For the first half of 2026, manufacturing companies increased their interest in reshoring operations. A survey, 2026 USA Reshoring Survey Report. from the Reshoring Inititiative, found that 36% of OEMs had reshored or were actively engaged in additional reshoring in 2026. This was an increase from 29% in 2025. 

Projects are still in the works as well, with 32% of contract manufacturers saying they were currently quoting reshoring projects. That is double the 16% reported in 2025. And 79% said they have customers who had discussed the idea in the past year.

Companies are setting aside spending for future projects in the second half of this year and into 2026, with 63% of those surveyed planning capital expenditures in the US to support further reshoring or domestic expansion.

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

There were several benefits that respondents saw 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 Initiative is optimistic about reshoring as a way to reduce imports, a recent survey, reported by MH&L, 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.

The analysis in the article is as follows:

"As in the past few years, it's important to pay attention to the nuances in our latest report," said Kearney partner and lead author Patrick Van den Bossche, in a statement. "The rise in imports is really being driven by two categories, Computer & Electronics and Apparel & Accessories, which make up 44% of all Asian LCCR imports.

"Both of these are tracking counter to small but promising signs of a broader trend we're starting to see in most of the other categories. The dollar value of these two biggest import categories, which we show in the report are also the hardest to reshore, skews our Reshoring Index picture from an aggregate perspective."

"While the overall picture may look bleak, individual product category performances offer more promise," continued Van den Bossche. "Most product categories are starting to rely less on imports. Their domestic production as a share of their total US consumption went up slightly compared to the portion tied to imports from the Asian LCCRs, but not yet enough to conclusively state that we have turned the corner. And many current and future events can still derail a true US manufacturing resurgence."

"Mexico continued to play a big role in regional supply chain solutions for the US market through 2025," added Horacia Leal, a principal in Kearney's Mexico City office. "US imports from Mexico rose by 8% between 2024 and 2025, primarily driven by a $47 billion increase in C&E. But we're seeing signs that weakening investment confidence, the uncertainty about USMCA, and the impact of tariffs will likely cause future. 

Available Labor

As the Reshoring Initiative research points out, finding labor is key. Another 2026 report from Manufacturing America concludes that technician readiness, not land cost or tax breaks alone, now determines which reshoring projects succeed or stall.

The report offers some insight into the problem, explaining that many manufacturers underestimate workforce onboarding time. And the survey makes the case that in order to find this labor, tax incentives for education must align.

Top U.S. Reshoring Regions: Where Technicians Are Ready

U.S. reshoring concentrates in four regions where technician pipeline and tax incentives align. 

Midwest (Ohio, Indiana, Michigan, Illinois). The legacy manufacturing base here provides existing supply chains, established technician workforce depth, and strong community college advanced manufacturing programs built over a decade. Technician availability is tightest in this region, which is why wages are rising. But infrastructure exists, and regional coordination is strong. Ohio's Hub for Innovation and Technology and Indiana's economic development agencies have actively built regional manufacturing coalitions aligned with employer demand.

Southeast (Georgia, Tennessee, North Carolina, South Carolina, Alabama). Lower-cost labor than the Midwest, strong tax incentives, and rising technician training capacity make this region attractive. The region has captured major automotive and battery plant investments. Georgia's aggressive incentive packages and coordination with the Georgia Association of Manufacturers make it a current hotspot. However, technician supply remains tighter than employers prefer; training capacity is ramping but still lagging demand.

Southwest (Arizona, Texas). Semiconductor and advanced manufacturing boom, driven by federal CHIPS Act funding and major industry investments in Phoenix and Austin areas. Phoenix is becoming a technician hub, but shortages are acute. Texas offers no state income tax and growing community college partnerships with employers. Challenges include rapid growth outpacing training infrastructure, extreme heat affecting plant  citing, and water-scarcity concerns for certain processes.

Northeast (Massachusetts, New York, Pennsylvania). Precision manufacturing and advanced materials clusters drive smaller absolute volumes of reshoring compared to other regions, but growth is steady. Strong technical education infrastructure and proximity to research institutions support depth. Higher labor costs limit appeal for cost-sensitive manufacturing.

Resolving the labor issues and other barriers to reshoring, at the end of the day, requires further supply chain adjustment.  “Manufacturers can adjust to known costs and opportunities,"  said Harry Moser, founder and president, Reshoring Initiative. 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.”