Unless you’ve been living under a rock, you already know that America is looking to rapidly reshore manufacturing and reindustrialize our economy.

For this is an area where my money can step into Alpha. Sure, I have to work hard, this is not easy or free government subsidies.

But there’s one thing in US Manufacturing that I love more than anything else:

HUGE DEMAND / LIMITED DOMESTIC SUPPLY

Construction spending related to manufacturing reached $108 billion in 2022, the highest annual total on record – more than was spent to build schools, healthcare centers or office buildings.

New factories are rising in urban cores and rural fields, desert flats and surf towns... with much of the growth coming in the high-tech fields of electric-vehicle batteries and semiconductors, national priorities backed by billions of dollars in government incentives.

That’s why it's no surprise to see investors and entrepreneurs flocking to the American Manufacturing Boom.

And if you’ve ever thought you yourself – “Hey, I wonder how I could make money on all these factories that are being built,” chances are, you’ve heard all about semiconductor factories, electric vehicle factories, and battery factories.

But here’s the “Made in America” story you haven’t heard:

We all know that hundreds of billions of dollars are being invested into defense, energy, and critical infrastructure.

Although these deals may sound exciting and lucrative… because they require vast sums o f capital and experience working with the government, they’re much better suited for institutional investors, and not suited for small balance investors seeking wealth creation opportunities.

At this event, we’ll explore why we believe the single biggest opportunities to profit from the American Manufacturing boom lie in consumer products that require flexibility to respond to ever changing consumer demands.

But here’s the problem with investing in domestic manufacturing of these traditional consumer goods – will consumers be willing to pay more money for American Made products?

Outside of patriotism, there is no reason to buy something that is more expensive that doesn’t provide better quality or utility, relative to its cost.

Cheap, low quality items are often cheaper to buy and replace than expensive goods built to last… especially when you consider the time value of money, rising interest rates, inflation, and the pace of technological innovation / obsolescence.

Short of outright embargos, the only way to wean people off of cheaper foreign products is to either impose tariffs on imported goods (or subsidies on domestic goods) to remove the price advantage…

Or produce domestically a product that delivers better quality – at faster delivery times – that makes up the price difference.

This dilemma is known as the Iron Triangle.

The general concept is that you can pick two of the three when making goods and services: Good. Fast. Cheap.

While it has long been believed that accomplishing all three isn't possible…

To manufacturing industry outsiders, solving the famous Iron Triangle in America looks impossible because of our high “Cost of Doing Business”...

But manufacturing finance insiders understand and invest on the basis of TWO cost factors: High Primary Costs, but low Secondary Costs.

It's no surprise that the primary costs in the US – which include compensation, real estate, utilities, taxes, and interest rates – are among the highest in the world.

The United States ranks 14th - near the bottom of the industrialized world - on primary costs. In general, you’d have to go to Switzerland, Brazil, or Japan to find higher costs than California, Texas, New York, etc.

For most corporations who consider building factories, they are typically ONLY considering the primary costs in an effort to “save money and get tax credits.”

That’s why many companies have historically decided to offshore manufacturing – they wanted it to be cheap, and to take advantage of lax labor laws and environmental protection in other countries.

For this reason, many of the companies who are looking to “reshore” or “friendshore” are looking for those same criteria domestically.

That’s why it’s no surprise to see the Manufacturing Boom largely take place in non-union states, typically in Republican controlled districts.

But tax incentives can vanish, environmental regulations can change, and whatever “math” you used on the front end could all blow up in your face.

That's why experienced operators who’ve run real manufacturing facilities know the REAL costs don't happen up front; it’s all the secondary costs that happen over the lifecycle of the asset.

Secondary Costs refer to factors that impact overhead costs and the facility’s ability to operate efficiently. This includes things like quality of labor, ease of doing business, infrastructure, and risk and protections.

While the United States ranks near the bottom in terms of primary costs…

When it comes to secondary costs, there’s no better place than America.

That’s why the most successful manufacturers in the country focus on recruiting the very best talent in the market, and delivering high quality “Made in America” goods that become market leaders.