Last Updated: June 25, 2026

Startup Survival Rates by Industry 2026

If you're comparing startup survival rates over 10 years by industry, manufacturing is one of the stronger sectors. BLS data shows 43.6% of manufacturing establishments born in 2013 were still operating in 2023, compared with 34.7% across all private-sector establishments and 24.5% for information businesses, the closest BLS proxy for many tech startups.

That doesn't mean launching a factory is easy. Starting a manufacturing business requires more capital, longer timelines, and higher risk tolerance than most service businesses. But the survivors often have equipment moats, repeat production contracts, technical buyer relationships, and supply-chain roles that are harder to replace than a simple local service company.

Manufacturing Startup Overview Statistics

1. The United States had 401,000 manufacturing establishments in Q4 2024, up from 336,000 at the start of 2014. (Federal Reserve Bank of St. Louis)
2. Manufacturing contributed $2.87 trillion to US GDP in 2024, accounting for roughly 10.7% of total economic output. (National Association of Manufacturers)
3. Total US manufacturing employment was 12,692,000 workers in December 2025. (Bureau of Labor Statistics)
4. The Census Bureau's universe of manufacturing establishments includes approximately 346,000 firms with payroll, drawn from the Annual Survey of Manufactures sample frame. (US Census Bureau)
5. Manufacturing is classified under NAICS sectors 31-33 and encompasses over 300 subsector industry codes. (US Census Bureau NAICS)
6. The number of manufacturing establishments grew by 19.3% over the past decade (336,000 in 2014 to 401,000 in 2024). (Federal Reserve Bank of St. Louis)
7. Census Bureau Business Formation Statistics automatically classify all NAICS 31-33 applications as "high-propensity" business formations, reflecting higher likelihood of becoming employer businesses. (Census Bureau BFS Methodology)
8. Manufacturing accounted for 10.3% of total US employment in 2024 among goods-producing industries. (Bureau of Labor Statistics)

Manufacturing Startup Costs and Capital Requirements

9. Average startup costs for a manufacturing business in the US range from $550,000 to $1,350,000, depending on niche and scale. (Upmetrics)
10. Leasing or purchasing industrial space for a manufacturing startup typically costs $2,000 to $10,000 per month. (Wexford Insurance)
11. Manufacturing and retail operations generally require $100,000 or more in startup capital, compared to $3,000 for simple service businesses. (Xero)
12. Equipment and machinery represent the largest single expense for most manufacturing startups, often accounting for 40-60% of total startup capital. (Wexford Insurance)
13. A storefront lease for a small-scale manufacturing operation in states like Florida or Tennessee can cost less than $1,000 per month. (Starter Story)
14. The SBA recommends manufacturers plan for 6 to 12 months of operating expenses as working capital reserves before launching. (US Small Business Administration)

Startup Survival Rates by Industry

15. 43.6% of manufacturing establishments born in 2013 were still operating in 2023, a 10-year survival rate that ranks third among all industry sectors. (Bureau of Labor Statistics)
16. The overall average 10-year survival rate across all industries was just 34.7%, meaning manufacturing outperforms the average by nearly 9 percentage points. (Bureau of Labor Statistics)
17. Only agriculture, forestry, fishing, and hunting (50.5%) and utilities (45.7%) had higher 10-year survival rates than manufacturing. (Bureau of Labor Statistics)
18. Manufacturing startups have a 51% failure rate globally, according to worldwide startup data. (GrowthList)
19. Across nearly all industries, the average first-year failure rate is 10%. However, by year five, approximately 70% of new businesses will have failed. (Exploding Topics)
20. The 1-year survival rate for new US business establishments is approximately 80%. (DemandSage, citing BLS data)
21. The 5-year survival rate across all US businesses ranges from 48% to 55%. (DemandSage)
22. The 10-year survival rate across all industries ranges from 33% to 37%. (DemandSage)
23. The lowest 10-year survival rate belongs to the information sector at just 24.5%. Manufacturing's 43.6% rate is nearly double that figure. (Commerce Institute)

SBA Loans and Government Funding for Manufacturing Startups

24. The SBA approved more than 3,500 loans to small manufacturers totaling $2.6 billion in fiscal year 2025. (US Small Business Administration)
25. Across all industries, 7(a) lenders approved over 70,000 loans totaling $31.1 billion in fiscal year 2024. (Bankrate)
26. The average SBA loan size was $447,571 per loan in FY2024. (Bankrate)
27. The SBA delivered 8,900 loans to small business startups totaling $5.6 billion in the first portion of FY2025. (US Small Business Administration)
28. SBA's Working Capital Pilot (WCP) program has delivered $150 million to support US manufacturing specifically. (US Small Business Administration)
29. Small manufacturers are the largest beneficiary of the SBA Working Capital Pilot, accounting for more than 25% of the total WCP portfolio. (US Small Business Administration)
30. The SBA's 2024 Capital Impact Report highlighted dramatic growth in 7(a) loans under $150,000, the category most relevant to small manufacturing startups. (SBA 2024 Capital Impact Report)
31. The SBIC (Small Business Investment Company) Program saw a record year in new fund applications in FY2024, positioning it for expanded small business financing. (SBA 2024 Capital Impact Report)

New Manufacturing Business Formation Data

32. US manufacturing establishments grew from 336,000 in early 2014 to 401,000 in Q4 2024, a net increase of approximately 65,000 establishments. (Federal Reserve Bank of St. Louis)
33. In Q2 2025, the US economy saw establishment births create jobs at 8.5 million establishments across all industries. (BLS Business Employment Dynamics)
34. Establishment deaths in Q3 2024 resulted in 919,000 jobs lost at 306,000 establishments across all industries. (BLS Business Employment Dynamics)
35. In Q4 2024, closing establishments lost 1.5 million jobs, a decrease of 46,000 jobs from the previous quarter. (BLS Business Employment Dynamics)
36. Projected business formations (within 4 quarters) for January 2025 were 24,574 across all industries, a 14.3% decrease from December 2024. (Census Bureau Business Formation Statistics)
37. The Census Bureau classifies all manufacturing business applications (NAICS 31-33) as "high-propensity" formations, meaning they have a higher likelihood of becoming employer firms. (Census Bureau BFS Methodology)
38. The increase in manufacturing establishments from 336,000 to 401,000 over the past decade helped prevent further job losses in the manufacturing sector. (Federal Reserve Bank of St. Louis)
39. The 1-year survival rate for new US business establishments varies by year and location, influenced by business cycle conditions, industry mix, and regional economic factors. (Bureau of Labor Statistics)

Reshoring and New Factory Startups

40. 244,000 US manufacturing jobs were announced in 2024 through reshoring and foreign direct investment (FDI). (Reshoring Initiative)
41. Reshoring plus FDI job announcements in 2023 reached 287,000 jobs, the second-highest year on record. (AMT/Reshoring Initiative)
42. The cumulative total of reshoring and FDI manufacturing job announcements has exceeded 2 million since 2010. (Reshoring Initiative)
43. Combined 2023-2024 reshoring and FDI announcements totaled more than 531,000 manufacturing jobs. (Reshoring Initiative)
44. Early 2025 job announcements are trending lower than 2023-2024 levels due to policy uncertainty. However, policy stability could quickly unlock another wave. (Automation.com/Reshoring Initiative)
45. Semiconductors, EV batteries, and solar manufacturing are the leading sectors driving new factory construction and startups. (Reshoring Initiative 2024 Report)
46. Many "solid" reshoring announcements from 2023-2024 may be cancelled or delayed due to ongoing uncertainty and mixed policy messaging. (Reshoring Initiative 2024 Report)

Small Manufacturer Statistics

47. Small manufacturing firms (fewer than 500 employees) represent 98% of all manufacturing firms in the United States. (SBA Office of Advocacy)
48. Small business manufacturers employed 4.8 million workers according to the latest SBA data. (SBA Office of Advocacy)
49. Approximately three-quarters of manufacturing firms have fewer than 20 employees. (National Association of Manufacturers)
50. 93.1% of manufacturing firms have fewer than 100 employees. (National Association of Manufacturers)
51. Despite small firms making up 98% of manufacturers, 59.1% of all manufacturing employees work for firms with 500 or more workers. (National Association of Manufacturers)
52. There are over 34.8 million small businesses in the United States as of 2025, accounting for 99.9% of all US businesses. (SellersCommerce)
53. Small businesses across all industries account for 43.5% of US GDP. (US Chamber of Commerce)
54. Firms with fewer than 100 employees accounted for 98.1% of all business establishments across all US industries. (Small Business & Entrepreneurship Council)

Workforce Challenges for New Manufacturers

55. The labor market for manufacturers remains tight, and the resulting applicant gap may continue to impact the ability of new manufacturers to hire. (Deloitte)
56. 80% of manufacturing executives plan to invest 20% or more of their improvement budgets in smart manufacturing initiatives in 2026. (Deloitte 2026 Manufacturing Outlook)
57. A 2025 Deloitte survey of 600 manufacturing executives confirmed that workforce planning and digital skills training remain top priorities. (Deloitte 2026 Manufacturing Outlook)
58. Nearly half (48%) of manufacturers surveyed reported having a smart manufacturing training standard in place, but human capital remains at the lowest maturity level of all smart manufacturing categories. (Deloitte 2025 Smart Manufacturing Survey)
59. Manufacturers are prioritizing investments in automation and digital technology to address workforce gaps and boost long-term innovation. (Deloitte 2025 Manufacturing Trends)
60. Recent cooling in the labor market has not eliminated the manufacturing skills gap. Companies still struggle to find CNC operators, welders, quality inspectors, and maintenance technicians. (Deloitte)

Technology Investment for Manufacturing Startups

61. The majority of manufacturers plan to invest 20% or more of improvement budgets in smart manufacturing technologies in 2026. (Deloitte)
62. Investment focus areas include foundational tools and technologies for digital transformation, data infrastructure, and process automation. (Deloitte)
63. Anduril Industries raised a $2.5 billion Series G at a $30.5 billion valuation in 2025, demonstrating the scale of venture capital available for hardtech manufacturing startups. (Los Angeles Times)
64. At least 14 venture capital firms actively focus on manufacturing startup investments, including Lux Capital, Eclipse Ventures, and Root Ventures. (Rho)
65. Over 71 deep tech and hard science VC firms are now active in the manufacturing and industrial technology space. (Failory)
66. Manufacturers are deploying high-quality data and AI-powered analytics as foundational elements of modern factory operations. (Deloitte)
67. New manufacturing startups increasingly adopt cloud ERP systems from day one rather than legacy on-premises solutions, reducing IT overhead. (Deloitte)

Time to Profitability for Manufacturing Startups

68. Most new businesses reach profitability in 18 to 24 months after launch. Manufacturing startups typically fall at the longer end of this range due to higher capital requirements. (FreshBooks)
69. The first three years of any startup are typically where founders find direction and establish the company as a viable business. (Zippia)
70. 25% of new businesses fail in their first year, according to SBA data. (FreshBooks, citing SBA)
71. Manufacturing businesses that survive the first five years generally achieve stable profitability and higher-than-average margins compared to service businesses, due to recurring production contracts and established supply chains. (NAM)
72. Average net profit margins for US manufacturers range from 5% to 10%, with specialty and precision manufacturers often achieving higher margins. (NAM)

Additional Manufacturing Startup Data Points

73. The average manufacturing worker earned $97,832 annually in total compensation (wages plus benefits) as of 2024. (NAM)
74. Manufacturing has a multiplier effect of $2.79 for every $1 spent, the highest of any major economic sector. (NAM)
75. Each manufacturing job creates an estimated 7 to 12 additional jobs in other sectors of the economy. (NAM)
76. US manufacturers performed over 55% of all private-sector R&D, making the sector the top driver of innovation. (NAM)
77. The BLS provides establishment age and survival data broken down by industry sector, allowing precise comparison of manufacturing startup longevity against other industries. (BLS Establishment Age and Survival Data)
78. The Census Bureau's weekly Business Formation Statistics by industry began providing NAICS-level detail through 2025 as of the March 2026 data release. (Census Bureau Weekly BFS by Industry)
79. County-level data from BLS shows strong geographic concentration of manufacturing establishments in the Midwest, Southeast, and parts of the Southwest. (SSTI)
80. The 2022 Economic Census provides the most detailed establishment-level data for manufacturing (NAICS 31-33), including employment size, location, and firm characteristics. (Census Bureau 2022 Economic Census)
81. Factory construction spending in the US has risen over 240% since 2019, creating new demand for manufacturing startups as suppliers and subcontractors. (Reshoring Initiative)
82. New manufacturing applications filed with the IRS (as EIN requests under NAICS 31-33) are automatically flagged as high-propensity business formations by the Census Bureau. (Census Bureau)
83. The manufacturing sector's capital intensity means that startups with access to SBA loans, private equity, or venture capital have significantly higher survival rates than bootstrapped operations. (SBA)
84. The SBA considers manufacturing a priority lending sector and has expanded programs specifically targeting small manufacturer access to capital. (SBA)
85. Moody's Analytics tracks US manufacturing employment using the BLS Current Employment Statistics (CES) program, which surveys approximately 140,000 businesses representing 440,000 worksites monthly. (Moody's Analytics)
86. The BLS monthly establishment survey includes an adjustment to account for net employment change from business births and deaths. (BLS Employment Situation Report)

Manufacturing Startup Trends by Sector

The number of startups entering advanced manufacturing continues to grow. Manufacturing companies in automotive, aerospace, and robotics are attracting the most venture capital. Startup founders in these sectors often build around a specific manufacturing technology, whether that's robotic assembly, real-time quality inspection, or a manufacturing execution system (MES) that helps manufacturers optimize production.

The broader startup ecosystem now includes dozens of unicorn startups with manufacturing roots. At least one manufacturing unicorn, Desktop Metal, reached its valuation through 3D printing and additive manufacturing technology. Tech companies using AI are also entering the space to automate repetitive factory tasks, and the line between "manufacturing startup" and "manufacturing technology startup" is blurring. Aerospace and defense startups saw a significant increase from 2023, while companies building the next generation of factory data collection systems drive innovation across the sector. Even retail startups are beginning to vertically integrate by launching their own manufacturing operations to reduce supply chain risk and achieve sustainable growth.

Why do startups fail in manufacturing at such high rates? Capital intensity is the top reason. Equipment, manufacturing facilities, and raw materials require far more upfront investment than software or services. But those that survive past year five tend to build defensible businesses with long-term contracts and sticky customer relationships.

Artificial intelligence and AI agents are transforming manufacturing processes and workflow optimization across the sector. Generative AI is being applied to production processes, part manufacturing design, and lead time reduction. The fastest-growing manufacturing startups are those applying manufacturing innovation to solve core manufacturing challenges, whether in process manufacturing, discrete assembly, or hybrid operations. Startups focused on biotech and biomanufacturing represent a newer wave, alongside electric vehicles and battery manufacturing. A successful startup in this space typically combines deep research and development expertise with modern technology to help manufacturers reduce costs, improve quality, and scale production. Industry leaders and U.S. manufacturing facilities are increasingly adopting these solutions from day one.