Manufacturing has long powered America’s global success. Yet over the past decade, the Rust Belt faced challenges as companies moved operations to lower-cost regions.
Deloitte reports U.S. manufacturing spend surged 183% between 2020 and 2024—signaling a strong resurgence.
Part of this uptick is tied to legislation such as the CHIPS, IRA and IIJ Acts, which have helped incentivize both onshoring and reshoring initiatives. Consumers are also willing to spend more for locally made goods—up to $150 more per month.
Interestingly, this return to form isn’t happening where you might expect. Instead, the resurgence of American manufacturing is largely concentrated in the Midwest and Southeast. Here’s a look at what this means for operations, maintenance, supply chains and long-term stability.
The changing geography of U.S. manufacturing
Rust belt states historically held the reins of U.S. manufacturing. An exploration of census maps by the Library of Congress shows just how much manufacturing power was condensed in the Northeastern states and how few companies were operating elsewhere.
While the advent of digital technologies and connected platforms helped expand America’s manufacturing footprint, the Rust Belt remained firmly in charge. The rise of more cost-effective offshoring and outsourcing, however, marked the beginning of a slow but steady decline in Rust Belt operations.
Today, manufacturing trends are gaining momentum both south and west of the Rust Belt region, creating a new U.S. manufacturing boom.
The Southeast manufacturing shift
States like South Carolina, Tennessee, Georgia and Alabama form the Southeast Corridor—a region attracting significant investment over the past five years. In part, this economic interest is driven by business-friendly regulatory environments and lower taxes. Labor also plays a role, since the South views right-to-work regulations as essential components of a competitive environment.
The Midwest manufacturer move
In the Midwest, reshoring initiatives and advanced manufacturing projects are driving a strong return of industrial operations. While Rust Belt states are seeing some of this resurgence, investment is also pushing further west, with manufacturing in Chicago serving as a key example of renewed urban and regional growth. Labor is part of the appeal, though for a different reason than the South. According to a study from the University of Cambridge, Midwesterners are viewed as “friendly and conventional.” For businesses, this means a higher chance of hiring workers who are happy, hardworking and helpful. In addition, some of the largest manufacturing companies in the Midwest use centralized warehousing and distribution, creating a more cost-effective manufacturing and storage model.
Key drivers of the resurgence
While there’s no question that manufacturing is on the move in the U.S., staying competitive in this new market means understanding the key drivers of this resurgence. They include:
- Labor and workforce flexibility: Manufacturing in the Southeast offers greater workforce flexibility thanks to right-to-work laws and lower unionization rates; in the Rust Belt, the average unionization rate is 13.3%. In the South, it’s just 4.3%.
Both the Midwest and Southeast, meanwhile, now have access to technical training ecosystems through local colleges and technical schools.
- Energy and cost structures: The Southern states often have cheaper electricity, land and housing costs. For industries in the Midwest region, meanwhile, warehouse/manufacturing combinations reduce the total cost of ownership (TCO).
- Infrastructure and logistics: The Southeast and Midwest include major ports, rail lines and intermodal hubs, making them strategic locations for both exports and supply chain operations.
- Clustering and supplier ecosystems: When OEMs make the move, suppliers and services follow. This necessitates a commensurate uptick in local maintenance providers.
- Reshoring and evolving supply chain strategies: Multisource supply chains are now commonplace, but manufacturers are also making the move to more local providers that offer shorter lead times and regional flexibility.
- Technology and advanced manufacturing fit: Advanced technology initiatives such as electric vehicles, aerospace components production and medical device manufacturing require high reliability paired with minimal downtime, in turn driving the need for advanced maintenance services.
Region-by-region spotlight
The new manufacturing framework isn’t monolithic; differing investments are now shaping new futures for both regions.
In the Southeast manufacturing corridor, one key driver of new manufacturing capacity is motor vehicles, both gas-powered and electric. For example, the Ford Motor Company is spending more than $11 billion to build electric vehicle (EV) battery plants in Tennessee and Kentucky as part of its Blue Oval initiative.
Underpinning the operation of these new facilities are processes such as high-cycle stamping, intelligent robotics and automated assembly lines, all of which have high uptime demands and require consistent maintenance.
In the Midwest, meanwhile, there’s a push toward reshoring in manufacturing along with advanced manufacturing investments. Ohio saw a $20 billion investment from technology company Intel, and Indiana announced a $3.87 billion investment from SK Hynix, which produces AI microelectronics.
It’s also worth noting that border regions, such as the Texas Triangle and Mountain West, are now taking on roles as supportive hubs, offering solutions such as component manufacturing and supply chain logistics.
Implications for maintenance and reliability practitioners
This regional shift carries significant implications for operations, maintenance and reliability teams. Underlying factors include:
- Increased manufacturing footprints: New builds and factory expansions create a higher demand for industrial maintenance services, reliability partnerships, technician staffing and preventive maintenance support.
- New facilities built with IIoT and AI: Smart factories that leverage IIoT devices and AI-enabled decision making require advanced maintenance and digital reliability practices to ensure maximum uptime.
- Local supplier and maintenance ecosystems: Local support from suppliers and maintenance companies means reduced travel logistics and improved service times.
- Regional workforce availability: Regional workforces include local technicians who are familiar with unique regional conditions and can more effectively diagnose and resolve maintenance issues.
- Tailored maintenance programs: Every factory and production line has unique challenges. As a result, customized maintenance programs that address uptime, scalability and talent pipeline challenges are essential for sustained growth.
The result? Maintenance planners, reliability engineers and predictive maintenance programs aren’t just operational benefits, rather, they’re strategic differentiators.
Strategies for manufacturers and maintenance teams to capitalize
To capitalize on new manufacturing investments, manufacturers must adopt a strategic approach. Here are six best practices to help manufacturers and service providers realize resurgence revenue.
1. Evaluate facilities through a maintenance and reliability lens. Consider your access to skilled technicians, service providers and the supply chain.
2. Develop reliability programs that align with growth regions. These programs should include scalable preventive and predictive maintenance, technician staffing and asset health monitoring.
3. Plan for modern manufacturing equipment and augmented maintenance capabilities. New growth offers the opportunity for new builds that rely on connected manufacturing equipment, IIoT sensors and in-depth maintenance analytics.
4. Build local technician pipelines and training partnerships. Partnering with local community colleges and tech schools helps create a pipeline from education to employment.
5. Leverage data analytics and IoT to improve uptime. As facilities rapidly expand, manufacturers need analytics supported by IoT data to make informed decisions.
6. Partner with local service providers. Look for local service providers, such as ATS, that offer a combination of regional presence, multi-craft technicians and industrial technology.
Partner with experts positioned for the resurgence
Consistent growth requires focused effort. For many manufacturing firms, this means prioritizing immediate operations over strategic maintenance planning.
With ATS, companies get the combination of national scale and local deployment. Our teams have deep expertise in machine reliability monitoring, predictive maintenance services and multi-craft staffing, which are ideal for emerging hubs. In addition, our regional knowledge of logistics, workforces and infrastructure helps ensure that maintenance programs scale with growth. We’re also experts in Industry 4.0 deployment, management and monitoring to enable modern and connected manufacturing ecosystems.
Manufacturing is resurging across industries in the Southeast and Midwest. To make this growth sustainable, however, companies must align maintenance strategies with regional ecosystems by making best use of local experts and onshore supply chains.
Make sure you’re ready for the resurgence: Contact ATS today for a regional reliability assessment or outsourcing maintenance partnership in the Midwest and Southeast growth zones. Let’s talk.
References
Coykendall, J., Hardin, K., Routh, A., Morehouse, J., & Sloane, M. (2025, March 26). Accelerating the resurgence of Amercian Manufacturing. Deloitte Insights. https://www.deloitte.com/us/en/insights/industry/government-public-sector-services/american-manufacturing-renaissance.html
Verdon, J. (2024, May 15). Consumers say they will spend more to support neighborhood shops. Forbes. https://www.forbes.com/sites/joanverdon/2024/05/15/consumers-say-they-will-spend-more-to-support-neighborhood-shops/
Library of Congress. (2024, September 20). Made in America: U.S. Manufacturing in Gilded Age Census Maps. https://blogs.loc.gov/maps/2024/09/made-in-america-maps/
Phoenix Industrial Redevelopment. (n.d). Beyond the Rust Belt: Emerging Industrial Hubs Driving the U.S. Manufacturing Renaissance. https://phoenixindustrialredevelopment.com/emerging-industrial-hubs-driving-the-u-s-manufacturing-renaissance/
Tabarrok, A. (2025, May 15). Manufacturing went South. Marginal Revolution. https://marginalrevolution.com/marginalrevolution/2025/05/manufacturing-went-south.html
American Psychological Association. (2013, June 12). Journal article: PSP-A0034434. https://www.apa.org/pubs/journals/releases/psp-a0034434.pdf
Bureau of Labor Statistics. (2025, January 28). Union membership summary (PDF). U.S. Department of Labor. https://www.bls.gov/news.release/pdf/union2.pdf
Ford Motor Company. (2021, December 23). Blue Oval City: Electrification hub. https://corporate.ford.com/articles/electrification/blue-oval-city/
Stepp, T. (2024, Q2). Midwest becomes hotspot for semiconductor manufacturing and supply industries. Area Development. https://www.areadevelopment.com/advanced-manufacturing/q2-2024/midwest-becomes-hotspot-for-semiconductor-manufacturing-and-supply-industries.shtml
