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manufacturing projects envisioned under IRA and CHIPS have stalled, according to a Financial Times investigation. The slowdown has created uncertainty around the demand for logistics space. Forty percent of the largest U.S. manufacturing investments announced during the first year of President Biden’s industrial and climate policies have been delayed or paused, the Times found. A total of $84 billion of those projects have been delayed for at least two months and some have been paused indefinitely. Deteriorating market conditions, slowing demand, and lack of policy certainty were cited as reasons for the delays. Across the nation, large projects on hold include Enel’s $1 billion solar panel factory in Oklahoma, LG Energy Solution’s $2.3 billion battery storage facility in Arizona, and a $1.3 billion lithium-ion refinery in South Carolina, according to the report. The tax credits and grants stretch into 2032, but inflation, labor shortages, and supply chain challenges are all contributing to delays in achieving project milestones, which are key to unlocking funding.
Syfan_Publisher_NewDesign.pdf 1 8/14/24 12:16 PM The bipartisan Inflation Reduction Act (IRA) and CHIPS and Science Act, both passed in 2022, generated buzz in the supply chain sector for a predicted resurgence of manufacturing activity that would yield increased demand for logistics services and investments. However, two years later, some enthusiasm is waning as nearly half of the IRA/CHIPS LOGISTICS PROJECTS STALLED
16 Inbound Logistics • September 2024
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