Manufacturing plants: Four factors to consider when choosing a stateside location
Today, location has grown beyond a mere logistical factor to a potent strategic lever capable of driving long-term growth—particularly as manufacturing adopts sophisticated technology and sustainability objectives. According to research conducted by the Council of Supply Chain Management Professionals and McKinsey & Company, factors such as cost of transportation, workforce availability, and marketplace proximity can influence profitability by up to 50%, making cautious site selection one of the most important decisions manufacturers face.
We at Manaflex, a business that specializes in localizing modular manufacturing lines for advanced circuitry manufacturing solutions, and our team recently underwent a rigorous site selection procedure for our first plant in the United States—Vancouver, Washington. If you're looking to make a location change, here are some of the things we considered in our selection process that you might find useful.
1. A WORKFORCE BUILT FOR FUTURE INDUSTRIES
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Automation, artificial intelligence, and the electrification of all things, from infrastructure to automobiles, are drastically changing manufacturing. The manpower needs for contemporary factories are being redefined by this change.
The U.S. Bureau of Labor Statistics projects that employment of industrial engineers, who play a key role in high-tech manufacturing, would increase by 12% between 2022 and 2032, which is much faster than the median rate for all occupations.
Now, states that make investments in partnerships for technical education and upskilling are more desirable than those that only consider labor availability. In our instance, we gave preference to areas with established pipelines via universities, where automation and materials science programs are well aligned with the demands of the local business.
2. INFRASTRUCTURE AND ECOSYSTEM
The density and variety of the local supplier base in certain advanced manufacturing groups is an underappreciated advantage. A strong in-state supplier ecosystem may save lead times, improve product quality, and protect against global disruptions for anything from circuits to specialized polymers, battery components, and particular tooling.
Manufacturers operating at a global scale cannot afford supply chain bottlenecks. Proximity to multimodal transport systems—highways, ports, rail, and air freight—is now part of the competitive equation, especially for companies shipping high-value or time-sensitive components.
In real terms, excellent infrastructure reduces market times and increases supply chain resilience, which is crucial in industries like solar materials and EV components where time-sensitive deliveries and worldwide rivalry are widespread.
3. SUSTAINABILITY
Clean energy leadership is not only an environmental commitment; it is an economic strategy. Accessibility to low-carbon energy has grown into a commercial necessity as global sectors unite around net-zero objectives. Customers and investors increasingly demand that many manufacturers reduce emissions throughout their operations.
Location is crucial in this situation. In an economy that is becoming more and more concerned with carbon emissions, the difference it can make translates into reduced operational costs and a higher environmental profile.
4. PUBLIC-PRIVATE SYNERGY
Ecosystem support is another important yet frequently disregarded component. The most prosperous areas are those where businesses, educational institutions, and local governments collaborate. This can be in the form of shared infrastructure, training funds, accelerated permitting, or access to R&D facilities.
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These kinds of initiatives show that a region is committed to fostering forward-thinking manufacturing while also assisting businesses in scaling clean technology.
LOCATION STRATEGY IS BUSINESS STRATEGY
Often enough, a location is viewed as a tactical choice that operations teams should maximize. However, as we discovered while expanding, location needs to be viewed as a multifaceted part of an overall corporate strategy.
A well-selected location can help you access the next wave of technical talent, accelerate your time to market, and lower your energy footprint. In order to create long-term value, it can also integrate your business into an innovative ecosystem where private and public objectives coincide.
Business executives should consider the following when deciding where to grow or relocate:
• Do the government and local institutions support industry and innovation?
• Are there additional benefits, such as a free Trade Zone or tax benefits?
• Is there inexpensive, dependable, and clean energy available in this area?
• Does advanced manufacturing have a skilled or adaptable workforce?
• What is the climate of the local and state governments for this industry?
• To what extent is the transportation network robust and interconnected?
In our experience, if such responses offer affirmative advantages, then expansion of manufacturing in the USA turns into a strategic benefit rather than just a real estate choice. The capacity to connect to a robust, future-ready ecosystem may progressively define the success of businesses navigating their next stage of expansion, particularly those in the fields of advanced materials, electrified transportation, and renewable energy.
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