U.S. industrial market benefits from rise in onshore manufacturing

A rise in onshore manufacturing operations by U.S. companies is creating more demand for factory space nationwide, according to CBRE.

The 3.8 billion-square-foot manufacturing facility market recorded a record low 3.4 percent availability rate at year-end 2022 after annual absorption of 53.8 million square feet — the highest amount since 2016 and the second consecutive year that net absorption has surpassed 50 million square feet.

Much of this demand is from more companies onshoring their manufacturing operations to ensure uninterrupted supply chains, reports CBRE. This strategy is growing as companies look to diversify their product sources, protect intellectual capital and take advantage of government incentive programs. Top industries that expanded their onshore manufacturing in 2022 included automotive, semiconductors, packaging materials, pharmaceuticals and defense.