by Rod McCants, on Aug 11, 2025 2:00:00 PM
Despite trade uncertainty, developments in automation, and sustainability pressures, the outlook for the U.S. plastics industry remains positive. According to FDI Intelligence, more than 150 plastics-related projects have been publicly announced since early 2024, delivering significant job creation and capital investment across the United States. This blog explores key trends, site selection factors, and emerging U.S. hotspots for plastics manufacturing.
States with strong plastics growth and presence
The table below represents job growth and the overall presence of the plastics industry in each state over the past five years. We measure growth in terms of both absolute job count change and percentage change, as looking at either of these figures on their own does not tell the whole story. We also give weight to the results of states with a strong existing presence in the industry, as states with a small existing presence can show abnormally large percentage increases based on adding a small number of jobs. As a result, the data in the table below reflects an index score that blends those data points.
The table shows key trends in regions that have stronger presence and growth profiles in the plastics industry:
Growth in the Southeast
States like South Carolina, Tennessee, Alabama, and North Carolina have seen significant growth in this industry, thanks in part to robust logistics, a skilled labor pool, and competitive incentives, ultimately attracting advanced manufacturing projects.
Gulf States
Abundant petrochemical resources, competitive energy costs, and access to ports position states like Texas and Louisiana as leaders in plastics production.
Midwest (Indiana, Michigan, Ohio, Kentucky)
While growth in these states has slowed, the Midwest has developed a strong reputation as a hub for plastic manufacturing jobs. Its central location, skilled manufacturing workforce, and proximity to automotive and packaging markets make the Midwest a prime destination.
Spotlight: Recent plastics manufacturing projects
In addition to state-level trends, Site Selection Group carefully monitors major project and incentive announcements in the plastics sector. The map below represents the count of incentivized plastics projects by state since 2024, with darker states indicating higher counts of project announcements. Note: this only includes projects that receive publicly reported economic incentives.
Key projects of interest include:
Pelsan Tekstil – North Carolina
Pelsan Tekstil, a Turkish manufacturer of breathable film technologies for the hygiene and medical sectors, is investing $82.6 million in its first U.S. facility in Wayne County, North Carolina, where it will create 216 jobs. The project was supported by a Job Development Investment Grant (JDIG).
Charter Next Generation – Ohio
Charter Next Generation, a producer of sustainable films and packaging, plans to invest over $106 million to expand its Lexington, Ohio, facility, creating 115 new jobs.
Panduit – Indiana
A global leader in electrical and network infrastructure solutions, Panduit is investing $12 million in a new facility in Merrillville, Indiana, creating 131 jobs.
Letica Corporation – Kentucky
Letica Corporation, a subsidiary of Berry Global, is investing $27.8 million to expand its facility in Bowling Green, Kentucky. The announcement comes with 15 jobs and received incentive support from the Kentucky Business Investment program.
Graham Packaging – Louisiana
Hammond, Louisiana-based Graham Packaging announced a $35 million investment to expand and modernize its production lines at an existing plant. The company was the recipient of a $1 million refundable tax credit offered through the state’s Retention and Modernization Program, which also included comprehensive workforce development solutions from Louisiana Economic Development’s FastStart program.
Industry outlook and trends for the plastics industry
Tariff Pressures
Recent tariff threats on imports from Mexico, Canada, and China, which supply significant plastics machinery and resins, could increase costs by 25-35% for U.S. manufacturers, accelerating nearshoring to U.S. facilities. Site selection prioritizes locations near petrochemical feedstocks, such as the Gulf Coast, to enhance supply chain resilience and reduce reliance on tariff-impacted imports.
Follow the Workforce
The plastics industry’s continued adoption of automation and advanced technologies demands skilled workers. Regions with robust technical training programs are ideal for accessing talent. Workforce training incentives further drive project growth in these areas.
Economic Incentives
Operational needs certainly drive plastics site selection, but economic incentives can swing final decisions. And, as tariff threats swell, these incentives are crucial as imported machinery and materials could raise operational expenses, making cost-efficient locations even more critical.
Despite broader economic and political uncertainty, plastics manufacturing activity is expected to remain resilient in 2025. As competition for land, infrastructure, and skilled labor intensifies, the most successful projects will be those that move quickly, rely on data-driven site selection, and align with local workforce strategies. At Site Selection Group, we help companies navigate these challenges to make confident, cost-effective location decisions that support long-term growth.
