA

Jul-08

Jul-15

Jul-22

Oct-06

Apr-10

Oct-13

Apr-17

Oct-20

Apr-24

Jan-05

Jun-11

Jan-12

Jun-18

Jan-19

Mar-06

Feb-09

Mar-13

Feb-16

Mar-20

Feb-23

Dec-07

Nov-10

Dec-14

Nov-17

Dec-21

Nov-24

Aug-05

Sep-09

Aug-12

Sep-16

Aug-19

Sep-23

May-07

May-14

May-21

Source: U.S. Census Bureau, U.S. Bureau of Labor Statistics

CONTENTS

CONTENTS

Cushman & Wakefield