Over the past decade, advanced manufacturing in the U.S. has grown from niche sectors into vital industries with far-reaching implications. Companies like Tesla have revolutionized the automotive sector, SpaceX is spearheading a new era in space exploration, and Anduril Industries is pushing the boundaries of defense technology.
These companies are not just manufacturing products; they are transforming entire industries, creating thousands of jobs, and attracting billions of dollars in venture-backed investment. However, their success is, in no small part, a result of federal policies that align with their technological ambitions.
The role of the federal government supporting these growing sectors is more pronounced than ever before. Whether through federal contracts, loans or grants, industrial policy coming out of Washington is shaping this growth. However, navigating Washington can be daunting and this new wave of companies will need to be clear eyed about the need to build relationships in D.C. and learn how best to navigate the halls of government. Innovators move fast and innovation is flowing across the country, but the learning curve is steep in the halls of Washington and in state capitals across America.
As we crisscross the country on behalf of advanced manufacturing companies for site selection, we prioritize our understanding of D.C. and national strategic objectives in our process to ensure we find the best location for our clients to select. The competition from within the government is more exciting than ever.
Companies must navigate multiple avenues for potential manufacturing support in D.C., from the Loan Program Office of the Department of Energy and the Office of Strategic Capital at the Department of Defense to the CHIP’s office at the Department of Commerce and the Export-Import Bank, the commitment to bolster domestic manufacturing and job creation is a whole of government objective. That commitment is equally matched by the competition from states to not only offer large incentive packages, potentially including free land and commitments to power, but also in developing industrial ecosystems to attract talent and sector-specific industries.
While technological innovation continues to be developed in places like Cambridge and El Segundo or Santa Clara and Princeton, the geographic map for where to build factories is wide open. Companies now have the opportunity to build anywhere, and part of the challenge on the site selection front is to develop drivers and a process to select the top states for the client based on talent, access to power and supply chain considerations.
Understanding D.C. is not just about meeting politicians—it’s about finding the right thought partners to amplify your story.
Once top states are identified, a process-driven approach is needed to compete states and municipalities against each other for the best incentive package, often prioritizing speed to market based on power and talent access, and less around getting the largest dollar package.
As companies explore the country for the best location for their innovation, they constantly must monitor and engage with Washington. We work hand in hand with our clients to ensure we are collecting information and data during the search process is used to support federal applications, as well as for investor decks as these companies continually seek new capital for growth. Developing your products cannot happen in a silo, nor can your site selection process, and the faster companies learn to navigate the halls of Washington, the better off they will be in telling their story in the halls of state capitals.
With a new administration taking office, reshoring, bolstering energy production, expanding AI investment, strengthening national security, pushing for permitting reform and accelerating infrastructure projects are all on the horizon and likely to further incentivize manufacturing.
Sitting in D.C., I have been thrilled to see a growth in advocacy, innovation and thought leadership from new organizations like the Special Competitive Studies Process and the New American Industrial Alliance as well as from the Institute for Progress and Station D.C.. Understanding D.C. is not just about meeting politicians—it’s about finding the right thought partners to amplify your story.
The support from the Federal Government will continue to evolve with a new administration, so our advice to the new innovators across America is to prioritize a Washington strategy as you explore how and where to site your next project. As the public and private sectors continue to invest and support this manufacturing resurgence, we can collectively strive to ensure we book innovation, strengthen our national security and continue to boost our economic resilience for decades to come.
By continuing to prioritize innovation, national security, and economic resilience, Washington can lay the groundwork for a new generation of manufacturers that will drive America’s economic strength for decades to come.