New Manufacturing Marketing Guide 2026

Last updated: April 28, 2026

Manufacturing Payroll by State: Where the Factory Paychecks Are

Manufacturing payroll is one of the cleanest ways to see where industrial activity is actually concentrated. Headcount matters, but payroll tells you where companies are supporting large workforces, paying for skill, and sustaining real plant-level output. In the latest Census Bureau state business data, US manufacturers paid more than $851.3B in annual payroll across 12.19M workers.

This resource organizes all 50 states in one place using Census Bureau Statistics of U.S. Businesses data for manufacturing (NAICS 31-33), then layers in BEA and BLS context so you can compare total payroll, average annual pay per worker, establishment counts, payroll intensity, and the dominant manufacturing industry in each state. Every key figure is sourced, and the state table is citation-friendly for journalists, economic developers, and industrial marketers.

$851.3B

US manufacturing annual payroll

$69,847

Average annual pay per worker

285,394

Manufacturing establishments

42.7

Average employees per plant

What's in this report

National manufacturing payroll snapshot

The state totals roll up to $851.3B in payroll, $7071.9B in receipts, and roughly 12.2 million workers in the Census Bureau's latest full state business count for manufacturing. That lines up closely with other major federal sources. The Bureau of Labor Statistics reported about 12.6 million manufacturing employees in early 2026, while the National Association of Manufacturers puts average annual compensation, wages plus benefits, at more than $100,000 per worker. Payroll is lower than compensation because payroll measures cash pay, not the full employer benefits package.

Three patterns jump out right away. First, the biggest payroll states are not always the most manufacturing-dependent states. California and Texas dominate in total dollars because they are enormous economies. Second, several Midwestern and Southern states have far higher manufacturing concentration, meaning a larger share of their workforce still depends on the factory floor. Third, average pay per worker tracks with industry mix. Electronics, aerospace, chemicals, and advanced transportation manufacturing push pay much higher than food processing or lower-complexity assembly.

Key takeaways

California alone accounts for more than 12.1% of US manufacturing payroll, and the top three states, California, Texas, and Ohio, account for nearly 25% of all factory payroll dollars in the country.

Wisconsin and Indiana are not top-two in raw payroll dollars, but they are the two most manufacturing-concentrated state workforces in this dataset, each with roughly 18% of workers tied to manufacturing.

The national average pay per worker is about $69,847, but California, Massachusetts, and Connecticut all sit well above that mark because of higher-value product mixes and more expensive labor markets.

Top states by total manufacturing payroll

If you're trying to understand where the heaviest industrial payroll bases sit, the top tier is straightforward. California leads the country at $103.4B, followed by Texas at $62.9B. Ohio, Michigan, Illinois, Pennsylvania, and Indiana round out the classic industrial belt. Those seven states combine large workforces with long-established supplier ecosystems, which is why they continue to anchor so much payroll even as new factory investment spreads south and west.

What's more interesting is how the top 10 breaks into two groups. California, Texas, New York, and North Carolina have scale because they are large, diverse economies. Ohio, Michigan, Indiana, Wisconsin, and Pennsylvania have scale because manufacturing still sits near the center of their economic identity. That's useful if you're benchmarking market size. A state can be attractive because it offers a huge addressable industrial base, or because manufacturers are unusually concentrated and easier to reach.

Rank State Annual payroll Workers Largest payroll industry
1 California $103.4B 1,160,856 Computer and Electronic Product Manufacturing
2 Texas $62.9B 847,587 Chemical Manufacturing
3 Ohio $44.9B 686,189 Transportation Equipment Manufacturing
4 Michigan $39.2B 595,273 Transportation Equipment Manufacturing
5 Illinois $37.8B 534,710 Food Manufacturing
6 Pennsylvania $37.4B 560,912 Fabricated Metal Product Manufacturing
7 Indiana $34.1B 527,426 Transportation Equipment Manufacturing
8 Wisconsin $31.1B 477,411 Food Manufacturing
9 New York $28.8B 411,668 Computer and Electronic Product Manufacturing
10 North Carolina $28.2B 467,211 Chemical Manufacturing

Source: US Census Bureau, Statistics of U.S. Businesses, 2022 state manufacturing dataset.

Highest-paying states per manufacturing worker

Total payroll rewards size. Average pay per worker tells a different story. California leads here too at $89,048, but Massachusetts, Connecticut, Louisiana, Washington, and Wyoming are right behind for very different reasons. In Massachusetts and Connecticut, high average pay reflects advanced electronics, aerospace, medical, and precision manufacturing. In Louisiana and Wyoming, a big chemical and energy-processing footprint lifts payroll per worker without creating huge employment counts.

This is why average pay should never be read in isolation. A state with high average pay can be a great signal if you're selling capital equipment, industrial software, or specialized services, because it often means complex operations and larger budgets. But it can also point to a smaller labor pool or a more expensive operating environment. On the other side, lower average pay states like Mississippi, Arkansas, and South Dakota still carry very serious manufacturing concentration. They just sit in different segments of the market.

State Avg. annual pay
California $89,048
Massachusetts $87,771
Connecticut $85,751
Louisiana $84,224
Washington $79,351

Why pay per worker matters

A higher average paycheck usually means one of three things, a more technical product mix, a tighter labor market, or a state where big plants are concentrated in capital-intensive sectors like aerospace, semiconductors, chemicals, and advanced transportation.

For lead generation, those are often the accounts with longer sales cycles, larger budgets, and more formal buying teams. If your service only works for bigger, more sophisticated manufacturers, this column is one of the fastest filters you can use.

Source: US Census Bureau SUSB state dataset. Average pay is calculated as annual payroll divided by employment.

States where manufacturing still dominates the workforce

When you sort by manufacturing's share of each state's workforce, the map changes. Wisconsin ranks first at 18.4%, just ahead of Indiana at 18.3%. Iowa, Mississippi, Kentucky, Michigan, and Alabama also stand out. These are places where manufacturing is not just present, it's structurally important. That matters for labor, politics, site selection, and demand generation. Industrial buyers in these states are easier to find because the local economy is more visibly organized around plants, suppliers, logistics, and technical services.

There is also a scale lesson here. Florida has a larger total manufacturing payroll than Iowa, Alabama, South Carolina, or Kentucky, but manufacturing is a much smaller slice of Florida's workforce. That means Florida offers scale without the same industrial concentration. If you need a broad TAM, that's fine. If you need dense clusters of OEMs, contract manufacturers, and machining or fabrication shops, the Midwest and Southeast still look much stronger.

State Manufacturing share of workforce Employees per plant Top industry
Wisconsin 18.4% 56.1 Food Manufacturing
Indiana 18.3% 66.2 Transportation Equipment Manufacturing
Iowa 16% 64.8 Food Manufacturing
Mississippi 15.6% 73.2 Transportation Equipment Manufacturing
Kentucky 15.3% 69.6 Transportation Equipment Manufacturing
Michigan 15.1% 48.8 Transportation Equipment Manufacturing
Alabama 15.1% 64.6 Transportation Equipment Manufacturing
Arkansas 14.8% 63.8 Food Manufacturing
Ohio 13.8% 51.2 Transportation Equipment Manufacturing
Kansas 13.7% 62 Transportation Equipment Manufacturing

Source: US Census Bureau SUSB state dataset. Share is calculated from manufacturing employment divided by total state employment in the same release.

The most payroll-intensive manufacturing states

Payroll as a share of receipts is a rough proxy for how labor-heavy a state's manufacturing base is. Massachusetts, New Hampshire, and Connecticut are at the top, all near 20%. That usually points to higher-value, more skill-dependent production where labor remains a bigger part of the output equation. Louisiana sits on the opposite end at just 3.7%, a reminder that high receipts in chemicals and refining can dwarf payroll even when wages are strong.

This metric is useful when you're segmenting the market. Labor-intensive manufacturing states are more likely to care about staffing, retention, training, recruiting, and process efficiency. Lower payroll-intensity states often lean harder into capital spending, compliance, uptime, and feedstock economics. Neither is better, but they are different operating environments, and your offer should match that reality.

State Payroll / receipts Avg. pay Top industry
Massachusetts 20.2% $87,771 Computer and Electronic Product Manufacturing
New Hampshire 20.2% $73,705 Computer and Electronic Product Manufacturing
Connecticut 19.9% $85,751 Transportation Equipment Manufacturing
Rhode Island 18.5% $66,832 Fabricated Metal Product Manufacturing
Vermont 18.5% $64,048 Computer and Electronic Product Manufacturing
Arizona 17.8% $77,564 Computer and Electronic Product Manufacturing
Maine 17.3% $62,860 Transportation Equipment Manufacturing
Oregon 16.6% $75,458 Computer and Electronic Product Manufacturing
New York 16.1% $70,061 Computer and Electronic Product Manufacturing
Colorado 15.9% $74,083 Computer and Electronic Product Manufacturing

Source: US Census Bureau SUSB state dataset. Payroll intensity is calculated as annual payroll divided by receipts.

Full 50-state manufacturing payroll table

The table below is the fast reference version. If you're writing a story, quoting a pitch deck, comparing sales territories, or building a target-account list, this is usually the section you want bookmarked. It includes the total payroll number, headcount, average pay per worker, establishment count, plant size, payroll intensity, and top payroll-driving industry for every state.

Rank State Payroll Workers Avg. pay Plants Employees / plant Mfg share Top industry
1 California $103.4B 1,160,856 $89,048 35,936 32.3 7.2% Computer and Electronic Product Manufacturing
2 Texas $62.9B 847,587 $74,155 20,781 40.8 7.4% Chemical Manufacturing
3 Ohio $44.9B 686,189 $65,461 13,390 51.2 13.8% Transportation Equipment Manufacturing
4 Michigan $39.2B 595,273 $65,795 12,196 48.8 15.1% Transportation Equipment Manufacturing
5 Illinois $37.8B 534,710 $70,711 12,530 42.7 9.7% Food Manufacturing
6 Pennsylvania $37.4B 560,912 $66,707 13,245 42.3 10% Fabricated Metal Product Manufacturing
7 Indiana $34.1B 527,426 $64,657 7,964 66.2 18.3% Transportation Equipment Manufacturing
8 Wisconsin $31.1B 477,411 $65,080 8,505 56.1 18.4% Food Manufacturing
9 New York $28.8B 411,668 $70,061 13,931 29.6 4.9% Computer and Electronic Product Manufacturing
10 North Carolina $28.2B 467,211 $60,438 8,704 53.7 11.4% Chemical Manufacturing
11 Georgia $24.2B 403,419 $59,912 7,860 51.3 9.5% Transportation Equipment Manufacturing
12 Florida $22.9B 353,423 $64,875 13,942 25.3 3.7% Transportation Equipment Manufacturing
13 Minnesota $22.8B 320,033 $71,159 6,800 47.1 11.7% Computer and Electronic Product Manufacturing
14 Tennessee $22.0B 347,969 $63,187 5,800 60 12.2% Transportation Equipment Manufacturing
15 Massachusetts $20.4B 232,734 $87,771 6,008 38.7 6.9% Computer and Electronic Product Manufacturing
16 Washington $20.4B 256,728 $79,351 6,745 38.1 8.6% Transportation Equipment Manufacturing
17 Missouri $17.8B 277,514 $64,105 5,490 50.5 10.8% Transportation Equipment Manufacturing
18 Alabama $16.8B 267,658 $62,706 4,145 64.6 15.1% Transportation Equipment Manufacturing
19 South Carolina $16.3B 253,776 $64,410 3,990 63.6 12.6% Transportation Equipment Manufacturing
20 New Jersey $16.3B 220,198 $73,907 7,075 31.1 5.8% Chemical Manufacturing
21 Virginia $15.9B 246,208 $64,647 4,963 49.6 7% Transportation Equipment Manufacturing
22 Kentucky $15.8B 254,697 $62,218 3,659 69.6 15.3% Transportation Equipment Manufacturing
23 Iowa $14.6B 221,514 $65,934 3,418 64.8 16% Food Manufacturing
24 Arizona $13.3B 171,133 $77,564 4,456 38.4 6.1% Computer and Electronic Product Manufacturing
25 Oregon $13.2B 175,272 $75,458 5,309 33 10.5% Computer and Electronic Product Manufacturing
26 Connecticut $13.0B 151,851 $85,751 3,772 40.3 10.1% Transportation Equipment Manufacturing
27 Kansas $11.5B 167,278 $68,914 2,699 62 13.7% Transportation Equipment Manufacturing
28 Colorado $10.0B 135,443 $74,083 5,105 26.5 5.5% Computer and Electronic Product Manufacturing
29 Louisiana $9.8B 116,680 $84,224 3,050 38.3 7.1% Chemical Manufacturing
30 Utah $9.8B 145,855 $67,256 3,655 39.9 9.6% Miscellaneous Manufacturing
31 Arkansas $9.1B 161,239 $56,379 2,529 63.8 14.8% Food Manufacturing
32 Mississippi $8.3B 147,818 $56,095 2,019 73.2 15.6% Transportation Equipment Manufacturing
33 Maryland $8.1B 104,739 $77,026 2,859 36.6 4.3% Computer and Electronic Product Manufacturing
34 Oklahoma $7.9B 125,239 $63,071 3,245 38.6 9% Machinery Manufacturing
35 Nebraska $6.3B 102,150 $61,441 1,769 57.7 11.5% Food Manufacturing
36 New Hampshire $5.0B 67,557 $73,705 1,755 38.5 11% Computer and Electronic Product Manufacturing
37 Idaho $4.5B 67,843 $66,358 2,102 32.3 9.8% Computer and Electronic Product Manufacturing
38 Nevada $4.5B 61,344 $72,544 2,027 30.3 4.8% Transportation Equipment Manufacturing
39 Maine $3.5B 55,849 $62,860 1,690 33 10.5% Transportation Equipment Manufacturing
40 West Virginia $3.0B 47,318 $64,032 1,075 44 8.8% Chemical Manufacturing
41 Rhode Island $2.7B 40,506 $66,832 1,206 33.6 9.2% Fabricated Metal Product Manufacturing
42 South Dakota $2.7B 46,600 $57,635 1,039 44.9 12.5% Food Manufacturing
43 Delaware $2.1B 29,767 $71,025 608 49 7% Chemical Manufacturing
44 Vermont $1.9B 30,125 $64,048 1,020 29.5 11.8% Computer and Electronic Product Manufacturing
45 North Dakota $1.8B 27,802 $64,742 691 40.2 8.1% Machinery Manufacturing
46 New Mexico $1.7B 29,639 $58,186 1,311 22.6 4.6% Food Manufacturing
47 Montana $1.4B 21,843 $62,383 1,415 15.4 5.5% Petroleum and Coal Products Manufacturing
48 Wyoming $0.8B 10,113 $79,322 604 16.7 4.9% Chemical Manufacturing
49 Alaska $0.8B 10,824 $73,497 564 19.2 4.2% Food Manufacturing
50 Hawaii $0.5B 10,375 $49,016 743 14 2% Food Manufacturing

Primary source: US Census Bureau, Statistics of U.S. Businesses, state by industry data. Manufacturing is NAICS 31-33. Payroll values are annual payroll in current dollars.

How to use this data if you sell to manufacturers

If you're doing industrial lead generation, this page helps in three ways. First, total payroll is a strong proxy for market size. Second, average pay per worker is a quick signal for sophistication and budget. Third, manufacturing share of workforce tells you where industrial density is highest, which usually makes prospecting easier. Put those three together and you can build a much smarter territory plan than just sorting by population or GDP.

For example, California and Texas are hard to ignore because they combine huge payroll bases with large plant counts. Indiana, Wisconsin, and Kentucky are ideal if you want denser manufacturing ecosystems where referrals and supplier networks travel quickly. Massachusetts, Connecticut, and Arizona are more useful when your offer fits advanced manufacturing, electronics, aerospace, or precision work. There isn't one best state. There is only the best state for the kind of manufacturer you actually help.

If you want help turning data like this into a pipeline strategy, from target account selection to content, paid search, and conversion paths, our team can help you narrow in on the right industrial buyers instead of chasing the whole map.

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Cite this data

Suggested citation:

Manufacturing Lead Generation. "Manufacturing Payroll by State (2026): Annual Payroll, Pay per Worker and Plant Data." ManufacturingLeadGeneration.com, April 28, 2026. https://manufacturingleadgeneration.com/manufacturing-payroll-by-state/

Sources