Manufacturing companies increased their interest in reshoring operations this year, writes Material Handling & Logistics (Sept. 3, 2026). The 2026 USA Reshoring Survey Report found that 36% of manufacturers had reshored or were actively engaged in additional reshoring– an increase from 29% in 2025. Projects are still in the works as well, with 32% of manufacturers saying they were currently quoting reshoring projects–double the 16% reported in 2025.
Why Reshore? The top reason might not be a surprise — tariffs. Here is a breakdown of survey results.
- Tariffs — 65%
- Geopolitical Risk — 60%
- Delivery time/proximity to customers — 50%
- Image/Brand of Made-in-USA — 40%
- Quality/Rework/Warranty — 25%
- Having manufacturing near engineering –15%
- Tax Reduction (from One Big Beautiful Bill) — 10%
Benefits of reshoring. Respondents saw these benefits as a result of their reshoring efforts.
- Improved speed to market — 70%
- Better fulfillment/on-time delivery — 65%
- Logistics savings (freight/transit) — 60%
- Inventory optimization/lower carrying costs — 40%
- Enhanced pricing power/brand value –20%
Challenges to Reshoring
However, there are challenges to reshoring, and those have changed over time. Currently, the top challenge, at 35%, is the availability of labor and overhead costs. Other issues include:
- Domestic component gaps — 35%
- Supply chain transition friction –20%
- Labor availability challenges — 15%
- Regulatory /compliance burdens –15%
While the Reshoring report is optimistic about reshoring as a way to reduce imports, a recent survey, The Kearney 2026 Reshoring Index, found a less positive view. They said that despite changes in US trade and tariff policies and significant changes in geopolitical realities, as of the end of 2025, America remains even more reliant on imports while its manufacturing capacity remains years away from projected goals.
The report found that despite US manufacturing investments tripling over the past four years, there’s only been 1.5% growth in capacity so far. Resolving the labor issues and other barriers to reshoring, at the end of the day, requires further supply chain adjustment.
Classroom discussion questions:
- Why might companies be motivated to reshore even when the outcomes are less positive than expected? What does this tension reveal about strategic decision‑making in operations management?
- How do capacity limitations, labor shortages, and domestic component gaps shape the feasibility of large‑scale reshoring? What operational strategies could help firms overcome these constraints?