5 Steps to Maximize a Plant Expansion or Reshore Manufacturing
By Frank Hoffman, Founder and Managing Director, Strategus
After four decades structuring capital under programs like NMTC, Strategus has helped deploy more than $1 billion in flexible, incentive financing. Today I see a unique moment: America’s manufacturing renaissance is here now. I advise CEOs and CFOs to seize this once-in-a-generation reshoring and expansion wave. The recently signed One Big Beautiful Bill Act (OBBBA) adds a permanent 100% bonus depreciation provision for qualified assets in service after January 19, 2025—an expansive tool for boosting after-tax returns. Plus, there is a double round of NMTC worth $10 Billion. I can’t stress enough, in my career, I have never seen anything like this. This is a major opportunity for manufacturing plants.
Your site selection matters. I see time and time again, companies hiring a site selector and they do not the research to take advantage of full stackable financial incentives. By employing a cohesive, geolocated stage gate approach to finding your manufacturing site, enterprises can cultivate a return on investment that will resonate with shareholders long after the construction ribbon is cut.
In a climate of sustained elevated borrowing costs, non-dilutive vehicles like the New equity Markets Tax Credit deliver an 18% net project cost savings at closing, de risking, non-dilutive financing to jump start your investment. But where you locate matters, you can stack all the available financing. For our clients, we target as much as 40% of the project’s final cost.
With the reshoring wave strengthening in response to persistent global supply chain headwinds, Indiana has emerged as a premier site; the state now commands the highest manufacturing GDP per capita and 30.4% of its GDP derives from manufacturing. With 534,000 manufacturing roles and $53.4 billion in export value recorded in 2023, Indiana is poised to invest in the 3.8 million new manufacturing positions forecast nationwide by 2033.
Task your teams and site selectors with this strategic order of evaluation to unlock the greatest stackable financial incentives and returns. Here is my recommended 5-step framework for site selection, tailored to ensure a de-risked, high-ROI expansion
1) Prioritize NMTC-Qualified Properties: Initiate the site-selection process by compiling a list of locations within NMTC-eligible census tracts. These designated low-income areas qualify for up to 39% in federal tax credits over a seven-year investment horizon, generating non-dilutive capital that bridges critical financing shortfalls. Our team can swiftly validate NMTC eligibility, or reference the accompanying resource guide. Since NMTCs are deployed first within the capital stack, their non-dilutive, low-risk capital profile complements other forms of assistance, ultimately reducing required equity and bolstering cash flow. Our flawless close rate of 100% for qualified NMTC leads at Strategus demonstrates the effectiveness of this approach. Check out our resource guide on our website.
2) Find TIF-Seasoned Municipalities: Coalesce NMTC eligibility footprints with Indiana jurisdictions that possess mature, TIF districts, cities that capture incremental future tax increments expressly to accelerate public-capital investment in their cities for revitalization. Cities such as Marion, Anderson and Fort Wayne present compelling evidence that disciplined TIF execution has insulated and advanced several prior NMTC-backed ventures.
3) Align Investments with Advanced-Manufacturing Workforce talent: As much as we can expect AI to drive plant efficiencies, you will still need a dedicated advanced-manufacturing talent pipeline. Indiana now ranks third nationally in concentration of such workers. Statewide, the manufacturing base totals 520,400 jobs, integrated with a 3.6 percent unemployment rate and an average hourly wage that sits below the national mean. It also has low unionization.
We’ve seen reshoring firms thrive here, with 20.7% manufacturing job growth since 2010—outpacing the national 13%. We also have one of the top community colleges with IVY Tech. If you factor in apprenticeship programs and a talent pool projected to fill 3.8 million U.S. manufacturing jobs by 2033, and Indiana becomes a no-brainer for scalable operations.
This congruence between labor supply and project skill requirements enables faster scale-up with minimal risk of talent shortages. The NMTC allows you to make a strategic investment in paying above livable wage and supports training and investment in communities.
4) Analyze Energy Infrastructure and Resilience: Assess potential sites with robust utility ecosystems, including transmission interconnections, regional grids, and dependable base-load generation. Indiana’s competitive energy landscape includes four interstate gas pipelines that run through the state from Ohio and Illinois, ensuring a reliable and cost-effective gas supply for energy-intensive sectors. Numerous candidate locations are already linked to gas mains, as well as coal and gas base-load generation facilities, positioning the state to meet the anticipated rise in load—from 2,600 to 8,600 megawatts—fueled by planned data centers and the manufacturing expansion expected by 2035.
5) Determine Accessibility for Market access and logistics: Indiana is uniquely in the Midwest and close to all major metro cities- Chicago (3 hours), Detroit (4 hours), Cleveland (5 hours), Louisville (2 hours), Cincinnati (2 hours)—making it accessible and minimizing transport and logistic costs. At least 2/3 of the US population is within a days drive. Plus with over 4, 200 railroads operated by Class I line (CSX, Norfolk Southern, ), many interconnects are distressed NMTC distressed areas where you can also optimize freight. And if you want to go air freight, Indian hosts the 2nd largest FedEx air hub. This makes it ideal for your manufacturing distribution needs.
One final point on accessibility, ensure sites meet environmental regs. There are many incentives for brownfields in Indiana and former manufacturing plants that can be remodeled and repurposed. Indiana is a pro business state, has low regulation hurdles, making it all the more attractive for quick build outs to take advantage of these incentives.
I can only stress , with the new OBBBA provision, layered with the double round of the $10B NMTC financing this fall, the time is NOW to consider investment and expansion. Our track record speaks for itself, for eligible projects, we are with you from start to 100% close.
Schedule a free 30-minute consultation or check out our new resource guide . build your stack for maximum ROI.