What is reshoring, and how does it differ from offshoring or nearshoring?

Reshoring is the process of bringing manufacturing and sourcing operations back to the United States. It contrasts with offshoring (producing goods in distant countries) and nearshoring (moving operations to nearby countries like Mexico or Canada).

What are the biggest challenges businesses face when reshoring?

Reshoring isn’t easy. Companies often struggle with the high cost of building or reopening domestic facilities and a shortage of trained manufacturing workers. Industries like metal refining face especially steep hurdles due to the infrastructure and regulatory demands required for U.S.-based production.

What benefits can businesses gain by reshoring manufacturing operations?

Key benefits include tariff avoidance, reduced shipping costs, stronger supply chain control, and easier collaboration across departments. Additionally, products labeled “Made in the USA” are in high demand—77% of consumers prefer buying them, and 82% would buy more if readily available.

What is Reshoring in Business?

Reshoring means returning production to the U.S. Explore how this growing trend is reshaping manufacturing strategies across industries in 2025.

Joe Weaver

May 13, 2025

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As high tariffs have made trade with certain countries less lucrative than in the past, many businesses have turned to the practice of reshoring in order to avoid these issues. This strategy is one of the most important aspects of bringing manufacturing and product sourcing to the United States.

Key Takeaways

Reshoring initiatives in the United States have gone up since the imposition of high tariff rates on foreign trade partners, particularly China.
A survey conducted by Medius in 2023 indicated that 69% of US manufacturers were in the process of reshoring their operations.
This strategy contrasts with nearshoring (manufacturing in nearby countries) and offshoring (manufacturing in more distant countries).

If your business is reeling from tariff turmoil, reshoring should be on your mind. In this article, I’ll go into the subject in detail, including examples of companies reshoring their operations in 2025.

Reshoring Definition

You’ve probably heard the phrase “bring manufacturing back to the USA” or something close to it on the news or social media. That’s essentially what reshoring means: the process of moving away from relying on foreign manufacturers in favor of building or re-opening factories in the U.S.

To provide greater context, here are some other similarly named strategies that contrast with reshoring.

Offshoring: Building products in foreign nations and importing them here.
Nearshoring: Similar to offshoring, but limiting production to countries within proximity of the U.S.
Friendshoring: Producing goods only in countries with whom the United States has favorable trade relations. Historically, this would have been Canada and Mexico for the most part.

In times of tense international trade relationships, reshoring can be a boon for businesses. As of this writing, several well-known companies are considering or implementing this strategy to avoid prohibitively high tariffs.

What is an Example of Reshoring?

One of the most significant examples of a company investing in US production to avoid trade barriers is tech giant Apple. Following the establishment of costly tariffs on Chinese goods, the phone and computer manufacturer committed to spending over $500 billion to build and expand facilities in the United States.

Automakers are following suit. Honda was set to begin producing its popular Civic model in Mexico starting in 2027, but has changed course to build the vehicle in Indiana instead. This move was prompted by uncertainties about the future of the United States-Canada-Mexico Agreement (USMCA), which the current administration has sought to restructure.

Savvy business owners have been quick to question how easy, or even possible, it is to decouple from foreign manufacturing sectors.

Can Manufacturing Be Brought Back to the USA?

In short, yes. The COVID pandemic actually prompted a significant reshoring trend well before the current trade action concerns ever came into being. A study conducted by Medius in late 2023 found that 69% of businesses in the US were in the process of reshoring operations, with nearly 100% describing their efforts as successful.

The real question is this: can manufacturing be brought back to the USA easily?

Why is it Hard to Bring Manufacturing and Sourcing Back to the US?

The impetus for businesses offshoring their manufacturing operations in the first place is easy to understand. In certain countries, laborers can work for a fraction of what it would cost to employ an equally skilled worker stateside. Even after factoring in shipping costs and customs fees, it made financial sense to keep manufacturing operations overseas, particularly in China.

While tariffs and trade restrictions have made it less appealing to source goods from China, there are still significant barriers businesses will face in the process of reshoring. Chief among them are:

Building or Reopening Facilities: This is particularly difficult for smelting and refining metals such as steel and aluminum, which are core components for thousands of goods.
Lack of Trained Workers: Since manufacturing has been something of a low-priority sector in the US for a significant amount of time, modern workers aren’t familiar with the relevant skill sets.

With that said, there are good reasons for businesses to endure these difficulties.

What Are the Benefits of Reshoring?

Companies willing to deal with the inherent hardships of reshoring can enjoy a number of benefits. One of the most appealing is being able to stamp your goods as “Made in America.” A poll conducted by the American Alliance for Manufacturing resulted in the following statistics.

An infographic titled "American Made Purchasing in 2024" displaying statistics from a survey conducted by the American Alliance for Manufacturing regarding consumer opinions about American-made goods. The table is split into two rows and reads as follows:

Number of respondents who prefer to buy goods that are Made in the USA. 77%

Respondents who would increase spending on American-made goods if more were available. 82%.

Even if reshoring ends up increasing your costs, you may be able to offset them thanks to their perceived superior quality.

Other advantages to nearshoring include:

Avoiding Trade Barriers and Tariffs: The modern uncertainty around tariffs and trade relations, even with our closest allies, makes it a good idea for companies to consider reshoring their manufacturing and sourcing
Reduced Shipping Costs: Since the goods won’t have to be shipped via cargo vessel, the cost of shipping will fall correspondingly.
Improved Collaboration Between Teams: Ease of communication between different parts of the business (design, marketing, etc) can lead to an improvement in product quality and faster resolution of problems.
Better Supply Chain Control and Visibility: The shorter your supply chain, the less chance there is for weak links to develop. This can drastically reduce shipping delays and damage from excess handling.

In short, reshoring is an effective method of simplifying your supply chain while consolidating operations in the United States. With the right assistance, you can take advantage of this strategy to set your business apart from the competition.

Build Your Reshoring Strategy With PDS

If you think your business could benefit from reshoring, we’re here to help. Our experts in the fields of logistics and distribution offer one-on-one consultation services, which can help you create an effective reshoring strategy.
To get started, give us a call at (855) 863-7672 or contact us online. We’re standing by to help you build the perfect distribution strategy for your business.