October 19, 2021

Best States for Manufacturing in 2021

A kitchen with a lot of smoke around it

Site Selection Group, a full-service location advisory, economic incentives, and real estate services firm, utilizes a variety of innovative tools and analyses to help its clients evaluate locations for manufacturing investment.

To ensure manufacturers are choosing the best location for operational success, their site selection process should employ a top-down approach that applies a series of analyses and filters until the most competitive option(s) are identified. If executed correctly, the entire process and the critical inputs that influenced filtering will be clearly documented.

Ranking the most competitive states for manufacturing

As a demonstration of this type of inclusive approach, Site Selection Group used its proprietary GeoCision® analysis to provide a scoring of all 50 states based on weighted site selection variables that measure primary considerations for manufacturers (In real practice, this type of analysis would be done at more granular geographies). While these factors are not comprehensive, they represent those often utilized in industrial projects.

Although location criteria are unique to each specific project’s needs, there are standard site selection drivers that typically drive most manufacturing location decisions. A company’s ability to hire and retain a qualified workforce, as well as its ability to receive and ship goods in a cost-effective and timely manner, are typically the most influential factors that drive final site selection decisions.

However, the business environment, regulatory climate, utilities, infrastructure, real estate, and economic incentives play an important role in the process. Since no location scores the best in each of these categories, the optimal location for a project is one that has no critical deficiencies.