The United States stands as a powerhouse in global manufacturing but determining the best states for manufacturing space is crucial.
With the current dip in leasing volume and an upcoming influx of over 600 million square feet about to the market, strategic location decisions are more important than ever. This presents an opportune moment to seize the perfect manufacturing space at the best price, advancing your logistics empire and securing a competitive edge in the industry.
So join us as we explore the top states that offer the strongest manufacturing markets and uncover the potential for great deals in this evolving landscape.
1. California
California serves as the primary hub for manufacturing output in the United States, with a staggering number of over 35,000 manufacturing firms and employing more than 1.2 million Californians.
Since surpassing New York in 1965, California's manufacturing sector has been instrumental in establishing new industries and supplying the global market with a wide range of products, including aerospace, computers and electronics, and more recently, zero-emission vehicles. The state continues to strengthen its manufacturing capabilities by venturing into emerging technologies, with companies spanning various sectors such as food and beverage, machinery, computer and electronics, chemicals, aerospace, and motor vehicles.
Additionally, California's strategic location, extensive transportation infrastructure, and access to global markets make it a gateway for international trade and export opportunities.
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Some of the cities with the most interest including San Diego which ranks number 5 in the nation for cities with the most manufacturing jobs. As well as Stockton which is emerging as the inland empire of northern California.
Besides location, there are almost 70+ factors that need attention when determining your best option for industrial space. Learn everything manufacturing tenants need to know in the free course.
2. Texas
The country’s largest state is also the ninth-largest economy out of the world’s nations. Its environment is characterized by business advantages, including a highly skilled workforce, booming infrastructure, reasonable regulations, incredibly low tax burdens, and a reasonable cost of living.
For an unprecedented 21 years in a row, Texas been the leading exporting state. With an impressive $203.49 billion worth of manufactured goods exports in 2020 alone, Texas continues to play a pivotal role in the global trade market.
Not only this but Texas is the source of more corporate relocations than any other state, likely because of its irrefutable reputation. It isconsistently named the “Best State for Business” by our nation’s top CEOs. Not even for three or five years, but seventeen consecutive years.
Texas also boasts numerous strong cities bursting with corporate popularity Including Austin, Dallas, San Antonio, and Houston.
Austin, in particular, is currently experiencing a surge in demand, and a major reason for this is the city's thriving manufacturing sector. Companies such as Tesla and Samsung have recently announced plans to build major manufacturing facilities in the area, leading to an influx of contracts and opportunities for suppliers, third-party logistics providers, and other ancillary manufacturers.
As these companies race to capitalize on the potential opportunities presented by these large-scale manufacturing operations, demand for industrial space in Texas is only expected to continue growing.
3. Ohio
Ohio is home to robust manufacturing system, dominating it’s work force and industrial pipeline
Of Ohio’s 20 major economic sectors, manufacturing is the largest — providing anannual payroll of $42 billion.
-Akron Beacon Journal
With manufacturers contributing 16.01% to the state's total output and employing 12.22% of the workforce, the sector plays a significant role in Ohio's economy. In 2021 alone, manufacturing output reached an impressive $114.76 billion. Additionally, Ohio's manufacturing prowess extends beyond its borders, with the state exporting approximately $50 billion worth of goods to over 200 countries and territories. These statistics highlight Ohio's manufacturing strength, making it a compelling choice for businesses in the industry.
