Manufacturers abandon the US in wave of restructuring across global markets
Nearly one in five international manufacturers have exited the US market in the past year, placing America among the top three global markets being abandoned, alongside China and Russia. According to new research from Revalize, 54 percent of US organizations report substantial revenue declines in the last 12 months, a stark signal of shrinking investor confidence and strategic realignments.
A shift in global manufacturing priorities
The Revalize report, which surveyed 500 senior executives across the US, Austria, Germany and Switzerland, reveals the confluence of geopolitical instability, tariff pressures and rising compliance burdens that are pushing manufacturers to exit or downsize in the US Eighty-five percent of respondents said they are restructuring supply chain strategies in response to geopolitical stress. Half of firms reported that new tariffs and compliance costs have raised their operating burdens.
As a hedge against risk, over half of global manufacturers say they have reduced reliance on suppliers in high-tariff regions and prioritized regionalization or friendshoring strategies. In practice this means turning to closer geographies such as Mexico, Southeast Asia, Eastern Europe or parts of North Africa as alternative hubs.
That trend mirrors findings from broader industry studies. Boston Consulting Group reports that more than 90 percent of North American firms have relocated at least part of their production or sourcing in the past five years, half shifting more than 20 percent of output. Capgemini finds that two thirds of US and European firms now have active reindustrialization plans, with onshoring and nearshoring gaining ground.
Digital tools underpin strategic realignment
In this era of exits and reshuffles, digital capabilities have become central to survival. Revalize reports that more than half of firms are adopting AI tools to optimize supply chain and inventory management, and to streamline operational processes. But adoption is uneven. Fifty-five percent of respondents cite integration challenges tied to unstructured data, legacy systems and siloed IT infrastructure.
McKinsey’s Global Supply Chain Leader Survey underscores the gap. While two thirds of firms are deploying advanced planning and scheduling systems, only 10 percent have fully completed deployments. That suggests many organizations are still wrestling with cultural, technical and investment barriers.
Beyond cost and risk, AI and data platforms offer speed, adaptability and visibility. Those that master these tools may gain advantage in volatile conditions. The winners will be those who can treat disruption as a constant rather than as a rare event.
The industrial map is being redrawn
The exodus of manufacturers from the US is redrawing the industrial map. As firms shift to new hubs, competitive dynamics are altering in both the US and receiving regions. Some regions once peripheral are rising as nodes in new value chains.
Within the US, supply clusters may contract or relocate internally. States with favorable regulatory regimes, proximity to markets or incentives for advanced manufacturing may pull ahead. At the same time, the cost of doing business will increase in regions losing scale and supplier density.
These shifts also amplify risk. The OECD warns of unintended consequences if reshoring is pursued too aggressively. Overlocalization could suppress global trade, reduce efficiency and expose economies to internal shocks. Dependency will not vanish. Instead supply chains will need to rebalance, not retreat entirely.
The US is no longer an unbeatable magnet for global manufacturing investment. Its retreat in the eyes of many global firms signals a turning tide in global industrial gravity.
Sources:
Revalize