Anyone that says American manufacturing is dead has not been paying attention. As a Greater Clevelander, I know well how many small, medium and large manufacturing facilities dot our landscape. The same goes for the entire country, really. The east and west coasts are home to high-tech advanced manufacturing, and you can’t drive through most cities in the Midwest without seeing hundreds of plants of some kind.
That being said, in the past 40 to 50 years, we’ve come to rely on a global supply chain and have outsourced a lot to far-flung countries because shipping and costs were affordable and easy. With so many concerns brought on by Covid-19 and tariffs, however, many manufacturers are looking to bring their production closer to their customers. So, what does this mean for American production?
Image courtesy of Adobe stock
According to a recent press release from AMT – The Association for Manufacturing Technology, U.S. manufacturing continues to grow stronger through new opportunities and technological innovations. AMT said that the 2025 USA Reshoring Survey, conducted among 500 U.S. manufacturers in collaboration with the Reshoring Initiative and Regions Recruiting, indicated that a larger and better-trained skilled workforce would motivate OEMs to reshore 30% of what they currently import — a greater motivator than lower taxes or tariffs, deregulation, or a decrease in value of the U.S. dollar.
The top three reasons given for reshoring were locating manufacturing near engineering (45%), reducing freight and duty costs (45%), and avoiding geopolitical risk (38%). Proximity to customer markets was the next most cited reason for reshoring (35%).
“The 2025 Reshoring Survey found that 43% of contract manufacturers have already reshored work for customers or are actively fulfilling reshoring orders, while another 16% are currently quoting reshoring projects,” said Harry Moser, founder and president of the Reshoring Initiative.
The survey results reveal that many manufacturers are considering the collaborative benefits of locating manufacturing near engineering and placing high value on the quicker delivery enabled by localization strategies.
It does seem this notion is true. I wrote earlier this month about ContiTech’s new hose manufacturing facility. Although not in the U.S., its location in Aquascalientes, Mexico was done for two main reasons: for access to a highly skilled workforce and to commit further to its mission of “in the region, for the region.” ContiTech also just announced plans to expand and update its Mount Pleasant, Iowa, facility as well, with expanded manufacturing operations which will strengthen production capabilities across its hose and belt businesses.
Likewise, Rockwell Automation just announced plans to build a new manufacturing site in Wisconsin. The project is part of a $2 billion investment in plants, digital infrastructure, and talent and has the potential to be Rockwell’s largest manufacturing campus globally. In a press release, the company said this move reinforces Rockwell’s long-term commitment to American manufacturing and to the skilled workforce that drives production and innovation. “It will integrate the latest in Rockwell’s production technologies, including AI and analytics tools, to increase efficiency and precision, while providing team members with access to advanced tools and training. I’m excited to see our highly skilled workforce maximize the potential of this site,” said Bob Buttermore, chief supply chain officer at Rockwell Automation. “This investment reflects our confidence in our teams that deliver excellence every day.”
Many American companies are expanding their production capabilities to better meet the needs of customers within the region. For example, HydraForce can source hydraulic reservoirs locally and offer a custom solution with their in-stock valves for modular power pack units much faster than before, said David Kraft, marketing manager. Additionally, HydraForce has opened a new automated assembly and test line for compact hydraulics in Lincolnshire, Ill., to custom design systems rather than simply import them. The company has basically localized everything except for electronic systems and is assembling, building, machining, and testing locally.
These are just three examples of companies investing back into North American manufacturing, and there’s more like them every day. But as noted above, the people building the products, running the machines, and designing the systems are critical. We need to keep investing in a skilled American workforce, both on the engineering and manufacturing side.
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