A Fundamental Shift in Manufacturing is Underway
I’ve been reading a lot about the “reshoring” trend lately, and a recent piece in Worth magazine really brought it home. They reported that U.S. manufacturing construction spending has doubled since the end of 2021, a surge driven by major investments like the CHIPS Act. This isn’t just a passing headline; it’s a fundamental shift in how business is done, and it presents a massive opportunity for the manufacturers I work with every day across Alabama and Florida.
For years, offshoring seemed like the only way to stay competitive. But the game has changed. Global supply chains have become unpredictable and unreliable. The Worth article notes that a staggering 96% of major container ports are reporting operational delays, with vessel on-time arrivals dropping to just 58.7%. When you can’t get parts, you can’t make products. Suddenly, bringing production back to the U.S. isn’t just a patriotic idea, it’s a strategic imperative.
Why Reshoring is Accelerating Now
The chaos in global logistics is a huge driver, but it’s not the only factor. The federal government is actively encouraging this shift. The CHIPS Act alone is injecting over $52 billion into domestic semiconductor and manufacturing projects. We’re already seeing the results: over 50 new semiconductor projects have been announced, and 18 new chipmaking facilities began construction in just the last two years.
This isn’t just about chips. It’s about rebuilding our entire industrial base. When you combine these incentives with the rising costs and risks of overseas production, the business case for domestic manufacturing becomes crystal clear. It’s about creating stability, predictability, and control over your own destiny.
What This Means for Alabama Manufacturers
Alabama is perfectly positioned to ride this wave. With its deep roots in automotive, aerospace, and heavy equipment manufacturing, the state has the infrastructure and the skilled workforce to attract these new projects.
As companies look to build more resilient supply chains, I see huge potential for:
•Expansion of existing automotive and aerospace facilities.
•New investments in advanced materials and steel manufacturing.
•Growth for local suppliers who can feed these larger operations.
From Tuscaloosa to Huntsville, the momentum is already building. This reshoring trend will pour fuel on that fire, creating opportunities for manufacturers who are ready to scale.
What This Means for Florida Manufacturers
Florida’s advantages are different but just as powerful. Its world-class ports and logistics networks make it a natural landing spot for companies that need to build and ship products efficiently. The state’s booming tech sector also provides the talent needed for the advanced manufacturing and automation that modern factories require.
I expect to see:
•Growth in medical device and electronics manufacturing.
•New facilities focused on final assembly and distribution.
•Increased demand for automation to make port and logistics operations even more efficient.
For Florida, reshoring is an opportunity to become a hub for high-tech, high-value manufacturing that serves the entire Western Hemisphere.
Preparing for the Opportunity
This trend is real, and it’s happening now. The companies that will win are the ones that prepare. If I were running a plant in Alabama or Florida, these are the questions I’d be asking my team right now:
Q: Where are our biggest supply chain risks?
A: Identify the components or materials with the longest lead times or most volatile sources. These are your biggest vulnerabilities and represent the strongest business case for finding or becoming a domestic supplier. Reshoring isn’t just for you; it’s an opportunity for your customers, too.
Q: Can our facility handle increased production?
A: Scaling up isn’t as simple as taking more orders. You need to assess your capacity for throughput, quality control, and logistics. This is where automation becomes critical. Robots for material handling, machine vision for inspection, and reliability solutions to maximize uptime are essential for scalable growth.
Q: How do we become a supplier for these new domestic plants?
A: As large manufacturers (like semiconductor or EV plants) build new U.S. facilities, they will need a robust ecosystem of local suppliers. To get in the door, you’ll need to demonstrate not just capacity, but also world-class quality, consistency, and reliability - all areas where automation and reliability can give you a decisive edge.
Here at Adams, this is exactly what we do. We help manufacturers across Alabama and Florida build more reliable, efficient, and profitable operations. We can help you analyze your processes, identify opportunities for automation, and implement the solutions that will allow you to capture the full promise of this reshoring boom.
If you have questions about anything you read here or want to discuss how your facility can prepare for this opportunity, reach out to us today.
-Nate