A path forward for reigniting American manufacturing
Okay, but: At the same time, the country's small- and mid-size manufacturers are looking to capitalize on this moment and grow their customer base here and abroad.
Why it's important: As a result, the U.S. may well be on the verge of a manufacturing renaissance — but it will take time, and technology will play a crucial part for buyers and suppliers alike.
First things first: America is home to more than 500,000 small- and mid-size manufacturers — who specialize in everything from CNC machining and injection molding to sheet-metal fabrication, 3D printing and more. They are deeply ingrained in the fabric of their communities and their work is a significant driver of the country's GDP.
Buyers over the last few years have accelerated their reshoring efforts, moves that were sparked by COVID, buoyed by federal legislation such as the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and now the global trade environment.
How it's done: Xometry, the digital marketplace for custom manufacturing, has tracked the reshoring trend for more than two years through its quarterly "American Manufacturing Resurgence" polls with Zogby Strategies.
In Q1, nearly half (42%) of manufacturing CEOs say they have already successfully reshored facilities, while another 19% say they are planning to do so as a result of the tariffs.
What's next: America's manufacturers can meet this moment, says Randy Altschuler, Xometry's CEO.
"We help more than 68,000 buyers of custom-manufacturing services navigate the complex and rapidly changing terrain of tariffs by matching them with the more than 4,375 suppliers on our AI-driven marketplace," Altschuler said. "Our platform gives buyers of custom manufacturing the ability to grow their production needs with us and strengthen their supply chains at times like this when it matters most."
"Through our marketplace, buyers get instant pricing and lead time information as well as critical access to America's extensive manufacturing capacity, enabling them to remain agile, flexible and resilient in a rapidly changing world," explains Altschuler.
It's a model that also benefits manufacturers.
The impact: In the last 5 years (Jan. 1, 2020 - March 31, 2025), the Xometry Marketplace has generated $1 billion in revenue for America's manufacturers, a point of pride for Altschuler and everyone at the publicly traded company (NASDAQ: XMTR).
As reshoring accelerates, buyers and suppliers of manufacturing are rapidly investing in new technologies and talent to meet this moment.
Xometry's recent poll found that:
70% of manufacturing CEOs are embracing emerging technologies like AI to achieve efficiencies in planning and in operations, followed closely by automation.
Of those companies that have invested in AI, most have seen a significant ROI, and nearly two-third (63%) believe AI and other technologies will be "transformational" for their operations.
In addition to technology, manufacturing CEOs are investing in talent as America's industrial core becomes more high-tech.
The bottom line: "One of the reasons I co-founded Xometry was to champion America manufacturing — the backbone of our global economy. Today, manufacturing is increasingly synonymous with high-tech innovation, and Xometry is playing a pivotal role in re-engineering supply chain ecosystems everywhere."
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