State of Manufacturing INDUSTRY
2026
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State of Manufacturing INDUSTRY
2026
Reshoring
and Tariffs
Key Insight N°4
Operational Complexity at Scale
Have completed or are in the process of reshoring
70%
Have no plans to reshore
12%
This represents a significant shift from 2024, when just 33% had completed or were undergoing reshoring initiatives, and 38% had no plans to reshore.
Is your organization undergoing reshoring or nearshoring?
Close to a quarter (23%) indicate their company has already completed their reshoring or nearshoring initiative, while another 48% are currently going through the process.
Among IT Leaders; Sample Size = 400
Interpretation
Reshoring is no longer a forward-looking strategy—it is actively being executed across the industry. However, as production footprints expand domestically, organizations are introducing new layers of operational complexity across multi-site networks.
Interpretation
Insight
Reshoring is not simply geographic relocation. It is an execution challenge that requires coordination, standardization, and visibility across distributed operations.
Insight
Top Reshoring Challenges
Increased operational complexity
46%
Increasing labor costs
44%
Supply chain logistics adjustments
44%
interpretation
interpretation
These challenges are interconnected and reflect the operational burden introduced by reshoring.
Expanding or reconfiguring production networks increases coordination requirements across systems, sites, and teams.
What are the primary challenges, if any, your organization anticipates or has experienced when implementing nearshoring or reshoring initiatives? Please select all that apply.
For those undergoing nearshoring or reshoring, the most common challenges are managing the increased operational complexity (46%), dealing with the increased labor costs compared to offshore locations (44%), and adjusting their supply chain logistics and transportation networks (44%).
Among OT Leaders and Executive Stakeholders whose company is undergoing nearshoring / reshoring; Sample Size = 555
insight
insight
The primary challenge of
reshoring is not location
— it is managing complexity at scale.
Workforce Impacts
How, if at all, will nearshoring or reshoring impact the manufacturing workforce? Please select all that apply.
The most common impact OT Leaders and Executive Stakeholders anticipate from nearshoring or reshoring is an increase in opportunities for job creation and economic growth (64%), followed by improved employee morale and retention (56%), and increased demand for skilled labor (56%).
Among OT Leaders and Executive Stakeholders; Sample Size = 800
Increased job creation
64%
Improved morale and retention
56%
Increased demand for skilled labor
56%
interpretation
interpretation
While reshoring strengthens domestic manufacturing presence, it simultaneously increases demand for skilled labor in an already constrained talent market.
insight
insight
Reshoring amplifies existing workforce challenges, particularly in technical and operational roles required to support modern production environments.
Tariff Impacts
Shifted toward domestic sourcing
35%
Shifted toward international sourcing
30%
Experienced no significant change
36%
Additionally, 70% of manufacturers focused more on cost-cutting than supply chain resiliency during the past 12 months.
Which of the following barriers are preventing or would prevent your organization from wider adoption
of AI? Please select all that apply.
For those who have not yet fully adopted AI, implementation costs (40%) and data privacy and security concerns (39%) are top barriers to the wider adoption.
Among those who have not yet fully adopted AI; Sample Size = 842
How strongly do you agree or disagree with the following statement? Cutting costs were a higher priority than supply-chain resiliency at my company over the last 12 months.
Close to three-quarters of OT Leaders and Executive Stakeholders (70%) believe cutting costs were a higher priority at their company over the past 12 months than supply-chain resiliency.
Among OT Leaders and Executive Stakeholders; Sample Size = 800
Interpretation
Cost discipline remains the dominant factor shaping sourcing and operational decisions, even as reshoring initiatives accelerate.
Interpretation
Insight
Manufacturers are balancing competing priorities: increasing control and resilience while managing cost pressure.
Insight
Key Trade-off
The transition from pilot to production introduces integration, governance, and standardization challenges that most organizations are not yet equipped to manage.
Key Trade-off
strategic Insight
Reshoring is accelerating faster than standardization. As a result, execution discipline across distributed networks is becoming a critical requirement for success.
strategic Insight
