Our team member Ye Wana Hlaing, Financial Analyst and scholar at NDSU, recently published a study on American manufacturing firms’ new location decisions. Co-authored with Dr. John Schoeneman of Oklahoma State University, the paper appears in the Journal of Global Business Insights (Vol. 11, Iss. 1, 2026) under the title “Determinants of U.S. Manufacturing Firms’ New Location Decisions: What Factors Shape State-Level Entry?”
Drawing on governmental and industry data, the study finds that the density of current establishments and prior business activity are the strongest predictors of new manufacturing entry across U.S. states. Energy costs, public safety, and infrastructure conditions play a secondary but consistent role. Manufacturing firms are drawn to states where manufacturing already happens. Clustering wins.
Why does this matter? For policymakers, investors, and economic developers, the findings show that regional industrial growth is path-dependent. Tax incentives alone are not enough. States must build and sustain ecosystems.
This research speaks to the mission of the NSF AgTech Engine in North Dakota. While the study focuses on manufacturing, the clustering principle it documents applies broadly across industries, including agricultural technology. With one of the nation’s strongest agricultural sectors, North Dakota already has the density of farms, producers, and ag businesses that few states can match. Hlaing’s findings reinforce the Engine’s strategy of anchoring research, workforce, and capital in one ecosystem. Density attracts density. By investing in shared infrastructure and partnerships, the Engine is positioning North Dakota’s Ag sector to lead the next generation of agricultural technology.
