Powering Industry Growth Through Workforce Investment
A skilled workforce is essential to sustaining innovation, improving productivity, and ensuring that industry growth translates into economic opportunity. Long-term growth in manufacturing and professional, scientific, and technical services (PSTS) have been economic priorities, with federal policy supporting both industry advancement and workforce development. Initiatives to improve the workforce in these fields include:
American Apprenticeship Initiative
AAI aimed to increase registered apprenticeship in nontraditional occupations, such as manufacturing, healthcare, and computer/IT, and to populations typically underrepresented in apprenticeship, including women and people of color
Pledge to America’s Workers
This initiative sought commitments from companies to provide job training and apprenticeship opportunities. Several manufacturing companies were part of this initiative, pledging to expand workforce training in the sector.
Manufacturing USA
Manufacturing USA is a network of 14 institutes dedicated to advancing manufacturing innovation, which also involves workforce development. These institutes focus on research and development in manufacturing technologies and creating training programs to develop skilled workers for advanced manufacturing jobs.
Additionally, recent legislation such as the Infrastructure Investment and Jobs Act in 2021 and the CHIPS and Science Act in 2022 have created training opportunities and encouraged workforce development in the manufacturing and PSTS sectors. These policies aim to strengthen and modernize the U.S. workforce by advancing research, expanding STEM education, and equipping workers with the skills needed for a competitive, innovation-driven economy. Both federal and state policymakers have emphasized developing the workforce for these industries. In fact, approximately 40% of all state business incentives directly targeting workforce preparation and development are either in the manufacturing or professional, scientific, and technical services (PSTS) industries (C2ER State Business Incentives Database).
Why Target These Industries?
States intentionally invest where they see strategic value—either in terms of economic resilience, national competitiveness, or job growth. The manufacturing industry encompasses occupations focused on the production of durable and non-durable goods. Despite making up 20% of workforce development incentives, employment levels have increased only slightly over the last 10 years, adding approximately 490,000 jobs (a 4% change in employment level) from February 2015 to February 2025. (Bureau of Labor Statistics).
Following suit, states are also prioritizing competitiveness in chips manufacturing. In fact, 20% of all business incentives addressing workforce preparation or development are in manufacturing.
This industry covers a wide range of occupations including legal services, engineering services, computer systems design services, management and technical consulting, and scientific research and development. Over the past decade, the PSTS sector has experienced strong job growth, adding 2.2 million jobs—a 26.7% increase in employment levels (Bureau of Labor Statistics). Although the PSTS has had more significant growth than manufacturing, both sectors have been key beneficiaries of workforce development incentives.
Significant Investments in Manufacturing
The change in job growth between industries over the last decade has not stopped states from encouraging business across both industries in significant ways. The BLS projects employment in the manufacturing industry to change by 0.8 percent from 2023-2033, well below the 4.0% projection for total employment. Alluding to potential stagnation in manufacturing jobs despite the implementation of workforce preparation and development incentives. Meanwhile, the PSTS industry is projected to grow by 10.5%, adding over one million jobs over the next decade (Bureau of Labor Statistics).
Some states are supporting growth by partnering with academic institutions to provide training and recruitment, such as the Virginia Talent Accelerator Program. Other states work with middle and high school students to encourage career exploration and engage them with relevant work opportunities such as the Massachusetts High School Apprenticeship Challenge, Nebraska’s Developing Youth Talent Initiative, and the New York Youth Jobs Program Tax Credit. By supporting workforce development, states hope to encourage growth within priority industries, like manufacturing. Below are some recent examples of how states are leveraging their workforce preparation and development programs to land major manufacturing projects.
Hyundai Motor Group Metaplant America
Georgia Quick Start helped the state land Hyundai’s first dedicated electric vehicle facility in the U.S. in Bryan County, GA. Their workforce training program will provide customized workforce training free-of-charge. This incentive also helped Georgia secure a Kia training facility in 2008. The evolution of the program to meet modern workforce needs played a key role in helping Georgia land this state-of-the-art facility—a $7.59 billion investment that is projected to create over 8,000 direct jobs.
Schneider Electric Expansion Project
Schneider Electric’s plant expansion increases the company’s energy storage capabilities to meet growing demand. The Missouri One Start program will provide customized recruitment assistance, along with resources to train and upskill new and existing employees. The company invested $73.6 million into the expansion project and received over $4 million in awards from the BUILD Program ($2,000,000), Missouri Works Program ($2,102,697), and Missouri One Start ($150,000). The project will create 241 additional jobs at the plant in Columbia, MO.
This first-of-its-kind site marks Hyundai’s inaugural North American steel facility to support automotive manufacturing. To support the workforce the Louisiana Community and Technical College System (LCTCS) will develop a new local workforce training center. Hyundai will also have access to LED FastStart’s workforce recruitment and training services. The agreement leaves potential for $100 million in performance-based grant awards for infrastructure improvements. Hyundai’s $5.8 billion investment in Donaldsonville, LA will create over 1,300 direct jobs.
Ohio partnered with Anduril to create a 5 million square foot advanced defense manufacturing facility for autonomous systems, weapons, and other U.S. national defense products. The $1.5 billion endeavor in Pickaway County, OH represents the largest single job creation and new payroll project in the state’s history. In addition to a $70 million award from the Ohio Future Fund, JobsOhio helped secure the project by offering their Job Creation Tax Credit and their Talent Acquisition Services program tools to Anduril. According to the State Business Incentives Database, the Job Creation Tax Credit provides a refundable and performance-based tax credit applied toward the company’s commercial tax liability. JobsOhio’s Talent Acquisition Services will identify talent challenges and build sustainable talent recruitment strategies for companies to help them acquire human capital.
These major projects underscore the high priority many states are placing on workforce development in manufacturing. Incentives can support recruitment, skill development, and job opportunities for local workers and students, while also helping businesses build a skilled workforce at a minimal extra cost. Looking ahead, states are positioned to deepen their investments in workforce development as a strategic tool to attract both domestic and international businesses.
To learn more about the ways in which states encourage workforce preparation and development, or gather information about other types of incentives that address other business needs, visit the C2ER State Business Incentives Database. To be a part of more conversations like this, attend the C2ER conference.