South Accounts for Lion’s Share of Factory Construction Boom

The Hyundai Motor Group Metaplant America is an electric vehicle and battery manufacturing plant under construction in Ellabell, Ga. (Bloomberg News)

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States in the U.S. South are at the forefront of a massive renaissance in construction projects aimed at enhancing manufacturing capacity and supply chain resiliency.

U.S. construction put in place for manufacturing facilities has more than doubled in the two-year span that ended in April, to $18.4 billion, according to regional data released June 3 by the Commerce Department. States in the South accounted for nearly two-thirds of the increase.

These projects, pushed by the Biden administration, span various sectors that include semiconductor fabrication, battery production and electric vehicle manufacturing.

States in the West South Central region, which includes Arkansas, Louisiana, Oklahoma and Texas, rose $3 billion over the two-year period to almost $5 billion in April. That increase accounted for nearly a third of the $9.7 billion overall gain in manufacturing construction.

The South Atlantic region, which spans from Delaware to Florida, saw the second-sharpest gain. Private manufacturing construction in that region has climbed $2.4 billion since April 2022, accounting for more than 24% of the national increase.

Meanwhile, the biggest percentage decline occurred in the Middle Atlantic, which includes New Jersey, New York and Pennsylvania, where the value of manufacturing construction put in place slid 34%. That was followed by a 31% slump in Pacific states and an 8% decrease in New England.

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