ABM Serving as Critical Support for U.S. Semiconductor Manufacturing as Sector Grows Domestic Capacity
- ABM collaborates with semiconductor manufacturers to increase domestic capacity in the U.S.
- The company provides end-to-end solutions and specialized offerings like the Super Clean Program and HVAC/Process Exhaust Test & Balance.
- ABM serves as a strategic partner to over 10 major semiconductor companies, supporting existing and new manufacturing facilities.
- The CHIPS and Science Act of 2022 has led to substantial investments in American semiconductor manufacturing, benefiting ABM's semiconductor business.
- ABM's growth in the semiconductor market reflects its commitment to supporting clients' success and developing custom programs to meet their needs.
- The company helps semiconductor clients optimize operations and address challenges related to construction, procurement, and talent acquisition.
- ABM's collaboration with notable clients in the semiconductor industry aligns with the focus on U.S.-based manufacturing and robust supply chains.
- The semiconductor industry's growth opportunities have driven double-digit growth in ABM's semiconductor business from FY22 to FY23.
- None.
Insights
The semiconductor industry is experiencing a significant shift towards domestic expansion, driven by the CHIPS and Science Act of 2022. This legislation has catalyzed nearly $200 billion in investments, indicating a robust commitment to strengthening the U.S. semiconductor manufacturing capabilities. ABM, by providing essential facility services to these expanding companies, is positioning itself as an indispensable partner in this growth phase.
Their specialized services, such as the Super Clean Program and HVAC/Process Exhaust Test & Balance, directly address the industry's need for high-efficiency and reliable operations, which are critical in semiconductor manufacturing. The demand for such services is likely to increase as new facilities become operational and existing ones expand to meet the surge in domestic production.
For investors, ABM's growth in this sector suggests potential for revenue expansion, given the company's integration into the supply chain of a critical industry. Their focus on operational efficiency and optimization is likely to resonate with semiconductor firms seeking to maximize productivity amidst a competitive landscape.
ABM's reported double-digit growth in its semiconductor business from FY22 to FY23 is a clear indicator of the company's strong performance within the sector. This growth trajectory is supported by the CHIPS and Science Act's influence on the market, leading to increased demand for ABM's services. The Act's goal to bolster national security through domestic manufacturing has led to an influx of private and federal funding, creating a fertile environment for ABM's specialized services.
Investors should note the potential long-term benefits as ABM capitalizes on the expansion of the semiconductor industry. However, it's important to remain aware of the challenges that may arise, such as the need for continuous innovation to maintain a competitive edge and the risks associated with dependency on a single industry, despite its current growth.
Overall, ABM's strategic positioning and the current market dynamics suggest a positive outlook for the company's financial health and its stock performance, assuming the continued implementation of the CHIPS and Science Act and sustained industry growth.
Partnering with leading semiconductor companies building out their U.S. footprint due to the CHIPS and Science Act of 2022
NEW YORK, March 21, 2024 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility services, infrastructure solutions, and transportation management, is playing a vital role as the semiconductor manufacturing industry grows domestic capacity across the U.S., bolstered by the CHIPS and Science Act of 2022. Through unmatched industry expertise and comprehensive end-to-end solutions, ABM is enabling leading semiconductor companies to focus on their product, while ABM delivers all ancillary services, increasing operational efficiency and optimizing uptime.
ABM’s specialized semiconductor offerings include the Super Clean Program, a process to maximize efficiency and meet strict project timelines while minimizing labor costs, and HVAC/Process Exhaust Test & Balance, which optimizes performance through stringent calibration procedures, data integrity, quality control, and enhancing equipment longevity and reliability.
ABM is a strategic partner in the United States to more than 10 of the world’s largest semiconductor and semiconductor tool manufacturers, serving existing U.S. domiciled manufacturing plants and supporting newly constructed facilities as they prepare to come online.
“As a leading facilities solutions provider, our growth in the semiconductor market is a testament to how we serve as a strategic partner and trusted advisor to support our clients’ success and effectively develop custom programs that meet their unique and diverse needs,” said Scott Salmirs, ABM’s President and CEO. “Because of unprecedented private and federal funding, the semiconductor industry has once-in-a-lifetime domestic growth opportunities. ABM is helping our semiconductor clients optimize operations while overcoming challenges related to construction, procurement, and talent acquisition and training as they ramp up production.”
The CHIPS and Science Act of 2022 was designed to strengthen American manufacturing, supply chains, and national security. Since the Act was introduced, private companies have announced almost
“Fueled in part by the CHIPS and Science Act, this is a crucial time for the broader semiconductor manufacturing industry, and ABM is leaning into the sector and collaborating with notable clients as they expand their footprints across the U.S.,” said Ed Marcil, ABM’s President, Manufacturing & Distribution. “The prioritization of U.S.-based manufacturing and robust supply chains gives ABM an opportunity to support the semiconductor industry with our specialized programs, which will benefit both our customers and the country as a whole.”
For more information on ABM, please visit www.abm.com.
ABOUT ABM
ABM (NYSE: ABM) is one of the world’s largest providers of facility services and solutions. A driving force for a cleaner, healthier and more sustainable world, ABM provides essential services and forward-looking performance solutions that improve the spaces and places that matter most. From curbside to rooftop, ABM’s comprehensive services include janitorial, engineering, parking, electrical and lighting, energy and electric vehicle charging infrastructure, HVAC and mechanical, landscape and turf and mission critical solutions. ABM serves a wide range of industries—from commercial office buildings to universities, airports, hospitals, data centers, manufacturing plants and distribution centers, entertainment venues and more. Founded in 1909, ABM serves over 20,000 clients, with annualized revenue approaching
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