Site Selection Group has ranked Tennessee number one in the nation as Best State for Manufacturing.
Site Selection Group has ranked Tennessee number one in the nation as Best State for Manufacturing.
Each year, Site Selection Group ranks states based on their competitiveness for corporate manufacturing investment.
While specific criteria vary by project, several core variables consistently drive manufacturing location decisions: access to qualified labor, competitive operating costs, and strategic geographic positioning.
The top five states in Site Selection Group’s 2025 Best States for Manufacturing are:
- Tennessee
- South Carolina
- North Carolina
- Indiana
- Kentucky
The same five states that topped the manufacturing rankings in 2024 also lead in 2025. The 2025 results also reinforce a broader geographic pattern that has persisted for several years: the Southeast and Midwest continue to dominate the U.S. manufacturing landscape.
Each of the top five states is located within these two regions, reflecting structural advantages that remain difficult for other parts of the country to replicate. These advantages include:
- Deep and scalable production labor pools
- Competitive wage structures
- Generally favorable labor environments
- Centralized access to major population centers
- Strong interstate and multimodal infrastructure networks
The data reinforces sustained structural strength among Southeastern and Midwestern states that continue to align closely with core manufacturing site selection priorities.
For companies evaluating expansion or relocation, the takeaway is clear: the states that consistently lead in manufacturing competitiveness are those that balance workforce scale, cost structure, and geographic accessibility.
Source: Site Selection Group
The East Tennessee Economic Development Agency markets and recruits business for the 15 counties in the greater Knoxville-Oak Ridge region of East Tennessee. Visit www.eteda.org