Georgia, Texas, Ohio Emerge as Factory Hotspots Amid Economic Shifts

Georgia, Texas and Ohio emerged as new hubs for American industrial growth while high-cost traditional ones lose ground, according to new research. 

The findings, as part of the 'Cost of Manufacturing Report’ by MIE Solutions, analyzed over 50 U.S. cities across critical factors, like energy prices, labor demand, commercial rents, tax environments and logistics infrastructure, to identify relocation opportunities amid the larger push to return from offshoring. 

“What’s clear is that location strategy now requires more than chasing low rent or tax breaks," Vice President of Sales for MIE Solutions Dean Dunagan said." Manufacturers need to weigh workforce availability, energy stability and long-term resilience, but also embrace new tools and approaches to remain competitive in this new manufacturing landscape."

Atlanta, Georgia, topped the rankings as the best city for manufacturing businesses, thanks to low energy costs (6.54 cents/kWh), competitive wages averaging $23.97 per hour and one of the lowest commercial rent averages analyzed ($7 per sq. ft per year). 

The city also offers a strong logistics infrastructure, anchored by the world’s busiest airport and major interstate corridors, while its business attraction and expansion efforts have generated over 3,000 new jobs and a total economic impact of $3.7 billion in 2025.

Texas dominated the rankings overall with seven cities placing in the top 20. Houston, in second place, scored highly for its energy sector infrastructure (8.12 cents/kWh) and diversified industrial base, reinforced by the recent $6.5 billion pharma facility investment – the state’s first major investment of its kind. 

Dallas, El Paso and Austin also ranked among the top 10, signaling a broader geographic shift in U.S. industrial investment. El Paso benefits from direct proximity to U.S.-Mexico supply chains.

Ohio emerged as the strongest Midwest performer, with Columbus in third place thanks to affordable real estate ($10 per sq. ft), proximity to Canadian markets and growing state support, which has resulted in major investments in advanced manufacturing, such as Anduril Industries planned $1 billion facility. 

Other emerging hubs include Charlotte and Raleigh, North Carolina in fourth and fifth place, respectively, which combine cost advantages with access to innovative research clusters, and Detroit, Michigan, in sixth place, where a skilled workforce earning $27.92 per hour and rents at $9 per sq. ft are helping reinvent the city’s industrial legacy.    

The report’s findings come as the Manufacturing Purchasing Managers’ Index (PMI) contracted for its sixth consecutive month in August. It had been hovering below the critical 50-point threshold, which separates growth from decline, for most of 2025. 

Wholesale power prices are also up 12% year-on-year, driven by higher natural gas prices, while nearly 1.9 million manufacturing jobs are projected to go unfilled by 2033, raising long-term concerns about a sector which accounts for nearly 10% of the national GDP.

“Today, the reality is that the greatest cost in modern US manufacturing isn’t simply materials, machinery or even labor,"  Independent Business Transformation Consultant Jaime Portecerro said. "It’s the lack of operational leadership capable of executing at scale. The U.S. needs a clear, unified ‘moonshot’ goal for manufacturing to drive a real, concerted national effort."

Cost of Manufacturing Index: Top 10 U.S. Cities