A 2026 survey finds 36% of U.S. OEMs have reshored or are actively doing so — up from 29% in 2025 — while contract manufacturer participation rose from 16% to 32%. Drivers include geopolitical risk (cited by 53% of CMs) and operational gains like speed-to-market (70% of OEMs). Yet major barriers persist: tariff policy uncertainty and severe labor shortages — with 66% calling technician hiring 'at crisis levels.' Only 30% of OEMs use full total-cost-of-ownership analysis to guide decisions.
According to www.supplychainbrain.com, 36% of U.S. original equipment manufacturers have either reshored some production or are actively engaged in that effort as of 2026, up from 29% in 2025. The finding comes from the 2026 USA Reshoring Survey, jointly conducted by the Reshoring Initiative and Regions Recruiting and polling 249 manufacturers — including 118 OEMs and 131 contract manufacturers (CMs).
Accelerating Reshoring Momentum
The survey documents a sharp rise in reshoring activity across the manufacturing sector. While 36% of OEMs have reshored or are actively pursuing it, the share of CMs doing the same jumped from 16% to 32%. Further, 79% of CMs reported that at least some of their customers had “discussed” reshoring in the prior year. According to Harry Moser, founder and president of the Reshoring Initiative, the survey asked respondents: “Have you reshored, why, are you happy, and what makes you bring back more [production to the U.S.]?”
Geopolitical risk emerged as a primary driver: 53% of surveyed CMs said customers were seeking domestic suppliers due to tariffs and trade restrictions — up sharply from 24% in 2025. Similarly, 60% reported that importers from China or Taiwan “were at least discussing” reshoring to mitigate risk. Moser noted that the Reshoring Initiative’s annual report — based on a library of approximately 8,000 reshoring and foreign direct investment cases — shows new U.S. jobs from such activity growing from 11,000 in 2010 to an expected 330,000 in 2026.
Operational advantages also reinforce the trend: 70% of OEMs cited greater speed to market, 65% reported improved fulfillment or on-time delivery, and 60% identified logistics savings as key benefits.
Two Persistent Barriers
Despite momentum, two structural hurdles remain entrenched. First, shifting U.S. trade policy undermines long-term investment planning. As Moser explained:
“Manufacturers can adjust to known costs and opportunities. What is much harder to manage is a moving target. The survey shows that reshoring interest and investment are there, but companies need greater predictability to commit capital and develop supply chains for the long term.” — Harry Moser, founder and president, Reshoring Initiative
Second, workforce scarcity has reached crisis levels. 66% of respondents described hiring technicians — including welders, machinists, and electrical and chemical engineers — as “very difficult or at crisis levels.” An additional 60% reported similar difficulty securing maintenance and repair technicians. According to Kathy Nunnally Anemogiannis, president and owner of Regions Recruiting, clients have described the technician shortage over the past two years as reaching “critical shortage level.”
The recent wave of immigrant deportations is compounding the issue: 64% of surveyed CMs said it was hampering recruitment and leaving “voids” in roles traditionally filled by experienced immigrant workers.
Tech, Talent, and Total Cost Calculations
Automation and AI are frequently proposed as labor-force solutions — yet they do not eliminate demand for skilled humans. Anemogiannis stressed that automation still requires technical skillsets from human workers. Moser added that 20% to 30% of surveyed producers believe artificial intelligence and automation will erase the cost disparity between U.S. and offshore production by 2040, while others said that alone would not be enough to make U.S. manufacturing competitive.
A notable strategic shift is the growing preference for geographic proximity between engineering/design functions and physical production. Anemogiannis observed that complications during product development are now seen as better addressed when collaborators are co-located — reversing earlier assumptions that internet connectivity made offshoring design functions seamless. Finally, only about 30% of OEMs currently use total cost of ownership analysis — which includes duty, freight, tariffs, inventory carrying costs, and proximity to end markets — to guide reshoring decisions. “There’s a huge opportunity just to do the math correctly,” Moser said.
Source: Supply Chain Brain
Compiled from international media by the SCI.AI editorial team.
