Trump’s Effort to Revitalize Manufacturing Has Failed, Data Centers Take Over

by Mike Shedlock,

Construction spending on Manufacturing has plunged 32.6 percent in two years.

Tariffs did not and will not revitalize US manufacturing.

Historic Crossover

• The manufacturing boom that started in 2021 under Biden peaked in September of 2024. Spending on data centers and power prevented a collapse in nonresidential construction spending.
• In September 2025, construction spending on data centers and power eclipsed spending on manufacturing.
• In July 2026, the combined Data Centers Plus Power surged to $238,888 million, while Manufacturing plunged to $167,805 million.
• The downward slope of Manufacturing is nearly a mirror image of the upward trajectory of Data Centers Plus Power.

Construction Spending Details

Private Construction Spending in Millions

• Manufacturing: 167,805 (down 32.6 percent in two years)
• Power: 161,541 (about to eclipse manufacturing)
• Commercial: 116,241 (down 23.0 percent in three years)
• Data Centers: 75,166
• Data Centers Plus Power: 236,707
• Total: 238,888 (up 6.4 percent in two years)

Manufacturing Jobs vs Nonfarm Payrolls

Change in Manufacturing Employment

Manufacturing and Services Jobs Percent of Nonfarm Payrolls

Lost and Gone Forever

• 8-Track Tapes
• Cassettes
• CDs
• Farm jobs
• Manufacturing jobs
• Department store significance

Trump is not going to bring back any of those. Moreover, his tariffs and bashing of allies is going to cost manufacturing jobs.   Source: https://mishtalk.com