- 03 Jul 2025

Why American Manufacturing Matters More Than Ever
ATRON Group | Fourth of July 2025
As we celebrate the Fourth of July, we honor more than our independence—we celebrate our resilience, innovation, and American ingenuity. At ATRON, we see this holiday not only as a time for reflection but as a moment to highlight the enduring value of American manufacturing and its strategic importance in today’s complex global landscape.
The State of American Manufacturing in 2025
American manufacturing contributed nearly $2.94 trillion to U.S. GDP in 2024 and supports almost 13 million workers, a figure that has now surpassed pre-pandemic employment levels (NAM). Every manufacturing job supports nearly five others across the broader economy, and with average compensation exceeding $102,000, it continues to be one of the most impactful sectors for middle-class prosperity.
Just as crucial is manufacturing’s multiplier effect: for every $1.00 spent in U.S. manufacturing, the economy gains $2.64 in output, making it one of the most productive economic engines in the country.
Why Reshoring Matters More Than Ever
In recent years, global crises have laid bare the fragility of international supply chains. From the COVID-19 pandemic to armed conflicts and trade wars, the risks of offshoring have become increasingly unacceptable—especially for OEMs and critical industries. As a result, 244,000 manufacturing jobs were reshored or created through foreign direct investment in 2024 alone, according to the Reshoring Initiative.
- Supply Chain Risk Mitigation: Over 86% of U.S. manufacturers are now actively de-risking their supply chains (Deloitte/NAM).
- Lead Time Reduction: Material lead times remain above 79 days, compared to ~65 pre-pandemic (Deloitte).
- Cost Transparency: Hidden costs of offshoring often exceed 15–25%, yet fewer than 30% of OEMs use Total Cost of Ownership (TCO) analysis (Reshoring Initiative).
- Customer Preference: More than 43% of OEMs are willing to pay 10–20% more for shorter lead times and local production (Minnesota Bank & Trust).
Global Tensions & Technology Risk
Recent global events have transformed supply chain reliability into a national security issue:
- The Ukraine war halted nearly 50% of global neon production, a critical input for semiconductor manufacturing.
- The Red Sea crisis of 2023 rerouted $6 billion per week in cargo, demonstrating how vulnerable global shipping arteries have become.
- China’s export restrictions on gallium, germanium, and rare earths threaten everything from EVs to defense systems.
- Taiwan still produces over 90% of the world’s advanced chips (<10nm). The U.S. currently manufactures 0% of these domestically.
Any disruption to Taiwan’s chip exports could paralyze sectors from consumer electronics to defense. The Pentagon has already experienced delays in F‑35 fighter jet production due to offshore component dependencies.
Reshoring as National Strategy
Policymakers and industry leaders alike have recognized reshoring as a strategic imperative. U.S. federal efforts include:
- The CHIPS and Science Act, with $52B in funding to restore semiconductor manufacturing in the U.S.
- The Inflation Reduction Act, which spurred $40B+ in EV and battery manufacturing investments between 2023 and 2024.
- Rare earth processing projects backed by the Department of Defense and Department of Energy, returning essential capabilities to U.S. soil for the first time in decades.
Over 54% of global manufacturers now plan to reshore or nearshore by 2025 (McKinsey). Resilience has become a boardroom priority—not just for business continuity but for national and economic security.
What It Means for ATRON and Our Customers
At ATRON, we believe this transformation is more than a trend—it’s a mission. We partner with OEMs, defense suppliers, energy innovators, and technology leaders to bring complexity back home and deliver peace of mind through U.S.-based manufacturing excellence.
We don’t just build products. We help protect America’s future by making the most strategic builds simple, reliable, and resilient. Our facilities and team are proud to carry forward the spirit of American manufacturing—a spirit rooted in independence, ingenuity, and trust.
Closing
This Fourth of July, let us not only celebrate our freedom but also reaffirm our commitment to the foundational industries that secure it. American manufacturing is not just a legacy—it is the lever by which we build a stronger, more secure tomorrow.
ATRON Group
Complex Manufacturing. Made Simple.
Download Our Research Paper
We’re offering a detailed whitepaper on global supply chain risk and reshoring strategies in exchange for your form submission below.
Get data, insights, and forward-looking strategies your team can act on.