In this article, we will take a look at the top 20 most industrial cities in the US. You can also check out the 10 Best Industrial Machinery Stocks to Invest In.
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.
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Top 20 Most Industrial Cities in the US
20. Scranton, PA
Score: 8.46
Employment in Production Occupations: 19,630
Scranton is situated in Lackawanna County, Pennsylvania. In the 1880s, Scranton boomed into a major industrial center, earning the nickname “Anthracite Capital of the World.”
19. Akron, OH
Score: 9.51
Employment in Production Occupations: 26,000
Akron is Ohio’s manufacturing and industrial hub. It has been home to the largest rubber industry in the world, earning it the titles “Rubber Capital of the World” and “Rubber City. The city also hosts the headquarters of major players in the rubber industry, including Firestone, General Tire, Goodrich, and Goodyear. The Goodyear Blimp was built in the early 1900s in Akron.
18. Austin, TX
Score: 11.89
Employment in Production Occupations: 42,630
Austin’s hospitality industry is performing well, with many hotels and restaurants supported by a growing food and beverage sector. In Austin, key industries include advanced manufacturing, electronics, automotive technology, and aerospace manufacturing. The city’s production and manufacturing sector has seen a 23% increase over the past decade.
17. Greenville, SC
Score: 12.11
Employment in Production Occupations: 45,010
Advanced manufacturing stands out as South Carolina’s leading economic sector, concentrated in the Upstate and Lowcountry regions. The manufacturing industry is one of the largest in Greenville, employing 13.3% of the population. Michelin North America and General Electric alone employ tens of thousands of people in the Greenville-Spartanburg area. Michelin, Schaeffler, and Techtronic Industries TTI are the top employers based in Greenville, South Carolina.
16. Elkhart, IN
Score: 14.02
Employment in Production Occupations: 52,620
Elkhart is located in Elkhart County, Indiana. Elkhart County is the hub of recreational vehicle manufacturing. In 1934, the first trailer factory opened in Elkhart, followed by many such businesses. The largest industries in terms of revenue in Elkhart are manufacturing, specifically automobile and light-duty motor vehicle production, and healthcare.
15. Columbus, OH
Score: 14.38
Employment in Production Occupations: 56,510
Columbus, the busy capital of Ohio, has a strong manufacturing sector. Recently, Intel announced a $28 billion investment in a large semiconductor factory near the city, which is set to create 10,000 jobs. Local businesses like Worthington Industries are also doing well alongside global brands like Anheuser-Busch, solidifying Columbus’s position as a manufacturing powerhouse.
14. Grand Rapids, MI
Score: 17.01
Employment in Production Occupations: 78,330
Grand Rapids is situated east of Lake Michigan. Grand Rapids, once a center for crafting unique furniture, earned the nickname “Furniture City.” Today, its legacy lives on with five of the world’s leading office furniture companies calling the city home. Grand Rapids’ rise to global prominence began in 1876 when its furniture makers impressed the world at an exhibition in Philadelphia.
13. Cincinnati, OH
Score: 17.87
Employment in production occupations: 81,230
Cincinnati leads Ohio in manufacturing jobs. With over 81,230 workers spread across 1,113 companies, it ranks 13th nationally for industrial jobs. GE Aviation Systems is a major player, employing 6,500 of the city’s manufacturing workforce. The four largest industries in Cincinnati are technology, business and professional services, bio-health, and advanced manufacturing.
12. Cleveland, OH
Score: 17.91
Employment in Production Occupations: 80,170
The Civil War helped Cleveland become a leading American manufacturing city, a status it maintained for years. By 1880, iron and steel manufacturing were significant, contributing 20% to the value of Cleveland’s manufactured goods. Cleveland’s strategic location on the Great Lakes made it a key transportation hub. Major industries in Cleveland include electric light and power, steel, petroleum, and chemicals.
11. Milwaukee, WI
Score: 18.04
Employment in production occupations: 77,580
Milwaukee is Wisconsin’s largest industrial city by manufacturing jobs. The Greater Milwaukee area hosts a variety of industries, including mechanical manufacturing, energy, power and controls, food and beverage, water technology, and medical technology. This industrial strength is reflected across Wisconsin, which has 10,542 manufacturers and has seen job growth in the sector for eight consecutive years. Milwaukee has been a major contributor to this trend, adding 9,498 jobs (or 1.7%) in the past year alone.
10. Phoenix, AZ
Score: 19.80
Employment in Production Occupations: 93,100
Phoenix is among the top 10 most industrial cities in the US, with around 1,446 companies and more than 93,000 workers. Honeywell Aerospace is both the city and state’s top industrial employer. With over 52 million square feet of industrial space under development, Phoenix is the second-largest market in the US for industrial real estate currently under construction.
9. Philadelphia, PA
Score: 23.32
Employment in Production Occupations: 109,240
Philadelphia is the most populated city in the US state of Pennsylvania. Around 3% percent of Pennsylvania’s manufacturing companies are women-owned. Food processing is the largest industrial sector by number of jobs, industrial machinery ranks second, while fabricated metals is ranked third. Other top industries in Pennsylvania include chemicals, plastics/rubber, and electronics.
8. Minneapolis, MN
Score: 25.72
Employment in Production Occupations: 127,380
Nicknamed “Mill City,” Minneapolis gained prominence alongside its neighboring city, St. Paul, collectively forming the Twin Cities of Minnesota. During the 19th century, these cities experienced simultaneous growth in two important industries: lumber and flour milling. Today, Minneapolis performs well in industries such as Advanced Manufacturing, Clean Tech & Renewable Energy, and Food & Agriculture, which employ a significant portion of the city’s workforce in production roles.
7. Atlanta, GA
Score: 26.44
Employment in Production Occupations: 137,910
Atlanta is the capital of Georgia. Aviation, healthcare, and logistics are amongst Atlanta’s major industries that offer fruitful business opportunities. Hartsfield-Jackson Atlanta International Airport connects important industrial districts. Atlanta facilitates global trade and passenger travel, generating an estimated $34.8 billion in annual economic impact in the Atlanta metro area.
6. Houston, TX
Score: 31.67
Employment in Production Occupations: 167,690
Houston, Texas is at the sixth position on our list of the top 20 most industrial cities in the US. This city is home to over 7,000 manufacturers, churning out more than $75.1 billion in goods annually. Houston’s advanced manufacturing and robotics industry is a major player on the global stage.
5. Detroit, MI
Score: 33.97
Employment in Production Occupations: 185,220
Detroit, the most populated city in Michigan, has played the main role in the industrialization of America throughout the 20th century. Detroit is home to the legendary “Big Three” automakers – General Motors, Ford, and Stellantis. The large auto manufacturers make Detroit a major beneficiary of the growth in the electric vehicle manufacturing sector.
4. Dallas, TX
Score: 34.27
Employment in Production Occupations: 191,280
Dallas is the most populated city in Texas. Its rise as a bustling business and trading center began in the late 19th century with the development of railroads. This attracted workers from Texas, the South, and the Midwest. Today, Dallas continues to grow through business relocations and expansions, with key industries including information technology, financial services, healthcare, and defense.
3. New York, NY
Score: 46.81
Employment in Production Occupations: 261,300
Nicknamed “Industry City,” New York City isn’t just a global hub for finance and culture; it’s also a center of innovation in manufacturing technology. Over 13,328 manufacturers are headquartered in New York. The city ranks third amongst the best industrial cities in the US.
2. Chicago, IL
Score: 49.02
Employment in Production Occupations: 286,680
Chicago, Illinois’ most populous metropolis, has a strong industrial sector. Manufacturing takes center stage, contributing a hefty $53.9 billion to the region’s GDP. The city’s industrial landscape is diverse, ranging from metal giants and electrical innovators to printing presses and food producers. Chicago is in the second position on our list of the top 20 most industrial cities 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 17,592 manufacturing establishments. Los Angeles recorded a 1% increase in the manufacturing space in the city between 2019-2023.
At Insider Monkey, we delve into a variety of topics, ranging from the most industrial cities in America 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.
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