Reshoring Survey Revealed Hurdles for Domestic Manufacturers
Manufacturers face labor crises and policy uncertainty while attempting to bring production back to the U.S.
Updated on Sept. 30, 2026 in Manufacturing
Live Poll
Do you believe moving production back to the U.S. benefits your household's long-term economy?
The 2026 USA Reshoring Survey of 249 manufacturers found that 36% of OEMs were actively reshoring production. While firms are targeting logistics savings and reduced geopolitical risk, widespread hiring challenges and policy uncertainty continue to hamper domestic expansion.
Why it matters
Companies are re-evaluating their supply chains to limit exposure to imports from China and Taiwan, yet many operators struggle to commit capital due to a lack of long-term predictability. These barriers force manufacturers to weigh potential logistics savings against the immediate reality of technician shortages.
The 2026 survey of 249 manufacturers showed that 36% of OEMs were engaged in reshoring, while 63% of OEMs planned domestic capital expenditures through 2027. Conversely, 57% of respondents identified policy uncertainty as a primary barrier to operational shifts.
The players
Original Equipment Manufacturers (OEMs)
Large-scale companies that design and market branded products while often outsourcing the production to specialized factories.
Contract Manufacturers
Third-party entities that produce goods or components under contract for other brands, functioning as the backbone of outsourced supply chains.
The details
Manufacturers evaluate domestic production through a total cost of ownership model, weighing logistics savings against the risks of offshoring. While 60% of OEMs cited logistics as a benefit, the operational burden remains heavy as 66% of firms report a labor crisis in skilled technical roles. Companies also report that 94% of contract manufacturers lose potential orders when their quoted prices cannot compete with imports, highlighting the razor-thin margins involved in reshoring.
Timeline
In 2025, 29% of OEMs reshored production.
In 2026, 249 manufacturers were polled regarding their reshoring activity.
Through 2026 or 2027, OEMs have scheduled U.S. capital expenditures for expansion.
Market Landscape
This development follows the broader, multi-year industry trend of reducing reliance on imports from China and Taiwan. The shift marks a departure from pure-cost sourcing models toward a model that prioritizes geopolitical risk mitigation and logistics stability.
Owners should assess their total cost of ownership metrics to determine if the logistics savings of reshoring outweigh the significant current labor costs. Factor in technician availability and potential capital expenditures when modeling domestic capacity for the 2026-2027 period.
The takeaway
The move toward domestic production is heavily dependent on overcoming the current shortage of skilled technicians and navigating political volatility. Operators should monitor their own hiring pipelines and track capital expenditure trends relative to the 63% industry average for future planning.
Further reading
For a broader look at the challenges facing domestic production, visit the manufacturing section.
Source note: This article includes information reported by Assembly Magazine.
Live Poll
Do you believe moving production back to the U.S. benefits your household's long-term economy?
