Reshoring and Manufacturing Returning to the US: Incentive Opportunities
- Gary Marx
- Dec 30, 2025
- 4 min read
Reshoring offers great opportunities to revitalize U.S. manufacturing jobs by addressing labor shortages and increasing regional development. With incentives like tariffs and government subsidies, you can see a push for job creation in this sector. High-tech manufacturing, especially, is set to lead this shift, tapping into underutilized labor pools across the country. If you keep exploring, you'll discover how these trends and policies are shaping the future of manufacturing in the U.S.
Key Takeaways
Reshoring has resulted in over 2 million manufacturing jobs returning to the US since 2010, with 244,000 jobs added in 2024 alone.
Government incentives like increased tariffs and subsidies are driving manufacturers to consider reshoring to domestic locations.
High-tech sectors are leading reshoring initiatives, projected to account for 90% of new manufacturing jobs by early 2025.
Approximately 7 million unemployed individuals and 10 million low-income workers represent a potential labor pool for manufacturing roles.
Policy stability is crucial for attracting investment in reshoring and ensuring sustainable growth in US manufacturing employment.
The Decline of Manufacturing Jobs in the US
Why has the decline of manufacturing jobs in the US become such a pressing issue? Since 1979, the US has lost 6.6 million manufacturing jobs, even as nonfarm employment surged by 68 million. The decline hits workers without college degrees hardest, losing approximately 7.9 million positions. Manufacturing’s share of nonfarm employment plummeted from over 30% between 1939 and 1957 to about 8.1% in 2025, showcasing a significant long-term drop.
Meanwhile, countries like China have seen manufacturing employment explode, adding over 40 million jobs since 2000. This loss of jobs contributes to disappointing regional income levels and social challenges, further intensified by the effects of the China shock and ongoing supply-chain disruptions. Addressing this decline is vital for future economic stability.
Current Landscape of Global Manufacturing Employment: Reshoring and Manufacturing Returning to the US
How does the current landscape of global manufacturing employment shape economic trends? As of now, global manufacturing employment has surged by 71 million since 2000, largely driven by countries like China, India, and Vietnam. China's workforce alone exceeds 85 million, dwarfing the U.S. count of about 12.8 million.
This situation reflects a shift towards lower-wage regions, spurred by automation and cost incentives. While U.S. workers contribute significantly more value—up to four times that of their low-wage counterparts—the U.S. manufacturing sector now comprises only 8.1% of nonfarm payrolls. This decline highlights both the challenges facing American manufacturing and the opportunities for reshoring efforts aimed at revitalizing domestic employment and enhancing competitiveness on a global scale.
Trade Competition and Its Impact on US Workers
As trade competition intensifies, what does it mean for U.S. workers? The impact is quite significant.
Since 1979, the U.S. has lost about 6.6 million manufacturing jobs, while global manufacturing, led largely by China, added 71 million positions.
Your region might be at risk if you live in areas like Los Angeles, Chicago, or New York, where workers without college degrees in manufacturing are feeling the pinch.
With imports of manufactured goods outstripping exports, opportunities for domestic employment remain limited unless policies change.
However, reshoring initiatives are gaining momentum, driven by increased tariffs, potentially bringing back jobs—over 2 million since 2010.
High-tech sectors will likely lead this growth, even as reliance on Asia continues.
Recent Manufacturing Employment Growth by Region
A surge in manufacturing employment has sparked hope across various regions of the United States. In 2024 alone, reshoring and foreign direct investment (FDI) announced 244,000 new jobs, contributing to over 2 million since 2010.
High-tech sectors predominantly led this growth, accounting for 88% of newly created jobs, with projections rising to 90% by early 2025.
Regions like Los Angeles, Chicago, and New York, facing trade competition, are home to many workers without college degrees in manufacturing.
Meanwhile, the Fourth District, covering Cleveland, Dayton, Toledo, and Erie, reported steady growth from 2013 to 2023 as manufacturing expanded into lower-cost areas. This shift signifies a promising landscape for both job seekers and employers across the country.
Identifying Potential Labor Pools for Manufacturing
The recent growth in manufacturing employment highlights the untapped potential of various labor pools across the U.S.
Approximately 7 million unemployed individuals could fill manufacturing jobs if transportation and childcare barriers are addressed.
Additionally, about 10 million employed workers in low-income households might be attracted to these roles with higher wages, especially given the average manufacturing pay of around $20 per hour.
There’s also a notable pool of roughly 7.2 million working-age adults not currently seeking work, living in low-income households.
By analyzing production clusters, regions with concentrations of workers ready to transition into manufacturing roles can be identified.
Tapping into these labor pools could significantly bolster the reshoring movement and strengthen local economies.
Career Transition Pathways for Future Manufacturing Workers
How can individuals from different backgrounds successfully move into manufacturing careers?
About 7 million unemployed individuals and 7.2 million working-age adults in low-income households can fill these roles if barriers like transportation and childcare are removed.
Many are transitioning from sectors such as retail, agriculture, and personal services, creating opportunities for retraining programs tailored to their skills.
With wages averaging around $20 per hour, manufacturing offers greater financial stability than many of the industries workers are leaving.
Cities like Los Angeles, Chicago, and New York have large populations of production workers without college degrees, highlighting the opportunity for inclusive career pathways supported by local training resources.
Incentives Driving Reshoring in Key Sectors
Why are companies increasingly reshoring manufacturing jobs back to the U.S.? Incentives play a crucial role, particularly in high-tech sectors where 88% of reshored jobs are located.
Increased Tariffs – Higher tariffs encourage companies to relocate production domestically.
Government Subsidies – While declining, subsidies still support reshoring investments.
Job Creation – Over 2 million jobs have been created since 2010, including 244,000 in 2024.
Policy Stability – Greater consistency in policy encourages long-term reshoring commitments.
Together, these factors make reshoring an attractive strategy for manufacturers.