Caterpillar, Ultium, Genentech and Avio Commit $3.25 Billion to New U.S. Plants

Four manufacturers announced plant investments totaling about $3.25 billion in the final days of September, spanning construction equipment, batteries, pharmaceuticals and defense. Caterpillar and Ultium Cells each committed about $1 billion, Genentech broke ground on a $750 million expansion, and Avio USA broke ground on a $500 million rocket motor plant, according to a roundup published October 2 by Manufacturing Dive Manufacturing Dive.

The announcements arrive while manufacturing construction spending overall is running well below last year's pace. They show where owners are still committing capital: products with clear demand, retooling of existing plants, and federally supported defense and pharmaceutical capacity.

What Happened

Caterpillar: Sanford, North Carolina

Caterpillar said on September 30 that it will invest about $1 billion in Sanford, North Carolina to expand manufacturing capacity for compact track loaders and telehandlers Caterpillar. The company said the facility will use advanced manufacturing technologies, automation, digital production systems and integrated logistics Caterpillar.

Rod Shurman, group president of Caterpillar Construction Industries, said, "As demand for compact equipment continues to increase, we're investing to better serve this growing segment of customers" Caterpillar. The announcement does not give a building size, job count or construction schedule.

Ultium Cells: Spring Hill, Tennessee

Ultium Cells will invest an additional $1 billion in its Spring Hill, Tennessee battery plant to produce prismatic lithium manganese-rich cells, according to the Tennessee Department of Economic and Community Development TNECD. Facility modifications are scheduled to begin in late 2026 and finish in 2028 TNECD. Manufacturing Dive reported the project is tied to 500 jobs Manufacturing Dive.

This is a retooling of an existing plant, not a new building. The state said the site will be the first in the world to mass produce this type of cell, which it said offers 33 percent greater energy density than lithium iron phosphate cells at comparable cost TNECD.

Genentech: Hillsboro, Oregon

Genentech broke ground on September 28 on a $750 million expansion of its Hillsboro, Oregon campus Genentech. The company reported these details:

• 211,000 square feet of new space, doubling the size of the existing site.
• Device fill-finish capability for oncology, neurology and immunology medicines.
• About 250 permanent manufacturing jobs and about 200 construction jobs.
• Commercial operations beginning in 2031.

All four items are from the company's announcement Genentech. The gap between a 2026 groundbreaking and a 2031 start of commercial operations reflects the commissioning, qualification and validation time that sterile pharmaceutical facilities need after construction is finished.

Avio USA: Hurt, Virginia

Avio USA broke ground on September 29 on a solid rocket motor plant of about 900,000 square feet at the Southern Virginia Multimodal Park in Hurt, Virginia Lockheed Martin. Construction is expected to finish in late 2028, with production beginning in early 2029 Lockheed Martin. HITT Contracting is the general contractor Lockheed Martin.

The plant is expected to create roughly 1,500 jobs Lockheed Martin. Manufacturing Dive put the investment at $500 million and reported the project is eligible for up to $97.7 million in state incentives Manufacturing Dive. James Syring, chief executive of Avio USA, said, "Avio USA is building more than a manufacturing facility in Virginia" Lockheed Martin.

Implications for Owners, Developers, Contractors and Subs

• Owners: Three of the four projects build on sites or communities where the company already operates. Expanding or retooling an existing plant shortens site selection and permitting, and it is the path most manufacturers are choosing while costs and trade policy stay uncertain.
• Industrial contractors: The work is specialized. Clean fill-finish suites, battery cell lines and energetic materials handling each carry their own code, safety and commissioning requirements, and owners are selecting builders with direct experience.
• Subs: Process piping, electrical, controls and clean room trades carry most of the value on projects like these. Schedules that run two to five years give those trades long backlogs but also long exposure to material price changes.
• Suppliers and equipment users: Caterpillar's investment is aimed at compact track loaders and telehandlers, two machines found on nearly every building site. More domestic capacity could ease lead times for contractors and rental fleets, though the company has not given a production date.

What to Watch

• Caterpillar's construction schedule, building size and hiring plans in Sanford.
• The start of facility modifications at Spring Hill in late 2026 TNECD.
• Progress toward Avio's late 2028 construction completion in Virginia.
• Whether manufacturing construction spending, which has been falling, starts to reflect this new round of announcements.

Bottom Line

About $3.25 billion in plant investment was announced across four states in a single week Manufacturing Dive. The projects favor existing sites, specialized processes and long schedules, which is where industrial construction demand is holding up best.

Image credit: Caterpillar Inc. Image from the source article.

Sources

• Manufacturing Dive, Caterpillar and Ultium Cells make $1B facility investments: https://www.manufacturingdive.com/news/caterpillar-ultium-cells-1b-facility-investments-avio-usa-genentech/831996/
• Caterpillar, Caterpillar to Invest $1 Billion in North Carolina to Expand Cat Compact Manufacturing Capacity: https://investors.caterpillar.com/news/news-details/2026/Caterpillar-to-Invest-1-Billion-in-North-Carolina-to-Expand-Cat-Compact-Manufacturing-Capacity/default.aspx
• Tennessee Department of Economic and Community Development, Ultium Cells to Invest Additional $1 Billion in Spring Hill: https://tnecd.com/news/ultium-cells-to-invest-additional-1-billion-in-spring-hill/
• Genentech, Genentech Breaks Ground on $750 Million Manufacturing Expansion in Hillsboro: https://www.gene.com/media/press-releases/15129/2026-09-28/genentech-breaks-ground-on-750-million-m
• Lockheed Martin, Avio USA Breaks Ground in Virginia on First U.S. Solid Rocket Motor Facility: https://news.lockheedmartin.com/2026-09-29-Avio-USA-Breaks-Ground-in-Virginia-on-First-US-Solid-Rocket-Motor-Facility-Strengthening-Defense-Supply-Chain-and-Creating-Over-1000-Jobs