U.S. Manufacturing Industry Boom Expected – Boosting Construction and Other Sectors in Texas – Part 1
According to leaders in the manufacturing industry, the U.S. is about to experience a major manufacturing boom. And Texas stands to benefit.
“There’s never been a more exciting time to be in manufacturing,” says Douglas K. Woods, president of AMT – The Association For Manufacturing Technology, which owns and produces IMTS, The International Manufacturing Technology Show.
According to Woods in a recent manufacturing news article from IMTS, with a GDP of $30.5 trillion, the United States is the largest economy globally, and with a 2025 annualized personalized consumption expenditure of $20.8 trillion, it remains the top destination for domestic and foreign investment.
“If our $2.9 trillion U.S. manufacturing economy were measured as a country, it would rank as the eighth-largest country in the world,” says Woods. He also notes that foreign direct investment exceeded $275 billion in 2024, and since January 2025, new investments in U.S. manufacturing, technology, and infrastructure have totaled more than $8 trillion.
Strong manufacturing sector growth usually has a powerful ripple effect across many parts of the economy. Here are the industries that typically benefit the most:
- Logistics & Transportation
Manufacturing growth increases:
- Freight volumes (trucking, rail, air cargo)
- Demand for warehousing and distribution centers
- Port activity and container traffic
Why: More goods produced means more goods need to be moved.
- Construction & Real Estate
Stronger manufacturing boosts:
- Industrial building construction (factories, warehouses)
- Commercial real estate demand
- Residential construction near growing job centers
Why: Manufacturing expansion requires facilities and draws workers to an area.
- Energy & Utilities
Manufacturing is highly energy-intensive, especially in:
- Electricity
- Natural gas
- Oil/lubricants
Why: More production = more power consumption and infrastructure investment.
- Technology & Automation
A surge in:
- Robotics
- AI-driven manufacturing systems
- Industrial IoT sensors
- Factory software
Why: Manufacturers invest in productivity, automation, and efficiency.
- Raw Materials & Mining
Manufacturing increases demand for:
- Steel
- Copper
- Aluminum
- Rare earth minerals
- Plastics & petrochemicals
Why: These are foundational inputs to production.
- Professional Services
Growth spills into:
- Engineering firms
- Environmental consultants
- Accounting & compliance
- Legal (contracts, real estate, expansion)
Why: Manufacturing expansion requires specialized support.
- Finance & Insurance
Manufacturing growth drives:
- Capital investment loans
- Equipment financing
- Business insurance
- Trade credit insurance
Why: Factories are capital-intensive and require risk coverage.
- Retail & Consumer Goods
Stronger manufacturing often correlates with:
- Higher household incomes in surrounding regions
- Increased sales of consumer goods
Why: Manufacturing jobs raise local spending power.
- Workforce Training & Education
More manufacturers means:
- Technical schools expand programs
- Demand for skilled labor training (HVAC, welding, machining)
- Workforce development grants
Why: Companies need a pipeline of skilled workers.
- Environmental & Sustainability Services
Driven by regulatory and ESG pressures:
- Waste management
- Emissions reduction technologies
- Recycling firms
Why: Manufacturers must meet environmental standards.
In our next post, we’ll provide a Texas-focused explanation of how industries benefit from manufacturing growth within the broader U.S. economic cycle, and how Texas, industrial real estate, and construction law stand to benefit.
