Despite trade uncertainty, slowing industrial output, and a tight labor market, U.S. manufacturing is still going strong, with a number of new plant announcements made in October.
Foreign investment has been particularly strong, with multiple announcements made in the U.S. South.
Today, we’re going to bring you a roundup of the month’s headlines, including the latest in expansions and plant openings for October.
Manufacturing News for October
Manufacturing activity in the U.S. posted a contractionary reading for the first time since 2009, hitting a 10-year low in September, according to the Institute for Supply Management.
Meanwhile, manufacturing output has all but stalled, reports the Federal Reserve, while hiring in the sector has decidedly slowed.
An ongoing trade war with China has been blamed for the slowdown, though many other factors have come into play, such as slowing global demand and uncertainty over Brexit.
Recent trade talks hint at the possibility of the world’s largest economies striking a deal, with the U.S. agreeing to suspend a tariff increase that was set to go into effect in early October. Meanwhile, “phase one” of a new trade deal appears to be underway.
U.S. South Dominates New Plant Headlines
From Dalton, Georgia to Milan, Tenn., investment in the U.S. South continues to ramp up as manufacturers flock towards states with cheap labor costs and low taxes.
Foreign investment has been particularly strong, with companies from far afield as China and Finland breaking ground on new enterprises in the U.S. South.
Tennessee Steels the Show
Novus Advanced Manufacturing made the news this month when it announced plans to expand its facility in St. Joseph. Novus plans to pour $2 million into the plant, which produces steel framing components, and will hire an additional 174 workers.
Also in October, we saw Finnish company Nokian Tyres unveil what the Chattanooga Times Free-Press called one of “the most modern tire production plants in the world” in Dayton, Tennessee.
The new facility, which represents Nokian’s largest investment, encompasses 830,000 square feet and will eventually hire 400 to produce 4 million tires per year.
Nokian invested $360 million in the plant, representing the company’s largest investment in a single facility.
Said Tennessee Gov. Bill Lee: “It will change the landscape of this community for a long time. There’s so many things right about what’s happening here today.”
Tennessee has been in the headlines several times this month. J
ust last week, China-based Global Track Manufacturing announced plans to establish a new facility in a former Tower Manufacturing plant in Milan, Tenn.
The new factory will produce rubber tracks and undercarriages and aims to employ 250 people.
Solar Shines on Georgia
Georgia was no exception when it came to foreign investment. The state saw several new plant openings in October, starting with a Korean manufacturer’s announcement of a new facility in Dalton.
Seoul-based Hanwa Q Cells announced plans to break ground on a $200 million plant which will produce rooftop solar panels. According to Georgia Gov. Brian Kemp, the Hanwa project is among 13 foreign investments in Georgia from South Korea alone.
The establishment of a new solar facility is welcome news following the 30% import tariffs the Trump Administration slapped on imported solar equipment in early 2018.
Jeffry Sessler, of the U.S. Dept. of Commerce, as reported by the Chattanooga Times Free-Press, stated at the opening ceremony for Hanwha: “When President Trump announced the solar panel duties in 2018, there were many who feared that the solar power industry would decline in the United States.
In fact, just the opposite has happened. Solar power is booming and solar manufacturing facilities are sprouting up around the country."
According to IndustrySelect’s database of 400,000 U.S. manufacturers, there are currently 160 solar industry manufacturers in the U.S.
7% of these companies have reported either an increase in sales or employment in the past year. This is slightly ahead of the 5% of companies reporting growth in the U.S. manufacturing sector as a whole.
Georgia also made the news in October when Kenosha-based Birchwood Foods, a manufacturer of ground beef patties for the fast-food industry, announced plans to open a manufacturing facility in Norcross.
The new 80,000 square foot plant hopes to employ 100, representing an investment of $33 million.
This follows an announcement in the spring by Spain-based Acoustics & Insulation Techniques, which that it would be establishing its first U.S. facility in Augusta, Georgia, for the production of insulation for the automotive and construction industries.
Germany’s Sweet Home in Alabama
Heading over to Alabama, Germany-based ID Plastics reported plans to establish its first U.S. facility in Auburn, representing a 9.8 million investment in the state.
The new facility will produce a special kind of container system that is both foldable and returnable, eliminating some of the logistical problems that plague many transport containers.
The plant will employ 50 and is among the 80 or so German companies that have invested $10 billion in the state of Alabama in the past two years alone.
This news follows several other announcements in recent months for the state of Alabama. Auto supplier Motus Integrated Technologies broke ground in August on a new manufacturing plant in Gasden, while Aerojet Rocketdyne opened its new rocket propulsion facility in Huntsville over the summer.
Related: New U.S. Manufacturing Plants Announced in July
Tire Plant Rolls into Mississippi
In Mississippi, the much-anticipated Continental Tire plant finally opened to much fanfare this week, following the initial announcement of the new facility in 2016.
Construction on the plant began in March 2018 and just last week celebrated its grand opening.
The new $1.45 billion plant is a major boon for the state, With Mississippi having faced stiff competition from neighboring states before landing the contract two years ago.
The factory will employ 2,500 workers over the next nine years. The facility will begin production in 2020 and will produce large tires for trucks and buses.
Pharma Finds Foothold in the Tar Heel State
Headed a little farther north, we saw the announcement of TriPham Services’ new contract development and manufacturing organization for injectable pharmaceuticals and biologics planned for Morrisville, NC.
The new 32,000 square-foot facility will process biologic and small molecule products in a cleanroom setting.
Biotech is big in the Tar Heel State. Earlier in the year we saw the establishment of bluebird bio’s new cutting-edge gene and cell therapy manufacturing plant in Durham.
That 125,000 square foot, $80 million plant employs 50 workers, and has plans to hire 20 additional workers.
North Carolina’s Research Triangle Park continues to draw biotech and advanced manufacturing enterprises to its borders. The state, overall, has seen impressive growth in its manufacturing sector as a result.
The state has the best of both worlds in many respects, with its RTP-centered stronghold in biotech and cutting-edge manufacturing, while still registering growth in traditionally strong industries, such as transportation and industrial machinery.
Just this summer, for instance, Honda Aircraft broke ground on a new 83,000 square-foot, $15.5 million wing manufacturing plant in Greensboro.
A Wisconsin Win (That's Not Foxconn)
Although Foxconn has dominated headlines when it comes to manufacturing in America’s Dairyland, it should be noted that the state continues to draw new enterprises to its borders.
October was no exception when aluminum giant Matalco broke ground on a new 110,000 square-foot plant in Wisconsin Rapids. The $80 million facility will employ 80 and is the region’s first aluminum plant.
Your Top Resource for the Latest Industrial Data
IndustryNet is an industrial marketplace that provides detailed information on 400,000 U.S. manufacturers and suppliers of more than 10,000 parts and services.
Request quotes, get in contact with key personnel or simply see where providers are located. IndustryNet is powered by MNI, compiler and publisher of U.S. industrial data since 1912.
All data is analyzed and compiled by MNI’s expert researchers so you can be sure you're getting accurate information. IndustryNet also offers marketing solutions to improve visibility for industrial buyers.
Learn more about IndustryNet's marketing solutions.
