Manufacturing Sector Rises as Growth Driver in US
Dallas, Chicago, and Phoenix rank as the top metros in the U.S. for manufacturing, according to a study recently published by CommercialSearch.The comprehensive analysis of the top 100 metropolitan markets in the U.S. for industrial manufacturing space evaluated these areas based on three key indicators: manufacturing space inventory, manufacturing indicators and costs, and logistics infrastructure. In this blog, the CBC team will explore these three top manufacturing hubs, allowing investors to take a closer look at important trends in this space.
Although Dallas has been known for its thriving logistics and distribution, corporate services, healthcare, and information technology in recent years, manufacturing now plays a vital role in its successful economic backdrop, which is expected to continue for years ahead. Texas is the largest exporter of manufactured goods among all U.S. states and second only to California in factory production, according to AZ Big Media. In fact, 9.2 million square feet of manufacturing space were delivered in Dallas in the last five years alone, marking the largest expansion in the U.S., ahead of Phoenix’s 6.5 million square feet and Chicago’s 4.7 million square feet.
Chicago ranks as the second-best metro for manufacturing in the U.S. due to its vast inventory of industrial manufacturing space, as well as the infrastructure and talent to keep facilities running. The metro boasts the largest manufacturing inventory nationwide at 226.4 million square feet, which is 40 million square feet ahead of Los Angeles and 60 million square feet more than Dallas-Fort Worth. Chicago also has the second-largest workforce employed in production occupations, with nearly 287,000 such jobs in the metro. Its status as the Midwest’s foremost logistics hub is evident through the fact that Chicago has the third-most miles of roadways servicing the metro, with more than 4,800 miles. Additionally, government initiatives like Made in Chicago aim to sustain and develop the manufacturing sector’s role in the local economy, securing its position among the foremost production centers in the U.S.
Phoenix, Arizona, ranks as the third top metro for manufacturing, specializing in semiconductor factories thanks to its vast land available for development in greenfield locations. Semiconductor makers are able to find suitable sites to expand across the Valley of the Sun. The recent semiconductor sector expansion began with a $12 billion investment from Taiwan Semiconductor Company (TSMC) in 2020, followed by the start of construction on a second facility in early 2023, tripling its investment. Now, a third fabrication plant has been announced, making Phoenix one of the foremost chip manufacturing hubs in the country.
The common threads that are driving manufacturing growth in these key markets include these metros not only offer robust infrastructure and talent pools but also benefit from significant investments and government initiatives, enhancing their appeal and stability. Staying up to speed on the top manufacturing metros is crucial for investors seeking to capitalize on emerging opportunities and trends in the industrial sector. Understanding the dynamics of leading hubs like Dallas, Chicago, and Phoenix allows investors to make informed decisions, anticipate market shifts, and identify areas with strong growth potential. By staying informed, investors can strategically position themselves to maximize returns and capitalize on the continued expansion and innovation