Harley-Davidson is reshoring some of its operations to plants in Pennsylvania and Wisconsin. But how practical is reshoring for other manufacturers?
Talk of tariffs over the past year sparked a wave of conversation about reshoring, a process in which companies that previously manufactured goods at overseas facilities move those operations back to the United States.
Recently, motorcycle icon Harley-Davidson said it was moving the production of its Revolution Max engines to plants in Pennsylvania and Wisconsin. The company also plans to manufacture its Pan America, Sportster S, and Nightster models in the U.S.
There’s no doubt manufacturers in the U.S. are feeling the stress of tariffs. In fact, two-thirds of the respondents to Plant Engineering’s Impact of Tariffs on U.S. Manufacturing: 2025 Insights said their organization was directly affected by tariffs or import taxes in the past year, with 60% experiencing moderate to significant increases in overall costs.
So, how are American manufacturers responding to the pressure? The vast majority are choosing to pass the increased costs on to their customers. More than half reported that their goods simply cost more as a result of tariffs.
Only 6% reported that they are reshoring or on-shoring operations.
This begs the question: What are the obstacles American manufacturers face for reshoring?
Higher labor/production costs
Let’s face it. When it comes to labor costs, domestic labor is pricey. It’s way more expensive than foreign labor, and most of our survey respondents said higher labor and production costs were a major factor in their inability to reshore operations.
They also noted that in a lot of cases, their domestic supplier options were limited, adding another layer of complexity to the reshoring puzzle.
Offshore manufacturing often relies on sourcing local raw materials. This means reshoring would require a decoupling from these established systems. And given that some of the raw materials sourced offshore are simply unavailable domestically means certain U.S.-based manufacturers may never be able to fully bring their operations back to the U.S.
Workforce shortages
There’s no doubt, the manufacturing sector is teetering along, trying not to fall into a massive skill gap. Engineers and technicians are aging and retiring. And there aren’t enough skilled workers to replace them.
The Reshoring Initiative surveyed original equipment manufacturers, and 65% said attracting and retaining talent is their number-one business challenge. It’s also the top criterion for site selection.
Infrastructure gaps
Even if the skilled labor existed, the infrastructure poses another challenge.
Reshoring would require a larger power grid capacity, better transportation networks, and additional warehouse space. And that costs a lot of money to upgrade. And greenfield facilities can make the entire operation simply unrealistic.
Would you reshore?
Sure, there are immense challenges to reshoring a manufacturing operation. But would you reshore your production? Has your organization explored the possibility? And what obstacles has your plant faced in trying to do so? Let me know below!
