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Reshoring Aerospace Manufacturing: Is the U.S. Ready for the Challenge?




Why Geopolitical Tensions and Supply Chain Risks Are Bringing Aerospace Production Back Home

In recent years, the aerospace industry has faced growing challenges from global supply chain disruptions, geopolitical tensions, and the increasing need for national security measures. These factors are driving a major reshoring effort to bring aerospace manufacturing back to the United States.

  1. Geopolitical Uncertainty & Trade Barriers The global landscape has become increasingly volatile, with U.S.-China trade tensions, the war in Ukraine, and disruptions from other international conflicts. The aerospace sector, which relies heavily on a global supply chain, is particularly vulnerable to these disruptions. Companies are now reconsidering their reliance on foreign suppliers, especially in critical components such as semiconductors, specialty metals, and avionics systems.

  2. Supply Chain Vulnerabilities The COVID-19 pandemic exposed significant weaknesses in global supply chains, leading to delays, increased costs, and production bottlenecks. Many aerospace manufacturers experienced delays due to raw material shortages and transportation constraints. Reshoring provides a way to mitigate these risks by reducing reliance on long-distance suppliers and ensuring better control over production timelines.

  3. National Security & Defense Readiness The aerospace industry plays a crucial role in national security. The U.S. government has pushed for increased domestic production of defense-related aerospace components to reduce dependence on foreign sources. Initiatives such as the Defense Production Act and incentives for domestic manufacturing are encouraging companies to move production back to the U.S.

  4. Government Incentives & Economic Policy Policies such as the CHIPS Act, the Inflation Reduction Act, and tax incentives for domestic manufacturing are providing strong financial support for reshoring initiatives. These incentives aim to reduce production costs and make U.S.-based manufacturing more competitive with foreign markets.

What Manufacturers Can Do to Stay Competitive in a Reshoring Boom

While reshoring presents a significant opportunity, aerospace manufacturers must adopt new strategies to stay competitive in a rapidly changing market.

  1. Invest in Advanced Manufacturing & Automation To compete with lower-cost overseas production, U.S. manufacturers must embrace Industry 4.0 technologies, including robotics, AI-driven automation, and additive manufacturing (3D printing). These innovations improve efficiency, reduce waste, and increase production speed.

  2. Develop a Skilled Workforce The U.S. faces a skills gap in aerospace manufacturing. Companies need to invest in workforce development through apprenticeships, technical training programs, and partnerships with universities to ensure a steady pipeline of skilled labor.

  3. Optimize Supply Chain Resilience Companies should diversify supplier networks and use real-time data analytics to track supply chain performance. Implementing ERP systems like SYSPRO, NetSuite or Acumatica can provide end-to-end visibility, helping manufacturers manage inventory, optimize logistics, and predict potential disruptions before they impact production.

  4. Leverage Government Support & Public-Private Partnerships Manufacturers should take full advantage of federal and state incentives, such as R&D tax credits, grants, and direct subsidies for reshoring. Partnering with the U.S. government and military contractors can also provide steady demand for aerospace products.

  5. Enhance Sustainability & Compliance With increased pressure to reduce carbon footprints, reshoring efforts must incorporate sustainable manufacturing practices. Using energy-efficient facilities, sourcing materials responsibly, and improving waste management will help companies meet environmental regulations and appeal to eco-conscious investors.

The Future of Aerospace Reshoring

The U.S. aerospace industry is at a turning point. With the right investments in technology, workforce development, and supply chain resilience, manufacturers can capitalize on the reshoring trend and establish a more secure, competitive, and innovative domestic aerospace sector.


The key to success lies in leveraging advanced manufacturing, strengthening supplier networks, and making strategic partnerships with technology providers like MepApps powering ERP™ to optimize operations. The reshoring movement is not just about bringing jobs back—it's about transforming the industry for a more sustainable and resilient future.


🚀Are you ready for the reshoring boom? Share your thoughts in the comments! ✈️

Contact us today!

Kim Prevost

Director of Business Development @ MepApps/MepServices

832.832.0988 Kim.P@MepApps.com

Travis Rudel

PreSales, Implementation & Networking Engineer @ MepApps/MepServices


Works Cited

  1. U.S. Department of Commerce. Reshoring and the Manufacturing Renaissance: Bringing Jobs Back to America. Washington, D.C., 2023.

  2. McKinsey & Company. Global Supply Chains: How Geopolitical Risks Are Reshaping Aerospace Manufacturing. McKinsey Global Institute, 2024.

  3. National Association of Manufacturers. Aerospace and Defense: Strengthening Domestic Production for National Security. NAM, 2023.

  4. Harvard Business Review. Why U.S. Manufacturers Are Reshoring After Decades of Offshoring. HBR, 2024.

  5. Deloitte Insights. The Future of U.S. Aerospace Manufacturing: Trends and Challenges in Reshoring Efforts. Deloitte, 2023.

  6. Reuters. Boeing, Lockheed, and the Reshoring Push: Aerospace Giants Adapt to New Global Realities. Reuters Business, 2024.


 
 
 

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