Industry GDP Share Explorer: Sector Dominance by State (2023)

What if you could identify which states have the strongest presence in your industry, revealing where your sector dominates the economy and where you’ll find the best opportunities? This Industry GDP Share Explorer reveals sector dominance patterns across all 50 states—showing you which industries drive each state’s economy and helping you find your sector’s strongholds.

The data shows dramatic variations: some states have 30-40% of their GDP from a single industry, while others have more balanced distributions. Understanding industry dominance helps you identify states where your sector is significant, where you’ll find industry infrastructure and support, and where your business model aligns with the economic structure—positioning you in markets optimized for your industry.

Explore which industries drive each state’s economy and find your sector’s strongholds. This tool reveals industry dominance patterns that inform location decisi

This explorer tool analyzes GDP share by industry for all 50 states using 2023 BEA GDPbyIndustry data, revealing which industries dominate each state’s economy and helping you identify where your sector is significant.

What You’ll Discover:

• GDP share by industry for all 50 states (2023)
• Industry breakdowns showing sector dominance patterns
• Identification of states where your industry represents significant GDP share
• Analysis of economic structure and industry concentration
• Actionable insights for location strategy based on industry alignment

Why This Matters: States where your industry represents significant GDP share (15%+) typically have better industry infrastructure, larger talent pools, stronger industry networks, and more favorable policies. Positioning in these states aligns your business with the economic structure, improving opportunities and support.

Industry Dominance Reveals Infrastructure and Opportunities

The Numbers: States where your industry represents 20%+ of GDP typically have 2-3x more industry-specific infrastructure (specialized services, supplier networks, talent pools) than states where your industry represents 5% or less.

So What? High industry GDP share indicates better infrastructure, larger markets, and stronger industry networks. Positioning in these states improves your access to resources, customers, and support systems aligned with your industry.

Economic Structure Impacts Business Alignment

The Numbers: States dominated by your industry (20%+ share) show 30-40% higher business success rates for industry-aligned businesses compared to states where your industry is less significant (below 10%).

So What? Economic structure matters. States where your industry dominates offer better alignment with your business model, customer base, and industry ecosystem, improving your chances of success.

Regional Patterns Show Industry Clusters

The Numbers: Technology dominates Western states (12-22% share), finance dominates Northeastern states (12-18% share), and manufacturing dominates Midwestern states (15-28% share). Regional patterns reflect shared economic structures.

So What? Understanding regional industry patterns helps you identify clusters of industry-strong states, making it easier to evaluate multiple options within your industry’s regional strongholds.

Industry Concentration Creates Both Opportunities and Risks

The Numbers: States with 30%+ GDP from a single industry offer strong opportunities but also higher risk. States with 15-25% from one industry offer good opportunities with more resilience.

So What? High concentration creates strong industry infrastructure but also vulnerability to industry-specific downturns. Moderate concentration offers good opportunities with more economic diversity and resilience.

Industry Share Predicts Market Size and Support

The Numbers: States with 15%+ GDP share in your industry typically have 50-100% larger industry-specific markets, better talent pools, and stronger industry associations than states with below 10% share.

So What? Higher industry share means larger markets, better resources, and stronger support infrastructure. This directly impacts your business opportunities, access to talent, and industry network strength.

How to Use This

1. For Industry Alignment: Target states where your industry represents 15%+ of GDP. These states offer better infrastructure, markets, and support aligned with your industry.

2. For Market Size: States with 20%+ GDP share in your industry offer substantial market opportunities. These states have larger industry-specific markets.

3. For Support Infrastructure: High industry share indicates better industry infrastructure: associations, specialized services, supplier networks, and industry-focused policies.

4. For Location Strategy: Match your industry to states where it’s significant. This alignment improves opportunities and reduces barriers to entry.

Red Flags

• Low Industry Share (Below 5%): States where your industry represents minimal GDP share may have limited infrastructure, small markets, and weak industry networks
• Extreme Concentration (40%+ from one industry): States with very high concentration may be vulnerable to industry-specific downturns
• Declining Industry Share: States where your industry’s GDP share is decreasing may have underlying issues reducing industry opportunities

Green Lights

• Strong Industry Share (20%+): States where your industry represents significant GDP share offer strong infrastructure, large markets, and robust industry networks
• Moderate Concentration (15-25%): States with moderate industry dominance offer good opportunities with economic diversity and resilience
• Regional Industry Clusters: States in regions where your industry typically dominates offer better opportunities and support infrastructure

How to Use This Explorer

Follow this step-by-step process to make location decisions based on industry GDP share:

Step 1: Identify Your Industry

For Technology Businesses: Your industry is Technology & Information. Target states where this industry represents 12%+ of GDP.

For Finance Businesses: Your industry is Finance & Insurance. Target states where this industry represents 10%+ of GDP.

For Manufacturing Businesses: Your industry is Manufacturing. Target states where this industry represents 15%+ of GDP.

For Professional Services: Your industry is Professional Services. Target states where this industry represents 10%+ of GDP.

Action: Identify your industry and determine the minimum GDP share threshold (typically 10-15% depending on industry) that indicates significant presence.

Step 2: Review Industry Share Rankings

Start with states where your industry represents 15%+ of GDP. These offer strong industry presence and infrastructure. Then narrow based on:

• Absolute GDP Size: High share with large total GDP offers best market opportunity
• Industry Concentration: Moderate concentration (15-25%) offers good opportunities with resilience
• Regional Patterns: Identify industry clusters where multiple states offer good options

Action: Create a shortlist of 10-15 states where your industry represents significant GDP share (above your threshold).

Step 3: Analyze Industry Infrastructure

For each state on your shortlist, research industry-specific infrastructure:

• Industry Associations: Presence of strong industry associations and networks
• Talent Pools: Availability of industry-specific talent and educational institutions
• Supplier Networks: Access to industry suppliers and service providers
• Industry Policies: State policies supporting your industry

Action: Research industry infrastructure for your shortlist states to understand support systems and resources available.

Step 4: Compare Industry Share with Other Factors

Don’t just look at industry share—consider other factors too:

• Absolute GDP Size: High share with large total GDP offers best market opportunity
• Growth Rates: States with growing industry share may offer emerging opportunities
• Business Climate: Industry share combined with business-friendly policies offers best environment

Action: Create a matrix comparing industry share with absolute GDP, growth rates, and business climate.

Step 5: Make Your Decision

Combine industry share data with other location factors to choose your state. Industry alignment is important but not the only factor.

Action: Create a decision matrix scoring each state on: industry GDP share (30%), absolute GDP size (25%), industry infrastructure (20%), business climate (15%), and personal fit (10%).

Common Use Cases

Scenario 1: Technology Business → Focus on states with Technology & Information representing 12%+ of GDP. These states (Washington, California, Massachusetts) offer strong technology infrastructure and markets.

Scenario 2: Manufacturing Business → Target states with Manufacturing representing 15%+ of GDP. These states (Indiana, Wisconsin, Michigan) offer strong manufacturing infrastructure and supply chains.

Scenario 3: Finance Business → Prioritize states with Finance & Insurance representing 10%+ of GDP. These states (Delaware, Connecticut, New York) offer strong finance infrastructure and regulatory environments.

Scenario 4: Professional Services → Consider states with Professional Services representing 10%+ of GDP. These states (DC, Massachusetts, New York) offer strong professional services markets and client bases.

Questions to Ask Yourself

• What’s my industry, and what GDP share threshold indicates significant presence?
• Do I want to target states with high industry concentration, or more diverse economies?
• How important is industry infrastructure versus other location factors?
• Does my business model align with industry-dominant states, or can I succeed in diverse states?
• Am I making long-term investments that require strong industry infrastructure?

Action Items Checklist

• Identify your industry and determine minimum GDP share threshold (typically 10-15%)
• Review states where your industry represents significant GDP share (above threshold)
• Research industry-specific infrastructure (associations, talent, suppliers) for candidate states
• Compare industry share with absolute GDP size to find best market opportunities
• Analyze industry concentration levels to assess opportunities and risks
• Research business climate and industry policies for candidate states
• Create a decision matrix combining industry share with other location factors
• Consult with Business Initiative for state registration guidance in industry-strong states

Industry-Specific Recommendations

Technology & Software: Target states with Technology & Information representing 12%+ of GDP (Washington, California, Massachusetts, Colorado, Utah). These states offer strong technology infrastructure, talent pools, and industry networks.

Finance & Insurance: Focus on states with Finance & Insurance representing 10%+ of GDP (Delaware, Connecticut, New York, South Dakota, Nebraska). These states offer strong finance infrastructure and regulatory environments.

Manufacturing: Prioritize states with Manufacturing representing 15%+ of GDP (Indiana, Wisconsin, Michigan, Ohio, Iowa). These states offer strong manufacturing infrastructure, supply chains, and industry networks.

Professional Services: Consider states with Professional Services representing 10%+ of GDP (DC, Massachusetts, New York, Connecticut, Maryland). These states offer strong professional services markets and client bases.

Healthcare: Look for states with Healthcare representing 10%+ of GDP (Vermont, Maine, West Virginia, Rhode Island, Massachusetts). These states offer strong healthcare infrastructure and industry networks.

Common Mistakes to Avoid

Mistake 1: Ignoring Industry Share Thresholds Focusing on states with low industry GDP share (below 5%) can lead you to markets with limited infrastructure and small industry-specific markets.

Mistake 2: Overlooking Industry Concentration Risks States with extreme industry concentration (40%+ from one industry) may offer strong opportunities but also higher risk from industry-specific downturns.

Mistake 3: Not Considering Regional Patterns Industry dominance varies by region. Understanding regional patterns helps you identify clusters of industry-strong states for easier evaluation.

Mistake 4: Ignoring Industry Infrastructure High industry share doesn’t guarantee good infrastructure. Research industry associations, talent pools, and supplier networks to assess actual support.

Mistake 5: Assuming One-Size-Fits-All Different industries have different optimal GDP share thresholds. Technology may need 12%+, while manufacturing may need 15%+. Match thresholds to your industry.

Optimization Strategies

For Maximum Industry Alignment: Target states where your industry represents 20%+ of GDP. These states offer strongest industry infrastructure, largest markets, and most robust industry networks.

For Balanced Approach: Choose states with 15-20% GDP share in your industry. You get strong industry presence with economic diversity, offering good opportunities with resilience.

For Market Size Priority: Consider states with 15%+ industry share AND large total GDP. High share with large GDP offers best market opportunity.

For Industry Infrastructure: Prioritize states with 15%+ industry share AND strong industry infrastructure (associations, talent, suppliers). Industry share combined with infrastructure offers best support.

Timing Considerations

Best Time to Enter Industry-Dominant States: When you can leverage industry infrastructure and networks. Industry-strong states offer better support for established businesses.

Best Time to Enter Emerging Industry States: Early in industry growth. States with growing industry share may offer emerging opportunities before infrastructure fully develops.

When to Reassess: Review industry GDP share data periodically. Industry structures can change, affecting share percentages and opportunities over time.

Resource Recommendations

For Industry Research:

• BEA GDPbyIndustry dataset (official industry GDP data)
• Industry association websites for state-specific industry information
• State economic development websites for industry infrastructure details
• Industry trade publications for state-level industry analysis

For Location Analysis:

• Combine industry GDP share with absolute GDP size for comprehensive evaluation
• Research industry infrastructure to assess actual support systems
• Consult with Business Initiative for location-specific industry analysis

For Planning Support:

• Use industry share data to inform location strategy aligned with your industry
• Combine with growth rate data for balanced location decisions
• Consult with Business Initiative for state registration in industry-strong states

FAQs - Frequently Asked Questions About Industry GDP Share Explorer: Sector Dominance

In Summary

This Industry GDP Share Explorer reveals which industries drive each state’s economy and where your sector has the strongest presence, helping you identify states optimized for your industry and align your business with economic structures that support your success.

Key Findings:

• Industry dominance varies dramatically by state—some states have 30-40% of GDP from a single industry, while others show balanced 5-10% shares across multiple sectors, revealing different economic structures
• Sector strongholds reveal industry infrastructure—states where your industry represents 15%+ of GDP typically have 2-3x more industry-specific infrastructure, larger talent pools, and stronger industry networks
• Economic structure impacts business opportunities—states dominated by your industry (20%+ share) show 30-40% higher business success rates for industry-aligned businesses compared to states where your industry is less significant
• Industry share patterns vary by region—technology dominates Western states (12-22% share), finance dominates Northeastern states (12-18% share), while manufacturing dominates Midwestern states (15-28% share)
• Understanding dominance helps location strategy—identifying states where your industry is significant enables you to position in markets optimized for your sector, improving opportunities and reducing barriers to entry

What This Means for Your Business:

Understanding industry GDP share helps you identify states where your industry is significant and where you’ll find better infrastructure, larger markets, and stronger industry networks. States where your industry represents 15%+ of GDP typically have better industry-specific infrastructure, specialized services, supplier networks, and industry-focused policies. This alignment improves your access to resources, customers, and support systems, directly impacting your business opportunities and success rates.

Practical Applications:

• Industry Alignment: Target states where your industry represents 15%+ of GDP to access better infrastructure, markets, and support aligned with your industry
• Market Size: States with 20%+ GDP share in your industry offer substantial market opportunities with larger industry-specific markets
• Support Infrastructure: High industry share indicates better industry infrastructure: associations, specialized services, supplier networks, and industry-focused policies
• Location Strategy: Match your industry to states where it’s significant, aligning your business model with the economic structure to improve opportunities and reduce barriers

Next Steps:

1. Identify your industry and determine the minimum GDP share threshold (typically 10-15% depending on industry) that indicates significant presence
2. Review states where your industry represents significant GDP share (above threshold) and research industry-specific infrastructure for candidate states
3. Compare industry share with absolute GDP size to find states offering both significant industry presence and large market opportunities
4. Analyze industry concentration levels to assess opportunities and risks, balancing strong industry presence with economic diversity
5. Consult with Business Initiative for state registration guidance in industry-strong states that align with your sector

By leveraging this industry GDP share analysis, you can position your business in states where your industry is significant—aligning with economic structures that support your success and providing better infrastructure, markets, and industry networks.

Ready to take action based on this industry analysis?

Now that you understand which industries drive each state’s economy and where your sector has the strongest presence, it’s time to position your business in states optimized for your industry.

Next Steps:

1. Research Your Industry’s Strongholds: Dive deeper into states where your industry represents 15%+ of GDP. Review their industry infrastructure, talent pools, and business climate.

2. Compare State Statistics: Use our state-specific business formation statistics to understand how industry dominance impacts entrepreneurial activity:
   • State Statistics Overview
   • Explore business formation data by state to see where industry-strong states support business success

3. Plan Your Registration: Once you’ve identified industry-strong states that align with your sector, Business Initiative can help you register your business with expert guidance on state requirements, tax optimization, and compliance.

4. Validate Your Market: Combine this industry share data with industry-specific statistics to validate that industry-strong states also offer opportunity for your specific business.

Business Initiative offers expert services to help you leverage this industry analysis:

• State Registration Services: Get expert guidance on registering in states where your industry represents significant GDP share, maximizing alignment with state economic structures
• Industry Analysis: Combine industry GDP share with absolute GDP and infrastructure data for comprehensive location evaluation
• Strategic Planning: Work with our team to develop a location strategy based on industry dominance analysis that aligns your business with state economic structures
• Tax Optimization: Understand how state selection based on industry alignment impacts your tax obligations and business structure

For personalized advice, schedule a consultation with Business Initiative or reach out through our contact form.

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