Two industries were supposed to drive America’s future. One is booming, the other is slumping.
That’s the headline of a recent article from The Washington Post detailing the widening gulf between the AI industry and the manufacturing industry — with AI booming amidst volatility in American manufacturing investment.
But the reality here is more complicated than the headline.
Yes, manufacturing growth is slowing with new factories opening less frequently and job growth stagnating amidst tariff uncertainty (although new factories are still opening at a rate that is exponentially higher than a decade ago). And yes, at the same time, AI investment is accelerating, with trillions of dollars going into data centers, chips, cloud infrastructure, and innovation around super intelligence.
But, an AI boom does not need to be at odds with American manufacturing growth. In fact, manufacturing may be one of the most important places for AI to deliver value — yet in so many of these conversations, it is being entirely overlooked.
In the article, Mark Muro makes an incredibly important point: as a nation we may be over-indexing on AI superintelligence and under-indexing on practical applications of AI, especially in manufacturing and the rest of the physical world.
I think that is exactly right, and it directly maps to what I have seen on factory floors with Squint.
The practical application of AI in manufacturing is one of the most transformative use cases we have. And it’s already revolutioning efficiency at hundreds of factories.
We can continue to revitalize American manufacturing by broadly deploying AI to increase efficiency and spark a new kind of Industrial Revolution. One that doesn’t just require building new factories, but also makes the ones we have far more productive.
The AI boom can be the foundation for the continued boom of American manufacturing, we just have to make it happen.
Link to the full article in the comments + interested to hear others thoughts on this👇