2025 U.S. Reshoring and FDI Hold Firm as Manufacturers Prepare for the Next Investment Wave

The Reshoring Initiative® 2025 Annual Report shows that reshoring and foreign direct investment held firm at 247,000 announced U.S. manufacturing jobs despite tariff uncertainty, geopolitical tensions and supply-chain disruption. This year’s report also includes 2026 data and findings from the 2026 USA Reshoring Survey, offering an early look at accelerating activity, shifting industry priorities and the challenges that could shape the next wave of domestic investment.

Based on first-half 2026 announcements, approximately 309,000 jobs were initially projected for 2026—a 25% increase over 2025. A further surge in July, August, and September suggests the 2026 total could reach 400,000. Read the full report to explore the leading industries, policy and market drivers, growing role of advanced manufacturing, and actions needed to turn this momentum into stronger supply chains and more well-paying American jobs. Find out more here.

Workforce

JPMorgan CEO Jamie Dimon says 300,000 workers are needed to rebuild American shipbuilding—with jobs paying $100,000 without a college degree

“The U.S. has fallen dangerously behind on shipbuilding, creating a massive shortage of skilled workers—and a lucrative opportunity for young Americans looking for AI-proof, high-paying jobs.” RI Comment: Big opportunity. Will team skilled workers and robots.

The Factory Rebound Is Fragile Without More Power and Workers

“Evidence is mounting that a US industrial rebound is taking hold and broadening to sectors beyond the data-center boom, with more industries adding to the momentum." RI Comment: Worker availability is the #1 criterion for new facilities and specifically for reshoring.

This factory was severely short on workers. Then it offered flexible work

“The freedom to choose your work hours has been a game changer for many white-collar workers. Now, it has quietly become an option for some blue-collar workers as well.” RI Comment: Wonderful solution for obtaining more workers and for greybeards to pass on essential knowledge to new recruits and to robots. Might be best to let the workers solve the scheduling problem so that work gets done on time. Maybe the government should relax rules on overtime pay so employees can voluntarily go over 40 hours one week and under the next to help each other and the team.

Our Town: Copperas Cove ISD Embracing CTE

“As the job market changes, schools across the country are expanding beyond only pushing students towards a four-year degree. Locally, CCISD is one of the leaders in the CTE field. Of the 4,200 students at their two middle schools and high school, over 3,000 of them participate in the CTE program.” RI Comment: We see almost daily announcements of new high school or community college programs leading to skills careers. Great news!

How Paid Apprenticeships Bridge the Manufacturing Skills Gap

“Apprenticeships provide an alternative to traditional education by combining salaried on-the-job training with classroom-based study. Programs typically lead to formal assessments and nationally recognized qualifications, which allow apprentices to pursue meaningful careers in their chosen fields.” RI Comment: Apprenticeships also increase the size of the workforce, critical in a time of workforce shortages. If 50% of high school students entered 4-year apprenticeships instead of universities, the U.S. workforce would rise by about 2 million.

America's schools are producing a generation of techno-peasants

Manufacturing and other industries face millions of unfilled jobs due to a ‘learning recession,’ caused by declining student engagement and attendance. “Large numbers of students are leaving high school without the basic literacy and numeracy needed for modern work.” RI Comment: Competitor countries’ stronger basic education, combined with better skills training, is a challenge we need to overcome.

America's most valuable companies now employ the fewest workers

“In January, CPA showed that America’s cost-of-living crisis is a wage problem, not a price problem: the cost of essential services has raced ahead of the median paycheck for 25 years.” RI Comment: Our goods trade deficit has cost the U.S. 5 million manufacturing jobs. Ten million multiplier effect jobs bring the total to 15M, about 9% of July 2026 total U.S. employment of 162M compared to 4% unemployment. If we had those additional jobs companies would have bid up wages and automated more, overcoming our wage decline and productivity problem.

Automation and AI

Forget DeepSeek. China’s real ‘Sputnik moment’ is happening on campus as American universities lose their advantage

A study of nearly 14 million Chinese patents shows that Chinese universities are driving the country’s rapid advances in critical technologies. Universities account for more than a quarter of China’s inventions in these fields—about eight times the U.S. rate—while the quality of Chinese patents is increasingly matching or surpassing U.S. patents. RI Comment: We need to do a better job of recruiting U.S. citizens to get engineering degrees. Preferential access to college loans would help the country and help the individuals achieve higher lifetime incomes.

With Washington’s help, humanoid robots can transform US manufacturing

“For the first time in decades, having a manufacturing edge is not dependent on an abundant human labor supply like China has lately enjoyed. With AI and automation, America has a once in a generation window of opportunity to rebuild its manufacturing base, even amid labor shortages due to sustained low unemployment.” RI Comment: AI and automation will also attract more workers to manufacturing.

Reshoring and Labor Shortages Drive Manufacturers Toward AI Solutions

“Nearly 72% of manufacturers have adopted AI to address reshoring pressures, labor shortages, and rising costs, but only 10% have achieved scale. Generative AI adoption jumped to 65% in 2024, with quality control, IT operations, and supply chain management as top use cases, though implementation costs and integration challenges remain significant barriers.” RI Comment: China is building on its much stronger productivity growth by aggressively implementing AI in manufacturing. The U.S. needs to accelerate its efforts on AI and robotics.

Made in America, Hidden by AI: AI Shopping Chatbots Reveal How Amazon and Walmart Hurt American Manufacturers and Deceive Shoppers

“This article finds that (1) Amazon and Walmart have the technical capability to detect and flag “Made in USA” fraud; (2) “Made in USA” fraud appears to be common on both Amazon and Walmart; (3) Amazon blocks answers to questions about “Made in USA” products while allowing equivalent questions about products that were “Made in China.” RI Comment: Excellent study by Columbia Law School. Repeated surveys have shown that most consumers prefer to buy Made in USA, and many will pay a 10%+ premium. The consumers do not consistently do so because they cannot find the Made in USA products. We encourage Amazon, Walmart and all other retailers to get on board. More employed Americans means more retail sales.

Gap Is Widening between Supply Chain Risk and Organizational Readiness

Supply chain and workforce risks are increasing faster than companies’ ability to manage them. Although AI is widely used for supplier analysis, regulatory tracking, and compliance monitoring, few companies have fully integrated it into their operations. Greater investment in real-time risk visibility and predictive analytics is needed to anticipate disruptions. RI Comment: Supply chain risk can be dramatically reduced by reshoring. Geopolitical Risk Map shows country risk, how to estimate potential losses and how to justify reshoring.

Tariffs, Currency, and Government Policy

Interest in tariffs is down 89% as Trump launches another global trade war — why is no one worried this time?

Interest in Trump’s tariffs has fallen compared with 2025, even as the administration imposes another round of tariffs. Markets and the media appear less alarmed as tariffs have become more familiar and are increasingly viewed as a lasting feature of U.S. trade policy. RI Comment: Our 2026 Survey shows that Policy Uncertainty is the leading barrier.

Why Higher Tariffs Are Becoming the New Normal for Business

• “Many business leaders expect high tariffs to remain a permanent fixture even after President Trump leaves office in January 2029.”

• “U.S. import duties generate $20 billion to $30 billion monthly, making the revenue difficult for a future president to forgo.”

• “Some companies have made major changes to their supply chains they are unlikely to reverse.”

RI Comment: We accept stable tariffs but prefer more emphasis on skilled workforce and having a 20% lower USD.

Could tariffs take a more permanent turn?

“The tariff story continues to evolve. After a year marked by reciprocal tariffs, court challenges and shifting trade policies, the Trump administration has announced a new set of import duties affecting approximately 80 countries and nearly all U.S. trade.”

US officials work to close supply chain gaps as foreign investment grows

“U.S. officials on Monday said they are working ​closely with foreign investors to identify gaps in the U.S. manufacturing supply chain and to help small- ‌and medium-sized businesses scale up to meet rising demand as foreign investments surge.” RI Comment: Our 2026 Survey identified Component Availability as one of the important barriers to reshoring.

JPMorgan Chase launches $1.5 trillion Security and Resiliency Initiative to boost critical industries

JPMorgan Chase launched a 10-year Security and Resiliency Initiative aimed at directing $1.5 trillion in financing and investment toward industries considered important to U.S. economic security. Bank of America has separately committed $250 billion through July 2027 to finance U.S. digital, energy and infrastructure projects, aiming to strengthen domestic growth and job creation. RI Comment: Manufacturing companies need the capital to finance automation and AI to increase capacity and become cost-competitive enough to reshore. To help justify investment to reshore, see Using TCO Instead of Price to Calculate ROI on Domestic Investment vs. Offshoring.

Speeding Up Permitting with the Fast 41 Program

“Fast 41 is a federal program designated by Congress in 2015 to speed up approval for infrastructure projects; executive director Emily Domenech explains the program's intent and how it has become a focus of the second Trump administration.” RI Comment: Long permitting delays reduce the ROI on projects and add uncertainty. China has long-term planning and implements fast. We should at least implement fast.

White House Offers Lower Aluminum Tariffs for Companies Expanding US Production

“Under the new policy, eligible companies will be able to reduce the current 50% tariff on a set volume of aluminum imports by half as part of the administration’s effort to encourage the onshoring of aluminum production.” RI Comment: This is a model that should be followed with other industries. Incentivize companies to invest here.

IRS Issues Interim Guidance on New 100% Bonus Depreciation

“The IRS has issued Notice 2026‑11, providing interim guidance on the reinstated 100% bonus depreciation rules under Section 168(k). Taxpayers may rely on this guidance until Treasury releases proposed regulations, which are expected to align with the notice.” RI Comment: The U.S. needs to dramatically increase mfg. capital investment to become more cost competitive and deal with the workforce shortage. Manufacturing and machine tool investment are surging, partially because of the One Big Beautiful Bill’s tax incentives.

Supply Chain and Logistics

The future of supply chain in Cold War Two

“As Cold War Two intensifies, governments and multinational corporations are prioritizing supply chain security, economic resilience, and national security considerations over the cost efficiencies that previously drove offshoring to China.

(Cold War Two is a registered trademark of Schenker’s firm Prestige Economics LLC.)”

July 2026 Manufacturing Insights

“U.S. manufacturing posted its strongest month in more than four years in July 2026. The two most closely watched survey readings, however, tell different stories about where the sector goes from here.”

A Summer Reading List to Grasp the Geopolitical Shifts Shaping the Future

Basic Principle: The Country Should Prioritize National Interests Over Individual Companies.

• US strength is derived from what we can build to be truly secure.

• A nation that depends on its adversaries for critical inputs isn’t truly sovereign.

• Economic relationships must be “reciprocal”.

• The dollar and its dominant status are essential instruments of statecraft.

• Economic statecraft must serve the American people — the US depends on its human capital.

RI Comment: The dollar should be dominant but not so high that it makes the country uncompetitive.

Advanced Polymers Could Define Next Reshoring Wave

As more than one-third of US original equipment manufacturers (OEMs) pursue reshoring strategies, a critical question emerges: Should companies simply relocate existing production, or should they reimagine their materials and processes for a new era of domestic manufacturing?

Mississippi’s Reshoring Moment: Leveraging Local Strengths for Global Competitiveness

“Manufacturing remains one of Mississippi’s most important economic drivers, accounting for roughly one in every 10 workers and serving as the backbone of communities from the Golden Triangle to the Gulf Coast. For decades, the movement of production overseas gutted American factories, but that trend is reversing as companies reshore operations and foreign manufacturers expand their U.S. footprint.”

Beyond Outsourcing: Why Best-Shore Is Reshaping the Future of Industrial Operations

“The best-shore model recognizes that cost matters, but so do collaboration, speed, resilience, compliance, talent availability, and operational continuity. Rather than choosing between offshore, nearshore, or onshore delivery, organizations are learning to combine all three in ways that support their broader business objectives.” RI Comment: The TCO Estimator helps companies decide which is the best shore.

[HM3] 79% of US manufacturers are reshoring. Only 34% are ready for it.

The strategic benefits of reshoring are no longer a question, but manufacturers are now challenged with moving production while maintaining operational capacity. Survey results show widespread investment in domestic production, but many firms lack the workforce and infrastructure needed to reshore successfully. Trade uncertainty and tariffs are accelerating the trend, while equipment costs, implementation time, and skilled labor shortages remain barriers. RI Comment: Start with the products that offer the largest TCO savings, considering those barriers.

Machine Tool Demand is Booming

“New orders of metalworking machinery totaled $605.8 million in July 2026, an 8% decrease from June 2026 and a 55.2% increase over July 2025. The total through the first seven months of 2026 was $4.03 billion, a 37.1% increase over the same period in 2025.

RI Comment: Harry found a large and enthusiastic crowd at IMTS.

Five Hidden Costs That May Be Lurking in Your Supply Chain

“Companies know what they’re paying for freight, labor, and packaging. It’s the expenses buried elsewhere in the operation that can steadily eat into margins. Running a supply chain has never been cheap or predictable, but the added and often hidden expenses seem to be proliferating this year.” RI Comment: Our online free TCO Estimator is designed to quantify those costs and risks.

Select Media (RI authorship, quotes)

Advanced Manufacturing: Shaping the Next Era of Manufacturing with Reshoring

Manufacturing Tomorrow: U.S. Manufacturing Reaches Record $2.91 Trillion as Workforce Gap Threatens Next Decade of Growth

Industry Today: Technology & Talent: A Growth Engine for Reshoring

ICIS: INSIGHT: So far, US tariffs are falling short of reshoring manufacturing

IMTS Insider: America Is Taking Back the Factory Floor

Industry Week: The 9-Step Roadmap to Reshoring Success

USA Today: Why US factories are seeing a massive tech boom

Videos & Podcasts:

Barracuda B2B Marketing: Manufacturers' Efficiency Webinar Series: Reshoring in America -- Opportunity or Obstacle?

SME Insights: Reshoring Initiative: Bringing Back U.S. Manufacturing—and Building the Workforce to Sustain It

Visit ReshoreNow.org for the latest news and upcoming events

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As always, thanks to all our readers, our sponsors, and the companies that use our Total Cost of Ownership Estimator® (TCOE) to reshore.

The Reshoring Initiative has helped reshape the national conversation about U.S. manufacturing by providing trusted data, practical tools, and objective analysis to companies, policymakers, researchers, and educators.

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See more recent and upcoming trends in the Reshoring Initiative® 2025 Annual Report.