First American Bank Highlights U.S. Manufacturing Shift
Tariffs, shipping delays, geopolitical risk, and rising inventory costs have exposed vulnerabilities in global supply chains. Meanwhile, shifting customer expectations and government incentives are making U.S.-based production increasingly attractive.
At First American Bank, we’re working directly with clients navigating this transition. Here’s why reshoring has lasting momentum.
Control is the driving force
For most companies, reshoring comes down to one word: control.
When suppliers are overseas, responding to delays, managing quality, or adjusting production is limited. The pandemic made that clear. So have recent changes in tariffs, which have created confusion and delays at U.S. ports as authorities navigate new import classifications.
More of my clients are asking: How can we reduce our risk? One answer is to bring more of the supply chain closer to home. Even though domestic production can be costlier, the increased stability and responsiveness often justifies the shift.
You don’t need to build from scratch
One common misconception is that reshoring requires major investment. That’s not necessarily the case.
Contract manufacturing is opening doors for smaller companies. By partnering with U.S.-based manufacturers that already have infrastructure, companies can avoid the high costs of building their own facilities.
We’ve seen this firsthand. A client in the medical products space recently expanded its capabilities to support both internal production and third-party contracts, creating new revenue opportunities in the process.
Buyers care about local sourcing
Cost will always factor into decision-making; however, it’s no longer the only consideration. Buyers increasingly value transparency, quality, and the ability to adapt quickly – all of which are benefits of U.S.-based production.
Some clients have seen more interest at trade shows just by promoting their “Made in the USA” status. Many buyers are willing to pay more for the speed and reliability that comes with local sourcing.
Technology is also narrowing the cost gap. Automation, AI, and leaner processes are helping reduce labor costs without compromising quality.
Talent and training are key enablers
As more companies bring production back home, the question naturally follows: Do we have the workforce to support it?
Skilled labor remains a challenge in many regions, but we’re also seeing promising signs of collaboration between industry and education. Local universities around the country are connecting students with real-world manufacturing problems through capstone projects and internships. This early exposure is helping build a more prepared talent pipeline.
At the same time, with automation reshaping roles, investing in training and local talent programs is more important than ever.
South Florida is part of the equation
While reshoring is often associated with the industrial Midwest, business-friendly regions like South Florida are increasingly becoming part of the conversation.
The area has strong infrastructure for import-export activity, and organizations like the Miami-Dade Beacon Council are helping attract investment and support job growth. First American Bank has partnered with many of these local organizations with the goal of creating valuable connections for opportunity and incentives.
A long-term shift with near-term opportunity
Reshoring isn’t a quick fix. It’s a gradual process, and it won’t look the same for every business. But the momentum is real.
The companies that benefit most are the ones that stay proactive: identifying parts of their operations that can be brought back, finding domestic partners, and rethinking their supply chain from both a cost and control perspective.
At First American Bank, we help manufacturers finance equipment, expand operations, and structure credit solutions to support reshoring. If you’re considering a shift, we’re here to help you evaluate your options and build a plan that fits your goals.
About First American BankFirst American Bank is the largest privately held bank in Illinois, with over $7 billion in assets and 61 locations across Illinois, Wisconsin, and Florida. Family-owned and operated since the 1960s, the bank offers a full range of financial services, including personal banking, business lending, and trust and wealth management. Known for combining community bank service with large-scale capabilities, First American Bank is committed to long-term relationships, financial stability, and delivering tailored solutions that help customers thrive.
Disclaimers:This information is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal, tax, and investment advisors.
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