Good news for America but just so we are clear.......industrial capex is up almost 40% so it's closer to $114b. Also, we just pumped north of $2T into infrastructure bill, build back better, inflation reduction act etc so you'd expect to see some of that flow into manufacturing as a direct result from demand.
Here's the real kicker though, most of that $189B is foreign investment. That's the fine print they aren't telling you in the article. So after $4t of govt spend since 2021, foreign entities are building factories in America.
From a recent Bank of America Private Bank write up:
Foreign direct investment has played a significant role in this, as many multinational corporations are eager to establish large-scale facilities in the United States. Quinlan stated that investment in the U.S. has truly captured the world’s attention, and when talking to companies from South Korea, Japan, and Europe, their focus is on establishing operations in the United States. He estimates that this trend will continue into the latter half of the 2020s.
Just to get a sense of the cost.......The initial investment to build Intel in Ohio was $20B with estimated total cost to build of $100b. Most major manufacturing plants will be of similar cost and investment.