In recent years, reshoring has evolved from a strategic consideration to a central priority for both policymakers and businesses. A combination of supply chain disruptions, rising import costs, and national security concerns has driven the urgency to bring manufacturing back to the U.S.
This year alone, investors have poured nearly $2.25 billion into U.S.-focused reshoring exchange-traded funds (ETFs), boosting total assets to a record $9.67 billion by August. With more than $1 trillion in infrastructure funding allocated since 2021, reshoring is no longer a trend — it's a transformative force reshaping U.S. manufacturing.
One key element of the reshoring push is additive manufacturing, also known as 3D printing. Unlike traditional manufacturing methods, which require complex supply chains for parts and materials, it enables companies to produce components on demand and closer to the point of need. This localized production model is particularly valuable in a reshoring context, where minimizing dependence on global supply chains is paramount. The ability to create complex parts with minimal waste, combined with the flexibility to quickly shift production in response to market demands, makes additive manufacturing a cornerstone of modern reshoring strategies.
However, while the potential benefits of reshoring through additive manufacturing are immense, several challenges must be addressed for the U.S. manufacturing sector to fully capitalize on this opportunity.
Government Support and Investor Confidence
The recent influx of capital reflects a growing belief that domestic manufacturing is poised to drive long-term economic growth, not just as a temporary solution but as part of a broader realignment of global supply chains. Investors increasingly see reshoring as a structural shift that will continue to reshape industries for years to come.
Government support has been crucial in accelerating this trend. The CHIPS and Science Act, for instance, directs significant federal funding into critical industries like semiconductor production, helping to secure essential components domestically. Despite being slow to gain real-world traction, initiatives like AM Forward encourage manufacturers to adopt advanced technologies that can modernize production processes and further strengthen reshoring efforts.
National policies continue to play a pivotal role in reshoring and the adoption of additive manufacturing. The National Defense Industrial Strategy, currently under review in Congress, marks a historic shift in how the U.S. government views manufacturing as mission-critical to national security, and highlights the importance of U.S. self-sufficiency, especially in light of recent global supply chain disruptions.
These policies provide lawmakers with a clear roadmap to close gaps in the manufacturing sector, ensuring that the U.S. maintains a competitive edge in the global economy. But to unlock the full potential of reshoring through additive manufacturing, continued specific investment in the form of funding, tax incentives and government contracts will be necessary. There is a risk that the reshoring movement could lose momentum without strong, sustained governmental backing, leaving companies vulnerable to the same fragile international supply chains that additive manufacturing-fronted reshoring aims to address.
For the U.S. to fully capitalize on reshoring and additive manufacturing, a sustained commitment to supportive policies is essential. Without it, the opportunity to realign supply chains and bolster domestic manufacturing may be lost.
Securing a Steady Supply of Materials
A major challenge in reshoring is ensuring a reliable supply of the materials essential for domestic production. Additive manufacturing depends on a consistent flow of specific metals, polymers and composites to keep production lines running smoothly. However, the global supply chain for some of these critical materials is highly vulnerable, with key suppliers often located in geopolitically complex regions like China and Russia.
For instance, if a major supplier of titanium were to halt or restrict exports due to geopolitical tensions or trade sanctions, U.S. aerospace manufacturers relying on this material for their additive manufacturing processes could face immediate shortages. This would delay production, increase costs, and possibly force companies to scale back operations.
As reshoring efforts intensify, securing a stable domestic supply of critical materials becomes increasingly urgent. Companies must prioritize building strong, U.S.-based supply chains by forming partnerships with domestic suppliers and investing in local raw-material production. This reduces reliance on foreign sources and ensures a more dependable flow of essential inputs.
Additionally, recycling and reusing materials already in circulation offer a novel but viable solution. By developing systems to reclaim valuable materials like titanium and aluminum from U.S. waste streams, manufacturers can protect their supply chains from international disruptions while supporting sustainability efforts. This not only boosts domestic production, but also reduces waste and aligns with both economic and environmental goals.
Attracting and Retaining Skilled Labor
The success of reshoring also hinges on having a workforce capable of operating and maintaining advanced technologies like additive manufacturing. However, the shortage of workers with the both the desire and technical expertise needed to run and maintain such systems presents a significant obstacle.
To address this skills gap, federal, state and local governments must invest in comprehensive workforce development programs that provide specialized training in additive manufacturing and related technologies. Collaborations between educational institutions, apprenticeship programs, and reskilling initiatives can help establish a steady pipeline of qualified workers.
One effective approach is to follow the lead of institutions like America Makes to retrain veterans and other technical workers, particularly those with experience in maintaining military equipment. These individuals often possess transferable skills that are well-suited to additive manufacturing systems. Partnerships with certification bodies and educational institutions can further enhance workforce training.
By prioritizing workforce development and investing in these initiatives, companies can ensure a continuous supply of skilled labor to support reshoring efforts and drive innovation in manufacturing.
Overcoming Equivalency Issues
Lastly, a key industrywide challenge for companies integrating additive manufacturing into their reshoring strategies is the issue of equivalency. Many products previously made overseas used traditional manufacturing methods, raising concerns about whether additive manufacturing can deliver the same or better quality and reliability. This concern is especially pressing in highly regulated industries like medical, aerospace and defense, where safety and performance are critical.
While additive manufacturing offers significant benefits — such as producing complex geometries and reducing material waste — companies must conduct rigorous testing to ensure that additive manufacturing-produced parts meet strict industry standards. This validation process is essential to building trust in the technology as a reliable alternative to conventional methods.
Without confidence in the quality and durability of additive manufacturing components, many companies will hesitate to fully adopt the technology. Addressing these equivalency concerns through comprehensive testing and certification is crucial to making additive manufacturing a core part of reshoring initiatives.
Let’s not forget: the opportunity presented by reshoring is substantial. While industries like aerospace, defense and automotive have led the way in adopting additive manufacturing, the technology has far-reaching potential across sectors. Additive manufacturing's ability to create intricate structures, such as cooling systems in rocket engines and automotive tooling, showcase its versatility. Additionally, in fields like healthcare and consumer goods, it enables the production of custom parts, reducing the need for molds or expensive, specialized equipment.
But the risks of inaction are equally significant. Companies that do not embrace reshoring and additive manufacturing risk falling behind as global supply chains evolve. By contrast, businesses that invest in reshoring and additive manufacturing technologies enhance their ability to navigate these challenges. Onshoring production not only reduces dependence on foreign markets but also enables a quicker response to shifts in demand and market conditions. This strategic shift can lead to greater operational resilience.
Companies that fail to invest in these technologies may lose contracts to competitors that have already adopted additive manufacturing. This scenario emphasizes the growing pressure on businesses to adapt or risk obsolescence in the evolving manufacturing landscape. But, as more companies recognize additive manufacturing’s transformative potential, it’s likely to become a cornerstone of reshoring strategies, shaping the future of manufacturing.
Jon Walker is government relations and key account manager at EOS.