Major tech shifts don't immediately destroy jobs. First, they create a "recruiting cycle" with high demand for labor to build the new infrastructure (e.g., car factories). These new, higher-paying jobs attract workers from old industries before those legacy sectors eventually decline.

The huge scale of AI data center construction, requiring thousands of skilled laborers in one location, creates a 'crowding out' effect. Local businesses in places like Abilene, Texas, cannot compete for labor like HVAC technicians, leading to shortages and potential inflationary pressures on regional economies.

As AI automates jobs, widespread unemployment will compel individuals to start their own small businesses to survive. This shift marks a return to self-reliance and entrepreneurship driven by necessity rather than ambition, echoing a past economic structure.

AI is rapidly automating knowledge work, making white-collar jobs precarious. In contrast, physical trades requiring dexterity and on-site problem-solving (e.g., plumbing, painting) are much harder to automate. This will increase the value and demand for skilled blue-collar professionals.

While AI firms are leasing office space now, the widespread adoption of AI will likely reduce the need for office workers across many industries. This long-term trend of job displacement is expected to create far more vacancy than the current leasing from AI companies fills.

Major technological shifts create new industries in unpredictable ways. The spreadsheet automated manual financial modeling, revealing massive inefficiencies in companies. This enabled private equity firms to acquire businesses, streamline operations using this new tool, and extract value, effectively birthing the modern PE industry.

While AI infrastructure gets the attention, a quiet industrial revival is underway. The combination of fiscal incentives, manufacturing reshoring, and better financing conditions could soon reactivate stocks in logistics, HVAC, and transport that have been in an 'ISM recession' for years.

Instead of creating a tech sector from scratch, the most effective path is to identify and invest in tech niches adjacent to a city's existing industries (e.g., Energy Tech for an oil town). This leverages existing talent, infrastructure, and supply chains, making the transition more natural and sustainable.

The primary benefit of a robust domestic manufacturing base isn't just job creation. It's the innovation that arises when diverse industries physically coexist and their technologies cross-pollinate, leading to unexpected breakthroughs and real productivity gains.