Employment and State Leadership
FTZ employment reached about 543,000, with ~82% of jobs tied to production. Texas, Arizona and California lead in employment, while states such as South Carolina and Florida stand out for export intensity and Ohio and Pennsylvania for logistics depth. Production operations expanded to 381, reinforcing the zones’ role as job creators in manufacturing communities.
Sector Dynamics and Growth Opportunities
Electronics leads the sector mix at $62,416 million, followed by vehicles and electrical machinery. Vehicle parts posted a 6.9% CAGR from 2015 to 2024, and pharma gained share in recent years. Energy and petrochemical categories remain important, but the structural shift toward electronics, auto components and pharmaceuticals points to higher value added activity inside FTZs.
Strategic Implications for Business and Policy
FTZs offer scale, flexibility in tariff and supply chain and streamlined export channels—advantages for companies reshoring production or diversifying supply chains. Policymakers can leverage FTZs to attract investment, encourage U.S. employment and strengthen regional manufacturing clusters. State and local leaders should align infrastructure and workforce initiatives with FTZ strengths to maximize economic impact.
Quick Takeaway and Next Steps
FTZs are evolving into powerful supply chain and manufacturing hubs that combine export capability with high value production. Contact Kroll experts to evaluate FTZ options for cost savings, speed to market, economic development and export facilitation. We help our clients prioritize targeted incentives, logistics upgrades and skills training to capture the next wave of FTZ driven growth.
