Manufacturing Talks

Jim Vinoski on why pork-driven plant construction spending doesn't make a manufacturing boom

August 20, 2024 Jim Vinoski

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There have been countless breathless reports about the ongoing "boom" in American manufacturing. After all, look at the countless billions of dollars being spent to build plants! Good times are back!

Except they aren't. Actual manufacturing activity is down, and has been in contraction mode for a long time.

Tune in and learn from your host why pork-fueled spending like what we're seeing now almost never delivers the goods when it comes to actual functioning, job-creating, value-delivering manufacturing plants. The "boom" we're seeing now is a bad episode that's been repeated again and again.

Bad enough that politicians constantly play this game, but to have people who ought to know better in our own world of manufacturing also getting suckered by this fairy tale now is really just too much.

Sources:
Granholm projects: https://dailycaller.com/2021/01/27/jennifer-granholm-michigan-energy-companies-bankrupt/
Inflation Reduction Act and Chips and Science Act delay and cancellations: https://seekingalpha.com/news/4141224-delays-impact-40-of-biden-administrations-biggest-climate-projects-ft
Whitmer administration projects: https://www.bridgemi.com/business-watch/michigan-has-spent-1b-ev-battery-plants-so-far-theyve-created-200-jobs
July ISM PMI report: https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/july/