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The US is entering a new era of industrial policy with a sense of urgency.
In recent years, the US has entered a pivotal phase in its industrial policy, marked by an unprecedented level of public investment and a renewed focus on economic resiliency. As global economic dynamics shift and technological competition intensifies, the need for a strategic approach to industrial policy has become increasingly critical. With over $2 trillion mobilized to enhance competitiveness across vital sectors, such as infrastructure, energy and technology, government leaders face the challenge of aligning diverse initiatives to achieve meaningful outcomes.
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Read moreThis study provides a broad analysis of the current state of the US industrial policy, emphasizing the importance of integrating public sector mandates with private sector innovation. It addresses the complexities of investment prioritization, supply chain resiliency and the strategic planning necessary to navigate the evolving landscape.
Catherine Li, Senior Director, Erika Solem-Ruckert, Senior Director, and Kat Russo, Director, from Ernst & Young LLP contributed to this article.
The US is implementing a more structured industrial policy, with over $2 trillion in public investment focused on enhancing the competitiveness in sectors like infrastructure, energy and technology. This approach addresses challenges related to global economic dynamics and supply chain vulnerabilities, particularly in light of recent geopolitical tensions. Strategic investment prioritization and supply chain resiliency are key areas of focus. While there are concerns about government intervention, proponents argue that targeted policies can effectively address market inefficiencies. A collaborative effort between the government and private sector is necessary to support domestic manufacturing and maintain supply security.
