10 States That Dominated 2022 With Manufacturing Growth

Those paying attention to the ISM^® Report On Business^® Manufacturing PMI^® in 2022 have noted the slow pullback of the industry over the last 12 months. Manufacturing headwinds have had a broad impact across all fields of manufacturing, forcing many producers to become conservative in their projections for the year ahead.

Nevertheless, there are pockets of optimism amidst the pullback. In fact, several states have reported strong manufacturing performance during the past 24 months, sparking hopefulness about America’s domestic manufacturing future. Some of the states that have expanded production this year despite numerous challenges include:

1. California. Manufacturing is growing in California, especially in San Francisco’s East Bay. The Oakland-Hayward-Berkeley area has experienced a 22% increase in manufacturing jobs since 2012, and San Diego is close behind. The tech industry is driving these results — as Silicon Valley continues to thrive, they’re turning to local manufacturing facilities for convenience.
2. Florida. Business is booming in Florida, thanks in part to a massive population influx during the pandemic. In the Orlando and Miami metro areas, aerospace and pharmaceutical manufacturers are thriving. Florida’s manufacturing-friendly economic policies are set to spur further growth in 2023 and beyond.
3. Texas. With more than 880,000 industrial jobs across the state, Texas is a powerhouse for manufacturing. While the Houston metro area is declining in terms of manufacturing jobs, other parts of the state are offsetting the shortfall and taking advantage of Texas’ business-friendly policies.
4. Ohio. In 2021, Ohio’s manufacturing GDP ranked the state as #4 among all 50 states. Not only is this stalwart Rust Belt state a leading producer of automobiles and steel; it’s also well known for its electrical equipment and appliance manufacturers.
5. Michigan. The manufacturing space in Michigan is dominated by the automakers in Detroit, but other areas of the state are seeing an increase in activity as well. Grand Rapids, in particular, is home to thousands of small manufacturing companies. State leaders can improve the manufacturing climate even further by passing business-friendly policies.
6. Wisconsin. Wisconsin is home to nearly a half-million manufacturing jobs, and the industry is growing by the day. Much of the activity is centered in the Milwaukee area, but other regions, like Madison and Oshkosh, are seeing increases in manufacturing jobs as well.
7. Indiana. Manufacturing centers are spread throughout Indiana, from Elkhart and Goshen to Kokomo. The pharmaceutical and medical manufacturing sector are especially prolific, bringing highly skilled jobs to the state.
8. Illinois. The manufacturing space employs nearly 1 in 10 working Illinoisans. The state is home to companies ranging from chemicals and machinery producers to fabricated metal products and more.
9. Pennsylvania. Manufacturing is growing in Pennsylvania, with the industry accounting for more than 11% of the total output of the state in 2020. Chemicals, fabricated metal products, and petroleum and coal products are the biggest industries in the Pennsylvania manufacturing sector.
10. North Carolina. Manufacturing makes up a significant part of North Carolina’s economy, accounting for more than 17% of the total output of the state in 2020, a figure that’s grown significantly since 2016.

The states above are leading the charge in manufacturing growth, representing a wide range of capabilities when it comes to production and innovation. As demand for American-made products is set to soar, other regions of the country can take advantage of the increased opportunity by creating policies and supporting initiatives to bring domestic manufacturing back to American shores.