President Joe Biden will deliver a speech in New Mexico on Wednesday, highlighting his administration’s efforts to revive U.S. manufacturing through financial and tax incentives. While construction spending on new factories has increased, factory hiring has begun to slow in recent months, indicating that the promised boom has yet to fully materialize. However, the White House remains optimistic, touting a “manufacturing renaissance” and claiming that Biden’s agenda has sparked a resurgence in factory work.
White House climate adviser Ali Zaidi emphasized the impact of coordinated actions across the government, citing a crowded jobs fair in Belen, New Mexico, where Arcosa plans to hire 250 workers for a wind tower factory. The Inflation Reduction Act, signed into law last year, enabled Arcosa to rebound from layoffs in Illinois and Iowa. The company received $1.1 billion in wind tower orders, resulting in a more than 20% increase in its stock price over the past year.
Biden has been consistently promoting his policies as a means to combat climate change and create jobs. During a recent visit to a Philadelphia shipyard, he emphasized the connection between climate initiatives and job creation, particularly union jobs. This messaging aligns with his broader goal of positioning social and environmental programs as drivers of economic growth.
The president’s trip to the Southwest is also influenced by his upcoming reelection campaign and the challenge posed by widespread public pessimism about the state of the economy. With a majority of U.S. adults expressing dissatisfaction with the economy, Biden aims to break through this sentiment and secure support in key states like Arizona and New Mexico, both of which he won in 2020.
While the U.S. economy has experienced a surge in hiring at factories as it recovers from the pandemic, the pace of job growth in the manufacturing sector has slowed over the past year. While factories were adding around 500,000 workers annually last summer, the most recent jobs report shows a gain of only 125,000 jobs in the past 12 months. Biden administration officials, however, remain optimistic, citing infrastructure spending, investments in computer chip plants, and incentives in the Inflation Reduction Act as drivers of future job growth in the manufacturing sector.
Some experts caution against prematurely declaring a manufacturing renaissance, highlighting the decades-long decline of manufacturing employment in the U.S. due to automation and trade. They argue that job numbers alone do not necessarily indicate a revival in the sector. Instead, metrics such as increased factory output, a shift towards renewable energy, and a stronger supply chain are better indicators of a manufacturing resurgence.
While the Biden administration’s efforts have led to increased construction spending on factories and commitments to various industries, it remains to be seen whether these positive trends can outweigh the ongoing challenges faced by the manufacturing sector. As the president continues to push his economic agenda, the public will be watching closely to see if his policies can deliver on their promises of a revitalized manufacturing industry.
Original Story at www.nbc15.com – 2023-08-09 10:14:00
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