Top Cities Where U.S. Manufacturing Is Thriving

Manufacturing has served an important role in the U.S. economy, and the industry continues to play a critical role today. From industrial products to consumer goods, and from automobiles to aircraft, the U.S. manufacturing sector is diverse and continues to develop and evolve. While not without significant risks, from product liability to employee injuries, manufacturing is truly a high-risk, high-reward industry, with those that are able to operate with exacting precision, efficiency, and innovation, seeing the fruits of their labor.

In this deep dive into manufacturing-centric areas in the U.S., we examined the question: where are the top cities in the United States where manufacturing is thriving?

AdvisorSmith conducted a study on 294 U.S. cities to determine the top cities where U.S. manufacturing is thriving. We based our rankings on four key economic factors: manufacturing output growth rate, manufacturing output per capita, manufacturing location quotient, and manufacturing employment growth rate.

In 2019, there were 12.8 million manufacturing jobs in the United States, up from 12.3 million in 2015. Manufacturing jobs accounted for 8.2% of total employment, and manufacturing output was $2.4 trillion in 2019. Manufacturing accounted for approximately 11% of GDP. Nationwide, we found that manufacturing output per capita was approximately $7,221, while the manufacturing output growth rate on a compounded annual growth rate basis was 2.9% during the study period. Manufacturing employment grew by a compounded annual growth rate of 0.9% during the study period.

Geographically, the Midwest accounted for 26 out of the top 50 cities, while the South accounted for 13. Western cities accounted for 9 of the top 50, while only 2 Northeastern cities only accounted for 2 of the top 50, with both in Pennsylvania. Regional patterns emerged with the Midwestern cities primarily focused on automotive, agricultural, and raw materials manufacturing while the South maintained strong oil and gas, chemical, and furniture industries.

Top Cities Where Manufacturing Is Thriving by City Size

The majority of the top cities for manufacturing in our study—43 in the top 50, and 9 in the top 10—were small and midsize cities. Small cities with a powerful hold on significant manufacturing industries dominated our list, and Indiana, with 3 out of the top 10 spots, had a particularly strong showing at the top of our ranking.

We segmented cities by metropolitan statistical area population, with small (<150,000 population), midsize (population between 150,000 and 500,000), and large (over 500,000 population) cities. Below are the top 10 small, midsize, and large cities where manufacturing is booming.

Top Cities Where Manufacturing is Thriving

1. Elkhart, IN

Elkhart, Indiana, was the top manufacturing city in our study, and one of two midsize cities in the top five. Elkhart is a city in northern Indiana just fifteen miles east of South Bend, the economic and cultural center of Northern Indiana. Elkhart and the surrounding cities in Elkhart County are referred to as the “RV capital of the world.” Fifty-two percent of all RVs produced in the United States are produced in Elkhart County.

In 2019, the city produced 584% more jobs for manufacturing, on a per-capita basis, than the average U.S. city and had a manufacturing output of $9.1 billion. During the study period, manufacturing output grew by a compounded annual growth rate of 6.1%, while manufacturing employment grew by 2.1%. Manufacturing output per capita in Elkhart was $44,137 at the end of the study period.

2. Columbus, IN

Columbus is a small city in central Indiana located approximately 40 miles south of the state capital, Indianapolis. Columbus is one of the biggest manufacturing cities in the nation, as 38% of the people who work in Columbus work in the manufacturing industry. Columbus is particularly well known as a producer of automotive engines, and this is, in no small part, due to the city serving as the headquarters of Cummins, a Fortune 500 corporation that designs, manufactures, and distributes engines. Columbus is also home to Toyota Material Handling, U.S.A., Inc., which is the world’s largest manufacturer of forklifts.

Columbus had a manufacturing output of $3.9 billion in 2019, which was $45,901 per capita. The city has 459% more manufacturing jobs than the national average on a per-capita basis and had a manufacturing output growth rate of 1.1% during the study period. Manufacturing employment also grew 0.8% over the same period.

3. Reno, NV

Reno is a city in the northwestern part of Nevada, located near the California border. The city is best known for casinos and tourism, serving both the gaming industry and the nearby ski resorts of Lake Tahoe. Recently, the Reno economy has attracted major investments from technology companies based in California and Washington, such as Amazon and Google. Most importantly for the manufacturing industry is the location of the Tesla gigafactory in Reno. This electric vehicle battery manufacturing plant has led to rapid growth in manufacturing output and manufacturing jobs in Reno.

The manufacturing output of Reno was $3.4 billion in 2019, which was $7,054 on a per-capita basis. Manufacturing output grew by 15.3% annualized over the study period. The city also has 124% more manufacturing jobs than the national average.

Top 50 Cities With Strong Manufacturing Economies

In this study, we ranked the top 50 cities with the strongest manufacturing economies, based upon four primary factors: the growth rate of manufacturing output, manufacturing output per capita, the location quotient for manufacturing workers, and the growth rate in manufacturing jobs. We assigned a score of 0-100 to each city based on these factors, with higher scores being ranked more highly.

Rank	City	City Size	Manufacturing Output Growth Rate 2015-2019 (CAGR)	2019 Manufacturing Output Per Capita	2019 Manufacturing Employment Location Quotient	Manufacturing Employment Growth Rate 2015-2019 (CAGR)	Total Score
1	Elkhart, IN	Midsize	6.1%	$44,137	5.8	2.1%	68.9
2	Columbus, IN	Small	1.1%	$45,901	4.6	0.8%	62.2
3	Reno, NV	Midsize	15.3%	$7,054	1.2	18.2%	55.7
4	Sheboygan, WI	Small	3.8%	$26,032	4.4	1.2%	51.1
5	Lima, OH	Small	2.5%	$43,688	2.1	0.8%	50.3
6	Spartanburg, SC	Midsize	10.1%	$15,014	2.7	7.0%	47.6
7	Decatur, IL	Small	-6.9%	$27,839	2.7	2.4%	46.7
8	Kankakee, IL	Small	16.8%	$21,064	1.9	5.9%	45.7
9	San Jose, CA	Large	3.9%	$33,723	1.8	1.1%	44.0
10	Kokomo, IN	Small	-2.8%	$25,311	3.4	-1.1%	42.9
11	Napa, CA	Small	0.7%	$17,966	2.2	3.6%	41.4
12	Lake Charles, LA	Midsize	20.0%	$34,433	1.1	1.0%	41.3
13	Wausau, WI	Midsize	4.0%	$15,827	3.1	2.0%	41.2
14	Morristown, TN	Small	0.1%	$11,081	3.2	3.3%	41.2
15	Dalton, GA	Small	-1.0%	$15,549	4.3	-1.2%	41.1
16	Owensboro, KY	Small	3.5%	$16,126	2.0	4.4%	40.8
17	Decatur, AL	Midsize	6.6%	$15,788	2.8	1.6%	39.3
18	El Centro, CA	Midsize	5.1%	$1,009	0.4	12.5%	38.9
19	Grand Rapids, MI	Large	3.9%	$14,199	2.5	2.5%	38.8
20	Hickory, NC	Midsize	1.0%	$11,789	3.3	1.2%	38.6
21	Oshkosh, WI	Midsize	0.9%	$18,277	2.8	0.2%	38.4
22	Wichita, KS	Large	8.9%	$17,433	2.2	2.0%	38.2
23	Gettysburg, PA	Small	4.1%	$9,971	2.7	3.2%	38.1
24	Palm Bay, FL	Large	8.7%	$8,175	1.4	6.9%	38.1
25	Albany, OR	Small	6.8%	$8,868	2.2	4.5%	38.0
26	Beaumont, TX	Midsize	6.8%	$30,712	1.6	-1.1%	37.9
27	Bellingham, WA	Midsize	23.0%	$19,329	1.4	3.3%	37.9
28	Fond du Lac, WI	Small	-1.4%	$12,689	2.8	1.6%	37.7
29	Tuscaloosa, AL	Midsize	8.8%	$13,122	1.9	3.0%	36.0
30	Waterloo, IA	Midsize	-6.4%	$16,202	2.2	0.8%	35.6
31	Kalamazoo, MI	Midsize	8.1%	$14,881	1.9	2.0%	35.5
32	Jackson, TN	Midsize	5.6%	$12,316	1.9	2.4%	35.0
33	Niles, MI	Midsize	4.7%	$13,972	2.5	0.2%	34.9
34	Evansville, IN	Midsize	10.3%	$19,157	1.8	0.4%	34.7
35	Fort Wayne, IN	Midsize	7.1%	$11,989	2.0	2.0%	34.6
36	Appleton, WI	Midsize	3.2%	$12,901	2.4	0.7%	34.4
37	Walla Walla, WA	Small	2.4%	$7,288	1.8	3.9%	34.3
38	Logan, UT	Small	2.1%	$8,662	2.3	2.1%	34.2
39	Racine, WI	Midsize	-1.5%	$15,168	2.7	-1.2%	34.0
40	Toledo, OH	Large	1.5%	$13,409	1.8	1.7%	33.9
41	Michigan City, IN	Small	1.1%	$10,124	2.4	1.3%	33.9
42	Rocky Mount, NC	Small	-13.7%	$18,714	2.2	-1.2%	33.8
43	Rockford, IL	Midsize	1.8%	$12,685	2.6	-0.2%	33.7
44	Green Bay, WI	Midsize	4.4%	$11,496	2.1	1.4%	33.6
45	Durham, NC	Large	0.7%	$23,182	1.2	-0.2%	33.6
46	Clarksville, TN	Midsize	6.1%	$4,994	1.6	4.7%	33.5
47	Lebanon, PA	Small	3.0%	$8,032	2.1	2.2%	33.2
48	Muskegon, MI	Midsize	0.5%	$9,719	2.6	0.4%	33.2
49	Janesville, WI	Midsize	3.6%	$9,429	1.8	2.5%	33.2
50	Ogden, UT	Large	6.7%	$8,918	1.6	3.2%	33.1

Manufacturing Output Growth Rate 2015-2019 (CAGR)

Our study measured the growth rate of manufacturing output over a five-year period, from 2015-2019 on a compound annual growth rate percentage basis. This metric shows the change in manufacturing output for a given city. Bellingham, Washington, led the nation on this metric. This coastal city near the Canadian border manufactures items such as aircraft interiors and industrial equipment.

Rank	City	Manufacturing Output Growth Rate 2015-2019
1	Bellingham, WA	23.0%
2	Trenton, NJ	20.5%
3	Lake Charles, LA	20.0%
4	Kankakee, IL	16.8%
5	Reno, NV	15.3%
6	Corpus Christi, TX	13.2%
7	Yuma, AZ	12.3%
8	Tucson, AZ	12.0%
9	New Orleans, LA	11.3%
10	Casper, WY	10.5%
11	Evansville, IN	10.3%
12	Redding, CA	10.3%
13	Spartanburg, SC	10.1%
14	Fort Collins, CO	9.6%
15	Naples, FL	9.5%
16	Sumter, SC	9.2%
17	Boise, ID	9.0%
18	Wichita, KS	8.9%
19	Myrtle Beach, SC	8.8%
20	Tuscaloosa, AL	8.8%

Manufacturing Output Per Capita (2019)

Manufacturing output per capita measures the dollar value of the manufactured goods produced by a city divided by the city’s population. It provides a measure of the manufacturing production per city resident. The highest-ranking city on this metric was Columbus, Indiana, which also placed #2 overall. Columbus is home to Cummins, an engine and power generation equipment manufacturer, as well as Toyota Industrial Equipment Manufacturing.

Rank	City	2019 Manufacturing Output Per Capita
1	Columbus, IN	$45,901
2	Elkhart, IN	$44,137
3	Lima, OH	$43,688
4	Lake Charles, LA	$34,433
5	San Jose, CA	$33,723
6	Beaumont, TX	$30,712
7	Decatur, IL	$27,839
8	Sheboygan, WI	$26,032
9	Kokomo, IN	$25,311
10	Durham, NC	$23,182
11	Kankakee, IL	$21,064
12	Bellingham, WA	$19,329
13	Evansville, IN	$19,157
14	Rocky Mount, NC	$18,714
15	Oshkosh, WI	$18,277
16	Napa, CA	$17,966
17	Wichita, KS	$17,433
18	Baton Rouge, LA	$17,037
19	Waterloo, IA	$16,202
20	Owensboro, KY	$16,126

Manufacturing Location Quotient (2019)

The location quotient for manufacturing jobs measures the proportion of manufacturing jobs to total jobs in a city compared with the national average. The higher the location quotient, the more likely it is that a randomly selected job will be a manufacturing job. Elkhart, Indiana, which was also the #1 place where manufacturing is thriving in the U.S., had the highest concentration of manufacturing jobs on a per capita basis.

Rank	City	Manufacturing Employment Location Quotient 2019
1	Elkhart, IN	5.8
2	Columbus, IN	4.6
3	Sheboygan, WI	4.4
4	Dalton, GA	4.3
5	Kokomo, IN	3.4
6	Hickory, NC	3.3
7	Morristown, TN	3.2
8	Wausau, WI	3.1
9	Fond du Lac, WI	2.8
10	Decatur, AL	2.8
11	Oshkosh, WI	2.8
12	Spartanburg, SC	2.7
13	Racine, WI	2.7
14	Decatur, IL	2.7
15	Gettysburg, PA	2.7
16	Muskegon, MI	2.6
17	Rockford, IL	2.6
18	Niles, MI	2.5
19	Grand Rapids, MI	2.5
20	Battle Creek, MI	2.4

Manufacturing Employment Growth Rate 2015-2019 (CAGR)

In the table below, we list the top cities where manufacturing jobs have grown the most on a compound annual growth rate percentage basis between 2015 and 2019. The #1 city, Reno, Nevada, is home to the Tesla Gigafactory 1, which accounted for substantial job growth in the city during the past five years.

Rank	City	Manufacturing Output Growth Rate 2015-2019
1	Bellingham, WA	23.0%
2	Trenton, NJ	20.5%
3	Lake Charles, LA	20.0%
4	Kankakee, IL	16.8%
5	Reno, NV	15.3%
6	Corpus Christi, TX	13.2%
7	Yuma, AZ	12.3%
8	Tucson, AZ	12.0%
9	New Orleans, LA	11.3%
10	Casper, WY	10.5%
11	Evansville, IN	10.3%
12	Redding, CA	10.3%
13	Spartanburg, SC	10.1%
14	Fort Collins, CO	9.6%
15	Naples, FL	9.5%
16	Sumter, SC	9.2%
17	Boise, ID	9.0%
18	Wichita, KS	8.9%
19	Myrtle Beach, SC	8.8%
20	Tuscaloosa, AL	8.8%

Methodology

Our study considered four primary factors to determine the top cities where manufacturing is thriving in the U.S. The factors included the growth rate of manufacturing output based on the compounded annual growth rate between 2015-2019, the manufacturing output per capita in 2019, the employment location quotient of the manufacturing sector, and the compound annual growth rate of manufacturing jobs between 2015-2019.

Data was compared at the Metropolitan Statistical Area (MSA) level for 294 US cities. Each city was assigned a score from 0 to 100 for each of the four factors based upon its relative rank on the factors. The four scores for each city were averaged to create a composite score, and the 294 cities were ranked based upon the composite score.

To determine the growth rate of manufacturing output for each MSA, we used data from the December 2020 release of the U.S. Bureau of Economic Analysis Local Area Gross Domestic Product dataset. We calculated the compound annual growth rate between 2015 through 2019. For this dataset, data for specified cities and years was withheld to avoid the disclosure of confidential information. Where possible, we interpolated data in order to estimate the manufacturing output for cities and years where the data was withheld. MSAs in which data could not be successfully interpolated were excluded from the study.

The manufacturing output per capita was calculated based on manufacturing output for each MSA in 2019 from the Local Area Gross Domestic Product, divided by each MSA’s population, which was provided by data from the U.S. Census Bureau Population Estimates Program.

In order to calculate the manufacturing employment location quotient for this study, we calculated the percentage of manufacturing jobs divided by total jobs in the United States, which was 8.2% at the end of 2019. We then calculated this same percentage for each MSA, using data from the US Bureau of Labor Statistics Current Employment Statistics and Current Population Survey. To calculate the location quotient, we took a ratio of each city’s percentage divided by the national percentage.

To measure the growth rate in manufacturing employment across the cities, we compared the level of manufacturing employment at December 2015 to the level at December 2019, calculating the compound annual growth rate using non-seasonally adjusted numbers. This data was provided by the U.S. Bureau of Labor Statistics Current Employment Statistics.

Sources

U.S. Bureau of Economic Analysis Local Area Gross Domestic Product
U.S. Census Bureau Population Estimates Program
U.S. Bureau of Labor Statistics Current Employment Statistics
U.S. Bureau of Labor Statistics Current Population Survey

Expert Commentary

AdvisorSmith spoke with the following experts to provide critical insight on the state of U.S. manufacturing.

Javier de la Fuente

Area Chair of Industrial Technology and Packaging
California Polytechnic State University

Javier's Answers

Q. What are the current, post-pandemic bright spots for American manufacturing?

Q. What trends do you foresee for the future of American manufacturing over the next decade?

Javier: It is hard to spot trends and forecast them, but we can analyze present dynamics to infer what may happen in the near future. I will pick three trends arbitrarily: global business preparedness, flexible-automated manufacturing, and a global-to-local shift.

The pandemic months show us how vulnerable to disruption supply chains are and how manufacturing and logistic costs can go up because of supply chain problems. We knew that the economy was globalized, but we were forced to experience the consequences in an unprecedented global experiment. We faced supply shortages of silicon chips, toilet paper, mountain bikes, meat-based products, and challenges to deliver vaccines. The list grows exponentially.

This type of disruptive event forces humans to think divergently, to take advantage of new business opportunities. It would not be surprising that companies notice and start devising plans to minimize risk and have better predictability. We may face a new supply chain and manufacturing crisis in the future. So, one big trend could be some sort of global crisis preparedness at the business level. It may include a different strategy towards minimizing inventory levels and supply base diversification.

One of the business stars of the pandemic was online shopping. Customers became spoiled with fast deliveries (when products were in stock!). However, the global manufacturing system was not prepared to deal with pent-up demands. This represents an opportunity for a different type of production. One that relies mostly on robotics and deeper digitalization. Industrial automation is connected to artificial intelligence (AI), the Internet of Things (IoT), and flexible production. AI is taking over every single human sector, and manufacturing will not be the exception. Flexibility is critical for product customization and short lead times. Consumers will keep demanding faster deliveries and more and better product choices.

Finally, another unexpected consequence could be a trend towards more local manufacturing. American companies may consider bringing their supply networks closer to home. Hopefully, when this happens, we will see a more diversified American manufacturing infrastructure relying on innovation, sustainability, and technology.

It is common to see companies, in particular small entrepreneurial companies, having difficulties finding manufacturing technology and services in the United States. This is the result of decades of shifting basic manufacturing operations abroad.

Let’s consider Tesla. Tesla decided to manufacture and assemble cars in Fremont, California, in one of the most advanced automotive plants in the world. About seventy-five percent of Tesla’s production line operations are automated. Tesla purchased the Fremont facility in 2010 and started producing in 2012. Previously, the facility was used by GM and Toyota between 1962 and 2009. Car manufacturing in California was a rarity from another era.

Moreover, for many years, the trend for American car manufacturers was to move manufacturing and assembling operations to Mexico and Canada. In 2020, Tesla placed three of its cars in the top American-Made Index (AMI) with one facility. (Honda did the same in its Lincoln, Alabama, facility, which started production in 2001.)

Car manufacturing is particular because cars are one of the most complex products. Automakers tend to be in areas with a high density of suppliers. The vast majority of American companies with high-added-value consumer products rely on suppliers located in Southeast Asia. This results from specialized manufacturing clusters and a quest for cost reduction, but a new wave of more intelligent manufacturing could start changing this paradigm.

Now consider Apple electronics, Santa Cruz bicycles, Pablo lightning systems, Herman Miller furniture, Yeti coolers, Hydro Flask water bottles, SpaceX rockets, to name a few very well-known examples. These companies are highly competitive in their industry sectors because they offer exceptional high-quality products that customers crave worldwide.

Unfortunately, most of these companies do not manufacture many of their components domestically. Some do. A few of those companies assemble domestically. The U.S. economy will enormously benefit if we could have more Tesla-like companies. Ideally, small and diverse Tesla-like companies for less complex products than an electric car.

The common thread is innovation, design, and technology to produce more highly valued products domestically. Value is, and it will continue to be, attached to more sustainable products, better user experiences, new business opportunities, and, of course, reasonable costs with increased product performance.