Biden Administration’s Policies Drive Historic Manufacturing Comeback in Small Cities Across the U.S.

November 13, 2024 — After decades of decline, American manufacturing has made a historic comeback, with small cities at the forefront. This resurgence, sparked by strategic policies from the Biden administration, has revitalized communities previously facing economic downturns. Programs like the CHIPS and Science Act and the Inflation Reduction Act have incentivized manufacturers to open new facilities domestically, creating thousands of new jobs and significantly impacting local economies.

Manufacturing’s Revival: Driven by Policy

Prior to the COVID-19 pandemic, small cities and rural areas had limited manufacturing growth, with many industries having moved overseas. Since 2019, however, towns like Normal, Illinois, have experienced a substantial uptick in manufacturing jobs, thanks to policies focused on boosting American production and fostering green technology.

Patrick Hoban, president of the Bloomington-Normal Economic Development Council, highlighted the transformation: “Food and electric cars. This is not something we were known for before 2019,” he said. The area, traditionally known for insurance and education, is now a manufacturing hub, home to Rivian’s electric vehicle factory, which grew from 300 to 8,000 employees. A new Ferrero candy factory has further contributed to the area’s resurgence, turning McLean County into a model of industrial recovery.

The Biden Policies That Powered Growth

Key policies under the Biden administration laid the groundwork for manufacturing’s post-pandemic revival:

• CHIPS and Science Act: Allocating billions of dollars to semiconductor production, this legislation was intended to reduce dependence on foreign suppliers, particularly in high-tech sectors. The resulting investment spurred the construction of new facilities across the U.S., creating thousands of jobs in smaller urban and rural areas, particularly in tech manufacturing.
• Inflation Reduction Act: Focused on green energy production, this act provided substantial tax incentives and grants to encourage companies to manufacture clean technologies, such as electric vehicles and batteries, in the United States. Electric vehicle manufacturers, like Rivian, and battery producers were particularly drawn to these incentives, leading to substantial job growth in areas that previously lacked manufacturing infrastructure.

By making U.S. manufacturing competitive again, Biden’s policies brought back jobs that were historically outsourced, benefiting a wide range of communities. The targeted focus on small and mid-sized cities amplified the impact, transforming local economies and bolstering blue-collar employment options.

Small Cities and the Sun Belt Lead in Manufacturing Growth

According to a report from the Economic Innovation Group, small urban areas received most of the manufacturing job gains between 2019 and 2023. Many of these areas are in Sun Belt and Western states, where lower living costs and right-to-work laws have encouraged companies to establish operations.

In McLean County, Illinois, for example, Rivian and Ferrero have spearheaded the transformation of the local economy, providing thousands of new jobs in automotive and food production. The resurgence wasn’t limited to Illinois; states like Alabama and Mississippi saw growth in automotive manufacturing, while Sun Belt states such as Nevada, Utah, and Florida experienced the largest percentage increases in manufacturing jobs. Texas, Florida, and Georgia saw the largest gains in sheer numbers, with tens of thousands of new positions created.

The Biden Administration’s Political and Economic Strategy

The Biden administration’s policies reflected a deliberate approach to supporting blue-collar workforces in areas where manufacturing had previously declined. By emphasizing domestic production and supporting small cities, these policies aimed to deliver tangible economic benefits to regions that often vote Republican. William Jones, a University of Minnesota professor, noted that this approach helped reestablish factory jobs as a stable path to middle-class wages.

However, the return of manufacturing jobs isn’t without challenges. Average manufacturing pay remains high among blue-collar fields at about $34.42 per hour, yet the declining influence of unions has tempered wage growth. The Biden administration sought to establish union-level wages and benefits for these new jobs through the CHIPS and Science Act, but the future of such worker protections may face hurdles under the new administration.

Implications of the Upcoming Trump Administration

With Donald Trump returning to office, there are concerns about a shift in focus. Trump’s previous administration was known for its America First policies, but he may pursue a different strategy in manufacturing, one that could reduce union influence in new manufacturing hubs. Such policies could limit wage growth and affect labor protections, potentially impacting manufacturing’s ability to provide the stable middle-class income it once did.

Moreover, some economists warn that Trump’s potential deportation plans could affect industries heavily reliant on immigrant labor, such as meat processing. Industries in small and medium-sized cities may find it difficult to fill positions, as these jobs often rely on immigrant labor.

Manufacturing as a Key Driver of Economic Transformation

The Biden administration’s policies have helped make manufacturing an important driver of economic growth, especially in smaller cities across the U.S. In Nevada, for example, automotive and battery recycling jobs spurred by electric carmaker Tesla and Redwood Materials have created a steady stream of employment opportunities in Storey County. The county’s workforce has grown tenfold in the last 15 years, driven largely by manufacturing. Steve Scheetz, of the Nevada Governor’s Office of Economic Development, emphasized how this growth has diversified Nevada’s economy, which was previously reliant on tourism.

Supply chain issues during the pandemic also underscored the benefits of domestic production. Georgetown University professor Joseph McCartin explained that the Biden administration’s focus on domestic manufacturing has helped to address these vulnerabilities, creating a stable supply of goods within the U.S.

The Path Forward for U.S. Manufacturing

For Sheboygan Reports readers, the Biden administration’s targeted manufacturing policies underscore the impact of federal initiatives on local economies. This recovery has demonstrated that a focused approach can stimulate job growth and economic resilience in areas that have historically struggled. Whether the incoming Trump administration will continue or shift this trajectory remains to be seen, but for now, the revival of American manufacturing is reshaping towns across the nation, showing how policy-driven investment can uplift communities and support middle-class employment.

This historic rebound suggests that the right mix of incentives and strategic focus can restore industrial strength and bring renewed opportunity to communities that had once seen their factories close. As manufacturing remains a foundation of economic stability in small and mid-sized towns, the future of this resurgence depends on continued support and a balanced approach to worker protections and sustainable growth.