Find the right manufacturing location for your workforce

When choosing where to build a new manufacturing plant, having the right workers—both now and in the future—is crucial to your success. As more companies bring production closer to home across North America, understanding local workforce trends becomes even more important.

Manufacturing businesses need more than just a building – they need the right people to run it. Worker availability, skills and local job market conditions vary widely from place to place and change over time.

Here's what to consider when picking the perfect location for your new facility:

What's happening in the job market directly impacts your manufacturing operations. For example, while China has traditionally dominated manufacturing, rising wages there are making countries like India and Southeast Asia more attractive, where labor costs can be half as much.

More North American companies are bringing production closer to home to reduce risks, create more resilient supply chains, and deliver products faster. In the US, this also helps meet customer demand for American-made products.

However, finding and keeping skilled workers for these operations is challenging. While the worker shortage that worsened during COVID has improved somewhat, many skilled workers are retiring, and there aren't enough new workers to meet demand.

The US is facing a "perfect storm" in manufacturing workforce challenges. As companies need more workers, the available pool has been shrinking for decades. Fewer people are choosing trade schools as four-year degrees became emphasized, and manufacturing jobs are often seen as less stable than before.

At the same time, new factory technology requires more advanced skills in electrical, mechanical, and production roles. Building partnerships with local governments, community colleges and trade schools is essential for developing talent. While automation helps address labor shortages, you still need skilled people to run the automated systems.

When looking at potential locations, understand which skills your operation needs and whether the local area can provide those workers now and in the future. Look at occupation trends to gauge an area's ability to attract workers long-term.

Remember that advanced manufacturing needs both highly skilled technicians and engineers for complex equipment, plus production staff for day-to-day operations. Also consider competition—if similar businesses nearby need the same types of workers, hiring can become difficult and expensive.

When assessing potential locations, ask yourself:

• Will we find enough skilled engineers and technicians here to run our advanced processes?
• Does the local technical education system align with our specific needs?
• How competitive is this market for manufacturing talent, and can we attract workers at costs that fit our budget?
• Will this region's population trends support our workforce needs for the next 10 to 20 years?

Good workforce data can help you find pockets of talent with specific skills and understand salary trends. However, this data might not show whether demand for certain manufacturing skills exceeds supply.

For deeper insights, consider talking with local experts who understand hiring trends, competing employers' expansion plans, and other market dynamics.

In today's industrial world, truly non-competitive labor markets are rare. When deciding where to locate—or whether to renew an existing lease—understanding local workforce conditions helps determine if you can compete effectively while finding the specialized talent you need at a cost that works for your business.

Want to learn how we can help evaluate workforce, infrastructure and location factors for your next manufacturing facility? Reach out to us.