Oklahoma ranks No. 11 for best states for manufacturing
There are multiple reasons why Oklahoma is a great place for the manufacturing sector. Manufacturers like The Climate Control Group, Duracoatings Holdings, LSB Industries, HIS Paint, M-D Building Products, and United Dynamics not only show the diversity of what can be made in our state, but they also show the scalability of Oklahoma-based manufacturing.
Logistically, our state offers an ideal location to both make products at an affordable rate and distribute them to individuals around the country. Because we are equidistant from the east and west coasts and are centrally located between borders with Canada and Mexico, there’s hardly a better location for a company that wants to produce in one place yet distribute far and wide.
Given the comparatively low leasing costs for facilities in addition to low costs of labor, manufacturers can produce more for less in our state.
Recently, we received national recognition as one of the best places in the nation for manufacturing. Site Selection Group, a full-service location advisory, economic incentives, and real estate services firm, evaluated all 50 states based on variables that matter most to manufacturers. Through the analysis, Oklahoma came out as number 11.
The study considered labor scalability, target skill sets, labor demand, operating costs, organized labor, and accessibility in their evaluation. The table below shows how each category was weighted and defined.
|
Category |
Weighting |
Summary |
|
Labor Scalability |
5.00% |
Measures the volume of the workforce to ensure companies can scale their workforce |
|
Target Skill Sets |
25.00% |
Assesses industry and occupation presence to confirm the availability of targeted skill sets |
|
Labor Demand |
20.00% |
Analyzes the pressures other employers place on the employment market |
|
Operating Costs |
30.00% |
Quantifies the operating costs such as utilities, taxes, real estate, labor, etc. |
|
Organized Labor |
10.00% |
Assesses the threat posed by organized labor |
|
Accessibility |
10.00% |
Analyzes the population base with a one-day drive time of the site and distance to major ports |
Oklahoma scored above the national average in most categories, only scoring slightly lower than the national average for labor scalability and target skill sets. Operating costs and labor accessibility were among the factors where Oklahoma scored better than the national average.
In coming years, it should not be a surprise to see more companies choose Oklahoma as a manufacturing base. With such valuable opportunity, our state offers a unique investment for multiple types of manufacturing.
Interested in learning more? Read the original study here.
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