America's in the midst of a factory-construction boom!

In fact, according to the U.S. Census Bureau, spending on factory construction hit a high of $108 billion last year.

And this year, spending is on track to reach $141 billion. Wow.

How can we get in on this trend and position ourselves for profits?

I’ve got an idea...

Reasons Behind the Spending Boom

In a moment’ I'll reveal a powerful way to play the boom in factory construction...

It’s an investment in a company that helps clients – especially ones focused on hot markets like semiconductors and electric vehicles ("EVs") – automate their factories.

But first, let's examine what's driving the increase in new factories.

This trend boils down to two related themes:

Let's start with the pandemic. With so many products on backorder because they were made overseas, U.S. companies had a wake-up call. They realized that if they want secure, reliable supply chains, they need to make more goods at home.

Then there's the one thing our divided nation can agree on: We've become too dependent on China, a nation that now boasts the world's largest manufacturing economy!

Built in America!

Economists refer to the new “Built in America” paradigm as onshoring. This is the process of building factories and supply centers on American soil.

As an example of this, look at chip giant Intel (INTC), which operates factories worldwide. It recently broke ground on a new $20 billion chip plant in Ohio. And Micron Technology (MU) has announced plans to invest $100 billion on a gigantic factory in New York.

Furthermore, consider factories for EV and EV battery-production. Last year alone, companies ranging from hardware giants to some of the largest car manufacturers announced plans for EV or battery plants in the U.S. These plans totaled $73 billion worth of initiatives – a record that beats the prior one from 2021 three times over.

The Rise of Gigafactories

With China making about 90% of crucial battery components, this is a prime example of onshoring. By 2025, the U.S. Department of Energy lists 13 battery "gigafactories" going online in America.

Ford (F) is building one in Tennessee. It's also building two in Kentucky through a partnership with SK Innovation. This is part of its $22 billion investment into electrifying its vehicles across the board.

Notably, SK Innovation just opened a factory outside Atlanta, and is working on a sister factory, too. Meanwhile, General Motors (GM) has partnered with South Korean giant LG to open battery gigafactories in Ohio and Tennessee.

Not to be outdone, Stellantis (STLA), the parent company of Chrysler, is working with LG on a battery gigaplant, too. And rounding out the list of multi-billion-dollar investments are Toyota (TM) and Volkswagen.

Keep in mind, this list doesn't even include EV leader Tesla's (TSLA) existing and upcoming battery factories.

As you can see, billions are being invested in the U.S. on rebuilding American industry.

And one supplier is set to cash in on all this activity…

A Time-Honored Business

This firm is a global leader in industrial automation. It helps manufacturers digitally transform their operations.

With a history that dates back to 1903, this company offers manufacturing clients a comprehensive portfolio of industrial-control systems, as well as software and services to improve efficiency and increase quality.

Its advanced technologies enable businesses to connect machines, collect and analyze data, and make informed decisions to drive intelligent manufacturing.

The company sells the hardware – assembly robots, for example – that make it all happen. It also provides software to run, control, and analyze that hardware, as well as help improve the processes needed to run a modern, automated assembly line.

Last November, Ford chose this firm to provide the hardware and software that will run the assembly lines at its three upcoming EV factories. The two companies have been partners for 75 years, so this news isn't all that surprising.

But if Ford sings this company's praises, there's a good chance the other manufacturers I mentioned above – from GM to Toyota to Volkswagen – could seek its services, too...

Especially considering that as industries are "onshored" back to the U.S., they'll require high levels of precision for making chips, battery packs, and EVs.

Ready to Soar?

Admittedly, this company's earnings and sales were tepid for years, reflecting slower U.S. factory construction.

But with the renewed effort to keep manufacturing at home – and the big list of potential customers in the auto sector – things are turning around.

In fact, the company recently crushed sales and earnings estimates. In the most recent quarter, sales jumped 26%, and earnings were up 81%.

Even trimming back that earnings figure to be conservative, we'd still see earnings – and logically, the company's stock price – double in just over a year.

This is an exciting way to invest in our country's efforts to bring manufacturing back to America.

I'm sharing the details of this investment opportunity with my "Pro" readers today...

Don’t miss out on this one!

Cheers and Good Investing,

Chief Investment Officer
Trend Trader Daily

Tags: china gigafactories