In Market: U.S. Manufacturing with Jay Tanjuan
The Future of U.S. Manufacturing is Already Under Construction
For decades, the U.S. has debated how to bring back manufacturing jobs and strengthen domestic production. Globalization, offshoring, and supply chain disruptions have tested our resilience. Today, we’re at a turning point.
New tariff policies, coupled with new federal legislation, are reshaping the economics of manufacturing and creating powerful incentives for companies to invest here at home.
At Scannell Properties, we see these shifts firsthand. We specialize in developing highly specialized build-to-suit facilities across the country, and the momentum we’re seeing now feels different. Companies are actively re-evaluating their production footprints because the math finally makes sense.
The Big Beautiful Bill includes some of the strongest incentives we’ve ever seen:
- 100% bonus depreciation for qualified property placed in service after January 19, 2025
- Full write-offs for qualified production property through 2030
- Immediate expensing of domestic R&D expenses beginning in 2025
- An elevated SALT deduction cap of up to $40,000, easing the burden in higher-cost states like California
When combined with new tariffs, these policies make U.S. production more cost-effective than it has been in years. The ability to expense the full cost of a new facility and equipment in year one creates enormous upfront savings and stronger cash flow. These are two critical drivers in site selection.
This is where real estate readiness comes into play. Incentives alone are not enough. Manufacturers need buildings that can meet demanding operational requirements and deliver on schedule, so they can capture the full benefit of these policies.
That’s why I’m especially proud of our project in Garden Grove, California. At 11311 Western Avenue, we’re building an 88,164-square-foot state-of-the-art distribution and manufacturing facility, scheduled for delivery in May 2026. The timing could not be better.
The project was designed with modern manufacturers in mind:
- Up to 10,000 amps of available power
- Prime West Orange County location surrounded by aerospace, advanced manufacturing, food production, and cold storage neighbors
- 32’ clear height, secured 130’ truck court, ESFR sprinklers, above-standard auto parking, and EV charging
A company moving into this facility in 2026 could write off the entire cost of its building and equipment in the first year. That translates to immediate tax savings, greater liquidity, and more capital available to fuel growth. Rarely do public policy, tax timing, and project delivery line up so perfectly.
The resurgence of U.S. manufacturing is about more than economics. It is about resilience, innovation, and independence. From semiconductors to food processing to aerospace, the companies that choose to produce here will be stronger for it, and the facilities they occupy, like our Garden Grove project, will help power that renaissance.
The future of U.S. manufacturing is not only possible, but also already under construction in Garden Grove.