Even as sustainability policy in the United States evolves, many manufacturers continue to see domestic production as a faster route to stronger climate, governance and workforce outcomes.
That shift is being reflected in major investment decisions. Apple has committed more than $500bn to its US operations over the next four years, while Johnson & Johnson plans to invest $55bn in domestic production through 2029. These commitments illustrate how reshoring and onshoring are no longer viewed only through the lens of cost, but increasingly as part of broader industrial and supply chain strategy.
Fresh tariff pressures are also forcing manufacturers to revisit where and how they produce. Companies are now weighing whether moving operations closer to end markets can deliver not just resilience, but measurable sustainability gains. From a supply chain standpoint, the logic has become harder to ignore since the disruption of 2020.
Mohit Ahuja, a strategy and transformation leader and consultant at Caterpillar, said the COVID period exposed the fragility of global supply networks. Port closures, backlogs and labor shortages created severe business interruptions, pushing companies to reconsider how dependent they were on distant production hubs and single-country sourcing models.
That reassessment is now being reinforced by geopolitical instability and increasing scrutiny from customers, regulators and stakeholders. Ahuja noted that 70% of Caterpillar’s dependency had come from a single region, and that optimization efforts are now focused on reducing exposure to country concentration risk.
Cost remains one of the main reasons companies offshore in the first place. According to the 2025 Reshoring Survey Report by Regions Recruiting, 69% of respondents cited cost as a key driver of offshoring decisions. However, when deciding whether to bring production back, respondents ranked long-term sustainability and short- to medium-term profitability as the leading considerations. Environmental, social and governance criteria were present in the discussion, but remained a lower priority overall.
Still, domestic manufacturing can provide benefits that go beyond transport distance or delivery speed. Producing closer to home gives companies greater visibility into worker safety, procurement standards, sourcing practices and regulatory compliance. It can also improve traceability and strengthen oversight of upstream supply chains.
Katie Martin, director of sustainability and innovation at supply chain risk platform Avetta, said companies evaluating reshoring success should look at indicators such as reductions in Scope 3 emissions, waste, water use and energy consumption. She added that job creation, worker safety, sourcing transparency and traceability are also important measures when assessing the broader impact of domestic production.
