Supply Chain

What Will It Really Take to Bring Manufacturing Back to the U.S.?

What Will It Really Take to Bring Manufacturing Back to the U.S.?

Sedat Onat
In this episode of the SupplyChainBrain Podcast, Matt Dollard of RSM discusses why the reshoring of manufacturing to the U.S. cannot be achieved through tariffs alone and what critical factors are necessary for reindustrialization.

SupplyChainBrain Podcast's latest episode features Editor-in-Chief Bob Bowman in a detailed discussion with Matt Dollard of RSM on the conditions required for manufacturing reshoring to the United States. The core message of the conversation is clear: High tariffs alone are insufficient — and in some cases, they may even backfire. The real transformation needed to bring production back to America requires a far more comprehensive, longer-term, and more systematic plan.

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Tariffs are not a standalone solution
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Bowman and Dollard emphasize that while the Trump administration's successive announcements of tariffs (particularly high rates on China, India, Mexico, and the EU) are "considered an incentive to bring manufacturing back to the U.S.," in practice they increase costs, create supply chain volatility, and complicate companies' long-term planning.

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According to Dollard, tariffs create short-term pressure but are not the primary determinant of long-term investment decisions. Companies make factory-building decisions with a 20-30 year perspective; therefore, political instability and unpredictable trade rules become far more decisive than tariffs themselves.

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The real missing piece: Skilled workforce
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One of the biggest barriers to reshoring is insufficient supply of skilled labor.
\nThe U.S. faces dramatic shortages particularly in:

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  • machine operators,

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  • welders,

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  • industrial technicians,

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  • automation specialists
    \nand similar fields.

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Dollard argues that for manufacturing to return, first vocational training infrastructure must be strengthened, STEM programs expanded, and local workforce policies modernized.

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Energy prices and infrastructure costs
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Another critical pillar for attracting manufacturing to the U.S. is energy costs and supply security.
\nParticularly in energy-intensive sectors (petrochemicals, glass, metals, cement, battery materials), the U.S. must provide:

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  • reliable,

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  • affordable,

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  • long-term predictable energy sources.

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Dollard notes, "Major fluctuations in energy prices over five-year intervals make it difficult for companies to commit to factory investments."

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The sub-supplier ecosystem in the U.S. is very weak
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One of the most frequently overlooked barriers to reshoring is the lack of a sub-supplier chain in the U.S.
\nUsing an automotive factory as an example:

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  • 5-6 major suppliers,

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  • 300-400 mid-sized suppliers,

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  • thousands of small parts manufacturers are required.

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Countries like China, Vietnam, Malaysia, and Mexico have already built this ecosystem; the U.S. has lost much of its critical production to overseas locations since the 1990s. According to Dollard, "If the sub-tier structure doesn't return, the main factory won't come back either."

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Logistics, raw materials, and trade rules
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Other critical points highlighted in the podcast include:

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  • Raw material access: Particularly critical minerals, battery components, and electronic components remain heavily concentrated in Asia.

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  • Logistics infrastructure: U.S. investments in rail, ports, and highways lag behind modern requirements.

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  • International trade rules: For companies to make long-term investments, a rules-based, predictable trade regime is necessary.

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The "long list" required for reshoring to occur
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According to Matt Dollard, the following prerequisites must be met for manufacturing to return to the U.S.:

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  1. Closing the skilled workforce gap

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  2. Ensuring energy security

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  3. Rebuilding the sub-supplier ecosystem

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  4. Establishing predictable trade policies

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  5. Modernizing logistics infrastructure

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  6. Guaranteeing access to raw materials

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  7. Stability and long-term vision in government policy

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Dollard describes this picture as a "long but necessary checklist."

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In conclusion, the podcast emphasizes that the U.S. needs far more than tariffs — strategic planning, human resources, energy policy, and a robust supply ecosystem — to bring manufacturing back.

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Key Takeaways:
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  • Tariffs do not work in isolation for reshoring.

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  • The U.S.'s biggest barrier is skilled workforce shortage.

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  • Energy costs and supply chain ecosystem are critical.

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  • The U.S. needs predictable trade rules.

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  • Reshoring is only possible through long-term, comprehensive industrial policy.

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News Link: https://www.supplychainbrain.com/articles/42856-podcast-what-will-it-really-take-to-reshore-manufacturing-back-to-the-us

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