Reshoring Revival: U.S. Manufacturers Bring Production Back Home

After decades of offshoring, a new trend is reversing course. In Q1 2025 alone, over 60 major U.S. manufacturers announced investments in domestic facilities, citing reduced shipping costs, supply chain risks, and government incentives.

One notable case is SteelWorks Inc., which plans to invest $350M in a new Illinois-based plant, creating 1,200 jobs. The Manufacturing Resilience Act, passed earlier this year, offers up to 30% tax credit on capital expenditures—fuelling this reshoring momentum.

🧭 Why it matters:

This shift could redefine global supply chains and restore American industrial capacity in strategic sectors like semiconductors, defense, and clean energy.

🧠 Insight: The S&P 500 Industrials Sector climbed steadily last week, peaking at 1145 on Friday before a slight pullback to 1135.10 by Tuesday. The overall trend reflects growing investor confidence in manufacturing equities amid strong earnings and reshoring momentum.

🏭 Tesla breaks ground on its $2B EV parts facility in Lubbock, TX.

The new plant is expected to create over 1,500 jobs and will focus on producing drivetrain components for next-gen electric vehicles.
Read the full story at ManufacturingMN.com ➜

📦 Amazon Industrial leases 1.2M sq. ft. in Atlanta for automated packaging hub

The facility will incorporate AI-powered robotics and is projected to process over 300,000 packages daily by Q1 2026.
Read the full story at ManufacturingDrive.com ➜

🌍 U.S.-Mexico steel pact signed, easing tariffs and boosting cross-border trade

The agreement is expected to lower input costs for manufacturers and stabilize regional supply chains for auto and construction sectors.
Read the full story at Yahoonews.com ➜

🔋 DOE awards $120M in grants for battery recycling infrastructure

The funding targets facilities in Michigan, Nevada, and Georgia, aiming to scale up recovery of lithium, cobalt, and other critical minerals.
Read the full story at ManufacturingDrive.com ➜

🚛 Freight demand up 8.4% YoY according to FreightWaves

Analysts attribute the surge to inventory restocking in the retail and industrial sectors following a sluggish Q4 2024.
Read the full story at MNS9.com ➜

🧠 Insight: Texas and Ohio lead the nation, thanks to electric vehicle battery and semiconductor facility announcements.

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Till next week,

The Factory Wire