Sarasota, Fla.—U.S. manufacturers are showing greater interest in reshoring, but policy uncertainty, workforce shortages and import competition continue to create challenges.
The findings come from the 2026 USA Reshoring Survey, conducted by the Reshoring Initiative and Regions Recruiting. The annual study surveyed 249 U.S. manufacturers, including 118 original equipment manufacturers and 131 contract manufacturers.
The survey found more OEMs have reshored or are actively engaged in reshoring compared with 2025. Manufacturers cited tariffs, geopolitical risks and proximity to customers as leading reasons for bringing production back to the U.S.
Companies also reported measurable operational benefits. Improved speed to market and on-time delivery ranked among the strongest positive impacts of reshoring.
Capital investment continues
Manufacturers also indicated plans to invest in domestic operations.
Additionally, 63% OEM respondents said they plan U.S. capital expenditures in 2026 or 2027. Those investments will support reshoring or other domestic expansion.
The report found planned investment remained strong even among companies still considering reshoring. Roughly two-thirds of those companies expect to make domestic capital investments.
At the same time, satisfaction with reshoring declined from last year. In 2026, 65% of OEMs said they were satisfied with their reshoring results, down from 96% in 2025.
Dissatisfaction increased to 25% from 4%. The report attributed some of that shift to labor costs, vendor gaps, inflation and implementation challenges.
Policy uncertainty creates pressure
Policy uncertainty emerged as one of the clearest concerns among manufacturers.
Fifty-seven percent of respondents identified changing trade policies as their primary challenge. That ranked well ahead of market pricing and supply chain complexity.
The report said manufacturers are seeking a more predictable framework that allows them to plan long-term investments.
Steel and aluminum tariffs also created challenges for contract manufacturers. Fifty-seven percent said tariff increases hurt their ability to compete against imports. Only 15% reported a positive impact.
Geopolitical risk has also become a larger factor in sourcing decisions. The report found geopolitical concerns now rival tariffs as a driver of reshoring.
Contract manufacturers see growing pipeline
Contract manufacturers reported increased reshoring opportunities.
The percentage of CMs currently quoting reshoring projects doubled to 32% from 16% last year. Meanwhile, 79% said at least some customers discussed reshoring with them during the past 12 months. Still, domestic manufacturers face considerable price pressure.
CMs reported competing against imports on an average of 38% of quotes, up from 31% in 2025. When they lost business to imports, respondents cited price as the primary factor 94% of the time.
Half of CMs that lost orders on price said the winning import bid was at least 30% below their own.
The survey also found growing adoption of Total Cost of Ownership, or TCO, among OEMs. Forty percent now use TCO when comparing domestic and offshore sourcing options, up from 30% in 2025.
Skilled labor remains a barrier
Despite the encouraging results, workforce availability remains another major obstacle to reshoring. Manufacturers reported the greatest difficulty filling skilled-trade positions, particularly technician and maintenance or repair roles. Roughly two-thirds rated hiring for those positions as very difficult or worse.
Companies are increasingly turning to trade schools, internal training programs and community colleges to build their workforce. Those channels ranked ahead of four-year universities in the survey.
Manufacturers remain cautious about whether technology can close the competitive gap. Only 33% believe advances in AI and automation will make U.S. manufacturing competitive enough to cut imports by 50% by 2040.
The 2026 survey marks the second year the Reshoring Initiative and Regions Recruiting have tracked manufacturers’ responses to reshoring, trade policy and domestic investment.
Read the full report here.
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