Unpacking America's Manufacturing Powerhouses: Explore the Top 10 U.S. Manufacturing States

The rhythm of machinery, the hum of assembly lines, and the innovation pouring from research labs across America—this is the chorus of the U.S. manufacturing sector, an enduring pillar of economic strength for the United States. This industry is not just a backbone for the national economy; it’s a global contender for industrial excellence. With manufacturing contributing $2.9 trillion to the U.S. GDP in 2023, claiming 12% of the country’s economic output, it becomes evident why understanding this sector is crucial for economic analysts, business owners, entrepreneurs, manufacturers and everyday Americans.

In this blog, we will explore the landscape of U.S. manufacturing, focusing on the states leading the charge. From employment numbers to economic impact, we’ll unpack what makes these states industrial powerhouses. The hope of this blog is to highlight the importance manufacturing has on the economy, our country and individual states. We will also compare the top 10 states in terms of GDP (Gross Domestic Product) and which of those states are in the top 10 for most manufacturing jobs. More often than not, a strong manufacturing sector leads to a strong local economy, healthy wages and vibrant communities. The hope is that Apollo can not only put a spotlight on manufacturing, but point to the importance of supporting American-made businesses and products. Let's take a look!

Table of Contents

1. Introduction to U.S. Manufacturing
2. The Economic Impact of Manufacturing
3. Methodology for Ranking the States
4. Top 10 Manufacturing States by GDP
5. State-by-State Analysis
6. Manufacturing Employment Statistics
7. Comparative Analysis of GDP vs. Employment
8. Regional Trends in Manufacturing
9. Challenges and Opportunities in the Sector
10. The Future of American Manufacturing

Understanding the U.S. Manufacturing Giant

The American manufacturing sector is a titan in the global economy. It's responsible for a staggering 20% of U.S. capital investment and 60% of national exports. The sector’s influence extends beyond borders, as it also accounts for 70% of business R&D, driving innovation and technological advancement. In terms of value added, the U.S. manufacturing sector proudly stands as the second largest in the world, only behind China. Maybe that ranking can change over the next 10-15 years?

Let's take a look at the top 10 states in America that are leading the way with the number of manufacturing jobs.

Mapping the Manufacturing Terrain by State

A detailed analysis of the top U.S. manufacturing states reveals fascinating insights into regional economic dynamics. By examining the manufacturing activity of each state, we can begin to see the correlation of economic growth and a deep manufacturing base. Let's start with this chart which shows the top 10 states in terms of the number of manufacturing jobs that they have. These numbers are from 2023 since we don't have complete data yet from 2024.

The top states—California, Texas, Ohio, Illinois, and Michigan—dominate in terms of manufacturing employment. Each state offers unique contributions to the sector, driven by state-specific resources, policies, and industrial strengths. There are many historic trends that can be looked at to see what geographical and political decisions of the past encouraged manufacturing, but to keep this blog somewhat short, we will make that a separate blog in the future. Now that we know the top 10 states in terms of the number of manufacturing companies and jobs, let's see which states rank in the top 10 in terms of GDP (Gross Domestic Product).

As of 2023, here are the top ten U.S. states based on Gross Domestic Product (GDP):

1. California: $3.6 trillion
2. Texas: $2.4 trillion
3. New York: $2.0 trillion
4. Florida: $1.4 trillion
5. Illinois: $1.0 trillion
6. Pennsylvania: $900 billion
7. Ohio: $800 billion
8. Georgia: $800 billion
9. North Carolina: $800 billion
10. Michigan: $600 billion

Guess what 8 of these states have in common? They are also ranked top 10 for most manufacturing jobs. For your convenience, the states that are in the top 10 for GDP size and number of manufacturing jobs have been underlined. Yes, America has a vast service based industry, which contributes much to the GDP. But, one cannot argue the economic influence and importance manufacturing has on our country and states. Imagine if each state was able to increase its manufacturing base and what that would mean for the greater economy, wage growth and national resilience. Now that we see the bigger picture, let's take a brief look at some key stats for each of these states.

About the Top 10 U.S. Manufacturing States

1. California

As the largest manufacturing state in the nation, California stands out with its extensive network of 22,255 manufacturers employing 1,350,085 workers. Renowned as a hub for innovation, California's industrial strength lies in its electronics sector, hosting heavyweights like Tesla (although Tesla will be moving to Texas), Raytheon, Northrop Grumman, and General Atomics. The industry's growth is fueled by a highly educated workforce and a wealth of financial resources, allowing for sustained advances in electronics and maintaining significant operations in food processing and machinery. Data from the National Association of Manufacturers indicates that in 2021, California contributed $394.83 billion to the state's manufacturing output, which equaled 12.32% of California's total output and 7.57% of its workforce. Also leading nationally in manufactured goods exports, California exported products worth $134 billion in 2020.

2. Texas

Securing its place as a manufacturing powerhouse, Texas supports 17,169 manufacturers and 1,101,992 workers, highlighting the state’s prominence in industrial machinery, fabricated metals, and food processing. Home to manufacturing giants like Lockheed Martin, L3Harris, and electronics leader Apple, Texas thrives in its diverse industrial base. The city of Houston, in particular, is a significant contributor, boasting the highest number of manufacturing jobs in any U.S. city. For 22 consecutive years, Texas has held the title of the top state for exports, achieving $444 billion in manufactured goods exports in 2023.

Texas's robust manufacturing landscape is driven by its strategic geographical location, strong infrastructure, and business-friendly policies, which attract both domestic and international investment. The state's logistical advantages include extensive road, rail, and port networks that facilitate efficient movement of goods, underscoring its pivotal role in both national and global supply chains. Texas's energy resources are another cornerstone of its manufacturing sector, providing affordable power essential for energy-intensive manufacturing industries. The state continues to innovate, with significant investments being made in advanced manufacturing technologies such as automation and AI. If all of that was not enough, the state government actively supports workforce development initiatives, maintaining a skilled labor pool to meet the evolving demands of high-tech manufacturing. With diverse sectors ranging from petrochemicals and aerospace to electronics, Texas remains a dynamic and vital part of the U.S. economy, continually adapting to the challenges and opportunities of the modern industrial landscape.

3. Ohio

Ranking third with 14,432 manufacturers and 861,080 employees, Ohio excels in the production of industrial machinery, fabricated metals, and transportation equipment. Known for its significant export activity, Ohio ranks as the ninth-largest exporter in the U.S., with manufactured goods exports totaling $52.3 billion in 2023. Significant employers include GE Aviation Systems and Whirlpool, alongside an expansive Honda plant in Marysville.

Ohio's manufacturing prowess extends beyond these sectors, encompassing other industries such as plastics, rubber products, and chemicals. This versatility provides a solid foundation for continuous economic growth and innovation. Ohio's central location and robust infrastructure network—featuring extensive roadways and railroads—facilitate efficient distribution of goods both domestically and internationally. With a rich industrial history and a commitment to innovation, Ohio continues to play a pivotal role in shaping the future of American manufacturing.

4. Illinois

The manufacturing sector in Illinois thrives with 13,975 manufacturers employing 722,894 individuals, showcasing the state’s commitment to nurturing a skilled workforce and fostering innovation. This commitment has attracted electric vehicle enterprises, which have recently established or expanded facilities within state borders. Dominating the automotive, food processing, and industrial machinery industries, prominent Illinois manufacturers include Ford, Caterpillar, and Tyson Foods.

In addition to its industrial diversity, Illinois benefits from its strategic location and infrastructure, bolstering its manufacturing competitiveness. The state's access to key waterways, extensive rail networks, and well-connected highways makes it a major hub for logistics and distribution, facilitating efficient movement of goods across the nation and to international markets. For anyone that has driven on 80/94 before will understand how many goods are transported in and out of Chicago. This logistical advantage is complemented by Illinois' access to abundant resources such as skilled labor and robust educational institutions that support workforce development initiatives essential for manufacturing success. With a rich history of industrial achievements and a steadfast dedication to progress, Illinois stands as a pivotal player in the future of U.S. manufacturing. It will be interesting to see how they continue to support growth in the manufacturing sector as Illinois has not kept up with neighboring states regarding manufacturing growth.

5. Michigan

Respected for its automotive legacy, Michigan stands fifth with 11,863 manufacturers employing 704,502 workers. Historically known as the heart of America's automotive industry, Michigan continues to be a major player with companies like General Motors, Ford, and Stellantis headquartered in the state. These industry giants are pivotal not only for their economic contributions but also for their innovation in electric vehicles (EVs) and autonomous technology, pushing the state to the forefront of automotive advancements.

In recent years, Michigan has been strategically diversifying its manufacturing landscape, particularly in semiconductor and EV battery production—a pertinent development as global demand for electric vehicles steadily increases. This shift is supported by substantial state and federal investments aimed at fostering innovation and sustainability within manufacturing processes. The construction of new battery plants and expanded research facilities further highlight Michigan's adaptability and forward-thinking approach in maintaining its competitive edge.

6. Pennsylvania

Ranking sixth, Pennsylvania houses 13,005 manufacturers and 693,521 workers. Excelling in industrial machinery, food processing, pharmaceuticals, and defense, the state is home to giants like Sanofi Pasteur, Boeing Defense, and Westinghouse Electric.

While Pennsylvania is celebrated for its manufacturing prowess across various sectors, the state's strategic location, highly skilled workforce, and robust infrastructure equally contribute to its industrial growth. The state leverages its proximity to major U.S. cities and ports, facilitating efficient distribution and export of goods. Education and training programs in Pennsylvania are tailored to meet the needs of manufacturing industries, ensuring a steady pipeline of skilled workers. For instance, partnerships between companies and educational institutions result in programs focused on advanced manufacturing techniques and technologies. Furthermore, Pennsylvania's commitment to innovation and sustainability is highlighted by the numerous initiatives supporting renewable energy and green manufacturing practices. As a testament to its ongoing industrial development, Pennsylvania's manufacturing sector attracts continuous investments and expansions, solidifying its position as a key economic driver in the region and country.

7. New York

With a robust mix of industries, New York's manufacturing landscape comprises 13,328 plants and 632,888 employees, predominantly in the New York City metro area. New York's top manufacturers, such as Pfizer, IBM, and L3Harris Technologies, excel in pharmaceuticals, electronics, and printed materials.

New York's manufacturing sector benefits from the state's diverse economy and strategic position as a global business hub. The state's industrial profile is characterized by a blend of traditional and cutting-edge sectors, fostering a dynamic environment for innovation and growth. New York has been at the forefront of adopting advanced manufacturing technologies, leveraging its extensive research and development infrastructure to remain competitive on the global stage.

Despite challenges posed by globalization and economic shifts, New York's manufacturing sector continues to thrive through innovation, adaptability, and strategic partnerships, reinforcing its status as a vital component of the state's economic landscape.

8. Indiana

Good ol' Indiana, home to Apollo and noted for its business-friendly environment, supports 8,017 manufacturers and 586,952 employees. The state's industries, strong in automotive and pharmaceuticals, ship products worldwide, and key companies include Eli Lilly & Co., Toyota, and Subaru. The state's favorable tax policies and regulatory framework attract both large corporations and small businesses seeking an optimal operating environment. Indiana's central location within the U.S. makes it a strategic hub for logistics and distribution, benefiting manufacturers by providing efficient supply chain and transport solutions. Indiana also places an emphasis on workforce development, with initiatives aimed at education and training in advanced manufacturing skills, ensuring a continuous influx of prepared and skilled workers into the sector. Its network of research institutions and collaboration with industry leaders fosters innovation, particularly in cutting-edge technologies like robotics and automation, enhancing productivity and global competitiveness in the state's manufacturing industry.

9. Wisconsin

Boasting a skilled labor force, Wisconsin ranks ninth with 8,966 manufacturers employing 576,757 individuals. Known for industrial machinery and food processing, the state has recently attracted significant investments, such as Dawn Equipment's new production site and Serta Simmons Bedding's expansion plans.

Wisconsin's manufacturing landscape is characterized by its diversity and innovation across multiple sectors. The state's commitment to fostering a pro-business environment is evident in its supportive policies and infrastructure investments, which provide a solid foundation for manufacturers. Industries like paper production, agriculture-related equipment, and beverages are thriving in Wisconsin, backed by a supply of high-quality raw materials and skilled workers. Technical colleges and universities in Wisconsin play a pivotal role in workforce development by offering specialized training programs that align with industry needs, ensuring that businesses have access to a pool of talented individuals equipped with the latest skills. Wisconsin's strategic location in the Midwest offers logistical advantages, facilitating the distribution of goods across the United States and to international markets. By promoting sustainable practices and leveraging technology, Wisconsin aims to enhance its competitiveness and sustainability, positioning itself as a key player in the evolving manufacturing economy for years ahead.

10. North Carolina

Completing the top ten list, North Carolina features 8,410 manufacturers with 548,851 employees, shining in food processing, pharmaceuticals, and automotive industries. Recent industrial wins include EV maker VinFast, FUJIFILM’s cell culture plant, and Toyota’s new battery facility.

North Carolina's manufacturing sector thrives due to its strategic advantages, including a well-established infrastructure and a diverse economy. The state has positioned itself as a leader in sectors such as biotechnology, chemicals, and electronics, drawing substantial national and international investments. With Research Triangle Park as a notable innovation hub, North Carolina fosters collaboration between industry and academia, promoting cutting-edge research and development.

Efforts to bolster the manufacturing workforce are evident through partnerships with leading universities like North Carolina State University and Duke University. These institutions provide a steady pipeline of skilled graduates, equipped to meet evolving industry demands. The state also prioritizes workforce development through technical and community colleges, offering programs tailored to manufacturing needs.

North Carolina's favorable business climate, characterized by competitive tax rates and supportive policies, further enhances its attractiveness to manufacturers. Initiatives aimed at sustainability and clean energy underscore the state's commitment to reducing environmental impact while boosting economic growth. As a nexus for innovation and efficiency, North Carolina continues to play a significant role in shaping the future of the manufacturing industry.

The Impact of Manufacturing on Employment, Trade, and Innovation

The manufacturing sector’s influence extends beyond just output and revenue; it’s a critical driver of employment, trade, and overall innovation across the country. In states like California, Texas, Ohio, Michigan, and Illinois, manufacturing supports millions of jobs, offering stable employment and skill development opportunities. This is again not to minimize service based jobs, as they are essential to a thriving economy, but often-times manufacturing jobs are going to teach skills that are not easily taught in service oriented roles.

Manufacturing has and will continue to play a pivotal role in trade, contributing significantly to state and national exports. The sector’s focus on innovation fuels R&D activities, leading to breakthroughs that drive economic growth and enhance competitiveness throughout other sectors. The more our country focuses on products made here, the further these trends can continue to benefit Americans and the world. A prosperous America leads to a more stable and prosperous world. For large and small businesses alike, products made here will continue to lead to economic growth and stability.

Looking Ahead: Exploring the Potential of U.S. Manufacturing

The U.S. manufacturing sector is a testament to industrial prowess and economic resilience. From high-tech innovations in California, to the automotive legacy of Michigan, to the small businesses throughout the country, each state contributes uniquely to the national industrial landscape.

Why is all of this important? It's essential to understand the importance of manufacturing and building things right here in the United States of America. That is the purpose of Apollo. The more products that are made here, the more the industrial base can grow. Although there was a lot of information covered for each state, the underlying theme is that manufacturing jobs bring stability and high wages to communities throughout the country. Purchasing more products that were made in America will continue to strengthen the manufacturing roots and cause the economic tree to grow. Many consumer purchases may seem trivial, but those American-made purchases can lead to further growth for small business owners, workers and communities across this country.