How Reshoring 2.0 Could Shape the Future of Manufacturing Staffing

Author: Brad Cieslinski

Right now, Reshoring 2.0 is all the hype in the manufacturing sector, especially in light of recent tariff uncertainty. But although it’s a major trend for 2025, reshoring has been a live consideration for years—since the supply chain disruptions of 2020-2021.

However, there’s no doubt that trade policies and other geopolitical tensions have accelerated the desire to return production to domestic soil—to the point that we’ve adopted the label “Reshoring 2.0.” Here are some of the major trends we’re noticing at PEAK, and how they could shape the future of manufacturing staffing.

What is “Reshoring 2.0” & why is it a priority in 2025?

There’s this unwritten rule that every major economic and business trend needs its own special name. “Reshoring 2.0” is a new way of describing a simple concept: a new wave of companies bringing manufacturing and supply chain operations back to U.S. soil.

But what makes “Reshoring 2.0” different from previous reshoring efforts? I see two major differences. First is simply the speed and scale at which companies are reinvesting in domestic production. The second, and probably more consequential, factor is the integration of advanced technologies into manufacturing processes. In many ways, these innovations help to address the cost and efficiency concerns that drove globalization in the first place.

As a result, manufacturing leaders find themselves focusing less on simple labor comparison costs, and more on total cost of ownership (TCO): shipping, lead times, inventory costs, quality control, etc. Many companies are finding that reshoring enables faster time-to-market, improved sustainability, and more economic stability.

Key factors driving Reshoring 2.0

So what are the “carrots” and “sticks” driving Reshoring 2.0, and how are they causing a major rethinking of manufacturing staffing and workforce planning? Here’s where we’re hearing from our clients.

Tariffs & trade policies

Without a doubt the top issues on everyone’s mind are tariffs and trade policy more broadly. In the short term, companies are faced with dramatically different cost calculations, even from what they anticipated just a few months ago.

Over the long term, however, the aim of the tariff policies is to combat trade imbalances and drive more domestic production. While it’s impossible to say whether this goal will be achieved—after all, it seems like these policies are changing every day—a good number of companies are taking the hint and implementing reshoring efforts at a higher rate than before.

Government incentives

Even before the recent tariff policies, the U.S. government had already instituted a number of policies designed to boost domestic manufacturing:

• The CHIPS and Science Act, which allocated $50 billion in investments for U.S. semiconductor manufacturing, research, and workforce development
• The Inflation Reduction Act, which provided direct funding for domestic clean energy, electric vehicles, and battery production
• Buy American Initiatives, supported by the last two administrations, that required federal agencies to prioritize American-made goods and services
• Directives to federal agencies to diversify supply chains and source critical components from domestic or allied sources

Geopolitical uncertainty and instability

The overall uncertainty and instability facing global markets and geopolitics—especially tensions between the U.S. and countries like China, Canada, and the EU—have forced manufacturing leaders to take a hard look at their dependence on foreign suppliers. Potential disruptions can cause bottlenecks and shortages, and many companies want to strengthen their domestic production as a result.

Post-Covid vulnerabilities

Although globalization resulted in short-term cost savings, it also created fragile and vulnerable, as we all learned during the Covid pandemic. Manufacturing leaders aren’t keen on placing themselves in the same position again.

Technological advancements

A major factor driving Reshoring 2.0 is the advancement of technologies like AI, automation, etc. These new capabilities are not only accelerating production efficiencies, but in many ways they’re alleviating previous friction points to increasing domestic production:

• Advanced automation and robotics that improve productivity, precision, and consistency while addressing persistent labor shortages
• Artificial intelligence—specifically Industrial AI—that integrates AI into manufacturing operations, optimizing production schedules, QA, predictive maintenance, and more, all while making critical decisions in real time
• Digital twins and simulated replicas of physical assets, enabling companies to troubleshoot production processes before making real-world changes
• Cloud computing that enables real-time data sharing, remote monitoring, and seamless integration between cloud and on-prem environments

Not only do these technological advancements reduce the risk of large manufacturers who want to bring production back to U.S. soil, but they also make many of these tools accessible for small and medium manufacturers.

How Reshoring 2.0 can shape the future of manufacturing staffing

As manufacturing leaders embrace Reshoring 2.0, the future of manufacturing staffing stands to look a whole lot different. Here are some of the biggest changes that are on the horizon—or, in some cases, are already here.

1. A new approach to labor shortages

The U.S. manufacturing sector is already plagued with a skills gap—somewhere around 3.8 million new workers will be needed by 2033. If we don’t address these issues, nearly half of these jobs could go unfilled.

Reshoring 2.0 can bring jobs back to domestic markets, true. But then you have to fill the jobs you create. In today’s market, that’s easier said than done, and requires more intentional recruiting and staffing efforts:

• Adopting a comprehensive approach to both bringing in new skilled workers and upskilling the current workforce
• Attracting younger workers into the field to replace the current, aging workforce
• Identifying which roles need permanent placements and which can be filled by temporary, contingent labor
• Leveraging technology strategically to fill additional gaps—without replacing functions that require human input or oversight

Labor shortages are no longer a simple problem easily solved by “just hire more.” They require strategic solutions—and, more often than not, expert advise–to address effectively.

2. Future-proofing your workforce

Manufacturing jobs won’t look the same in 10 years as they do now. Really, they probably won’t look the same in five years. The industry is changing so fast that if you aren’t investing in workforce development and employee upskilling, your existing workforce will quickly find itself to be obsolete.

At PEAK, we’re seeing success with companies who are implementing the following steps:

• Develop existing talent through training and upskilling
• Recruiting external talent with in-demand skills
• Leveraging contractors, consultants, and contingent labor to address specialized needs
• Investing in retention efforts to keep critical employees on board
• Transition out underperforming employees as needed
• Continually reevaluating workforce planning initiatives to ensure alignment with business goals

3. Workforce-first approach

A critical component of Reshoring 2.0 is the shift from viewing labor as a cost center to a value generator. Investing in your workforce can lead to returns on innovation, efficiency, and long-term competitiveness in the global market.

Many manufacturing companies are starting to adopt a workforce-first approach, which often includes:

• Prioritizing employer brand to attract higher value candidates
• Strategically approaching labor distribution to align with reshoring demands
• Proactively recruiting young and diverse workers to address demographic shortages
• Investing in retention strategies and workforce development to increase longevity

4. Staffing partnerships

Adopting this strategic approach to workforce planning and manufacturing staffing goes beyond posting open positions on job boards. Hiring managers have to wear a bunch of hats—marketing, pipeline development, operational planning, and more—to meet these needs.

For most companies, it’s easier when you have a strategic staffing partner in your corner, especially one who understands the manufacturing sector inside and out. When you work with PEAK, we not only help you find the best staffing approaches for your situation, but execute your end-to-end strategy to meet your workforce needs.

Don’t let Reshoring 2.0 take you by surprise. Learn more about PEAK’s strategic manufacturing services here .