U.S. healthcare manufacturing shifts home amid tariff pressures: study
FLORIDA, UNITED STATES — A Q1 2025 survey by Black Book Research, a healthcare research firm, reveals growing momentum for reshoring U.S. healthcare manufacturing, driven by tariff incentives, automation adoption, and supply chain vulnerabilities.
Nearly all surveyed executives expect new or expanded facilities to rely on advanced technologies like robotics and AI, reflecting a shift toward highly automated production in pharmaceuticals, diagnostics, and medical supplies.
Automation redefines workforce needs in reshoring
Reshoring initiatives are increasingly relying on automation to rebuild domestic production. According to the survey, 96% of U.S.-based executives and 94% of offshore respondents expect new facilities to integrate robotics, artificial intelligence, and predictive analytics across production and logistics.
“Reshoring doesn’t mean reversing automation – it means rethinking workforce needs,” said research leader Doug Brown. He explained that reshoring operations remain successful even after automation since companies shift their focus toward workforce requirements.
The combination of foreign direct investment and reshoring produced 350,000 announced job openings that year, and medical and pharmaceutical jobs made up 14% of these openings.
Business leaders forecast a restricted and specific future of job development because automation controls manufacturing operations.
Regulatory challenges and supply chain vulnerabilities
Regulatory oversight remains a major challenge for reshoring efforts. Standards by the Food and Drug Administration (FDA), Environmental Protection Agency (EPA), and Occupational Safety and Health Administration (OSHA) create stricter compliance environments compared to offshore locations, with 97% of U.S.-based executives citing regulatory complexity as a top concern.
Despite increased costs from compliance burdens and smart factory infrastructure, 67% of respondents consider reshoring a strategic imperative.
The urgency for reshoring is underscored by supply chain dependency data: over 80% of active pharmaceutical ingredients (APIs) are imported from China and India. The COVID-19 pandemic exposed vulnerabilities in global supply chains, prompting U.S. manufacturers to reevaluate sourcing strategies.
According to Black Book research, the United States population stands at 98% behind bringing essential manufacturing back home to protect the nation and lower dependencies on foreign suppliers.
Reshoring initiatives stand ready to become key elements for both healthcare manufacturing resilience enhancement and long-term economic challenge resolution because pharmaceutical spending is projected to reach $6.8 trillion by 2030.
