What Is Reshoring? Why U.S. Manufacturers Are Bringing Production Back Home

In recent years, reshoring has gained steam among U.S. manufacturing firms. But what is reshoring? And what's motivating the shift to this manufacturing strategy?

Essentially, reshoring moves a company's operations to its home country. Instead of relying on overseas labor and manufacturing plants, an organization hires local workers and retains a domestic production base.

In this guide, we define reshoring, its benefits and drivers, and why it matters for organizations that are evaluating their supplier relationships.

Reshoring definition and how it differs from nearshoring and offshoring

Manufacturing strategies generally take one of three forms: reshoring or domestic production, nearshoring, and offshoring. Since these concepts are commonly confused, here's a simple breakdown of each one:

To describe how each strategy works, let's take an example. Assume your U.S. organization manufactures children's toys. Currently, its biggest manufacturing site is in China. You're considering a move to realize certain benefits, such as cost optimization or intellectual property (IP) protection. Under each strategy, a move may result in:

• Reshoring: You move the company's manufacturing base to the U.S.
• Nearshoring: You transfer production activities to Canada or Mexico.
• Offshoring: You move the organization's manufacturing to Bangladesh.

Each strategy can significantly impact your organization's costs, delivery timelines, quality control, and ability to meet customer needs.

What's driving the reshoring trend in U.S. manufacturing

For decades, American businesses shifted production activities overseas to low-cost countries. However, several factors have caused organizations to consider reshoring manufacturing in their home country.

Shipping cost increases

A recent survey conducted by the Chartered Institute of Procurement & Supply found that 22% of procurement professionals expect shipping and logistics costs to rise by at least 10% in 2026. The most significant cost increases are anticipated in the Asia - U.S. global trade lanes.

Global supply chain instability

Since 2020, multiple incidents have disrupted global shipping and the supply chain.

The first major disruption occurred after the COVID-19 pandemic. Lockdowns and labor shortages resulted in reduced production activity across the globe. At the same time, there was an increase in consumer demand. This led to delays and shortages in the supply chain.

Other recent events that have impacted the global supply chain include closures of shipping routes and passages in the Red Sea, Suez Canal, and Panama Canal. Most recently, the Iranian conflict has resulted in the closure of the Strait of Hormuz. Each incident disrupted the traditional global supply chain.

Rising labor costs

Manufacturing goods in developing countries may enable a business to realize cost savings, as laborers may earn significantly less than their U.S.-based counterparts. However, wages have risen steeply in some locations where they once were inexpensive. One example is China. A report found that Chinese weekly wages rose 7% each year between 2013 and 2023.

This drastic increase in labor costs has many organizations reconsidering their manufacturing base. As wages continue to rise, producing in China no longer holds the cost-saving benefits that it once did.

The situation isn't unique to China. Popular offshoring countries such as the Czech Republic, Brazil, and Mexico have also seen rising labor costs.

Tariff pressure

In 2025, President Trump introduced a tariff system that imposed additional fees on goods shipped to the U.S. from abroad. The new tariffs affect a broad selection of goods, including autos, pharmaceuticals, and agricultural products. Tariff rates are country-specific and range from 10% to 40% or more. While the administration continues to negotiate tariffs with U.S. trading partners, it has steepened the cost of manufacturing products overseas and shipping them back to the U.S.

Desire for quality control

By nature, it's difficult for U.S.-based companies to maintain strict quality standards when products are manufactured thousands of miles away. Distant warehouses may lack a U.S.-based team to oversee final production, leading to lower quality. Reshoring manufacturing activities gives companies more control over the products they create.

Which industries are reshoring and why it affects their tooling

Organizations have seen the risks of offshoring, and they're taking steps to move production back to the U.S. Industries that are actively pursuing reshoring benefits include:

• Plastics: Companies that rely on plastics processing blade solutions benefit from shorter lead times and improved quality control when they source from local manufacturers.
• Packaging: Reshoring packaging strengthens brand consistency. This is beneficial for local partners who require customized packaging of blades and tools and strict control over their design.
• Recycling: Producing blades and tools results in waste. By reshoring, organizations can reuse waste in other products and minimize reliance on imported materials.
• Converting: Reshoring allows for quicker conversion of existing processes to meet blade and tool customization requirements. Companies can adjust equipment specifications to meet customer needs.

Other industries that are actively reshoring include auto, defense, and electronics manufacturers.

How domestic blade sourcing supports a reshoring strategy

Organizations that rely on high-performance blades can benefit from partnering with a local supplier. Such companies often require quality blades and knives customized to specifications. They may require fast blade replacement to minimize the risks of downtime.

Hyde Industrial Blade Solutions is known for its 150 years of U.S.-based blade manufacturing. Our product range of specialty blades, circular and straight knives, granulator blades, and more is prized by organizations in sectors such as plastics processing, packaging, and converting.

What manufacturers should look for in a domestic blade supplier

When searching for a domestic blade or machine knives supplier for your manufacturing business, look for a provider who exemplifies these features:

• Responsiveness: A supplier should promptly respond to your inquiries and concerns. Slow response times are indicative of poor customer service.
• Custom fabrication capability: Often, organizations require blades that are cut to specifications. The ability to meet your requirements is key.
• Material expertise: A provider's knowledge of knife and blade materials can help you select the right product for your needs.

Supply consistency is also critical. A good provider offers short turnaround times that won't impact your daily operations.

Explore U.S.-made blade solutions built for your operation

Hyde Industrial Blade Solutions is a 150-year-old supplier of high-quality blades and machine knives. We have the depth and experience to support reshored operations in our Southbridge, Massachusetts, facility. We also offer custom blade capabilities to support your organization's specific needs. Reach out to us today for a custom quote.