Thinking about growing U.S. manufacturing capacity in 2026? Texas, California, and Georgia hog headlines, but several “quiet” states combine competitive energy costs, robust incentives, and deep manufacturing know-how. Below, we spotlight six that deserve a serious look: Ohio, Indiana, Wisconsin, Iowa, North Carolina, and South Carolina—plus specific incentive programs and recent proof-points.
Why look beyond the usual suspects?
Lower operating costs (especially industrial power prices in parts of the Midwest and South), alongside strong logistics. For July 2025, industrial electricity averaged roughly 8–9 cents/kWh in OH, IN, WI, IA, NC, and SC—below many coastal peers. EIA
Aggressive, performance-based incentives at the state and local level (often tied to job creation, capex, or wages).
Active project pipeline in EV/batteries, aerospace, defense, machinery, and biomanufacturing. Axios, AP News (+4)
Quick Tip : Incentives frequently bundle state programs (discretionary grants/credits) with local tools (e.g: property-tax abatements). Always model both.
Ohio — A scaled hub with big-ticket wins
Why it’s compelling: Central location, dense supplier base, and competitive power. Recent headline deals underscore execution capacity (and talent draw) for advanced manufacturing.
Recent proof: Ohio awarded Anduril a $310M JobsOhio grant for a 5-million-sq-ft drone/autonomy manufacturing complex (“Arsenal 1”), with 4,008 jobs committed over 10 years. AP News, JobsOhio (+2)
Key incentives to know
JobsOhio discretionary grants/loans; packages are negotiated and performance-based. JobsOhio
Property-tax abatements via Enterprise Zones (EZ) and Community Reinvestment Areas (CRA)—commonly up to ~75% for up to 10 years under EZ in many cities; CRAs can run up to 100% for up to 15 years (longer for qualifying megaprojects), subject to local approvals. Columbus.gov, Village of Newtown (+2)
Industrial power around ~9.0 cents/kWh (July 2025). EIA
Best-fit sectors: Defense/aerospace, machinery, EV supply chain, tech-enabled manufacturing.
Indiana — High manufacturing intensity, expanding EV supply chain
Why it’s compelling: Indiana consistently ranks among the most manufacturing-intense state economies (by share of state GDP from manufacturing—about 26%). It’s also landing EV/energy-storage investments. Visual Capitalist (+1)
Key incentives to know
EDGE (Economic Development for a Growing Economy): refundable tax credits tied to net new jobs/payroll. (Program details via Indiana EDC; include in diligence.)
Workforce and training supports layered with local tools.
Industrial power ~9.0 cents/kWh (July 2025). EIA
Best-fit sectors: EV/battery components, medical devices, automotive and precision manufacturing.
Wisconsin — Deep bench of skilled makers (machinery, food/process)
Why it’s compelling: Wisconsin consistently punches above its size on manufacturing employment and output (machinery, metals, food/dairy). Visual Capitalist
Key incentives to know
R&D credit (modeled on IRC §41): refundability up to 25% of the state credit, with additional 11.5% credit for certain energy-efficient product R&D—useful for process innovation. WEDC (+1)
WEDC grants/loans and sales/use tax exemptions for qualifying equipment. WEDC
Industrial power ~9.9 cents/kWh (July 2025). EIA
Best-fit sectors: Food processing, industrial machinery, advanced components.
Iowa — Space, renewables edge, and pro-manufacturing tax treatment
Why it’s compelling: Wind supplies ~59% of in-state electricity (2023), contributing to consistently low average power prices; ample industrial land and established ag/industrial base. EIA
Key incentives to know
Industrial power ~9.1 cents/kWh (July 2025). EIA
Best-fit sectors: Agricultural/industrial equipment, renewable-aligned manufacturing, large-footprint projects.
North Carolina — Ports + life-sciences & advanced manufacturing momentum
Why it’s compelling: Ranked a top state for business in multiple indices, with strong biomanufacturing growth and expanding port/intermodal capacity (Wilmington, Morehead City). Notable 2024–2025 life-sciences projects include Novo Nordisk ($4.1B; ~1,000 jobs) and Biogen ($2B expansion). Axios (+1)
Key incentives to know
JDIG (Job Development Investment Grant): performance-based cash grants tied to new jobs/payroll over multi-year terms. NC Commerce
Active ports program with recent capacity improvements; intermodal rail volumes at record levels. NC Ports (+1)
Industrial power ~7.7 cents/kWh (July 2025). EIA
Best-fit sectors: Biomanufacturing, pharma, EV/battery supply chain, aerospace suppliers.
South Carolina — Incentive depth and aerospace/EV traction
Why it’s compelling: South Carolina is widely regarded for deal-closing incentives and a deep aerospace/advanced manufacturing footprint—e.g: Rolls-Royce 2025 expansion, plus robust supplier ecosystems. Reuters
Key incentives to know
Ready access to Southeastern logistics corridors; strong workforce training supports (state/local).
Industrial power ~7.9 cents/kWh (July 2025). EIA
Best-fit sectors: Aerospace, EV supply chain, turbines/energy equipment, advanced assembly.
Caveats & how to evaluate “underrated”
“Ranking” claims are noisy. Instead of generic “top 5 for growth” anchor decisions to projectable inputs: power curves, wage bands, unionization norms, truck rail/sea transit time, local permitting cadence, and real incentive math. Use neutral benchmarks (BLS, BEA, EIA). Bureau of Economic Analysis (+1)
Local matters. Property-tax abatements, TIFs, payroll grants, and training dollars are highly place-specific (city/county school-board approvals, wage floors). The same state can produce very different after-incentive economics by county. Columbus.gov
Each of these six states can be a cost-advantaged, talent-viable location for new plants in 2026—particularly for EV/energy, aerospace/defense, machinery, and biomanufacturing—provided the site and incentive structure are chosen carefully.
