In recent years, reshoring, or the return of manufacturing and production to the United States, has gained significant momentum. With supply chain disruptions caused by the COVID-19 pandemic in the not-so-distant past, growing geopolitical tensions, and policy shifts, businesses are re-evaluating where and how their products are made.
While motivations behind the reshoring movement are vast, one force is emerging as a critical path toward a future where the United States is a leader in production output: automation.
The Economic Case for Reshoring
For decades, many companies offshored their operations to countries with lower labor costs. However, as global wages rise, transportation costs fluctuate, and tariffs evolve, the financial benefits of offshore manufacturing have begun to erode. Oftentimes, decision-makers find that having manufacturing operations geographically closer to business operations allows them to adapt more readily to the ever-changing landscape of consumer demands.
Policymakers have responded to the desire for reshoring with initiatives to encourage domestic production. These policies include tax incentives, executive orders prioritizing U.S.-made goods, and tariffs on imported goods. The increased political action addressing reshoring has brought the phenomenon to the center of national economic conversations.
Yet, the challenge remains: How can companies afford to manufacture in the U.S. and remain competitive?
Automation Levels the Playing Field
Automation plays a pivotal role. By integrating robotics, artificial intelligence, and advanced manufacturing technologies into domestic operations, companies can dramatically reduce the cost of labor-intensive tasks. Automated systems don’t replace the need for human workers—they redefine roles, allowing people to focus on oversight, optimization, and creative problem-solving while machines handle repetitive or physically strenuous jobs.
At Tutor Intelligence, we see this shift firsthand. Our palletizing robots help companies optimize their end-of-line operations. By streamlining packaging, reducing injury risk, and increasing throughput, these efficiencies translate directly into cost savings that make U.S.-based production viable. The cost savings generated by automation allow companies to remain competitive even in global markets where there is often a wage advantage overseas.
More Jobs, Not Fewer
A common misconception is that automation eliminates jobs. In reality, reshoring enabled by automation can create stable, skilled jobs for American workers. As factories return, demand grows for technicians, robot operators, maintenance specialists, and logistics planners.
According to the Reshoring Initiative's 2023 and 2024 Annual Reports, U.S. companies announced 287,000 new manufacturing jobs in 2023 and 245,000 in 2024 due to reshoring and foreign direct investment (FDI). Many of these jobs are only feasible because automation helps control costs while boosting efficiency—particularly in sectors like EV batteries, semiconductors, and solar, which together accounted for 39% of 2024’s job announcements. Notably, reshoring outpaced FDI at a record ratio of 66% to 34%, signaling a shift in momentum toward domestic reinvestment rather than foreign expansion. Since 2010, cumulative reshoring and FDI job announcements have surpassed 2 million (Reshoring Initiative, 2025).
The 2025 Reality Check
However, 2025 has introduced new uncertainties. According to Kearney’s 2025 Reshoring Index, which was released earlier this week, reshoring activity dropped by a staggering 311 points, offering a sobering reality check on America’s manufacturing readiness.
This drop reflects deeper structural issues. U.S. manufacturers are facing steep tariffs not only on finished goods but also on the advanced equipment needed to produce them, making it difficult to build the infrastructure necessary for operational sites on U.S. soil. The presence of increased costs is currently dampening investment in the very automation tools needed to sustain competitive domestic operations.
The pandemic also proved that domestic manufacturing is not only possible—it’s scalable when driven by national urgency. When supply chains ground to a halt and critical goods like PPE, ventilators, and pharmaceuticals were needed quickly, the U.S. stepped up. With the help of government subsidies and emergency procurement policies, factories pivoted, new supply chains formed, and production ramped up—often in a matter of weeks. That response demonstrated what many doubted: America can still build.
Further complicating matters, the expiration of pandemic-era subsidies has exposed lingering fragility in global supply chains, underscoring the need for more regionalized, resilient production models. The pandemic revealed the vulnerabilities of depending heavily on a single region for global supply chains. By shifting to a multi-regional approach, companies can respond more quickly and flexibly to disruptions.
In this early stage of Donald Trump’s presidency, it remains unclear how future trade and industrial policy will shape the reshoring landscape—but one thing is certain: automation is central to making U.S. manufacturing competitive and cost-effective, regardless of political winds.
Building Resilience and Innovation
Beyond economics, reshoring supported by automation enhances supply chain resilience. Recent disruptions—from port backlogs to raw material shortages—have shown the risks of long, fragile supply chains. Domestic automation allows companies to respond faster to market changes, ensure product quality, and shorten lead times.
Moreover, reshoring creates opportunities for innovation. When R&D, production, and end-users are geographically closer, feedback loops tighten—fueling better products and faster iteration.
A Strategic Investment in the Future
As national strategies evolve and manufacturers weigh their options, it’s becoming clear that automation isn’t just a cost-cutting tool—it’s a strategic enabler. By reducing dependency on offshore labor while increasing productivity and resilience, automation makes reshoring a sustainable and forward-thinking choice.
At Tutor Intelligence, we’re proud to support manufacturers in this transition with robotics solutions that combine vision-based intelligence and flexible design—helping American companies build smarter, more agile operations right here at home.