In this article, we will reveal the top most industrial city in the US. If you wish to look at our detailed rankings, you can go to the Top 20 Most Industrial Cities in the US.
The year 2023 saw a boom in American manufacturing, fueled by three key laws: the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act. These laws enabled investments in rebuilding infrastructure, clean energy, and domestic semiconductors. The ultimate goal was more jobs, a skilled workforce, and a fairer playing field. By pumping funds and tax breaks into various sectors, these acts sparked record private investment in US manufacturing.
As a result, the US manufacturing sector is now rebounding from the economic slowdown caused by the pandemic. Despite concerns about automation, there seems to be space for both human workers and AI. Manufacturing output is expected to climb steadily from $5.7 trillion in 2020 to $6.74 trillion by 2028, exceeding pre-pandemic highs.
Key areas like automotive parts, consumer goods, and materials are all poised for growth. Job numbers in production occupations are also projected to remain stable at around 933,000 through 2028 with the best cities for manufacturing jobs such as Cleveland, OH, Phoenix, AZ, and Milwaukee, WI having a greater number of jobs than other areas. Most of these are located in the fastest-growing manufacturing states.
In 2024, economic uncertainties, a persistent skilled labor shortage, and targeted supply chain disruptions will continue to test the manufacturing sector’s agility. Adding to these pressures, the push to achieve net-zero emissions will necessitate product innovation, presenting both a challenge and an opportunity for manufacturers to redefine their processes and products.
Across the United States, a vast network of manufacturing companies forms the backbone of the industry. Some of these are Intel Corporation (NASDAQ:INTC), Ford Motor Company (NYSE:F), and The Boeing Company (NYSE:BA).
Intel Corporation (NASDAQ:INTC) is a tech giant that has reigned supreme as the world’s biggest manufacturer of semiconductors for more than a decade. Although the company has been through tough times during the past few years and even saw its foundry arm lose around $7 billion during 2023, it still leads the market for computer processors. Intel Corporation (NASDAQ:INTC) grips a commanding 78% of the computer processor market. Similarly, the company holds a dominant three-fourths share of the data center (including AI) market.
Ford Motor Company (NYSE:F) is a reputed name in the automotive sector and is often listed among the world’s biggest car manufacturers. Ford Motor Company’s (NYSE:F) stock has risen by over 15% in the past six months, fueled by investor optimism after the company delivered impressive fourth-quarter financial results in 2023. This positive sales momentum shows no signs of slowing down, with strong performance continuing through the first quarter of this year.
The Boeing Company (NYSE:BA) is one of the world’s largest aerospace companies and is headquartered in Virginia. The company recently landed a lucrative $7.48 billion contract with the U.S. Air Force Life Cycle Management Center. The agreement involves supplying Joint Direct Attack Munition (JDAM) tail kits, repairs, spares, technical data, and even Laser JDAM sensor kits. The Boeing Company (NYSE:BA) anticipates fulfilling this contract by early 2030.
Our Methodology
To identify the top 20 most industrial cities in the US, we analyzed various metrics such as total manufacturing space, average industrial space asking rent, manufacturing establishments, employment in production occupations, production labor costs, miles of highways & heavy roadways, railway density, and number of airports. These metrics were assigned an equal weightage to achieve a unique score for each of the cities. The data for these metrics was collected from sources like Commercial Search, the US Bureau of Labor Statistics, the Federal Highway Administration, the Association of American Railroads, and the Federal Aviation Administration. We have ranked the top 20 most industrial cities in ascending order of their scores. The list also includes some of the most industrial cities in the world.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
The Top Most Industrial City in the US
1. Los Angeles, CA
Score: 52.70
Employment in Production Occupations: 306,050
Despite its reputation for entertainment, Los Angeles has a major industrial sector with a wide range of specialties, including transportation equipment, apparel, fabricated metals, and cutting-edge computer and electronics production. The city employs over 300,000 people in production occupations and has 17592 manufacturing establishments. Los Angeles recorded a 1% increase in the manufacturing space in the city between 2019-2023.
To learn about other top industrial cities in America, you can check out our detailed report Top 20 Most Industrial Cities in the US.
At Insider Monkey, we delve into a variety of topics, ranging from the most industrial cities in the US to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Gold Mining Stocks to Buy Now and 11 Largest Heavy Equipment Manufacturers in the World.
Disclosure: None. This article is originally published on Insider Monkey.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
