A hot topic which should be of great interest to all recruiters is “Will Manufacturing in the US Make a Come-Back?” If the answer proves to be a resounding Yes, or even a partial, but significant, Yes, then recruiters stand to benefit from the economic activity generated and the associated job placement opportunities! On one side of the equation are existing reshoring trends and the recent tremendous efforts being made by the current administration to encourage domestic manufacturers to open up shop at home or to return previously offshored manufacturing operations to the USA, as well as to lure foreign companies to the USA for new ventures. On the other side of the equation are serious and thorny roadblocks to achieving the desired goal. This article will address what is going on and try to devine a likely outcome.

An article by Mark Crawford¹ originally written in 2019 and updated in early 2023 noted the existing and growing trend of reshoring in which American manufacturers are increasingly coming back to the US from lower-cost countries. He attributes this trend to several factors: cost advantages of manufacturing abroad are diminishing, while the risks of unstable supply chains, poor product quality, shipping delays, and the threat of global trade wars are growing. Mark explains that US-based manufacturing eliminates the problems cited above and that manufacturing can enjoy the benefit of tax cuts and business-friendly incentives, workforce development, and cost advantages of the application of high technology to improve efficiency and productivity.

Noting that Mark’s article was written a few years ago, it is heartening to see that trends that started in the recent past are continuing, and indeed, accelerating. David R. Yates and Laura Hammargren² wrote in January of this year that “there is a growing push towards onshoring, driven by both government policy and the desire for supply chain resilience.” The article further notes that the efforts currently underway to improve domestic manufacturing, while imposing initial higher labor and production costs, “… is expected to strengthen the long-term stability and independence of the US supply chain.” The boon for recruiters in all this is that “… onshoring also hopes to spur economic growth and job creation within the country.”

In a news release³ on February 19, 2025 Jay Timmons, CEO of the National Association of Manufacturers (NAM), cited several issues that will enhance the state of manufacturing in the US explaining that “… uncertainty is the enemy of investment …” and that to keep the momentum of manufacturing going the message from the government should be “… we want you to invest here, hire here and succeed here.” Jay noted that the certainty from the federal government should come in several forms:

Mr. Timmons further noted that the NAM was actively working with the congress to deliver this message and to work to achieve its agenda. Success with this agenda will very likely result in a significant increase in hiring activity in the manufacturing sector. Recruiters should watch these trends and be alert to opportunities as they arise!

Since the new federal administration assumed power, we have seen evidence that many actions are being taken to incentivize domestic manufacturing. Some examples include:

Now for the other side of the equation! In an excellent article by Guankai Zhai⁸ of the Forbes Business Council, it is noted that “several entrenched challenges make the goal of bringing manufacturing back to the US easier said than done.” Guankai identifies several culprits that present hurdles in reshoring manufacturing:

Cost of Labor and Production. 

Typical manufacturing labor rates in the US average about $30/hour compared to about $7/hour in China and even less in developing countries. Cost of production is higher in the US due to stringent regulations, environmental compliance, and workplace safety. Other countries are not so constrained.

Supply Chain Complexity. 

The global supply chain has evolved over the last decades and reshoring of manufacturing will require “a complete overhaul of these well-established supply chains.”

Skilled Labor Shortage. 

As manufacturing declined in the US, so did the pool of skilled labor needed to make it happen. Displaced workers retired or transitioned into other careers. With younger workers often choosing service-oriented careers, there is a shortfall in skilled manufacturing workers.

Capital Investment and Infrastructure. 

To reestablish manufacturing in the US significant investment is needed for new facilities or retrofitting of existing plants and for new higher-technology equipment to enable successful competition with foreign firms. Infrastructure to support this new wave of manufacturing similarly will require significant investment in transportation, energy supply, and telecommunications.

Economic and Trade Policies. 

Manufacturing is highly sensitive to tariff policies, trade agreements, and tax incentives, all of which, combined, can make or break a manufacturing endeavor. “Policymakers need to strike a delicate balance to create an environment conducive to manufacturing without imposing undue burdens on businesses.”

Technological Advancements and Automation. 

Automation and AI investments are needed to help transform American manufacturing. These investments are significant and require ongoing refreshment for manufacturing to stay competitive. Of course, automation and AI will offset some positive impacts by displacing some workers.

So, where does all this lead us? My reading of the tea leaves is that there is an excellent chance that US domestic manufacturing will enjoy a renaissance. While the obstacles cited above are daunting, we are witnessing a federal administration that is hell-bent on achieving this goal. We are witnessing in just the first few weeks of 2025 pro-business administration initiatives on tariffs, tax policy, accelerated depreciation for new plant and facility investment, and use of the bully pulpit to encourage investment. The president has verbally made the offer to foreign firms: bring your manufacturing to the US and enjoy no tariffs and no taxes. From the president’s previous administration we already know that regulations are likely to be greatly streamlined. I am cautiously optimistic that the dynamic approach being taken by the new administration will vastly improve manufacturing in the US. For recruiters, this should be a boon. Stay tuned!

To take advantage of this potential wave of new placements, both direct-hire and contract, recruiters should follow the developing trends, stay agile, and be prepared to act. You should get set up in advance with an experienced and reputable EOR to handle contract placements. Temp and contract hires can fill an employer’s immediate need until direct hires are found and may ultimately result in a direct hire if the candidate works out for the long term, for which you can earn a conversion fee.

I suggest that recruiters do all they can to support the present administration’s efforts to reinvigorate US manufacturing. Together we can help bring on the much-desired renaissance!

If you would like to discuss any of these ideas or would like help defining a business strategy, please feel free to give me a call or contact me at judy@jcsrllc.com, or visit my new website at https://www.jcsrllc.com for more information.

¹ Mark Crawford. “7 Reasons Manufacturers Are Returning to the US.” American Society of Mechanical Engineers, Oct. 9, 2019, updated Jan. 27, 2023.

² David R Yates & Laura Hammargren. “5 Trends to Watch: 2025 US Manufacturing Sector.” GreenbergTraurig, Jan. 9, 2025.

³ NAM Newsroom. “State of Manufacturing 2025: When Manufacturing Wins, America Wins.” National Association of Manufacturers. Feb. 19, 2025.

⁴ Andrew Kessel. “Apple Announced Massive Domestic Investment Earlier This Week.” Investopedia. Feb. 26, 2025.

⁵ Kelly McEvers, “The Great American Microchip Mobilization.” Wired.com. Nov. 14, 2024.

⁶ OpenAI. “OpenAI’s Investment in AI Infrastructure.” Jan. 2025.

⁷ Tina Reed, “Eli Lilly unveils plan for four U.S. “mega-sites.” Axios.com. Feb. 26, 2025.

8 Guankai Zhai. “Bringing Manufacturing Back To The US: Easier Said Than Done.” Forbes Business Council., Aug.28, 2024.                    

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