Talking Supply Chain: Is a manufacturing renaissance happening?

In this episode of Talking Supply Chain, Brian Straight speaks with Brian Higgins, partner, U.S. sector leader for Industrial Manufacturing in KPMG’s U.S. supply chain and operations practice, about whether the recent surge in U.S. manufacturing investment represents a true renaissance or a fragile moment shaped by tariffs and geopolitics. Higgins notes that while headlines may exaggerate some announcements, underlying data—from manufacturing construction spend to foreign direct investment—shows real momentum, particularly as companies reassess resilience, proximity to customers, and supply chain risk.

A key theme of the discussion is the growing adoption of “buy where you make and make where you sell.” Higgins explains that rising economic nationalism, tariffs, and geopolitical uncertainty have pushed companies to place a premium on proximity, shortening supply chains even when costs are higher. While not all industries or products are candidates for reshoring, many companies are pursuing what Higgins calls “no-regrets moves” where the economics, incentives, and policy stability align.

Technology—particularly automation, robotics, and AI—is emerging as a critical enabler of this shift. Higgins describes an “innovation dilemma” facing manufacturers: executives recognize that advanced technology is essential to make U.S. manufacturing competitive, yet capital constraints, regulatory uncertainty, and workforce readiness often slow adoption. The companies making the most progress, he says, are rethinking entire operating models rather than simply automating existing processes.

The conversation closes with a look at the major barriers that could limit sustained manufacturing growth, including labor shortages, site and land availability, and access to reliable, affordable energy. Higgins emphasizes that while investment tied to the AI economy—such as semiconductors, data centers, and energy infrastructure—is clearly accelerating, broader consumer-oriented manufacturing is moving more gradually. Whether this moment becomes a lasting transformation, he notes, should be clearer within the next year.

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