Modular Construction: Building Disaster-Resilient Infrastructure for a Changing World

Image
In an era marked by escalating climate challenges and rapid urban growth, the demand for resilient, efficient, and sustainable infrastructure has never been greater. From hurricanes battering coastal cities to wildfires threatening urban fringes, natural disasters are testing the limits of traditional construction methods. As civil and structural engineers, we are at the forefront of reimagining how we design and build to meet these challenges. One solution gaining traction is modular construction—a game-changing approach that combines speed, precision, and adaptability to create disaster-resilient infrastructure. What Is Modular Construction? Modular construction involves prefabricating building components in a controlled factory environment, then assembling them on-site like high-tech building blocks. Unlike traditional construction, which relies heavily on on-site labor and is vulnerable to weather delays, modular methods streamline the process. Components—whether entire room units,...
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Foreign Direct Investment in the United States Since Trump’s Second Term: Opportunities and Impacts

 

 

Since President Donald J. Trump took office on January 20, 2025, for his second term, the United States has witnessed a surge in foreign direct investment (FDI) commitments, driven by policies aimed at revitalizing American industry and reinforcing economic security. This article examines the scale of FDI commitments, the timelines for fund remittance, the anticipated start of construction for new factories and data centers, and the economic implications for the U.S. construction industry.

Scale of FDI Commitments Since January 2025

In the brief period since Trump’s inauguration, the administration has reported securing over $3 trillion in private investment commitments, with a significant portion attributed to FDI. Notable announcements include:

Taiwan Semiconductor Manufacturing Company (TSMC): A $100 billion investment in Arizona for five semiconductor fabrication facilities, bringing TSMC’s total U.S. investment to $165 billion, the largest FDI in U.S. history.

Softbank, OpenAI, and Oracle: A $500 billion private investment in U.S.-based artificial intelligence (AI) infrastructure, led by Japan-based Softbank.

Apple and NVIDIA: Each committed $500 billion to U.S. manufacturing and AI infrastructure, respectively.

Roche: A Swiss pharmaceutical company pledged $50 billion for manufacturing and R&D, expected to create over 1,000 direct jobs and 12,000 indirect jobs, including construction.

Hyundai: A $21 billion investment, including $5.8 billion for a new steel plant in Louisiana.

United Arab Emirates-based ADQ and Energy Capital Partners: A $25 billion investment in U.S. data centers and energy infrastructure.

Preliminary data from fDi Markets indicates that in January and February 2025 alone, 326 greenfield FDI projects valued at over $38 billion were announced, marking historically high project numbers. These commitments align with Trump’s “America First” investment policy, which streamlines regulations for allied nations while imposing stricter scrutiny on adversaries like China.

While the $3 trillion figure is ambitious, it includes both domestic and foreign investments, and not all commitments may materialize. For context, total FDI inflows in 2023 were $311 billion, with greenfield investments at $8.1 billion in 2022. The current wave of pledges suggests a significant uptick, driven by tariffs, tax incentives, and the United States Investment Accelerator, established to cut bureaucratic red tape.

Timeline for Fund Remittance

The remittance of FDI funds varies by project and investor. Large-scale investments, such as TSMC’s $100 billion commitment, are typically disbursed over several years. TSMC’s Arizona project, for instance, is part of a multi-phase development, with funds allocated as construction milestones are met. Similarly, Softbank’s $500 billion AI infrastructure investment is likely to be spread over multiple years, contingent on regulatory approvals and site preparations.

According to industry experts, greenfield FDI projects often see initial disbursements within 6–18 months of announcement, with full remittance occurring over 3–10 years, depending on project scope. For example, Roche’s $50 billion investment includes both immediate R&D funding and longer-term manufacturing facility construction, suggesting a phased remittance starting in 2025. However, Trump’s tariff policies, including a 25% increase on imports from Mexico and Canada and a 10% hike on Chinese goods, may accelerate fund inflows as companies shift operations to the U.S. to avoid tariffs.

Construction Start Dates for Factories and Data Centers

Construction timelines for the first wave of factories and data centers depend on permitting, site selection, and environmental reviews. Based on announced projects:

TSMC’s Arizona Facilities: Construction on some TSMC facilities is already underway, with additional fabrication plants expected to break ground in 2025–2026, given the project’s advanced planning stage.

Data Centers (ADQ, DAMAC Properties): The $25 billion and $20 billion investments in data centers are likely to see construction starts in late 2025 or early 2026, as data center projects typically require 12–24 months for site preparation and permitting.

AI Infrastructure (Softbank, NVIDIA): These projects, tied to AI supercomputers and infrastructure, may begin construction in 2026, as they involve complex technological and energy requirements.

Manufacturing Facilities (Roche, Hyundai): Roche’s manufacturing plants and Hyundai’s Louisiana steel plant are projected to initiate construction in 2025–2027, with some sites potentially starting as early as mid-2025 if regulatory processes are expedited.

The United States Investment Accelerator is designed to streamline these processes, potentially shortening timelines by reducing bureaucratic delays. However, challenges such as labor shortages and higher input costs due to tariffs could delay some projects.

Impact on the Construction Industry

The influx of FDI commitments promises substantial economic benefits for the U.S. construction industry. The announced projects, particularly in semiconductors, AI infrastructure, data centers, and manufacturing, are capital-intensive and construction-heavy. Key impacts include:

Economic Value: The $3 trillion in total investment commitments, if fully realized, could translate to hundreds of billions in construction contracts. For instance, TSMC’s $165 billion investment in Arizona is expected to create thousands of construction jobs over multiple years. Roche’s $50 billion investment alone is projected to generate over 12,000 jobs, many in construction.

Sector-Specific Growth: Non-residential construction, including industrial and commercial projects, will see significant growth. The Oxford Economics report notes that short-term fiscal stimulus under Trump’s policies will boost non-residential construction, though long-term risks like tariffs and immigration cuts could raise costs.

Job Creation: Greenfield FDI projects in 2023 supported 51,300 direct jobs, 78% in manufacturing, with construction jobs comprising a significant portion. The 2025 projects, with higher capital expenditure, could create tens of thousands of construction jobs annually through 2030.

Challenges: Tariffs on inputs like lumber and steel may increase construction costs by 10–20%, potentially squeezing margins or raising project budgets. Immigration restrictions could exacerbate labor shortages, with net migration projected to fall to 800,000 per year by mid-2025, impacting labor-intensive construction work.

Conclusion

The United States is experiencing a historic wave of FDI commitments since President Trump’s second term began, with over $3 trillion in pledged investments, including major FDI from TSMC, Softbank, and Roche. While funds will be remitted over several years, initial disbursements are expected within 6–18 months, with construction on factories and data centers likely starting in 2025–2026. The construction industry stands to gain significantly, with billions in contracts and thousands of jobs, though challenges like tariffs and labor shortages loom. Trump’s policies, including the United States Investment Accelerator and tariff strategies, are driving this investment boom, positioning the U.S. as a global hub for advanced manufacturing and technology—if the momentum can be sustained.

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