2023 U.S. Construction Boom Sparked by Inflation Reduction Act
TL/DR –
The United States’ clean energy economy grew significantly in 2023 despite economic challenges, with the industry receiving nearly $100 billion in new investments and adding more than 80,000 jobs, thanks to President Biden’s Inflation Reduction Act and increasing demand for clean energy technologies. The legislation led to a surge in investments in electric vehicles (EV), batteries, and clean energy technologies, with states such as Georgia and North Carolina attracting significant investments. The IRA also resulted in the creation of the IRA Dashboard tool, which tracks activities across every state and has recorded 142 projects worth $98 billion in investment dollars since August 2022, creating more than 80,000 jobs.
US Economy Grows Despite Challenges, Thanks to Inflation Reduction Act and Increased Demand for Clean Energy
In 2023, despite inflation, high gas prices, and increased interest rates, the United States’ clean energy economy saw significant growth. This surge is attributed to President Biden’s Inflation Reduction Act (IRA) and a growing demand for clean energy technologies, which together brought about nearly $100 billion in new investment and created more than 80,000 new jobs.
The IRA: Supercharging the U.S. Economy With Clean Energy
The IRA, the largest investment in U.S. climate, clean energy, electrification, and energy efficiency, is energizing the economy in combination with the CHIPS Act, Bipartisan Infrastructure Act, and other federal actions. The stand-out result is the onshoring of U.S. jobs supporting the domestic manufacturing of electric vehicles (EVs), batteries, solar panels, wind turbines, heat pumps, and other clean energy technologies, marking the start of a new clean industrial revolution.
IRA Dashboard: Tracking Clean Energy Investments Across States
To monitor changes triggered by the IRA, the IRA Dashboard tool was created to track activities across every state. Since August 2022, when the IRA became law, 142 projects have been announced representing $98 billion in investments and more than 80,000 jobs, including nearly $60 billion and 50,000 jobs in 2023.
Leading States in Clean Energy Investments
States such as Georgia and North Carolina spearheaded the movement, securing $15.4 billion and $13.7 billion in investments, respectively. Michigan and South Carolina also secured more than 10,000 new clean energy and electrification manufacturing jobs each. This highlights the clean energy sector as an economic high point with consistent growth in the years ahead.
The IRA Sparks the American Electric Vehicle Renaissance
Following the IRA’s passage, major automakers and battery companies announced new EV and battery manufacturing facilities, accounting for nearly 90% of the total $98 billion invested. Toyota, Hyundai, Honda, Tesla, Stellantis, GM, Ford, and Scout Motors have all made billion-plus dollar investments into American-made batteries and EV assembly since the IRA passed.
Midwest Manufacturing Comes Alive Again with a Shift Towards Electrified Transportation
The IRA is also breathing new life into Midwest’s auto industry, attracting jobs and investments to Michigan, Ohio, Illinois, and Indiana. These states, the traditional hub for auto manufacturers in America, are steering towards an electrified future.
The Southeast Battery Belt Thrives, Thanks to the IRA
The Southeast U.S., particularly North Carolina, South Carolina, and Georgia, is experiencing an economic revival thanks to the IRA. These states are leading in terms of total new investment dollars ($40.7 billion) and IRA-related jobs created.
State Leaders and Policies Compete for IRA-Supported Investments
Elected officials and state policies are integral to the success rates among states chosen for IRA-supported investments. Governors and state policies are actively making their states more attractive for investments and preparing their workforce for EV and battery manufacturing jobs.
The Clean Energy Economy is Here to Stay and Needs Further Support
Perhaps the most notable trend of 2023 is that America is once again a nation of makers, specifically crafting the technologies and components that will help electrify transportation and provide clean energy for the grid. Demand is growing for batteries, solar panels, wind turbines, heat pumps, and other clean technologies. States should double down on favorable policies, build strong workforce programs, and capitalize on new federal grant programs to secure their place in the clean energy economy.
—
Read More US Economic News