December 16, 2024 The Success & Resilience of Oklahoma Manufacturing

Volume 27 | Issue 4

Oklahoma is home to over 4,200 manufacturing businesses and nearly 130,000 workers. Here’s how the state powers this thriving industry.

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by Dave Rowland

The manufacturing sector in Oklahoma has always been a crucial part of the state’s economic fabric, shaping the lives and livelihoods of Oklahomans while contributing significantly to the nation’s industrial output. In recent years, Oklahoma’s manufacturing industry has not only survived global challenges but has thrived by leveraging innovation, skilled labor, and a strong network of local support.

Oklahoma’s Manufacturing Landscape

Oklahoma’s manufacturing sector covers a wide array of industries from aerospace and defense to food processing, energy, transportation, and more. With over 4,200 manufacturing businesses and approximately 130,000 workers, the state has long been a hub for industrial success. This growth is driven in large part by Oklahoma’s central location, multi-modal transportation system, affordable cost of living, business-friendly policies, and a commitment to developing a highly skilled workforce.

Manufacturing accounts for 11% of Oklahoma’s GDP—an output of $18.6 billion— and 12% of the nation’s GDP. This figure is especially impressive when considering the challenging economic landscape many manufacturers face, from inconsistent supply chains to workforce shortages. Nevertheless, Oklahoma’s manufacturing sector continues to expand. 2023 was a particularly strong year with at least 71 projects from new and expanding companies statewide.

Recent project wins in the manufacturing sector include:

• Pratt & Whitney recently opened its new 845,000-square-foot military engines manufacturing facility in Oklahoma City, representing an investment of $255 million and creating 100 jobs.
• Solar energy company NorSun selected Tulsa for its first U.S.-based factory, a $620 million investment that created 320 new jobs.
• Stardust Power Inc., a manufacturer of battery- grade lithium products, selected the state for its domestic supply chain facility, representing a $1 billion investment.

Key Drivers of Oklahoma Manufacturing Success

The U.S. manufacturing industry will require some 3.8 million jobs to be filled in the next decade, while 65% of manufacturers say attracting and retaining talent is their primary business challenge. With initiatives aimed technical skills development, Oklahoma is ensuring a steady pipeline of talent to fill high-demand manufacturing roles.

Oklahoma has 28 colleges and universities offering manufacturing technician-related programs, and the CareerTech system projects 10,000 completions of these programs over the next five years.

The Oklahoma Manufacturing Alliance (OMA) works closely with local manufacturers to optimize operations, improve efficiency and implement new technologies. OMA provides technical expertise, training, and business consulting services through programs that focus on lean manufacturing, energy management, and workforce development.

Here are some examples:

• Developed by OMA in partnership with the Oklahoma Department of Commerce (ODOC), Connex Oklahoma is a powerful supply chain database tool for the manufacturing industry to help Oklahoma companies better connect with each other, increase business opportunities and be more easily discovered as suppliers.
• OMA’s “Supply Chain Academy” is a comprehensive program designed to assist business owners and managers dive into the world of supply chain management.
• Registered apprenticeship programs devel oped in collaboration with OMA are targeted specifically toward manufacturing skills.
• OMA recently opened an Advanced Manufacturing Center. The 1,375-squarefoot lab is designed to showcase cutting-edge technologies and process improvements while helping manufacturers engage a more capable workforce. Demonstrations center around applications involving collaborative robots, welding and industrial robots, 3D printing, dimensional measurement, and other automated systems.

Companies looking to relocate or expand their production also enjoy low-cost, clean energy in Oklahoma. The state is one of the top U.S. producers of renewable energy derived from solar and wind, with nearly 40% of its total electricity coming from renewable sources and producing 68% more energy than it consumes.

In terms of accessibility, an international airport in Tulsa, along with 135 public-use airports across the state, offers access to domestic and international destinations. Major highways connect Oklahoma within a day’s drive to all U.S. markets. The state is home to four inland ports and 20 rail operators, providing Class I and II service throughout the state.

The Path to Continued Growth

Since 2018, the Department of Commerce has seen a 90% rise in economic development projects in the pipeline—a number it anticipates will keep climbing due to Oklahoma’s pro-business environment, which offers some of the nation’s most competitive tax rates and incentives.

To support this growth, the state launched proactive initiatives like the Oklahoma SITES Program, which focuses on strengthening site infrastructure. This program is designed to meet the needs of both established and new businesses seeking to expand or relocate to Oklahoma. Currently, there are 27 certified, site-ready locations and 4,500 industrial sites available, with active efforts underway to further expand these resources.

With continued support, strategic planning, and a commitment to excellence, the manufacturing industry in Oklahoma is poised for a future as bright as its storied past.

About the Author:
Dave Rowland is president and CEO of the Oklahoma Manufacturing Alliance, which is a statewide organization with experts working to help companies grow, become more efficient, and integrate technology. OMA is part of the national Manufacturing Extension Partnership with centers in every state and Puerto Rico.

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