What $1.6 Billion in New Manufacturing Investment Reveals About U.S. Site Selection

The United States has recently attracted five major manufacturing investments across Illinois, Texas, Georgia, Kentucky, and Arkansas. Four companies, Hyundai Translead, Carrier, Blue Bird, and Niagara Bottling, have announced combined investments exceeding $1.641 billion. (freightwaves.com)

This article examines how these manufacturers select production sites and plan manufacturing and warehouse space, offering practical examples for companies considering a U.S. factory or warehouse lease.

Capacity Expansion and Site Selection Across Five U.S. Manufacturing Projects

1. Commercial Transportation Equipment Manufacturing: Hyundai Translead

Commercial transportation equipment manufacturer Hyundai Translead is increasing its planned investment in Illinois to $600 million in response to growing customer interest in its new facilities. The project is expected to create 3,750 full-time jobs, preparing additional capacity ahead of a recovery in the transportation industry.

The Will County, Illinois, location allows the company to use two existing industrial sites formerly occupied by Caterpillar’s heavy equipment operations and Lion Electric’s electric bus operations. Illinois is also supporting a new Manufacturing Training Academy at Joliet Junior College to train workers in industrial equipment maintenance, advanced manufacturing, and welding.

2. Commercial Cooling Equipment Manufacturing: Carrier

U.S. HVAC equipment manufacturer Carrier plans to invest more than $600 million over three years in a Texas manufacturing and engineering center spanning more than 1 million square feet and creating 1,500 jobs. The facility will manufacture commercial chillers and other equipment for data centers, hospitals, schools, and industrial facilities.

Carrier is incorporating engineering labs into the new plant so manufacturing and engineering teams can work together on problems identified during assembly and testing. This arrangement reduces the time spent moving equipment between locations and makes product adjustments more efficient.

3. School Bus Manufacturing: Blue Bird

U.S. school bus manufacturer Blue Bird plans to invest approximately $300 million to convert a former diesel motorhome manufacturing site in Fort Valley, Georgia, into a 1-million-square-foot school bus factory. The facility will produce Type C school buses with diesel, gasoline, propane, and electric powertrains and is expected to create 375 jobs.

Blue Bird already employs more than 1,900 people in Georgia. Expanding in the state allows the company to draw on its established recruiting channels and management experience when hiring manufacturing, operations, and technical staff for the new factory.

4. Beverage Manufacturing: Niagara Bottling

Beverage manufacturer Niagara Bottling recently celebrated the opening of its new factory in Elsmere, Kentucky. The $141 million facility spans more than 436,000 square feet and accommodates beverage production, finished-goods storage, and shipping.

Northern Kentucky offers water resources and skilled workers suited to food and beverage manufacturing, supporting Niagara Bottling’s production and hiring needs. Local government also contributed $669,000 toward installing power transmission lines to provide electrical infrastructure for the factory.

5. Bottled Spring Water Manufacturing: Primo Brands

U.S. beverage company Primo Brands added an approximately 200,000-square-foot factory in Hot Springs, Arkansas, in response to growing demand for its Mountain Valley brand. Production lines for retail and large-format products expand bottled spring water output, while warehouse and logistics space accommodate the additional storage and shipping needs.

Mountain Valley has long sourced its spring water from Arkansas’s Ouachita Mountains and bottled it locally. Expanding in the same area allows the company to increase supply while continuing to use its existing water source.

Manufacturing Site Selection Trends

Because building a new factory can take years, some U.S. manufacturers are using existing facilities to increase capacity. Companies planning a U.S. factory can also start by looking for existing facilities they can take over and use. Reusing suitable infrastructure can reduce construction costs.

Even a suitable building needs water, power, and workers to support production. If utilities are not available on time or the company cannot hire equipment operators and maintenance staff locally, the factory may struggle to start operations as scheduled. Companies evaluating industrial properties must therefore confirm utility capacity, connection timelines, and local hiring conditions before finalizing a site and production schedule.

Additional production also creates storage and shipping needs that companies must address. When choosing factories and warehouses, companies should calculate warehouse space requirements based on order volumes, inventory coverage in days, and customer locations, then compare delivery times and transportation costs. This helps ensure that finished products have adequate storage and can reach customers as required. (cbre.com)

Follow CUPS Realty for more information on U.S. industrial real estate, manufacturing facilities, and warehousing. (cupsrealty.com)