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The proposed American Jobs Plan, which includes a national Clean Energy Standard, aims to spur grid decarbonization and transportation electrification. In doing so it should grow advanced energy manufacturing in the U.S. This study, produced by Guidehouse Insights for AEE, examines four questions to explore the nature and magnitude of that impact on domestic manufacturing, the U.S. economy, and American jobs:

  1. What is the current state of domestic advanced energy manufacturing, and how does it affect the U.S. economy today and into the future?

  2.  What effects would implementation of Clean Energy Standard have on domestic advanced energy manufacturing?

  3. What effects would federal investment in advanced energy infrastructure, akin to the American Jobs Plan, have on domestic advanced energy manufacturing?

  4. If the percentage of domestic production were raised for specific advanced energy technologies, what would the impact be on the U.S. economy?

    What did we find? See Key Take-Aways below.

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Key Take-Aways

  • As of 2020, Advanced Energy generated $240B in U.S. Revenue, according to AEE’s latest Market Report. For the purpose of this analysis, we examined a subset of advanced energy technologies (AETs) to explore their role in the US manufacturing sector and the impact of potential federal policies.

  • The AETs examined in this report generate $61.2B in direct business sales, of which domestically produced units account for over two-thirds of market share. Most of the AETs analyze herein have more than 55% of their units produced in the US, comprising a $41.6B domestic market that contributes to the economy.

  •  The supply chain business sales for AETs in 2020 is $96.6B, contributing $38.5B in GDP and 288,800 jobs.

  • Under a business-as-usual scenario, the market for AETs is expected to grow two-fold, from $41.6B of direct business sales of domestically produced units in 2020, to $85.8B in 2025.

  • With the introduction of a Clean Energy Standard, the market for AETs could triple in size, from $41.6B of direct business sales of domestically produced units in 2020, to $122.9B in 2025.

  • The American Jobs Plan estimates an expenditure on AETs of $408B, of which $293B could be used for the purchase of domestically manufactured units. The American Jobs Plan boosts the sector by contributing an additional $51.5B GDP and 361,000 jobs to the economy each year for five years.

  • Increasing the domestic production of Smart Grid Communications Devices and DG Solar raises per-unit costs by 4.6% and 4.2%, respectively, which translates to a $1B cost premium, while creating an additional $8.7B in GDP and 56,000 jobs per year.

  • If proposed policies are implemented, the advanced energy manufacturing sector could grow 365% in five years, creating nearly 1 million additional jobs.


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