Reshoring is Up in 2026, But Problems Persist

For the first half of 2026, manufacturing companies increased their interest in reshoring operations. A survey, 2026 USA Reshoring Survey Report. from the Reshoring Inititiative, found that 36% of OEMs had reshored or were actively engaged in additional reshoring in 2026. This was an increase from 29% in 2025.

Projects are still in the works as well, with 32% of contract manufacturers saying they were currently quoting reshoring projects. That is double the 16% reported in 2025. And 79% said they have customers who had discussed the idea in the past year.

Companies are setting aside spending for future projects in the second half of this year and into 2027, with 63% of those surveyed planning capital expenditures in the US to support further reshoring or domestic expansion.

Why Reshore?

The top reason might not be a surprise — tariffs. Here is a breakdown of survey results.

Tariffs — 65%
Geopolitical Risk — 60%
Delivery time/proximity to customers — 50%
Image/Brand of Made-in-USA — 40%
Quality/Rework/Warranty — 25%
Having manufacturing near engineering –15%
Tax Reduction (from One Big Beautiful Bill) — 10%

Benefits of reshoring

There were several benefits that respondents saw as a result of their reshoring efforts.

Improved speed to market — 70%
Better fulfillment/on-time delivery — 65%
Logistics savings (freight/transit) — 60%
Inventory optimization/lower carrying costs — 40%
Enhanced pricing power/brand value –20%

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