When discussing American manufacturing, the conversation has traditionally centered on the Rust Belt—that swath of the Northeast and Midwest where steel mills, auto plants, and factories once dominated the economic landscape. While these historic manufacturing centers continue to play an important role in our industrial economy, the ongoing U.S. manufacturing renaissance is increasingly being driven by emerging industrial hubs across the country.
At Phoenix Industrial Redevelopment (PIR), our nationwide approach to industrial property acquisition has given us a front-row seat to this geographic transformation. As we continue to build our portfolio of small-bay, multi-tenant industrial properties, we’re witnessing the rise of new manufacturing powerhouses that are reshaping the industrial real estate landscape.
The New Geography of American Manufacturing
The U.S. manufacturing sector is experiencing a significant revival, fueled by reshoring initiatives, technological innovation, and changing global economic conditions. However, this renaissance isn’t simply a return to the past. Instead, we’re seeing the emergence of new manufacturing hubs with distinct advantages and specializations.
Several key regions stand out as drivers of this new industrial landscape:
The Southeast Manufacturing Corridor
The Southeast has emerged as perhaps the most dynamic region for manufacturing growth in the United States. States like South Carolina, Tennessee, Georgia, and Alabama have attracted massive investments in advanced manufacturing, particularly in the automotive and aerospace sectors.
This growth is built on several regional advantages:
- Business-friendly regulatory environments with lower tax burdens
- Lower cost of living and competitive wages
- Strong transportation infrastructure including major ports and rail networks
- Abundant and relatively affordable energy
- Strategically positioned between Midwest industrial centers and export facilities
Recent major investments include Rivian’s $5 billion electric vehicle plant near Atlanta, Georgia, and Blue Oval City, Ford’s $5.6 billion electric vehicle and battery manufacturing campus in western Tennessee. These anchor investments create ripple effects throughout the industrial ecosystem, driving demand for smaller manufacturing spaces to house suppliers and service providers.
The Texas Triangle
The area bounded by Dallas-Fort Worth, Houston, and San Antonio-Austin has developed into a powerhouse manufacturing region with remarkable diversity. This “Texas Triangle” benefits from:
- Central location for distribution to both coasts and Mexico
- Multiple international airports and major ports
- Established energy infrastructure
- A large, growing population creating both workforce and consumers
- Business-friendly policies and no state income tax
The region has particular strength in technology manufacturing, energy equipment, aerospace, and biomedical production. Tesla’s massive Gigafactory outside Austin represents just one high-profile example of the manufacturing investment flowing into the region.
The Mountain West Corridor
The corridor stretching from Colorado through Utah to Arizona and Nevada has emerged as another significant growth area for American manufacturing. These states offer:
- Lower operating costs than coastal markets
- Growing, educated workforces
- Exceptional quality of life to attract talent
- Strong transportation connections to West Coast ports and Southwest border crossings
- Abundant land for development
Phoenix, Arizona has become particularly notable for semiconductor and electronics manufacturing, while Salt Lake City is seeing growth in medical device manufacturing and aerospace components. The entire region benefits from proximity to California’s massive consumer market while offering significantly lower costs.
The Research Triangle and Southeast Tech Corridor
North Carolina’s Research Triangle Park has long been a center for high-tech research, but the broader region including parts of Virginia and South Carolina is now developing into a significant manufacturing hub focused on advanced technologies, pharmaceuticals, and precision components.
This region leverages:
- World-class research universities providing innovation and talent
- Established life sciences and technology sectors
- Mid-Atlantic location with good distribution access
- Lower costs than Northeast markets
- Moderate climate with fewer extreme weather events
The corridor from Raleigh-Durham through Charlotte and extending toward Greenville-Spartanburg, South Carolina represents one of the country’s fastest-growing areas for advanced manufacturing investment.
Drivers of Regional Manufacturing Growth
These emerging manufacturing hubs share several common factors driving their growth:
Strategic Clustering and Ecosystem Development
Modern manufacturing benefits tremendously from clustering—the concentration of interconnected companies, specialized suppliers, and supporting institutions in a particular region. When major manufacturers establish operations in these emerging hubs, they typically attract or develop networks of specialized suppliers, technical service providers, and other supporting businesses.
This ecosystem development creates significant opportunities for small-bay industrial properties. While the headline-grabbing investments might be billion-dollar factories employing thousands, these major operations are supported by dozens or hundreds of smaller businesses occupying 2,000-10,000 square foot spaces—precisely the types of tenants that populate PIR’s small-bay industrial parks.
Advanced Workforce Development
Regions succeeding in attracting manufacturing investment typically feature strong workforce development programs specifically tailored to industrial needs. Community colleges, technical schools, and specialized training programs work directly with manufacturers to develop curriculum and certifications that ensure a pipeline of qualified workers.
Charleston, South Carolina’s advanced manufacturing training programs supporting Boeing and Volvo, Tennessee’s network of technical colleges supporting auto manufacturing, and Texas’s community college partnerships with semiconductor manufacturers exemplify this approach.
Logistics Optimization
The reshoring of manufacturing is occurring alongside a fundamental restructuring of supply chains, with a growing premium placed on reliability and resilience rather than simply minimizing costs. Emerging manufacturing hubs typically feature robust logistics infrastructure, including:
- Intermodal facilities connecting rail, truck, and sometimes air or sea transportation
- Strategic positioning to serve major domestic markets while maintaining export capabilities
- Less congestion compared to traditional industrial centers
- Room for expansion as logistics needs grow
Quality of Life as Competitive Advantage
As manufacturing becomes more technology-intensive, attracting and retaining skilled workers becomes increasingly important. Many emerging industrial hubs offer significant quality-of-life advantages compared to traditional manufacturing centers:
- More affordable housing
- Shorter commute times
- Access to outdoor recreation
- Growing cultural amenities
- Favorable climate conditions
These factors help companies attract not just production workers but also the engineers, technicians, and managers essential to modern manufacturing operations.
Real Estate Implications for Investors
The geographic shift in American manufacturing creates both challenges and opportunities for industrial real estate investors. At PIR, we’ve developed a strategic approach to capitalize on these emerging hubs:
Focus on Secondary and Tertiary Markets Within Emerging Hubs
While primary markets within these regions (like Atlanta, Dallas, or Phoenix) have already seen significant industrial development and price appreciation, we find compelling opportunities in secondary and tertiary markets that benefit from the same regional advantages with less competitive pricing.
These markets often feature:
- Lower acquisition costs for existing industrial properties
- Strong connections to the primary market’s industrial ecosystem
- Availability of skilled labor at competitive wages
- Less competition from institutional capital
- Greater value-add potential through targeted improvements
Emphasize Supply Chain Connectivity
When evaluating properties in emerging manufacturing hubs, we place significant emphasis on supply chain connectivity—how efficiently the location connects to both major manufacturers and distribution networks. Properties within 30-60 minutes of major manufacturing operations often represent the sweet spot for suppliers and service providers that need regular access but benefit from lower occupancy costs.
Target Conversion and Repositioning Opportunities
Many emerging manufacturing hubs have existing industrial stock that can be repositioned to meet the needs of today’s manufacturing tenants. We look for properties that offer:
- Solid construction fundamentals
- Sufficient clear heights (typically 14-24 feet for small-bay manufacturing)
- Adequate power infrastructure or the ability to upgrade
- Flexible configurations that can be adapted to multiple tenant sizes and uses
- Opportunity to add or enhance loading capabilities
Anticipate Infrastructure Development
Successful investment in emerging industrial hubs often requires anticipating infrastructure improvements before they’re fully implemented. We monitor transportation projects, utility expansions, and other infrastructure investments that may enhance property values in previously overlooked areas.
The PIR Investment Advantage in Emerging Hubs
Phoenix Industrial Redevelopment’s focus on small-bay, multi-tenant industrial properties is particularly well-suited to capitalize on the growth of these emerging manufacturing hubs. Our strategy offers several advantages:
Diversified Tenant Exposure to Manufacturing Ecosystems
Rather than betting on a single large manufacturer, our multi-tenant properties provide exposure to diverse participants in the manufacturing ecosystem—from specialized component suppliers to maintenance service providers to last-mile distributors. This diversification reduces risk while maintaining exposure to the overall growth of the regional manufacturing sector.
Targeted Value-Add Improvements
When we acquire properties in emerging industrial hubs, we implement targeted improvements designed to meet the specific needs of manufacturing-related tenants in that region. These might include:
- Enhanced power distribution for equipment-intensive operations
- Improved loading configurations for frequent small shipments
- Flexible demising options to accommodate changing space needs
- Security enhancements for high-value inventory and equipment
- Office buildouts to support the administrative needs of modern manufacturers
Focus on Long-Term Fundamentals
While some investors chase short-term growth in emerging markets, our long-term hold strategy focuses on sustainable fundamentals. We target properties in locations with:
- Diverse economic drivers beyond a single industry or employer
- Established transportation infrastructure
- Local government commitment to industrial development
- Reasonable cost structures that will remain competitive over time
- Population growth supporting workforce availability
The PIR Capital Program Opportunity
For investors looking to participate in the growth of these emerging industrial hubs without the complexities of direct property ownership, PIR offers two compelling options:
The FixedFunds Program®
Our FixedFunds Program® provides accredited investors the opportunity to earn attractive fixed returns (8.0% annually) backed by our portfolio of small-bay industrial properties across these emerging manufacturing regions. With both Income Notes (monthly payments) and Growth Notes (compounded returns), investors can choose the approach that best fits their financial goals.
The minimum investment is $50,000, and stepped-up interest rates are available for larger investments:
- Tier 1 ($50,000 to $499,999): 8.00%
- Tier 2 ($500,000 to $999,999): 8.25%
- Tier 3 ($1,000,000+): 8.50%
The 1031Funds Program®
For investors with existing real estate holdings looking to diversify into these emerging industrial markets through a tax-advantaged approach, our 1031Funds Program® offers a compelling solution. This Delaware Statutory Trust (DST) structure qualifies as replacement property for 1031 exchanges, providing:
- 5.0% annual preferred return paid monthly
- 50% participation in property appreciation upon sale
- Minimum investment of $500,000
- True equity ownership qualifying for 1031 exchange treatment
- Professional management through our affiliate Grid Property Management
Conclusion: Positioning for the Manufacturing Renaissance
As the U.S. manufacturing renaissance continues to unfold across these emerging industrial hubs, strategic real estate investment provides a compelling way to participate in this transformative economic shift. The geographic diversification of American manufacturing creates opportunities beyond the traditional industrial centers, with new regions leveraging their unique advantages to attract investment and build robust manufacturing ecosystems.
At Phoenix Industrial Redevelopment, our nationwide approach to acquiring and improving small-bay, multi-tenant industrial properties is directly aligned with these emerging hubs. By providing well-located, properly configured spaces for the small and mid-sized businesses that form the backbone of these manufacturing ecosystems, we create value for both our tenants and our investors.
Whether through direct participation in our FixedFunds Program® or through tax-advantaged investment via our 1031Funds Program®, accredited investors have the opportunity to benefit from the ongoing geographic transformation of American manufacturing—a transformation that’s taking us far beyond the Rust Belt into a new, more distributed, and ultimately more resilient industrial landscape.
To learn more about investment opportunities in these emerging industrial hubs, contact our investment team today.
