Tariffs and Onshoring: How Manufacturing Strategies Are Being Rewritten

🧭 Rethinking “Where” — Not Just “How” You Source

With tariff pressures mounting, companies are moving beyond simply changing who they source from. They’re re-evaluating where they manufacture—and that’s far more complicated.

“We’re not just talking about supply anymore,” John notes. “We’re talking about entire manufacturing strategies being reconsidered.”

Sasha adds:

“Organizations are essentially running five scenarios at once—on a daily basis.”

🛠️ The Three Big Challenges of Onshoring

Sasha outlines three structural challenges supply chain leaders face when considering reshoring or nearshoring production:

1. Talent Deficit

“Plant-level manufacturing expertise is no longer resident in the U.S.,” says Sasha. Even if companies want to move operations domestically, they lack the local talent—and visas are harder than ever to secure for importing it.

2. Infrastructure & Permitting

You can’t stand up a factory overnight. Zoning, permitting, system design, and community engagement all take time. Even aggressive nearshoring plans often require 6–12 months before production starts.

3. Capital Constraints

Interest rates are up, capital is expensive, and boards are hesitant.

“Even if you have the cash,” Sasha says, “do you invest it now, or sit on it to protect what you already have?”

💰 Short-Term Pain vs. Long-Term Gain

The key takeaway: don’t let today’s crisis lead to tomorrow’s regret. Sasha encourages a “60/40 split” mindset:

• 60% focus on urgent needs

• 40% plan for longer-term strategy shifts

“Before making short-term moves,” Sasha says, “ask yourself: if this all changes in six months, will my decision still make sense?”

📉 Supply Chain Strategy as Competitive Advantage

Not all industries—or competitors—face the same risks.

“If a whole category sources from China, everyone’s in the same boat,” John notes. “But if you’re uniquely exposed—or advantaged—you need to plan differently.”

That’s why now is the time to revisit your nearshoring models, recalculate total cost of ownership, and explore automated production alternatives—even if just for a portion of your manufacturing mix.

“Don’t run to one side of the boat,” John warns. “The next wave might come from that side, too.”

🔁 From Startup Mentality to Strategic Scenario Planning

Sasha urges companies to think like startups again:

• Experiment with hybrid production models

• Challenge traditional outsourcing assumptions

• Re-examine what your “secret sauce” really is

“This is the perfect time to restructure what you do in-house versus outsource—and challenge your old assumptions.”

💬 Final Thoughts: Resilience Over Reaction

Yes, the tariff environment is volatile. But it’s also a unique opportunity to catalyze smart transformation.

Start small:

• Launch a domestic pilot line

• Secure permits for a second-source site

• Build an automation roadmap now

Because as John reminds us:

“You don’t want to make a wholesale investment—but you do want to have options.”