Despite huge investment incentives from the federal government, US manufacturing output has been in a slump over the past several quarters. There is growing evidence, however, that a turnaround is coming — which would be good news for an economy that has been gradually and unmistakably slowing down.

The revival of US manufacturing is at the center of President Joe Biden’s economic agenda. Until now, most of the attention has focused on investment in the manufacturing sector — that is, the building of new factories.