U.S. Manufacturing Revival: How Reshoring Is Creating New Industrial Real Estate Demand

By Sam Laird

A wave of domestic manufacturing investment is reshaping industrial real estate demand across the United States. U.S. manufacturing construction spending remains more than double its pre-2022 levels as of April 2026, according to Federal Reserve economic data. Much of that investment is landing in Midwest and Sun Belt markets—such as Phoenix, Columbus and Indianapolis—rather than traditional coastal logistics hubs, as those regions compete for major manufacturing campuses.

Link Logistics market officers are watching this play out firsthand. Industrial real estate demand generated by onshoring and reshoring extends well beyond the new manufacturing facilities themselves: Major anchor investments attract networks of suppliers, vendors and logistics operators that need industrial space of their own.

What Is Driving Domestic Manufacturing Investment?

Domestic manufacturing investment is being driven by several converging forces: supply chain security concerns, federal incentive programs, state-level competition for major manufacturing campuses and shifts in trade policy.

Supply chain security has become a primary consideration for companies and governments alike. The disruptions of the early 2020s exposed the risks of concentrated offshore manufacturing. Companies and policymakers have responded by prioritizing domestic production capacity, particularly for strategically important industries.

Federal incentive programs—most notably the CHIPS and Science Act, which directed substantial funding toward domestic semiconductor manufacturing—have accelerated investment decisions that might otherwise have taken years longer to materialize.

State-level competition for major manufacturing campuses has intensified as well. Markets across the Midwest and Sun Belt are offering tax abatements, infrastructure support and workforce development programs to attract the kinds of anchor investments that reshape local industrial economies.

Tariff policy shifts have added another layer of complexity. For companies importing goods into the U.S., the cost calculus of offshore production has shifted, accelerating some location decisions and prompting others to evaluate domestic alternatives more seriously.

The result is a manufacturing investment wave that is landing across a wide geographic range—and creating industrial real estate demand that extends far beyond the factory floor.

Which Industrial Real Estate Markets Are Seeing the Most Significant Reshoring Impact?

Reshoring's impact on industrial real estate extends well beyond this list, but these markets illustrate it most clearly.

Phoenix

Phoenix offers perhaps the most dramatic example of domestic manufacturing investment reshaping an industrial market. TSMC's decision to locate its first U.S. advanced semiconductor manufacturing facility in Phoenix—with total projected investment exceeding $165 billion—was explicitly driven by supply chain security: moving chip production to American soil rather than relying on facilities in Taiwan.
"TSMC's announcement has been transformative for Phoenix's industrial real estate landscape," says Matt Duplantis, senior vice president and Phoenix market officer for Link Logistics. "The project is part of a broader onshoring trend—moving chip manufacturing to American soil for security reasons and supply chain stability." 

Phoenix now boasts the fourth-largest semiconductor workforce in the United States, and the ancillary demand from TSMC's supplier and vendor network has driven substantial warehouse and industrial leasing throughout the North Phoenix area.

Read Link Logistics' full Phoenix market overview.

Columbus

Columbus has emerged as a convergence point for multiple domestic manufacturing investments. Intel's announcement of a chip manufacturing campus near New Albany—representing more than $20 billion in investment—set off a chain reaction of data center development and supplier activity that has fundamentally altered the market's demand profile. Honda and LG operate major EV battery manufacturing plants in the region. Anduril, the defense technology company, is investing billions in the Southeast submarket to manufacture drones.

"All of these operations generate vendor, supplier and worker-related demand that creates trickle-down effects throughout the industrial market," says Brian Doyle, senior vice president and Columbus market officer for Link Logistics. 

The result is a market that has absorbed substantial industrial space driven by domestic manufacturing anchors rather than traditional distribution demand.

Read Link Logistics' full Columbus market overview.

Indianapolis

Indiana's mega site strategy has positioned Indianapolis to compete directly for the kind of transformative manufacturing investments that reshape regional industrial markets. The state identifies and prepares large-scale sites with infrastructure in place to attract global companies making major U.S. manufacturing commitments.

"Companies that operate at the scale of Eli Lilly aren't looking regionally—they're looking across the entire country for the most attractive location for their business, operations and supply chain, combined with tax-friendly incentives and job creation benefits," says Doyle, who also oversees the Indianapolis market. 

Eli Lilly's nearly $5 billion pharmaceutical manufacturing campus in Lebanon, Indiana, is one recent example. Amazon, Carvana and a major Swiss biotech company announced substantial investments in Indianapolis in 2025. Each major anchor investment carries its own supplier and logistics ecosystem that generates additional industrial demand.

Read Link Logistics' full Indianapolis market overview.

Kansas City

Kansas City's central U.S. location has made it a natural landing spot for domestic manufacturing investment with national distribution implications. Panasonic's EV battery manufacturing facility in DeSoto, Kansas—spanning more than 4.7 million square feet—is the most prominent example, and its effects are already extending into the broader industrial market.

"The Panasonic facility should attract a lot of auto industry suppliers," says Anthony James, senior vice president and Kansas City market officer for Link Logistics. 

The supplier network effect is a consistent pattern across markets where anchor manufacturers locate: Once a major facility is established, the vendors and partners that support it need industrial space nearby, compounding the initial demand impact.

Read Link Logistics' full Kansas City market overview.

Charlotte

Charlotte illustrates a different dimension of the domestic manufacturing story: the role of state incentive competition in attracting manufacturing investment. The Charlotte market spans the North Carolina–South Carolina border, and the two states compete actively for manufacturing jobs, each offering its own package of incentives to companies making location decisions.

"North Carolina attracts manufacturing based on competitive incentives," says Britten Mathews, senior vice president and Charlotte market officer for Link Logistics. "That cross-state competition ultimately benefits the broader Charlotte market." 

The result is a market that has attracted a diverse mix of manufacturing users drawn by a combination of incentives, labor availability and logistics access.

Read Link Logistics' full Charlotte market overview.

Cincinnati

Cincinnati's manufacturing heritage positions it well for the current investment wave. The market's I-75 corridor—one of the most important north-south freight corridors in the country—runs from Michigan manufacturing centers through Cincinnati to Florida, making it a natural home for companies with north-south supply chains.

The resurgence of U.S. manufacturing is one of the defining forces shaping Cincinnati's industrial market, according to Peter Brennan, vice president and Cincinnati market officer for Link Logistics, driving growing demand for industrial space with heavy power capacity. 

“Cincinnati's industrial real estate market is seeing growing demand for heavy power capacity, driven by two converging forces: the resurgence of U.S. manufacturing and the rise of warehouse automation,” he says. “Cincinnati's strong manufacturing heritage makes it particularly well-positioned for this trend, as the region already has the workforce and infrastructure base that power-intensive users need.”

Amazon's air freight hub at Cincinnati/Northern Kentucky International Airport—where the company has optioned more than 300 acres for long-term expansion—represents a major domestic logistics infrastructure investment with the potential to generate substantial supplier and partner demand over time.

Read Link Logistics' full Cincinnati market overview.

Dallas-Fort Worth

Dallas-Fort Worth sits at the intersection of domestic and nearshore manufacturing logistics. I-35, one of the market's defining infrastructure assets, runs directly from manufacturing centers in Mexico through Dallas and north into the central United States and Canada—making DFW a natural distribution node for goods produced both domestically and in North America more broadly.

"Location is critical from a distribution standpoint. I-35 runs from manufacturing centers in Mexico all the way through the central U.S. into Canada," says Rebel Blackwell, senior vice president and Dallas-Fort Worth market officer for Link Logistics. As nearshoring of manufacturing to Mexico has grown, Dallas has become an important logistics hub for goods moving north from those facilities into the U.S. market—a North American manufacturing story as much as a domestic one.

Read Link Logistics' full Dallas-Fort Worth market overview.

What Reshoring Means for Businesses Evaluating Industrial Space

The domestic manufacturing investment wave has practical implications for companies evaluating warehouse and distribution locations.

Markets that are attracting major manufacturing anchors are also tightening faster than they otherwise would, as supplier and logistics demand compounds the initial investment impact. Phoenix, Columbus, Indianapolis and others have all seen substantial absorption driven by manufacturing-related demand, and the pipeline of new warehouse construction has been constrained. Companies evaluating space in these markets should factor in the accelerating competition for available product.

The supplier network effect means that industrial demand from domestic manufacturing extends well beyond the immediate footprint of the anchor facility. Companies anywhere in the supply chains of semiconductor manufacturing, EV battery production, pharmaceutical manufacturing or defense technology should evaluate their proximity to the markets where those anchor investments are concentrating.

More broadly, the domestic manufacturing investment wave represents a structural shift in where industrial demand is being generated. Markets that were once primarily defined by their distribution advantages—Kansas City, for example—are now also defined by their manufacturing ecosystems. That evolution is reshaping the industrial real estate landscape in ways that are likely to persist well beyond the current investment cycle.

Link Logistics owns and operates warehouse and industrial space across 40+ North American markets. Explore available warehouse and distribution space to learn more about industrial real estate opportunities near major domestic manufacturing corridors.