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Mark Russo
Vice President, Industrial Research
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Gregg Healy
Executive Vice President, Head of Industrial Services
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Manufacturing in 2025 reflects both progress and pullback.
At a glance
Manufacturing
Report
2015-2025
U.S. manufacturing job announcements
Taking the pulse of manufacturing between rhetoric and reality
Activity has risen over the past year, even as previously announced projects are being put on hold or canceled at historically high levels.
Three sectors—aerospace & defense, grid & energy and digital infrastructure—made up 75% of new manufacturing projects in 2025.
About two-thirds of U.S. manufacturing projects announced in the past five years were in Sun Belt states.
Announced in selected year
Canceled or put on hold in selected year
Announced 2015-2025
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Industrial - December 2025
Savills Manufacturing Report
North America
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This report focuses on what is real: where manufacturing investment is materializing, where it is stalling, and what those trends reveal about the next phase of industrial growth.
Source: Savills Research proprietary dataset tracking U.S. manufacturing projects announcing 500 or more jobs
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Jobs
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Manager, Industrial Research
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Chris Bauers
Research Associate, Canada
tslater@savills.ca
Thom Slater
$1B
$500M
$2B
< $250M
Capital investment
> $2B
>5,000
At a Glance
Taking the pulse of manufacturing: between rhetoric and reality
The top five states account for more than half of the manufacturing job announcements since 2021.
New projects
Stalled projects
Historical projects from 2015-2025
December 2025 - Industrial
Jobs announced
Move the slider through different date ranges to explore historical data
Stability in trade and policy will be critical for companies to evaluate long-term investments.
2026 Outlook
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Texas
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South Carolina
Ohio
North Carolina
Michigan
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Arizona
Labor, power and capital—not incentives—will continue to determine when and where these projects get built.
AI, energy and advanced transportation will remain structural growth terms.
Special thanks to the collaborative efforts of all cross-function contributors who helped bring the 2025 Savills Manufacturing Report to life, including our data partners Harry Moser and Reshoring Initiative.
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Manufacturing Hot Spots by Job Announcements
Click on the highlighted state below to view a detailed state dashboard
67k
jobs
#3
51k
#8
46k
#9
62k
#4
44k
#10
60k
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69k
#2
U.S. Manufacturing Job Announcements by Industry Vertical
Reshoring & Foreign Direct Investment (FDI)
Between 2021 and 2024, 65% of reshoring job announcements were tied to EVs & batteries, chips, clean energy or biomanufacturing.
72k
#1
2021-2024
Source: Reshoring Initiative
September 2024 - Industrial
Geography of U.S. manufacturing investment: new and stalled projects
In the past year, 45 U.S. mega-projects were announced, creating more than 50,000 jobs, while others representing billions in investment were put on hold.
U.S. manufacturing jobs announced and stalled
Click on the highlighted region below to view a detailed dashboard
Mexico
Canada
About two-thirds of U.S. manufacturing projects announced in the past five years were located in Sun Belt states.
Announcements remain strong, but many projects are advancing unevenly as market conditions, financing and shifting demand test their economics. Some sectors—like defense and energy—are expanding, while others tied to earlier incentive cycles are slowing or being restructured. Canada and Mexico continue to move on their own tracks, shaped by trade and policy dynamics, but the center of activity remains in the U.S. This report focuses on what is real: where manufacturing investment is materializing, where it is stalling, and what those trends reveal about the next phase of industrial growth.
In the past year, 42 U.S. mega-projects were announced, creating more than 48,000 jobs, while others representing billions in investment were put on hold.
In Canada, the EV and automotive industries account for nearly 88 percent of the 23,000 manufacturing jobs announced since 2022.
graphic
more on the Sun Belt
more on why
more on Canada
2025: policy vs. reality
AI and geopolitics
North America growth
Canada's industrial projects
Mexico's uncertain growth
full 2026 conclusion
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What really comes next?
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The manufacturing outlook for the next few years is best described as partly cloudy. Momentum remains, but visibility is limited. Stability in trade and industrial policy will be critical, particularly as companies weigh long-term investments against the short life span of political priorities. Manufacturing decisions unfold over years, often outlasting the incentives and rhetoric that surround them. In this environment, success will depend on focusing on what is durable—market demand, cost fundamentals and location advantages—rather than chasing what is temporarily subsidized. AI, energy and advanced transportation will remain structural growth themes, even as they move through near-term volatility. Projects may pause or recalibrate as costs and expectations adjust, but the underlying demand remains intact. Geopolitical risk is also likely to remain elevated, supporting continued demand for defense-related manufacturing even as other sectors move through periods of recalibration. Persistent constraints—labor, power and capital—will continue to determine when and where these projects get built. Just as incentives cannot make a weak location strong, the regions that have emerged as winners are likely to stay that way, supported by workforce depth, infrastructure and land availability.
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The 2025 manufacturing policy reset
The 2021–2024 incentive-driven policy cycle—defined by the Inflation Reduction Act, CHIPS Act and Bipartisan Infrastructure Law—fueled a surge of manufacturing announcements concentrated in select industries such as semiconductors, electric vehicles (EVs) and clean energy. That wave was already losing momentum by 2024, as challenges in the EV market exposed limits to the incentives-led model.
The gap between soaring construction spending and flat industrial production shows how far the U.S. is from a full manufacturing revival. Much of the current investment surge is in high-value, capital-intensive facilities that add little to measured production, since the industrial production index tracks physical volume rather than dollars invested. The industry mix is also shifting, with growth in newer segments offset by slower activity elsewhere. Furthermore, about two-thirds of projects announced in the past five years remain active but unfinished, highlighting the long timelines before new capacity translates into output.
H.R. 1, the “One Big Beautiful Bill Act,” introduced 100% rapid depreciation for new equipment and facilities, alongside $150 billion in new defense funding, including shipbuilding and munitions. It also increased the semiconductor investment tax credit from 25% to 35%. The legislation has been a setback for the clean tech supply chain by phasing out the federal $7,500 EV tax credit and the 30% credits for residential and commercial solar. Together, these changes mark a pivot toward cost recovery and defense-driven industrial policy, though the long-term direction remains uncertain. These policy shifts also align with where early-stage innovation capital has been moving, particularly toward defense, energy and advanced industrial technologies. Tariffs are the defining policy variable of 2025, and their impact on manufacturing is mixed. The immediate challenge has been uncertainty. As of this writing, the legality of the IEEPA tariffs remains under review, and rates have shifted repeatedly throughout the year. That volatility makes long-range planning for new manufacturing sites difficult, regardless of whether the policy proves beneficial in the long run. It also raises a broader question: whether tariffs meaningfully support U.S. manufacturing. A recent Yale University analysis estimates that the current tariff regime (implemented through November 17, 2025) could raise long-run manufacturing GDP by 2.9 percentage points overall, led by gains in the traditional durable sector. However, current tariffs will not provide a net boost for advanced manufacturing output, which relies more heavily on imported inputs.
policy reset
Major policy shifts have defined 2025.
Sources: U.S. Census Bureau; Federal Reserve Board. Manufacturing construction spending and manufacturing industrial production index (2017 = 100).
U.S. manufacturing construction spending vs. industrial production
Between November 2024 and November 2025, 48,130 manufacturing jobs have been announced—a strong rebound from the previous year’s total of 30,854. The year’s most significant announcement came from JetZero, which plans an all-wing aircraft facility in Greensboro, North Carolina, projected to create 14,500 jobs and $5.0 billion in capital investment. Total capital investment from the past year’s megaprojects reached $38.7 billion, an impressive figure but far short of the White House’s tally in the trillions. Savills data includes only projects with a defined location and timeline, not long-term pledges.
It is also notable that project delays remain elevated. Announcements of stalled projects peaked in the 12 months ending January 2025 at 21,870 jobs put on hold or canceled and, though easing since, are 51.1% above the five-year average. For example, major projects with KORE Power, Gotion and FEYR Battery were canceled this year, while the $3.1 billion announcement with AESC was put on hold.
While activity improved from last year, announced jobs still trail the five-year average by 19.2% and are less than half the peak level seen in 2022.
Largest U.S. manufacturing project announcements in 2025
Source: Savills Research
Reality check on recent announcements
recent
AI and geopolitics realign manufacturing growth
New sectors are reshaping U.S. manufacturing as the industry mix evolves. In 2025, 48.7% of new manufacturing jobs announced were driven by the aerospace and defense sector, reflecting the continued national emphasis on security and advanced production. This shift reflects not only domestic policy but a broader global backdrop. Conflict levels that reached multi-decade highs in recent years have persisted into 2025, according to the Stockholm International Peace Research Institute (SIPRI) and the Uppsala Conflict Data Program (UCDP), and most geopolitical risk monitors expect elevated instability to continue in the near term. That environment is helping sustain demand for defense and aerospace production well beyond the effects of U.S. policy alone.
realign
Venture capital trends point in the same direction. According to PitchBook, global venture investment in defense and aerospace has already surpassed $19 billion this year as of late November, nearly doubling last year’s total of just over $10 billion. Innovation capital typically moves ahead of manufacturing investment, underscoring why these sectors now anchor much of the current project pipeline. Another 24.9 percent were tied to the grid and energy or digital infrastructure verticals—both closely linked to the growth of AI.
2025 manufacturing job announcements by industry vertical
Tesla’s new Megafactory in Brookshire, Texas, will produce large-scale “Megapack” batteries for grid energy storage, while Hitachi Energy and Eaton have announced transformer plants to meet surging grid demand. At the same time, Jabil is producing data-center hardware in North Carolina, underscoring how AI’s rapid expansion is shaping industrial investment. According to BloombergNEF, data centers could account for 8.6% of total U.S. electricity demand by 2035—more than double their 3.5% share today. The data on stalled manufacturing projects also reflect the shifting industry mix. Among projects announced since 2021 that have been placed on hold or canceled, 60.2% were linked to EV battery and related electric-vehicle initiatives—a sector now facing headwinds from slowing demand, reduced subsidies and emerging global overcapacity. Another 13.3% were tied to medical-supplies manufacturing, a pandemic-era boom that has since lost momentum as demand normalized. Together, these patterns underscore how manufacturing growth is being redefined; sectors tied to national security, power systems, and digital infrastructure are expanding, while others that surged under exceptional conditions are now contracting.
Port - East Coast
West Coast
North America’s uneven manufacturing landscape
Manufacturing across North America continues to expand, but not evenly. In the U.S., activity remains concentrated in stronghold regions where local incentives, infrastructure and workforce continue to attract large-scale projects. Canada and Mexico are moving on separate tracks: Canada through public coordination and investment, Mexico through competitive costs tempered by policy uncertainty.
The geography of manufacturing investment continues to follow a familiar pattern. Despite shifts in policy and industry mix, the Sun Belt, Southeast and Mid-South remain at the center of new project activity. Competitive costs, workforce depth, infrastructure and available land keep these regions at the top of the list for site selection. The Midwest also continues to benefit from its legacy industrial base and logistics networks, but the broader momentum remains concentrated in the southern half of the country. This locational pattern is expected to hold even as the sectors driving manufacturing growth evolve.
uneven
Sun Belt remains at the center of U.S. manufacturing growth
Source: Savills Research proprietary dataset tracking U.S. manufacturing projects announcing 500 or more jobs, excluding projects on hold or canceled
Top states for manufacturing job announcements
2021–2025
Canada charts its own course
Canada’s manufacturing landscape has grown alongside public planning and direct federal participation in guiding industrial development, in contrast to the U.S. model, which relies more on private investment and incentives. Despite headwinds from U.S. trade policy and a slower domestic economy, more than CAD 2.3 billion in new manufacturing projects were announced this year. Since 2022, total announcements have reached roughly CAD 48.5 billion, though several have been delayed or reevaluated—particularly in the EV and automotive sectors.
Federal and provincial governments, particularly in Ontario and Quebec, continue to pursue an integrated EV and battery supply chain that spans mineral extraction, component production, assembly and recycling. Ontario has attracted the majority of new manufacturing investment—78.4% of total announced capital investment, while Quebec secured 19.0%. Beyond direct manufacturing announcements, the 2025 federal budget and the newly established Major Projects Office (MPO) are central to Canada’s evolving industrial strategy. The government’s focus on domestic production and infrastructure investment aims to reduce reliance on U.S. supply chains while positioning Canada as a secure supplier of critical materials and energy. Projects under review could double Canada’s liquefied natural gas (LNG) output, expand critical-mineral extraction, boost East Coast export capacity and add modular nuclear and hydroelectric power generation. Taken together, these developments signal a deliberate national effort to build long-term industrial capacity and energy resilience—reflecting a quieter but purposeful divergence in how Canada is shaping its economic future.
own course
Source: Government of Canada, Major Projects Inventory (Natural Resources Canada)
Significant industrial infrastructure projects in Canada
Proposed and under development
Manufacturing jobs announced by industry and province
2022–2025
Uncertain ground for Mexico’s manufacturing base
Mexico’s manufacturing sector remains resilient, even as trade uncertainty and shifting global policy temper momentum. Through the first half of 2025, uncertainty around U.S. tariffs and the upcoming USMCA renegotiation weighed on decision-making and capital deployment. Still, core industrial regions continued to attract new projects and expansions, reflecting the country’s enduring cost and capacity advantages.
Coahuila emerged as a major beneficiary this year, with new facilities announced by Electrical Components International (ECI), Eran Group, and Dual Borgstena—each adding more than 1,000 jobs. The State of Mexico (Edomex) also moved to strengthen its industrial base, approving six new developments across Tultitlán and Tultepec totaling nearly $200 million in investment and supporting roughly 2,800 jobs. Mexico’s advantages—affordable labor, proximity to U.S. markets and adequate energy capacity—continue to underpin growth. These fundamentals will only grow more critical as advanced manufacturing becomes further embedded in Mexico’s production base. Projects such as Kyungshin Cable’s expansion of its battery module assembly plant in Durango and Laboratorios Carnot’s new pharmaceutical facility in Hidalgo highlight this transition toward higher-value manufacturing. However, the outlook is tempered by policy risk. The pending USMCA renegotiation in 2026, the fluid nature of U.S. trade policy, and domestic political shifts all pose challenges to sustaining long-term investment confidence. For now, data on container crossings and foreign direct investment show continued strength, but the pace of expansion has clearly slowed from the nearshoring surge of prior years—a reminder that while Mexico’s fundamentals remain strong, its momentum is increasingly shaped by forces beyond its control.
Uncertain ground
U.S.-Mexico border inbound & outbound container crossings
Source: U.S. Department of Transportation; includes loaded and empty truck and train containers
Largest Mexico manufacturing project announcements in 2025
Source: U.S. Department of Transportation, Bureau of Transportation Statistics; includes loaded and empty truck and rail containers entering the U.S. from Mexico.
The manufacturing outlook for the next few years is best described as partly cloudy. Momentum remains, but visibility is limited. Stability in trade and industrial policy will be critical, particularly as companies weigh long-term investments against the short life span of political priorities. Manufacturing decisions unfold over years, often outlasting the incentives and rhetoric that surround them. In this environment, success will depend on focusing on what is durable—market demand, cost fundamentals and location advantages—rather than chasing what is temporarily subsidized.
AI, energy and advanced transportation will remain structural growth themes, even as they move through near-term volatility. Projects may pause or recalibrate as costs and expectations adjust, but the underlying demand remains intact. Geopolitical risk is also likely to remain elevated, supporting continued demand for defense-related manufacturing even as other sectors move through periods of recalibration. Persistent constraints—labor, power and capital—will continue to determine when and where these projects get built. Just as incentives cannot make a weak location strong, the regions that have emerged as winners are likely to stay that way, supported by workforce depth, infrastructure and land availability.
recent announcements
