There’s no doubt manufacturing is on the rise in the Sun Belt.
Since 2021, nearly half of all new U.S. manufacturing jobs have landed in states like Florida, Georgia, South Carolina, Alabama, Mississippi, Louisiana, Texas, New Mexico, Arizona, Nevada, and California.
This marks a significant shift in the industry’s center of gravity.
For much of the 20th century, the Rust Belt (Ohio, Indiana, Illinois, Michigan, Pennsylvania, and Wisconsin) wasn’t only the backbone of U.S. manufacturing, but its primary engine.
In 1970, the Midwest produced roughly 50% of U.S. manufactured exports, while the South accounted for just 25%.
Today, those numbers are nearly reversed.
But this isn’t the result of offshoring. And it doesn’t mean Rust Belt manufacturing is a thing of the past.
The truth is the conventional narratives are wrong.
This isn’t a battle between North and South. It’s not a Rust Belt vs. Sun Belt fight to the death.
What’s missing from the conversation is a clear-eyed look at what’s really driving the regional divide, and how smart manufacturers are learning from both.
Across the United States, jobs and investment in American manufacturing are rising. From 2021 to 2024, nearly one million new manufacturing jobs were added to the economy.
Of those, 47% landed in Sun Belt states like Arizona, Georgia, Texas, and Tennessee.
And the momentum isn’t slowing.
Experts project 3.8 million manufacturing roles, both new and replacement jobs, will need to be filled by 2033 across all states.
What’s driving this growth?
The fastest-growing areas in American manufacturing reflect both technological progress and cultural demand: electric vehicles (EVs), semiconductors, and aerospace.
These investments and the jobs and products that come with them aren’t limited to a single region. They’re spread across the country.
That means the real story isn’t about offshoring versus reshoring.
It’s about American-made, tariff-free manufacturing.
Smart OEMs aren’t choosing manufacturing partners based on region or state. They’re choosing based on who can deliver faster, better, and more cost-effectively.
There are clear reasons why so much manufacturing has steadily moved to the Sun Belt.
First, it’s easier for companies to hire and retain workers in these states. Unionization rates are low largely due to right-to-work laws: Just 4.3% in the South compared to 13.3% in the Rust Belt.
Most Sun Belt state governments are also pro-business.
They consistently rank among America’s Top States to Do Business In and offer advantages like:
Programs like Georgia’s GRAD Certified Sites help fast-track new construction and even provide access to zero-cost land for large-scale factories.
But it’s not just manufacturers who benefit. The Sun Belt is also appealing to the workers they’re trying to attract.
Southern states build more houses per capita, making it easier for employees to find affordable homes. Many of these states have also invested in targeted workforce training, building pipelines of skilled labor through local and immigrant-focused programs.
The result is access to a growing, diverse, and ready-to-work talent pool that continues to accelerate manufacturing growth.
Just over 30 years ago, it had zero automotive plants. Today, it’s a national leader in automotive manufacturing. It exports over 1 million vehicles annually, employing more than 50,000 workers. And it plays host to major OEMs like Honda, Toyota, Hyundai, Mercedes, and Mazda.
Yes, the Sun Belt is on the rise. But does that mean the Rust Belt is irrelevant?
No, and that answer is clear for a number of reasons.
Rust Belt states still offer legacy manufacturing expertise difficult to find anywhere else. Many OEMs remain rooted in this region, along with the manufacturers that support them.
Automotive manufacturing continues to have a strong presence here, anchored by companies like General Motors and Chrysler.
Decades of experience have built deep supply chain networks.
These systems were not created by chance. Rust Belt cities are major transportation hubs with strategic geographic advantages that remain essential today.
There’s also a strong foundation of technical workforce expertise in the Rust Belt.
Manufacturers can tap into both generational know-how and a new pipeline of trained specialists entering the field.
This region produces one-third of all STEM graduates in the United States. It’s home to a high concentration of respected research universities: Michigan, Michigan State, Minnesota, Wisconsin at Madison, Ohio State, Carnegie Mellon, Purdue, and Pittsburgh.
And the region isn’t only relying on its past. New industries and OEMs are moving in, as well.
Intel is investing billions in new microchip factories in Ohio. LG and Honda are developing a joint battery plant in the state. Regional manufacturers are attracting investment to expand into 3D printing, robotics, and electric vehicle production.
At the same time, Rust Belt states and cities are actively working to attract businesses and talent through quality-of-life improvements and revitalization efforts.
U.S. reshoring is happening, and it requires capacity, flexibility, and speed.
The resilience of the supply chain depends on distributed production. That means not choosing between the Sun Belt or the Rust Belt but relying on both.
Each region brings its own strengths. Neither one can meet every need alone.
To compete on a global scale, American manufacturing must lean on the established infrastructure of the Rust Belt and the growth potential of the Sun Belt.
OEMs and suppliers should adopt a multi-region, multi-location strategy. The most effective companies will learn what works best in each area and invest accordingly.
At ReNEW Manufacturing Solutions, we operate facilities in both regions for exactly this reason. Our teams in Georgia, Texas, Ohio, and Pennsylvania give us firsthand insight into regional advantages and challenges.
That means our customers benefit from the strengths of both.
This model also supports our brand promises:
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