The last six months have brought an onslaught of global uncertainty, leading manufacturers to revisit the idea of reshoring their operations. As supply chain disruptions grow, tariffs increase, and trade policies fluctuate, nearly half of supply chain professionals are now considering a return to domestic manufacturing. When costs spike and rules change overnight, proximity can feel like the safest path forward.
But while reshoring may reduce exposure to some risks, it doesn’t solve for all of them. Tariffs are just one piece of a larger, far more volatile trade environment. When factors like labor shortages, raw material constraints, transportation and shipping disruptions are added to the mix, it becomes clear that proximity alone doesn’t guarantee resilience.
The real question isn’t where you manufacture; it’s whether your operations can adapt in real time. Success in 2025 (and beyond) won’t be defined by geography, but by agility: the ability to sense disruption, pivot quickly, and keep supply chains moving.
Why reshoring alone isn’t the answer
Recent policy changes, including proposed increases to Section 301 tariffs and the elimination of the de minimis exemption, have revived conversations around reshoring. Unstable U.S.-China relations, along with shipping disruptions through key routes like the Panama Canal have only amplified the urgency. But while reshoring may reduce exposure to certain tariffs or trade friction, it introduces new complications. U.S.-based manufacturers still face challenges like labor shortages and increasing wage pressures, limited access to specialized suppliers or raw materials, and aging infrastructure and longer lead times for scaling production
Over-indexing on reshoring can create rigidity rather than resilience. Concentrating production domestically may solve one set of problems but expose businesses to others, especially if they lack the systems and strategies to manage change.
In an environment where costs and policies can change overnight, manufacturers need more than proximity. They need the ability to respond quickly to disruptions, rebalance their supply chains, and make data-informed decisions. These abilities alone will separate thriving businesses from those left behind. The answer to building agility into their operations lies in embracing technology and diversified strategies that prioritize responsive over rigid control.
Building manufacturing agility
Reshoring may feel like a step towards control, but in today’s supply chain reality, control is more an illusion. Right now, only 28% of manufacturers feel they are prepared for major disruptions caused by tension in the supply chain, so what they need is readiness. The kind of readiness that comes from being able to see change coming and respond and adapt in real-time, faster than the competition.
Agility isn’t about reacting harder, it’s about designing operations that don’t break under pressure. It’s the difference between scrambling and shifting with purpose. And for small and midsize manufacturers especially, agility can be the equalizer leveling the playing field against larger (and often slower-moving) competitors.
The problem at hand is manufacturers aren't agile. Here are four strategies manufacturers should consider when building agility into their operations.
- Distributed and hybrid production models. Relying on a single region for production exposes businesses to risk—even without tariffs. A distributed model that blends offshoring, nearshoring, and onshoring enables greater flexibility. For instance, 57% of manufacturers with operations in China are diversifying production to additional countries without fully abandoning existing infrastructure. Hybrid models balance proximity for key products with offshore cost savings, but require tightly coordinated systems to manage inventory and orders across multiple sites.
- Real-time supply chain visibility. Staying agile requires end-to-end visibility. Real-time data helps businesses track inventory, anticipate delays, and respond quickly to tariff or transport disruptions. Many still operate in silos with outdated tools, but unified platforms and technologies like AI and automation significantly improve visibility. In fact, 85% of those using these tools report faster decision-making, better forecasting, and fewer costly errors.
- Dynamic supplier networks. Tariff pressures and trade risks highlight the danger of overreliance on a single supplier or region. Agile manufacturers invest in building robust, diversified supplier networks, which can often include backup vendors or regional alternatives. Dynamic souring strategies make it easier to pivot when costs rise or delays hit. Automation or other digital tools can also aid in simplifying the onboarding process and help businesses compare costs in real time. Having a more flexible supplier base makes it easier to adjust pricing and protect margins.
- Flexible fulfillment and demand forecasting. Agility downstream is just as important as agility upstream. Tariffs, delays, or raw material shortages can impact fulfillment timelines and customer expectations. It’s crucial that businesses employ tools that help them predict demand changes across markets, reallocate inventory across locations, and adjust shipping and pricing strategies in real-time. Modern forecasting models use machine learning to account for past trends and real-time inputs like lead times, freight costs, and inventory velocity, leading 67% of businesses to have accurate tracking. This kind of responsiveness is critical when navigating fluctuating trade conditions.
The payoff of agility
In a world where disruption has become the new normal, agility is no longer optional, it has become a competitive advantage. The manufacturers best positioned for this new norm aren’t necessarily the biggest or most established, but the ones who are the most adaptable. Manufacturers that build flexibility into their operations, supply networks, and fulfillment strategies position themselves to weather uncertainty and capitalize on emerging opportunities faster than those stuck in old models.
The real decision facing manufacturers today isn’t offshore vs. onshore vs. reshore, it’s whether your business can adapt wherever you are. That means moving beyond reactive thinking, and rethinking agility not as a contingency plan but as a core, strategic asset. Trade tensions, tariffs, disruptions aren’t just going to go away overnight. The ability to pivot quickly, adjust, and respond in real time is the foundation of long-term resilience.
