It’s no secret that one of the Trump administration’s top priorities is returning more manufacturing to the United States. It’s way too soon to know how successful the administration’s efforts in this area are going to be. Nevertheless, a number of articles have recently looked at the current state of things. Industry journalist Anna Smith reports that there has certainly been some positive impact. She explains, “Billions of dollars are being invested in new U.S. manufacturing plants and facility expansions.”[1] Recently, she notes, the following companies have announced plans to build new factories:

• Paper tubes and cores manufacturer Yazoo Mills announced it will invest $14 million to construct a 107,000 square-foot manufacturing facility in Hanover, Pennsylvania.

• Energy control solutions company Woodward announced plans to build a 300,000 square-foot manufacturing facility in Greer, South Carolina.

• Eli Lilly and Company has announced plans to construct a $6.5 billion manufacturing facility in Houston, Texas.

• ATP Adhesives will invest $70 million to build a U.S. manufacturing facility to produce tapes with solvent-free adhesives.

• Nidec Power will invest $52.4 million to expand operations in its existing facility in Lexington, Tennessee, which manufactures alternators for power generation applications across a variety of industries.

That is only a sampling of companies that have announced plans to begin or upgrade manufacturing in the United States.

Time for a Reality Check

Despite all of the good news, supply chain journalist Robert J. Bowman reports that the latest Reshoring Index from Kearney suggests a deeper look should be taken.[2] Bowman writes, “Pounded by trade wars and the Trump tariffs, manufacturers are indeed reconsidering their heavy dependence on China as the primary (in many cases only) source of product for Western markets. But to what extent are they actually shifting to domestic production? The 2025 Kearney Reshoring Index reveals what the firm calls a ‘gap between reshoring intention and facts’.”

Kearney analysts note, “It’s a tough time for global manufacturing. Between tariffs, exceptions to tariffs, trade conflicts, new deals, and market speculation, it’s tough to really understand what’s actually going on with global industrial supply chains, let alone predict the future. This means that, more than ever, manufacturing executives need to be steeped in fact, not speculation.”[3] Surprisingly, Kearney analysts note that this year actually “saw a downturn” in reshoring activity. They stated, “[This is] proof that positive thinking is less effective as a market driver than the basic law of supply and demand — forcing us to confront a hard truth. While CEOs are more committed than ever to reshoring, the domestic manufacturing ecosystem is still playing catch-up, so the next phase will require not just capital, but coordination.”

Bowman interviewed Shay Luo, partner in Kearney’s strategic operations practice, who noted that the downturn in reshoring was a bit of a surprise. On the other hand, she observed, uncertainty was playing a major role in corporate decision-making. “If current geopolitical and economic uncertainties persist, Luo predicts, businesses will continue to hold back from making heavy investments in domestic production over the next year. Their reluctance could be further motivated by a drop in consumer confidence.”

The Way Ahead

Those same uncertainties are affecting nearshoring and friendshoring decisions. The staff at SupplyChainBrain reports, “While many have pivoted away from China and turned instead to countries in Southeast and South Asia, trade with these regions now face fresh headwinds, as transshipment tariffs and trade tensions with India threaten to disrupt diversification plans. Meanwhile, U.S. nearshoring remains modest, the report concluded, with domestic and regional sourcing supplementing, not replacing, overseas production.”[4]

Business journalist Shefali Kapadia adds, “As the United States solicits feedback on the U.S.-Mexico-Canada Agreement ahead of the deal’s review next year, manufacturers are mulling how they can minimize their exposure to tariffs.”[5] Where and when to relocate manufacturing facilities is a big and expensive decision. It’s little wonder that manufacturers are pausing such decisions in hopes that things settle down. Cindy Allen, CEO of consulting firm Trade Force Multiplier, told Kapadia, “[Businesses are] reluctant to pull the trigger and make changes until USMCA is more settled.”

Armando Roggio, a Vice President at Duplex, believes that once today’s uncertainties are a bit clearer more company executives will see that reshoring is in their organization’s best interests. He explains, “Putting aside supplier selection and tariffs, returning select manufacturing to one’s own country could benefit a business and the broader domestic economy. Reshoring is neither nationalist nor nostalgic. It is pragmatic. After decades of chasing the lowest overseas bids, many merchants are discovering the advantages of producing goods closer to home.”[6] He notes the following advantages for customers working with manufacturers that reshore:

• Shorter lead times. “Proximity can shorten shipping windows. Faster turnaround reduces capital tied up in inventory and improves cash flow.”

• Better quality control. “Working with domestic manufacturers simplifies quality control and communication. Problems are resolved in days and require no overseas offices or third-party inspectors.”

• Better shopper demand alignment. “‘Made in the U.S.A.’ remains a meaningful label for many American shoppers. It signals reliability and accountability. Domestic origin can enhance storytelling, strengthen brand authenticity, and justify a modest premium.”

Concluding Thoughts

While there may still be some advantages for manufacturing certain goods abroad, enhancing America’s manufacturing sector is important. Robbio explains, “Reshoring is about balance, not retreating from global commerce.” The Kearney Reshoring Index might help convince the Trump administration that the quicker trade relations become more stabilized the sooner manufacturers will pull the trigger on making reshoring decisions. Kearney analysts conclude, “Companies aren’t walking away from reshoring: they’re pausing to reassess. Investments are continuing, but with greater caution. The next phase of reshoring will be defined by hard choices about what to produce, where to invest, and how to compete in a fragmented, fast-moving world, knowing that manufacturing ecosystems scale best when market signals are strong and clear, capabilities are in place, and supply chains can flex and adapt with speed and confidence.”

Footnotes

[1] Anna Smith, “Recent Investments in U.S. Manufacturing Plants,” IndustryWeek, 13 October 2025.

[2] Robert J. Bowman, “Kearney Index Calls ‘Reality Check’ on Reshoring Trend,” SupplyChainBrain, 20 October 2025.

[3] Staff, “The great reality check,” Kearney.

[4] Staff, “Report: Nearshoring and Friendshoring Are Not Yet Solving Trade War Problems,” SupplyChainBrain, 17 October 2025.

[5] Shefali Kapadia, “To move or not to move? Manufacturers hesitant to nearshore before USMCA review,” Supply Chain Dive, 14 October 2025.

[6] Armando Roggio, “Reshoring Is Supply Chain Flexibility,” Practical Ecommerce, 19 October 2025.