US Manufacturing Gets a Boost from Small Cities

In various cities across the U.S., manufacturing is experiencing a resurgence, creating job opportunities for many Americans and bolstering the economy. A recent survey by Zetwerk identified the top cities and states for manufacturing jobs.

Statewide, Nevada had the largest increase in manufacturing employment growth since 2018, up 17%. Hawaii by contrast has seen the biggest decline, decreasing nearly 12% since 2018.

“One surprising trend we uncovered in this study is the significant increase in manufacturing employment in smaller metropolitan areas like Bloomington, Illinois, and El Centro, California, which outpaced larger, more established hubs. This suggests that smaller cities are becoming unexpected growth hotspots in the manufacturing sector, challenging traditional notions of where manufacturing activity thrives.

Citywide, Bloomington, Illinois, had the largest surge in manufacturing employment, up nearly 150% since 2018. This is likely attributed to Rivian, an American electric vehicle manufacturer that is headquartered just north of the city in Normal. Data from the Illinois Department of Employment Security (IDES) shows the area added more than 2,400 manufacturing jobs since January 2022, and 2,900 jobs overall.

“One surprising trend we uncovered in this study is the significant increase in manufacturing employment in smaller metropolitan areas like Bloomington, Illinois, and El Centro, California, which outpaced larger, more established hubs,” said Anirudh Reddy, business head, Zetwerk-North America. “This suggests that smaller cities are becoming unexpected growth hotspots in the manufacturing sector, challenging traditional notions of where manufacturing activity thrives.

Reddy attributed this trend to several different factors, most promising economic diversification.

“In regions like Nevada and Las Vegas, where manufacturing employment has seen substantial growth, there may be efforts to diversify the economy beyond tourism and entertainment,” he said. “Manufacturing offers opportunities for job creation and economic stability, prompting policymakers and businesses to invest in this sector to create a more balanced economy.”

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Industry specialization or niche markets, like what is being seen with Rivian in Bloomington, also are at play as well as market demand and consumer preferences, which Reddy said can influence manufacturing trends in specific regions.

“For example, the growth of industries like renewable energy or electric vehicles may drive demand for manufacturing in certain areas, leading to job growth and economic development,” he said.

This can be seen most prominently in California, which has emerged as a high-tech manufacturing hub. As a result, California offers the highest salary for manufacturing workers statewide, at $117,801 per year. The San Jose-Sunnyvale-Santa Clara metropolitan area offers the highest salary nationwide for manufacturing jobs at $279,380 per year.

Massachusetts and Connecticut also offer top salaries for manufacturing workers at $100,400 per year and $92,600 per year, respectively.

Also of note, Wisconsin, New Hampshire, and South Dakota had the most manufacturing job listings available on Indeed, signifying an increased need for workers. 

“Overall, a combination of economic, industrial, and policy factors likely contributes to the trends observed in different regions, highlighting the dynamic nature of the manufacturing sector and its responsiveness to various drivers of change,” said Reddy.