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Manufacturing Output Surges In Smaller US States

Small states lead in manufacturing output per capita, outpacing larger states like California, Texas, and Florida in 2022.
Small states lead in manufacturing output per capita, outpacing larger states like California, Texas, and Florida in 2022.
  • Louisiana led the nation in manufacturing output per capita in 2022, despite ranking 25th in population.
  • Other top performers include Indiana, Iowa, Nebraska, and Kentucky, all driven by sectors like transportation equipment and food manufacturing.
  • In contrast, large-population states like California, Texas, and Florida ranked significantly lower on a per capita basis—Florida was among the bottom five.
  • The findings highlight how smaller states can outperform larger ones in manufacturing intensity, even if they trail in total output.
Key Takeaways

Smaller States, Bigger Efficiency

While big states typically dominate economic rankings due to their sheer size, a new Census Bureau analysis tells a different story. Released during Manufacturing Week, the data highlights how smaller states can outperform larger ones when measured on a per capita basis, reports GlobeSt.

In 2022, Louisiana ranked first in the US for manufacturing revenue per resident. It generated $59,217 per capita, largely driven by its petroleum and coal products sector.

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The Top Performers

None of the five highest-ranking states by per capita manufacturing revenue were among the most populous. Rounding out the list:

  • Indiana ($49K): Driven by transportation equipment manufacturing
  • Iowa ($47K): Supported by food production
  • Nebraska ($38K): Also buoyed by food manufacturing
  • Kentucky ($37K): Transportation equipment was the leading sector

All of these states have populations ranking between 17th and 37th nationally.

The Underdogs

At the other end of the spectrum, Florida—the country’s third most populous state—ranked near the bottom in per capita manufacturing output. Joining Florida in the bottom five were Maryland, New Mexico, Hawaii, and the District of Columbia, each producing less than $10K per resident in manufacturing revenue.

Size Still Matters For Total Output

Though they may not lead on a per capita basis, the largest states still dominate in total manufacturing output:

  • Texas led with $808B in total shipments
  • California followed with $656B
  • Ohio, Indiana, and Illinois rounded out the top five

These states also employ the most manufacturing workers, with California alone employing nearly 1.2M in the sector.

Why It Matters

The findings challenge traditional assumptions that big states are inherently more productive. When adjusted for population, smaller states often appear more efficient, with specialized industries like energy, transportation, and food processing driving outsized results.

As US manufacturing continues to evolve, per capita performance may become a more meaningful metric in assessing state-level industrial strength.

What’s Next

With supply chains shifting and federal investment in US manufacturing ramping up, smaller states are gaining attention. They are increasingly seen as hubs for specialized production, especially in energy and food-related sectors.

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