Weekly Wisdom | American Pride: Reindustrialization
Our Bright Industrial Future
After World War II, America emerged as the world's preeminent economic, military, and manufacturing superpower. While the United States remains the dominant economic and military power, it has not led the world in manufacturing for a generation. Over the coming decades, our ability to maintain that leadership will depend in part on rebuilding America's industrial base and reclaiming our manufacturing strength. Fortunately, recent developments suggest that America's industrial renaissance is already underway.
America is finally rebuilding:
Slate Auto, a Jeff Bezos-backed electric vehicle startup, just took preorders for their compact truck. Starting at $24,950, this minimalist truck will be made in Warsaw, Indiana in an attempt to make vehicles more affordable. America desperately needs a sub-$30,000 vehicle, as there are only a handful of models that are available at that price point. And considering the cost of living crisis, these new vehicles will be a welcome addition to the U.S. auto market.
Earlier this year, Hadrian, an AI and robotics company, opened a 2.2 million square foot manufacturing plant in northern Alabama. Over the next few years, $2.4 billion will have been cumulatively invested in this plant to produce the next generation of submarines for the U.S. Navy. This plant is expected to employ up to 1,000 people with an average salary of $70,000 over the next few years. Hadrian is a great example of a company that is bringing back domestic manufacturing while building the most important products (defense).
TSMC, otherwise known as Taiwan Semiconductor Manufacturing Company, will be opening three new manufacturing plants, or “fabs” (fabrication plants), over the next several years in Phoenix, Arizona. TSMC is the world’s largest and most valuable manufacturer of semiconductor chips, which can be found in everything from automobiles to Apple products. Their footprint in the United States helps shield America’s economic, technological, and defense interests against a potential Chinese invasion of Taiwan.
Pharmaceutical giant Eli Lilly has announced four major new pharmaceutical manufacturing facilities across Virginia, Texas, Alabama, and Pennsylvania as part of a more than $50 billion commitment to expand medicine production in the United States. Construction has already begun or is scheduled to begin shortly, creating thousands of construction jobs and restoring critical pharmaceutical manufacturing capacity to America. Crucially, three of the four facilities will manufacture APIs - the chemical compounds that are the backbone of modern medicines.
The Big, Beautiful Bill's tax incentives and the Trump administration's regulatory reforms have contributed to the renewed wave of industrial investment we are seeing across the country. If policies that encourage domestic investment continue over the next decade, additional companies are likely to build factories and expand production in the United States. As America celebrates its 250th anniversary, the Trump administration can point to these early signs of reindustrialization as evidence that the nation is moving back toward becoming a manufacturing superpower.
