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Revival of 'Made in USA' Sparks Building Boom and 506% Increase in Value

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'Made in USA' Revival Sparks Building Boom and 506% Value Rally

The revival of the "Made in USA" movement is fueling a building boom and a remarkable 506% increase in value for companies involved in constructing new factories, data centers, and warehouses. The trend of nearshoring, reshoring, and onshoring has gained momentum, with American firms increasingly moving manufacturing operations back or closer to their home country. Factors such as the trade war with China and the vulnerabilities exposed by the pandemic have accelerated this shift. Companies are recognizing the risks of relying on cheap production in Latin America and Asia, and advancements in automation and rising freight costs are making it economically attractive to bring production back to the US.

Opportunities for Construction Companies

The surge in nearshoring-related construction projects is creating opportunities for companies in the construction sector. Sterling Infrastructure, Quanta Services, TopBuild Corp., Emcor Group Inc., and Fluor Corp. are among the companies experiencing significant growth and value appreciation. Demand for construction services is coming from various industries, including life sciences, hospitals, and technology. The construction backlog for these companies has reached record levels, driven by the increased investment in manufacturing and infrastructure.

Government Stimulus and Infrastructure Needs

While government stimulus has played a role in solidifying and extending demand, industry leaders believe that more investment in infrastructure is necessary. The appeal of nearshoring is likely to continue growing, especially as US-China relations remain tense. The continuation of tariffs on Chinese goods and concerns about investment risks in China have contributed to the shift. The upcoming meeting between Presidents Biden and Xi Jinping may provide an opportunity to address the economic and commercial aspects of the relationship. In conclusion, the revival of the "Made in USA" movement is driving a building boom and significant value appreciation for construction companies involved in nearshoring-related projects. The trend of bringing manufacturing operations back to the US, along with government stimulus and infrastructure needs, presents both opportunities and challenges for businesses in the construction sector. Monitoring the evolving dynamics of nearshoring and US-China relations will be crucial for industry players moving forward.

Implications of the 'Made in USA' Revival for New Businesses

The resurgence of the "Made in USA" movement and its subsequent building boom, coupled with a 506% value rally, presents a significant shift in the business landscape. This trend of nearshoring, reshoring, and onshoring is creating a wave of opportunities, particularly for new businesses in the construction sector.

Shaping the Future of Manufacturing

The shift towards domestic manufacturing, driven by factors such as the trade war with China and the pandemic, is reshaping the future of the manufacturing industry. New businesses should consider these evolving dynamics as they strategize their market entry and growth plans.

Emerging Opportunities and Challenges

While the surge in construction projects related to nearshoring presents opportunities, it also brings challenges. New businesses will need to navigate a rapidly changing landscape, marked by government stimulus, infrastructure needs, and tense US-China relations. In conclusion, the 'Made in USA' revival is significantly impacting the business landscape, presenting both opportunities and challenges for new businesses. Staying abreast of these changes and strategically positioning themselves in this evolving market will be crucial for new businesses aiming to capitalize on this trend.
Story First Published at: https://financialpost.com/pmn/business-pmn/made-in-usa-revival-sparks-building-boom-506-rally-in-value
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