New Analysis Highlights the Economic Opportunity of Electrifying American Industry

WASHINGTON, D.C. – June 23, 2026 – Electrifying American industry can drive economic growth and protect manufacturers from volatile energy costs, according to a Powering American Industry: The Economic Opportunity of Industrial Electrification analysis produced for the Renewable Thermal Collaborative (RTC) and Industrial Heat Pump Alliance (IHP Alliance) by Greenline Insights.

The analysis, released today, reveals that the electrification of the American industrial sector can deliver over the next decade:

• $254 billion in total investment in deployment and manufacturing
• $471 billion in total economic output
• $185 billion in GDP growth
• 1.66 million supported jobs

The report also finds that each dollar of investment supports approximately $1.85 in total economic activity, reflecting strong supply chain linkages and broader economic spillovers.

“This analysis makes one thing clear,” declared David Gardiner, RTC Interim Executive Director “Electrifying American industry is a business opportunity that will be good for the economy and for U.S. manufacturers trying to manage energy costs.”

The opportunity to scale deployment and capture associated manufacturing activity varies significantly across states. States that align policy, infrastructure, and workforce strategies could be well-positioned to capture these economic benefits. The analysis highlights ten high-potential states—California, Georgia, Illinois, Michigan, Minnesota, New York, North Carolina, Ohio, Pennsylvania, and Texas—mapping their deployment strengths and manufacturing readiness against key constraints that may affect near-term progress.

“Industrial electrification can help American manufacturers modernize operations, manage exposure to volatile fuel prices, and strengthen long-term competitiveness,” said Cihang Yuan, Deputy Director of Corporate Climate and Renewable Energy at World Wildlife Fund and a lead author of the report. “But this opportunity will only be realized if policy, utility, and market conditions make these projects economically viable. That means electricity rates that reward flexibility, support for upfront capital costs, technical assistance for facilities, and workforce and manufacturing strategies that can scale with demand.”

The report also underscores the role of industrial electrification in reducing exposure to fuel price volatility and improving long-term cost predictability for manufacturers. Translating this opportunity into economic growth will require coordinated action across utilities, policymakers, financial institutions, industrial end-users, and technology providers to improve project economics, expand technical capacity, and build the workforce and supply chains needed to scale the market.

“This report makes clear that electrification is no longer a future trend—it is reshaping how American industry operates today and expanding the role the electroindustry plays in powering the U.S. economy,” said Steve Griffith, Executive Director of Regulatory & Industry Affairs, Mobility, at NEMA. “As demand grows for more efficient, reliable, and resilient energy systems, electrical manufacturers are delivering the technologies that help businesses lower costs, boost productivity, and build the infrastructure foundation for a stronger, more competitive domestic industrial base.”

“U.S. manufacturers have shown time and again that efficient operations win out. Electrifying industrial heat is the logical step forward for sectors as diverse as food processing and chemical manufacturing,” said Richard Hart, Industry Director at the American Council for an Energy-Efficient Economy “This analysis shows that states can maximize this economic opportunity by supporting innovation in manufacturing plants and by developing the supply chain that accelerates electrification.”

Download the Powering American Industry: The Economic Opportunity of Industrial Electrification report at https://www.renewablethermal.org/powering-american-industry/