America wants to reshore manufacturing—but who will do the work?

Editor’s note: This article first appeared on the University of Tennessee, Knoxville’s Global Supply Chain Institute’s blog. It is being reprinted with permission. You can read the original post here.

Author’s note: In July 2025, the University of Tennessee Global Supply Chain Institute published “Reshoring the Workforce: Bridging America’s Manufacturing Talent Gap,” by Alan Amling and Darrell Edwards. The white paper summarizes research by the Advanced Supply Chain Collaborative, a think tank partnering faculty experts with industry professionals to enhance business performance, enrich teaching, and cultivate supply chain excellence.

In boardrooms across America, the calculus of global manufacturing is changing fast. The pandemic revealed the fragility of long, complex supply chains. Rising geopolitical tensions and the tariff uncertainty have accelerated a strategic rethink. Now, from semiconductors to EV batteries, companies are making multi-billion-dollar bets on American soil.

But an unanswered question looms: do we have the people to power this revival?

The answer, based on recent research conducted by the University of Tennessee, Knoxville’s Advanced Supply Chain Collaborative, is a troubling “not yet.”

The great skills mismatch

The concept of reshoring seems to be an intuitive and smart one: bringing critical manufacturing back home to reduce risk, boost resilience, and create jobs. Government incentives, such as the CHIPS Act and the Inflation Reduction Act, have helped fuel a record $266 billion in U.S. greenfield manufacturing projects in 2024 alone. But this investment surge risks outpacing the current labor market’s ability to respond.

In our survey of supply chain leaders, only one-third of companies surveyed had made any serious move toward reshoring. A commonly cited barrier was a shortage of skilled labor. And for those companies that have reshored, the experience confirms the challenge: the gaps aren’t just in advanced tech or coding, they’re in supply chain operations, leadership, and good old-fashioned problem-solving.

It’s ironic: just as political momentum and market pressures align to bring production home, we’re staring down a workforce wall.

What’s driving the disconnect?

The U.S. hasn’t been a manufacturing powerhouse for decades. As jobs moved offshore, the pipeline of skilled workers, such as machinists, toolmakers, and industrial engineers, dried up. Trade schools withered. Career and technical education lost prestige. Today, we’re paying the price.

Alternatively, automation has transformed the requirements of modern manufacturing. It’s no longer about brute labor; it’s about interdisciplinary thinking. Companies need workers who can manage complex supply networks, apply quality standards, and operate alongside robotics and AI systems. Yet many educational and training systems are lagging behind.

And looming over it all is the demographic cliff. According to the U.S. Chamber of Commerce, as of June 2025, there were 8 million job openings, but only 6.8 million unemployed workers. The fertility rate has dropped to 1.62—well below the replacement threshold—and labor force participation remains stuck below pre-2000 levels. Absent a major policy shift, immigration will be the only source of population growth by 2040.

Reshoring is possible. But without the workforce, it will be expensive and unsustainable.

Strategic risk—and strategic opportunity

Let’s be clear, this isn’t just a talent gap. It’s a strategic risk.

Consider the U.S.-Mexico-Canada automotive supply chain, now facing multiple tariff hits on cross-border parts. Or the $20 billion semiconductor fabs that may take years to become operational, and longer to reach full staffing. These are long-term bets. If we don’t close the workforce gap quickly, the value proposition will evaporate.

But there’s good news. Innovative companies are already showing what works.

Those who have successfully reshored have told us they rely on a combination of internal upskilling, partnerships with technical schools, and targeted executive education. Internships and co-op programs help build pipelines, while apprenticeships bridge the experience gap. Cybersecurity and data analytics training are becoming increasingly important. And almost universally, respondents emphasized that soft skills, such as communication and critical thinking, were equally as important, if not more important than technical skills.

The message is clear: this isn’t about bringing back 1970s factory jobs. It’s about preparing for a new, more sophisticated industrial economy: digitized, automated, and interconnected.

What business leaders can do

For executives considering reshoring, workforce strategy must be integrated into capital strategy, and both must be aligned with corporate strategy.

Based on our research, here are five actions to take now:

1. Assess your skill gaps now. Use capability diagnostics to understand what your workforce can do today and what it will need to do after reshoring.
2. Invest in applied training. Support programs that offer hands-on experience, from co-ops to apprenticeships to industry-led bootcamps.
3. Collaborate with universities to upskill employees. Leverage online learning, executive education, and customized programs to ensure future leaders attain the diverse, critical thinking skills that reflect your real business needs.
4. Elevate leadership and communication. Don’t underestimate the importance of change management. Reshoring is a cultural as well as operational shift.
5. Make workforce strategy a boardroom issue. Labor availability isn’t an HR problem—it’s a business continuity risk.

This isn’t just a large-company game. Small and mid-sized manufacturers, with the right partnerships and incentives, can move more quickly and nimbly to build tailored talent pipelines. In many cases, their size can be a strategic advantage, allowing for rapid alignment between leadership and workforce needs.

Where policy must step in

Businesses can’t do it alone. Immigration reform, especially around high-demand industrial skills, must become a national priority. Expanding pathways for vocational education—through tax incentives, Pell Grant eligibility, and performance-based funding—can help close the gap more quickly. And federal programs should reward companies that invest in their people, not just in their factories.

We’re in the early innings of a U.S. manufacturing revival. But unless the workforce dilemma is resolved, that revival will stall before it gains momentum.

Final thought

The U.S. is rediscovering something many had forgotten: Industrial strength isn’t just about machines, it’s about people. If we want the future of manufacturing to be made in America, we need to make sure America is ready to make it.

To learn more about how your company can partner with the University of Tennessee Global Supply Chain Institute to explore advanced concepts in supply chain management, visit ASCC.

Download the white paper to read more about how supply chain leaders can bridge the talent gap in reshoring manufacturing.

About the author

Alan Amling is a TED speaker and thought leader on harnessing digital disruption for success. Currently a lecturer and fellow at UT, Amling helped drive innovation over a 27-year career with UPS. He is the CEO of the advisory firm Thrive and Advance LLC and serves on the executive advisory board for the Georgia Tech Manufacturing Institute. He researches, invests, advises and speaks on innovation in manufacturing and logistics and on how firms can recognize and thrive in disruption.

Amling’s last role at UPS was as vice president of corporate strategy, where he helped revitalize the company’s innovation and venture capital programs for the digital economy. He moved into this role after serving as VP of marketing for UPS Global Logistics & Distribution.

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