According to the Bank of America Institute, the U.S. manufacturing sector is facing a slowdown, evidenced by a decline in new orders and a contraction in the Manufacturing Purchasing Managers' Index. While President Trump's tariffs are aimed at encouraging manufacturers to reshore operations in the U.S., the potential result may be increased automation rather than job creation. Skilled labor shortages and high costs are significant barriers to reshoring, yet recent legislation like the CHIPS and Inflation Reduction Acts aims to incentivize domestic production in key sectors. Tariffs could potentially slow down the slowdown, especially for certain subsectors.
It's possible, right, that these tariffs could support momentum going forward and potentially reverse some of that slowdown, especially for certain sub sectors within the industry.
Reshoring has been all the rage in corporate America after Trump's first trade war with China-and the COVID-19 pandemic-highlighted risks to global supply chains.
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