Phoenix and Atlanta are among dozens of U.S. cities poised for significant job gains from more than 300 manufacturing projects announced since 2020 that are expected to increase domestic production of semiconductors, electric vehicle batteries and other technology components.
Greater Phoenix has 14 projects that are expected to create more than 15,000 jobs when high-tech facilities producing computer chips and related components are up and running, according to a report from real estate trade group NAIOP and brokerage Newmark.
The analysis looks at the the effects on industrial real estate demand of nationwide efforts to establish or expand manufacturing facilities in the United States. If all 300 projects in the pipeline nationwide, valued at about $400 billion, are completed, they would create at least 210,000 jobs combined at those sites and at nearby logistics properties that would be built to serve them.
“The impact of reshoring manufacturing will be dramatic and far-reaching in terms of industrial real estate, local and national tax revenues, increases in jobs, and growth in regional and national economies,” NAIOP CEO Marc Selvitelli said in the report.
Atlanta is projected to gain more than 12,000 jobs from seven projects in the works for that region, with many of those positions expected to come within the automotive and transportation industries. Austin, Texas, is on track to garner more than 11,000 new jobs in technology and transportation industries thanks to six manufacturing facilities announced or started since 2020.
Based on current patterns, domestic-focused efforts to prevent supply chain disruptions like those of the early pandemic months are expected to increase the nation’s industrial property by 10% or 500 million square feet over the next decade, Newmark and NAIOP researchers said.