In a recent episode of the Manufacturing Executive Podcast, Joe Sullivan interviewed Nihal Shetty, a writer at industrial marketing agency Gorilla76, about the Inflation Reduction Act (IRA) and its significant impact on the US manufacturing landscape.
Shetty, who has been leading Gorilla76’s internal research seminar on the IRA, shared his insights on the legislation’s provisions and its role in reindustrializing the US economy. “Essentially, this is an industrial policy geared towards more private investment,” Shetty explained. “Hundreds of new factories have been built since the IRA has been signed.”
The ripple effects of the IRA extend beyond clean energy, with industries like construction experiencing a significant boost. “Between August 2022, which remembers when the bill was signed in August 2023, there was a 7.7% increase in construction spending,” Shetty pointed out. “But when you break it down, you’ll see the construction for manufacturing facilities increased by over 65% in that time.”
Looking ahead, Shetty believes that the IRA’s impact is likely to persist regardless of whether the next administration is led by Kamala Harris or Donald Trump. The legislation is part of a broader shift towards greater protectionism in US trade policy and a changing dynamic in global supply chains.
As manufacturing organizations navigate this new landscape, many are turning to outside research firms and conducting internal exercises to identify potential funding opportunities and market trends. Shetty emphasized the crucial role marketing plays in leveraging this knowledge to create targeted content that showcases expertise and alignment with emerging industries.
It’s taking a little bit of a bet right, but that’s kind of the point of marketing right, you can’t just produce generic concepts all the time. If you expect things to work right sometimes you have to take a bet on what your audience is looking for, where your audience is, and where your audience is going to be in the future.
To stay informed about the current manufacturing climate, Shetty advises combining the expertise and observations of internal staff with an understanding of broader policy strokes. Fostering a culture of information sharing and interest in industry trends is key to staying ahead of the curve.
Beyond the IRA, manufacturers should also keep a close eye on other areas of ongoing legislation, such as the escalation of the trade war with China and its impact on US manufacturing, as well as labor market trends and the disconnect between factory investments and job creation.
As Shetty aptly put it, “Giving them the chance to talk about the stuff that interests them I mean you can learn a lot about your industry about the general trend economy through these conversations.”
The Manufacturing Executive Podcast episode featuring Nihal Shetty serves as a valuable resource for manufacturing leaders seeking to understand the IRA’s impact and adapt their strategies accordingly. By staying informed, fostering a culture of learning, and leveraging the power of targeted marketing, manufacturers can position themselves for success in this rapidly evolving landscape.
