“Supply Chains Must Be Global” — The Myth That Domestic Production Can’t Compete

Global supply chains are inevitable — domestic manufacturing can’t be cost-competitive

REALITY

Advanced manufacturing institutes are actively rebuilding domestic supply chains in the sectors that matter most for national security and economic resilience

PICTURED HERE:

BioMADE member Boston University and the BioMADE Member Meeting. (Source: Manufacturing USA 2025 Report)

The Stereotype

Global supply chains are a fact of economic life. Labor costs, material access, and established logistics networks make offshore production the rational choice for most goods. Reshoring is a political talking point, not a viable industrial strategy. Domestic manufacturing simply cannot compete on cost.

 

The Reality

The COVID-19 pandemic, supply chain disruptions across semiconductors, pharmaceuticals, and defense materials, and growing geopolitical competition have fundamentally changed this calculation. Resilience, security, and speed-to-market are now part of the cost equation — and when they are properly accounted for, domestic production in high-value sectors is not just competitive, it is strategically essential.
The question is not whether to reshore, but how to build the technical capabilities and workforce that make reshoring possible. Manufacturing USA institutes are the infrastructure of that answer.

 

What the Network Is Building

  • BioMADE (Twin Cities, MN) secured up to $50M in Minnesota co-investment for a first-of-its-kind bioindustrial manufacturing pilot- and demonstration-scale facility, part of a planned national network of critically needed bioindustrial manufacturing facilities. These facilities will build a domestic supply chain for bio-based materials — bioplastics, durable fibers, bio-based chemicals, and more — that currently rely heavily on foreign production.
  • NIIMBL (Newark, DE) is building the domestic biopharmaceutical manufacturing infrastructure needed to ensure that critical medicines are producible in the United States at scale. NIIMBL’s projects focus on continuous manufacturing, process analytical technology, and quality by design — all aimed at making U.S. biopharma production faster, more flexible, and more resilient to global supply chain shocks.
  • CyManII (San Antonio, TX) addresses a less visible but critical dimension of supply chain vulnerability: cybersecurity. U.S. manufacturing supply chains are increasingly targeted by adversaries through digital attack vectors. Through workforce development, cybersecurity innovation, and resources such as its national cybersecurity testbed and Mobile Training Vehicle, CyManII has trained over 800,000 students, professionals, and practitioners nationwide and has impacted more than 5 million Texans through innovative cybersecurity education and workforce development programs. CyManII is strategically expanding its efforts to establish a prominent national presence and strengthen America’s cybersecurity capabilities.
  • AFFOA — Advanced Functional Fabrics of America (Cambridge, MA) is building a domestic supply chain for a category of advanced materials that the U.S. had largely ceded to foreign producers: high-performance fibers and functional fabrics. AFFOA’s manufacturing platform enables U.S. production of fabrics that sense, communicate, store energy, and regulate temperature — materials with direct applications in defense, medical devices, and industrial safety. By establishing shared domestic manufacturing infrastructure for these products, AFFOA is creating a U.S. supply chain for advanced textiles that does not depend on foreign mills or overseas fabrication.
  • AIM Photonics has the TAP Facility in Rochester NY as one of the only Advanced Packaging facilities in the U.S. that is part of an end to end supply chain enabling the full packaging of integrated photonics from chips to systems and was the U.S.’ first accessible 300 mm state-of-the-art facility for integrated silicon photonics test, assembly, and packaging. https://www.aimphotonics.com/tap
  • REMADE Institute (Rochester, NY) addresses a critical reality: the United States relies heavily on foreign sources for many of the raw materials that underpin its industrial base. REMADE works with its members to advance product design, remanufacturing, and recycling technologies, enabling the development of a domestic “secondary supply chain” for critical materials. This can reduce vulnerability to geopolitical disruptions, lower production and supply chain costs, and decrease U.S. manufacturers’ reliance on imported materials.

Why It Matters

Global supply chains are not going away. But the lesson of the past several years is that purely global supply chains for critical goods are a strategic vulnerability. The Manufacturing USA network’s 2,900+ member organizations — 73% of which are small and medium-sized manufacturers — are the supplier ecosystems that form the backbone of any domestic supply chain. Investing in their capabilities is investing in American resilience.

Manufacturing USA network FY2023: 929 active R&D projects; $539.9M total network investment; 2,921 members across all 50 states and Puerto Rico. Source: NIST AMS 600-19.