Once the center of the global manufacturing world, the U.S. has increasingly outsourced the function over the past half century. Recent events have afforded the U.S. manufacturing sector the potential to stage a comeback for the ages.
The number of people employed in manufacturing in the U.S. is almost 13 million. That number hasn’t changed much over the last few years. However, there is a lot of investment dollars piling into the industry. What is needed now is for each sector and each related industry to work hard to ensure that investment results in a manufacturing boom.
Take the programs being done by the National Electrical Manufacturers Association (NEMA). It is working to encourage further reshoring and strengthening of the North American supply chain. And it is aiming many of these efforts at the ongoing boom in data center construction.
Consider these facts from a new study released by NEMA, A Reliable Grid for an Electric Future:
By 2050, electricity demand will have grown by more than 50% in the U.S; energy storage, wind, and solar generation will increase by 300%; and renewables are predicted to exceed 50% of generation capacity in Western U.S., New York, and Southeast.
Between 2023 and 2037, 1,323 TWh of capacity growth is predicted in the U.S. That is broken down as follows: 32% data centers, 24% transportation, 16% industrial, 15% residential, and 13% commercial.
More than 30% of data center components by cost are electrical equipment. Thus, the industry is in a good position to help in the AI and data center boom.
NEMA clearly expects data centers to have a big impact on electricity demand for the next decade or so. The AI power consumption surge will probably be at its most intense between 2025 and 2030 when AI will take up a quarter of all data center load. After all, some of the latest AI and machine learning applications require ten times more power than traditional computing workloads.
The study identifies near-term and emerging technology solutions to make the grid more efficient: transmitting more with existing infrastructure, optimizing data center performance, enhancing grid stability through storage, and creating ways to manage peak load. It outlines policy frameworks to meet coming demand in an all-of-the-above energy system. This encompasses comprehensive permitting reform, the securing of tax certainty, bolstering the manufacturing workforce, and alleviating critical supply chain bottlenecks.
As part of its program to prepare for the boom, NEMA is promoting its Make It American certification program. This program enables companies to validate their supply chain management systems and operational practices through third-party audits – ensuring alignment with BABA domestic content requirements for infrastructure projects receiving federal funds.
It awarded ABB this status for its Mebane, North Carolina facility as well as a product-level certification for meeting Build America, Buy America (BABA) domestic content requirements across six Low-Voltage Power Distribution Equipment (LVDE) and High-and-Medium Voltage Distribution Equipment (HVDE) product lines manufactured at that facility.
This program from NEMA is one of many aimed at boosting manufacturing and developing the manufacturing workforce in North America. Similarly, SME offers a wealth of training, certification, and workforce development programs, as does the FMA and AWS. Beyond training, these organizations are hard at work to promote home-grown manufacturing and the creation of the next generation of manufacturers, welders, engineers, and fabricators.
Plan to attend FABTECH 2026 where you can meet face to face with representatives of these organizations to obtain the help you need to grow your business and develop talent.