For years, conversations around reshoring have focused on labor costs, automation, and geopolitics. While all of those matter, one factor continues to rise above the rest when it comes to determining where and how manufacturing grows in the U.S.: energy.

Energy as the Competitive Edge

Take Shale Crescent USA (spanning Ohio, Pennsylvania, and West Virginia) as a case study. Sitting atop some of the world’s most prolific natural gas reserves, the region delivers some of the lowest industrial energy prices in the developed world. That advantage isn’t just about cost savings. Local, reliable energy reduces volatility and eliminates the hidden risks of long-distance fuel logistics.

For manufacturers, that reliability is the foundation for scaling operations with confidence. Whether you’re producing chemicals, steel, or semiconductors, cheap and steady energy is the lever that makes reshoring viable.

Closer to Customers, Lower Emissions

Energy costs ripple outward into logistics and customer reach. Manufacturing in the Shale Crescent reduces global shipping distances from 30,000 km to about 1,000 km. The result? Lower emissions, faster delivery, and less working capital tied up in transit.

The region also places manufacturers near nearly half the U.S. market - 170 million people within a day’s drive. When fuel, freight, and customers all converge in one place, companies gain speed-to-market and resiliency.

Infrastructure and Heritage Matter

Energy alone isn’t enough. The Shale Crescent is built on a legacy of oil, gas, petrochemicals, steel, rubber, and glass. That industrial heritage means today’s manufacturers tap into existing supply chains, skilled labor, and proven logistics networks.

This is why global leaders like Intel, Shell, Ford, Honda, and Whirlpool already operate in the region. It’s not just about cheap energy, it’s about plugging into an ecosystem ready to scale.

What This Means for the Next Wave of Manufacturing

From additive manufacturing to AI data centers, energy-intensive industries will always follow the cheapest, most reliable power. That’s why regions with abundant natural gas, renewable investments, or nuclear baseloads are attracting billions in new industrial projects.

At GHC Industries, our thesis has been consistent: energy costs dictate where the next generation of industrial growth will happen. The Shale Crescent proves the point, but it’s only the beginning. As reshoring accelerates, energy will be the single most durable competitive advantage for U.S. manufacturing.

Sources

1. Shale Crescent USA. A World-Class Manufacturing Region. Shale Crescent USA Reports & Insights
2. U.S. Energy Information Administration (EIA). Natural Gas Prices and Industrial Energy Data. EIA Natural Gas Data
3. McKinsey & Company. Reshoring Manufacturing: Coming Home. (2023)
4. Brookings Institution. Reshoring and the Future of U.S. Manufacturing. (2022)
5. International Energy Agency (IEA). Global Energy Outlook 2024.
6. National Association of Manufacturers (NAM). The State of Manufacturing in the U.S. (2024)‍
7. Intel Corporation. Announcements on Ohio semiconductor investment, 2022–2024.‍
8. U.S. Department of Energy.Industrial Energy and Manufacturing Competitiveness Reports.