Manufacturing already has made a comeback
By Tim Henderson, Stateline.org (TNS)
Before the COVID-19 pandemic, McLean County, Illinois, was known mostly as the home of State Farm Insurance in Bloomington and Illinois State University in Normal.
Now, the area illustrates a trend that’s bringing more factories to small cities with lower costs of living: It has thousands of new jobs manufacturing Rivian electric vehicles and a new candy factory that will produce Kinder Bueno and other Ferrero candies.
“Food and electric cars. This is not something we were known for before 2019,” said Patrick Hoban, president of Bloomington-Normal Economic Development Council in McLean County.
“We’re primarily an insurance and university town that’s just now seeing a rise in manufacturing. Rivian has ramped up from 300 to 8,000 employees, and I don’t think anyone realized how fast that was going to happen,” Hoban said.
President-elect Donald Trump has vowed to rebuild American manufacturing, and he won handily in most areas hollowed out by the movement of factory jobs overseas. But the rebound Trump promises has already been underway in many places: McLean County is part of an unusually strong jump in manufacturing jobs between 2019 and 2023 — the first time manufacturing employment has recovered fully from a recession since the 1970s, according to a recent report from the Economic Innovation Group, a bipartisan public policy organization in Washington, D.C.
There were about 12.9 million manufacturing jobs in 2023, slightly more than in 2019. However, the number of manufacturing jobs has declined precipitously since the all-time peak in 1979, when there were 19.4 million of them and they were a much larger share of overall employment.
Joseph McCartin, a Georgetown University professor and labor history expert, said manufacturing has been on an upswing since 2010 as the nation started recovering from the Great Recession. The pandemic interrupted the trajectory, but the United States recently saw a hopeful increase in pay for the new jobs, he said, as the Biden administration aimed to increase both wages and jobs through the CHIPS and Science Act and the Inflation Reduction Act.
“The Biden administration tried to use policy to ensure that more of these would be union jobs or at least offer union-level wages,” McCartin said. “This approach is almost certainly dead due to the results of the election.”
Employers may have a hard time filling lower-paying manufacturing jobs such as meat processing if the new Trump administration deports the immigrants who fill them, said William Jones, a University of Minnesota history professor and former president of the Labor and Working Class History Association.
“These will be hard hit if Trump follows up on his deportation plan,” Jones said. “The political rhetoric is that a bunch of native-born workers will move into these jobs, that they’re getting squeezed out, but that’s actually not the case. Some of these industries are extremely dependent on immigrant labor.”
Where growth happened
Small urban areas such as McLean County got most of the increase in manufacturing jobs between 2019 and 2023, according to the Economic Innovation Group report. Rural areas lost those jobs, and large cities saw no change.
It was mostly Sun Belt and Western states that saw the increases during those years, according to a Stateline analysis of federal Bureau of Labor Statistics data.
The largest percentage changes in manufacturing jobs were in Nevada (up 14%), Utah (up 11%), and Arizona and Florida (each up 9%). The largest raw numbers of new manufacturing jobs were in Texas (up 48,200), Florida (up 35,100) and Georgia (up 22,900).
Southern states such as Alabama and Mississippi also have seen more automotive jobs as manufacturers have taken advantage of lower costs and state “right-to-work” laws that weaken unions. Vehicle manufacturing jumped by 7,800 in Alabama and 6,600 in Mississippi, the largest increases outside California.
Meanwhile, traditional Rust Belt states have seen continued declines, with manufacturing jobs down about 2% in Michigan, Ohio and Pennsylvania, and also in Illinois — despite McLean County’s success.
Manufacturing is playing a critical role in Nevada as it tries to diversify its tourist-oriented economy so it can better weather downturns such as the one during the pandemic, said Steve Scheetz, research manager for the Nevada Governor’s Office of Economic Development.
Automotive and other battery manufacturing and recycling, driven by electric carmaker Tesla and battery recycling firm Redwood Materials, account for much of the increase in Nevada manufacturing, Scheetz said.
As in Illinois, the job growth tended to be in smaller areas outside big cities, such as Storey County, just east of Reno, with a population of about 4,200.
“Fifteen years ago, this small county in rural Nevada was relatively unknown,” Scheetz said, adding that jobs and economic output has risen tenfold and the number of total jobs — including manufacturing — has grown from less than 4,000 to almost 16,000 in those 15 years. The county also is home to plants making building materials, industrial minerals and molded rubber, among other products.
The Biden administration focused on bringing more blue-collar jobs to small cities like Normal and Bloomington, said Jones, the University of Minnesota professor.
“Much of the growth is due to [President Joe] Biden’s manufacturing investments. There was a conscious strategy to focus on small towns to get the political benefit in places that tended to vote Republican,” said Jones.
If there was a play for political benefit, it got mixed results: Vice President Kamala Harris carried McLean County, Illinois, on Nov. 5, but she lost Storey County, Nevada, by the largest margin for a Democrat in 40 years.
Blue-collar wages
The decline of unions and the availability of cheaper labor overseas have dampened U.S. factory job wages in recent decades. Even so, manufacturing jobs remain an attractive path for blue-collar workers.
Manufacturing pay still ranks fairly high among the blue-collar fields at an average $34.42 per hour as of October — less than wages in energy ($39.98) or construction ($38.72), but considerably more than hospitality ($22.23) or retail ($24.76). That also was the case in 2019, and it has led many state and cities to seek more factory positions to balance out the lower-paying service jobs that have blossomed as manufacturing has waned.
But in the past year, state Republican leaders have pushed back on a burgeoning Southern labor movement that aims to bring higher wages and better benefits to blue-collar workers.
In Alabama, Republican Gov. Kay Ivey signed a new law in May that would claw back state incentives from companies that voluntarily recognize labor unions. GOP leaders in Georgia and Tennessee also passed laws pushing against a reinvigorated labor movement, viewing unions as a threat to the states’ manufacturing economies.
Much of the increase in Alabama manufacturing jobs has been in the northern part of the state, near Tennessee and Georgia. Since the pandemic began, Mazda Toyota Manufacturing came on line with the goal of hiring 4,000 vehicle production workers and another 2,000 in nearby parts factories as other manufacturers also boosted hiring. Private investment in Alabama automotive manufacturing totaled $7 billion over the same time frame, Stefania Jones, a spokesperson for state Commerce Secretary Ellen McNair, said in a statement to Stateline.
Supply-chain problems during the pandemic illustrated the advantages of American-made goods, said McCartin, the Georgetown University professor. However, without union support, today’s factory workers are unlikely to achieve the middle-class lifestyle enjoyed by earlier generations, he said.
“The growth of manufacturing itself is unlikely to become a panacea for what ails working-class America,” McCartin said.
Stateline is part of States Newsroom, a national nonprofit news organization focused on state policy.
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