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Kearney’s 2026 Reshoring Index: A Complex Landscape for U.S. Manufacturing

The 2026 Reshoring Index from Kearney, a notable global strategy and management consulting firm, has just been published, bringing attention to the intricacies of U.S. manufacturing and its dependence on imports. Released on April 29, 2026, this report marks the 13th iteration of the Index, tracking the dynamic changes in reshoring and nearshoring within the U.S. manufacturing sector.

Key Findings of the Reshoring Index

Despite significant investments and the ongoing application of tariffs, the latest Index finds the net reshoring figure remains negative, though it improved from -115 to -91. This indicates that while there have been some efforts toward reshoring, the reliance on foreign imports, especially from Asia, is still pronounced. The report reveals that U.S. imports of manufactured goods have surged by 4.6%, leading to a record high of imports despite the hoped-for outcomes of U.S. tariff policies.

Significant trends emerge as the report highlights that approximately 40% of imports from Asia reflect minimal reshoring activity. These factors suggest that while some categories demonstrate positive shifts, the overall manufacturing landscape remains heavily influenced by external sources.

The Influence of Tariff Policies

Kearney's findings underscore that tariff strategies intended to strengthen domestic manufacturing have yet to yield significant success. Over the past years, imports from Mainland China—a historically significant source—have been markedly restricted. The U.S. reported a $135 billion downturn in imports from China, reducing its share of U.S. manufacturing imports to below 10%, a drastic decrease from 20% four years prior.

Simultaneously, other Asian low-cost countries (LCCRs) benefited from this shift, seeing an increase of $193 billion in imports, particularly in the Computer Electronics sector. Importantly, while costs in these foreign countries remain lower than potential U.S. manufacturing costs, it illustrates the difficulties faced in achieving the desired reshoring goals.

Gradual Changes in Manufacturing Capacity

The U.S. has seen its manufacturing investments triple over the past four years, yet the growth in manufacturing capacity is only 1.5%. This slow growth hints at potential issues stemming from uncertainty around policy changes, investment confidence, and labor market constraints. Executives reveal that their expectations for ROI on reshoring initiatives have diminished due to these complexities.

Patrick Van den Bossche, a Kearney partner and the report's lead author, has pointed out key nuances of these findings. While the overall statistics paint a bleak picture, specific product categories are starting to show signs of increased domestic production share. Indeed, categories beyond Computer Electronics and Apparel—making up 44% of total Asian imports—are starting to move toward a more positive trajectory, even if the overall reshoring hasn't yet reached a tipping point.

The Regional Role of Mexico

The role of Mexico as a partner in U.S. supply chains continues to be pivotal through 2025. U.S. imports from Mexico rose by 8% recently due to a notable influx of Computer Electronics products, amounting to a $47 billion increase. However, concerns linger regarding potential nearshoring growth stalling due to fluctuating investment confidence and uncertainties surrounding trade agreements like the United States-Mexico-Canada Agreement (USMCA).

Conclusion

Kearney's Reshoring Index serves as a crucial indicator of the progress and challenges faced by U.S. manufacturing. While there are glimpses of improvement in certain sectors, the overall reliance on imports remains a key element in shaping the future of manufacturing in America. As the Index continues to evolve, it will provide essential insights into whether the nation can ultimately shift back towards a more self-sufficient manufacturing economy. For businesses and policymakers alike, understanding these trends is critical for navigating the complex industrial landscape ahead.