From equipment upgrades to new construction and expansion: the structural upheaval in US industrial capital expenditure
In February 2026, U.S. industrial manufacturing capital projects fell 5% month-over-month, but renovation and equipment upgrade projects plunged 18%, while new construction and expansion remained stable. Eli Lilly's $4 billion project led the way, with pharmaceuticals, energy equipment, and defense manufacturing becoming new growth poles. U.S. manufacturing is shifting from localized optimization to rebuilding production capacity, entering a new phase of reindustrialization.