MT Magazine January/February 2026

JANUARY/FEBRUARY 2026

FEATURE STORY

21

ENERGY

Defense U.S. defense spending remains robust, with the budget for fiscal year 2026 exceeding $1 trillion. Spending levels are now approaching their post-World War II peak, seen at the end of the George W. Bush administration. Priorities include missile defense (i.e., the Golden Dome), shipbuilding, and nuclear modernization, all of which support demand for precision manufacturing and advanced materials. Global defense spending is also rising as countries in NATO boost their spending to meet agreed-upon defense levels. The sector stands out as a bright spot for manufacturers, where they can find strong demand for their products.

DEFENSE

Energy The Gulf Coast is emerging as a hub for low-carbon manufacturing, driven by decarbonization mandates and rising electricity demand. Investments in electric vehicles, heat pumps, artificial intelligence, and data centers are fueling a new era of energy consumption. Electricity demand is expected to increase, but probably less than clickbait headlines suggest, as the energy efficiency of new products is improving. U.S. energy exports are expected to grow, positioning the region as a global supplier of power and fuel. Renewables will likely continue to grow market share, but perhaps more slowly than anticipated due to tax credit and policy changes.