Abandoned Industrial Sites Could Get A Second Chance Amid Shifting Manufacturing Demand

In recent months, billions of dollars in planned factory projects have been delayed or canceled, putting a damper on the promise of new economic hubs in lesser-known parts of the U.S.

However, emerging interest from industries like pharmaceuticals, technology, and automotive manufacturing is poised to revive many of these sites.

“Companies don’t like to be the first to move into a site,” said John Boyd Jr., principal at The Boyd Co. “But even when a project doesn’t go through, the fact that a site was chosen is a big win — it means it outcompeted others on workforce, infrastructure, and market access.”

Since November, the clean energy sector alone has seen approximately $8.1 billion in canceled projects, according to Washington, D.C.-based Atlas Public Policy. Much of the slowdown has been attributed to economic uncertainty and President Donald Trump’s rollback of parts of the Inflation Reduction Act. Concerns over tariffs and shifting federal policies have made companies hesitant to invest in large-scale factories, particularly those that wouldn’t be completed during Trump’s second term.

Still, analysts say manufacturing demand isn’t gone — it’s merely in a holding pattern. Sites with key infrastructure like energy hookups and road or rail access remain highly valuable. For example, pharmaceutical giants such as Johnson & Johnson, Eli Lilly, Merck, Novartis, and Roche have committed over $170 billion this year alone to expand or bring drug production back to the U.S.

Likewise, data centers — fueled by massive investments from Amazon, Google, Meta, and Microsoft — are eyeing these prepared sites. In Georgia, for instance, several multi-million-square-foot projects have been proposed.

Boyd expects momentum to return once trade agreements with countries like Japan or South Korea are finalized. Additional federal moves on taxes or regulations could also provide needed clarity. Often, a project’s cancellation simply opens the door for another tenant. Companies are still evaluating sites and factoring in supply chain costs, waiting for clearer tariff policies before committing.

But suitable land is scarce. In Washington state, there were about 40 large, infrastructure-ready industrial sites a decade ago. Today, there are just six, according to site selection consultant Patrick Boss. Take Buckeye, Arizona, where land consultant Anita Verma-Lallian sold a 214-acre parcel to battery maker Kore for a $1.2B plant in 2022. Kore canceled the project in January, but Verma-Lallian is optimistic new buyers will emerge soon.

“The Phoenix area is still strong,” she said. “Once rates and tariffs stabilize, this market will really take off.”

A similar story unfolded in Coweta County, Georgia, where a planned $2.6B battery plant by Freyr was scrapped in January.

 “The site remains attractive,” said Sarah Jacobs, president of the local development authority. “They’re not making more land. The features that appealed to Freyr will appeal to many others.”

Even existing facilities aren’t immune. In Hazel Park, Michigan, BorgWarner recently announced the closure of its battery facility, affecting 188 jobs. Yet local officials remain confident in the site’s appeal, noting Amazon and LG already operate there.

“It hasn’t been hard to find new tenants,” said James Finkley, the city’s planning and community development director.

Prepared industrial sites often draw additional investment in housing and commercial development to support incoming workers. Even canceled battery or solar projects can pave the way for new uses — especially as data centers surge in popularity.

While the Buckeye and Coweta sites remain focused on advanced manufacturing, local officials believe these locations are well-positioned to attract high-wage jobs. In Phoenix, the arrival of Taiwan Semiconductor Manufacturing Co. is expected to fuel further growth.

Verma-Lallian noted that over 300 companies are eyeing the area, and interest in former project sites like Kore’s remains high.

“Across the country, demand persists, even as uncertainty puts some plans on hold,” Patrick Boss said. “In Quincy, Washington, multiple large-scale projects are stalled for now, but interest remains. It’s tough to commit to an $800 million factory when policies could shift a year from now.”

Source: Bisnow