The US boasts a strong manufacturing tradition, with many cities built around just industries, but in recent decades the so-called US manufacturing decline has become a big political issue, with many politicians elected on the promise of reversing this malaise.
It would be wrong to write off the industry in the US, however, with many states and cities demonstrating that through expertise and innovation, manufacturing can still thrive. Among these states are Texas, California and Ohio.
With $2trn recorded in 2021, Texas boasts the second-largest GDP in the US, bettered only by California. Again, second only to California, Texas is the second largest manufacturing state in the US too.
Economic prosperity driving manufacturing business in Texas
With a fiercely pro-business climate, agreeable weather, and access to venture capital to attract the attention of entrepreneurs, more and more start-ups are embracing the advantages of setting up shop in Texas.
As of 2023, more than 1.2 million workers are employed in the manufacturing sector in Texas, which accounts for around 13% of the workforce in the nationwide industry.
In terms of the manufacturing output, Texas is responsible for approximately 10% of national manufacturing production.
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With this proportion of the industry already part of the business infrastructure of the state, it is certainly a consideration when it comes to selecting the best place to start a manufacturing business in the US.
Its diverse and evolving industrial and corporate landscape means that Texas is often considered one of the most attractive locations in the US to start or expand a business. As home to numerous Fortune 500 companies, Texas continues to thrive as an economic hub for both manufacturing and many other industries.
When it comes to cities across Texas, Houston is one of the most important in the manufacturing industry. As of 2022, there were about 3500 manufacturing companies in the state, with a total employee rollcall of around 250,000.
When business investors and entrepreneurs are looking for the best place to start a manufacturing business, this kind of industry prosperity and established success in the sector is an attractive proposition.
Beyond its history of oil and gas production, Houston has emerged as a major player in the manufacturing industry, with start-ups and expansions continuing to grow in number.
Californian manufacturing growth encouraging new business ventures
With a population of just under 40 million, California is the most populous state in the US and the third largest by area. As an economic powerhouse, it boasts a diverse economy and a strong tradition of start-ups in many different industries.
Since 2016, prior to which Texas sat atop the league, California has been the leading IW US 500 manufacturing state.
In total, manufacturers across the state contributed about $881bn a year to the state GDP, showcasing both fiscal growth and why it is seen as a leading place to set up manufacturing operations in the US.
Setting up a manufacturing business in California delivers potential access to multiple industries and leading companies that rely on the sector.
As the centre of the tech industry in the US, Silicon Valley has accelerated both the output and the growth that manufacturing has enjoyed in California.
Ohio manufacturing sector encouraging further investments
As the seventh most populous state in the US, Ohio boasts a strong economy in many sectors and a skilled workforce across many industries. One of the sectors experiencing rapid expansion is manufacturing.
As recently as 2020, the gross state product of Ohio was recorded at $675bn in 2020, and not only is the state the seventh-largest economy in the country, it also ranks highly in terms of manufacturing.
With a regulatory system in Ohio that offers an economically propitious environment for new enterprises, starting a new business in the state can be an attractive proposition.
According to a recent report, Ohio ranks 15th in the US for doing business, whether a start-up or an expanding company.
When looking for the best place to start a manufacturing business, this kind of tax incentive is something that companies and potential investors see as a positive.
Considering its strong, existing and burgeoning manufacturing sector, the skilled workforce pool and its position as the third largest for economic output and jobs in the sector, setting up a manufacturing business in Ohio is clearly a viable option.
Information and Data from Global Business Alliance, ARTEXREDI, US Data and Statistics, Texas Business, Arkansas Dept. Of Commerce, City of Houston, Ohio Chamber of Commerce, California Chamber of Commerce