Manufacturing in the United States was born along the rivers and coastline of the Northeast, and New England in particular. This continues into today: New England’s manufacturing sector generated more than $130 billion in economic output in 2025, according to the U.S. Bureau of Economic Analysis data. But what industries are driving that growth, and what technologies are manufacturers investing in to prepare for the future?
In this article, we’ll take a closer look at the industries driving manufacturing growth in New England, the technologies shaping the region, and why automation and controls expertise are becoming more important than ever.
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Manufacturing in New England is Evolving | Automation Demand Continues to Rise | Why Local Technical Support Still Matters | Investing in the Future of New England Manufacturing | Looking Ahead | Additional Resources
We're Investing in New England:
Read About Airline's Acquisition in Portland, Maine.
There are several key industries that continue to be positioned strongly in New England, each with its own unique trajectories and forecasts
• Massachusetts-based life sciences companies received $2.75 billion in VC funding in the first half of 2025 alone, representing 22.5% of all U.S. life sciences VC funding (Source: Mass Bio).
• Massachusetts’ drug development pipeline now represents 15.7% of the entire U.S. pipeline (Source: Mass Bio).
• Life sciences companies nationwide announced more than $7.1 billion in investments and nearly 12,000 new jobs over the past year, with Boston remaining one of the country’s major biotech hubs (Source: Site Selection Group).
• The global semiconductor market is projected to reach nearly $1 trillion by 2026 due largely to AI, data center, and advanced computing demand (Source: WSTS).
• Upstate New York and the Northeast are particularly seeing major semiconductor investment.
• Specialty food manufacturers continue to grow as demand increases for regional, premium, and ready-to-eat food products.
• Seafood processing remains a key part of New England’s manufacturing base, especially in coastal states where food production, cold storage, and packaging operations support the regional economy.
• Breweries and beverage producers continue to invest in production equipment, controls, packaging lines, and facility upgrades to improve output, consistency, and efficiency.
• Maine’s defense manufacturing sector alone expects to hire thousands of additional workers as companies like Bath Iron Works and Portsmouth Naval Shipyard continue expanding operations (Source: Associated Press)
• Connecticut manufacturers received $26.6 billion in defense contract spending in 2024 (Source: CBIA)
• Packaging manufacturers continue to support major New England industries, including food and beverage, life sciences, ecommerce, and specialty manufacturing.
• As manufacturers look for faster, more consistent production, packaging operations are becoming a growing area for automation, sensing, controls, and end-of-line equipment support.
Marine
• Massachusetts and coastal New England continue to maintain strong marine economy activity tied to manufacturing, construction, transportation, and recreation.
• Marine manufacturers, shipyards, and coastal service providers rely on industrial equipment, automation, controls, and maintenance support to keep production and service operations running reliably.
Energy/Power Generation
• Grid modernization is driving investment in electrical infrastructure, controls, automation, and equipment upgrades across the power generation and distribution market.
• Offshore wind support infrastructure is creating new demand for manufacturers, ports, service providers, and industrial suppliers across coastal New England.
Massachusetts in particular is facing relatively slow growth of its labor force compared to other states. Domestic outmigration continues to be an issue, combined with the aging of the state’s workforce, and this puts additional pressure on manufacturers competing for skilled workers.
Meanwhile, in Connecticut, a 2024 Connecticut Manufacturing Report found that 80% of manufacturers said labor shortages were impacting their business, with difficulty finding and retaining skilled workers remaining one of the industry’s top concerns. This is indicative of a national trend, where about 20.6% of U.S. manufacturing plants reported they could not operate at full capacity because of labor or skills shortages.
Uptime continues to be a major focal point for manufacturers, as well as consistency in production. Along with necessary safety requirements, as well as increasing efficiency with data collection and connected systems, all of this points towards the need for increased automation in New England’s manufacturing sector.
A 2025 manufacturing survey found:
41% of manufacturers plan to prioritize investment in factory automation hardware.
34% are prioritizing active sensors.
28% are investing in vision systems (Source: Deloitte)
Our team sees these challenges developing and we understand the need for local technical support. It matters now perhaps more than ever. Customers need faster response times from their distributor partners, as well as on-site troubleshooting from experts.
Airline Hydraulics has branch locations in Portland ME, New Kingston RI, and other sales offices throughout the northern region, providing customer-specific inventory programs and hands-on application support to New England manufacturers.
When customers need engineering support, we are there - and when local customers need specific inventory at a specific moment, they need to trust the stock will be available. We want to strengthen our relationships with these customers, and it all adds up to being there, and being present for them.
Airline Hydraulics has been serving the New England market for over 25 years, and we have taken a major step to ensure we provide even better service to our New England customers: Airline has acquired Portland, Maine-based Industrial Automation Supply (IAS).
A 33-year veteran of the industrial automation world in New England, IAS brings a world of unique skills and assets to the Airline family, including a full-service, UL508A-certified panel shop, expert technical support, expanded regional resources, and a shared customer-focused approach that aligns with Airline’s goals. Airline’s recent acquisition of Industrial Automation Supply (IAS) reflects a continued investment in the region and a commitment to supporting manufacturers with deeper automation and controls expertise.
The manufacturing landscape in New England will continue to evolve, and what you see today is not what is going to be the norm down the road. Because of that, technical partnerships are more important than ever, and Airline is taking the steps necessary to ensure our regional support and engineering expertise helps our customers stay competitive in this arena. And we are continuing to find new and innovative ways to invest in the tools that will allow us to help steward our customers into the future of automation and controls in New England.
We are excited to work with our New England partners, and are eager to hear from you. Our team is ready to help you find the right systems, and then support you throughout your entire process, and beyond.
Read about Airline and IAS Acquisition
Customer-Specific Inventory: A Smarter Approach to Manufacturing Inventory Management