The U.S. economy is now navigating not one but two industrial revolutions. The first was catalyzed by digital technology, wireless broadband, and now generative AI. The second is being fueled by massive public and private investments spanning infrastructure upgrades, the net-zero transition, and a domestic reshoring of advanced manufacturing from computer chips to electric vehicles and batteries.
Media and policymakers alike are focused on the location and investment decisions of large companies. However, the revolution is not just about big companies like Intel or Siemens–it’s also about thousands of small and medium-sized enterprises that supply goods and services to the government or major firms receiving government contracts or subsidies. This is the promise and challenge of what has been labeled the “new procurement economy.”
