A new CNBC Supply Chain survey reveals that companies are unlikely to bring manufacturing back to the US due to high costs, with nearly half saying it would double their expenses. Instead, they plan to relocate supply chains to lower-tariffed countries.
According to the survey of 380 respondents from various industries, cost is the top reason for not reshoring production (74%), followed by finding skilled labor (21%). The majority of respondents expect price hikes and a decline in consumer demand, with recession being the base case for 63%.
If manufacturing returns to the US, automation will be favored over human workers, with 81% of respondents saying it will be used more than employees. However, most companies cite costs as prohibitive, with the majority estimating that building a new domestic supply chain would at least double current costs.
The survey also found that consumer demand and raw material prices are key concerns, along with the “current administration’s inability to provide a consistent strategy.” A majority of respondents feel that the Trump Administration is “bullying corporate America.”
While some industries, such as tech, have announced plans to invest in the US, most companies say costs will outweigh any benefits. The survey suggests that companies are preparing for a cautious consumer, with a focus on lower-priced goods and promotional items during the holiday season.
The survey’s findings contradict President Trump’s claims of a reshoring boom, highlighting the challenges faced by US manufacturers due to high tariffs.
Source: https://www.cnbc.com/2025/04/14/tariffs-wont-bring-manufacturing-back-to-us-supply-chain-survey.html