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How New Tariffs Are Driving U.S. Manufacturing Back—And What It Means for Your Supply Chain Labor Strategy

Written by FHI | Apr 8, 2025 1:37:02 PM

Tariffs are accelerating U.S. reshoring and reshaping global supply chains. For distribution and supply chain executives, the real challenge is workforce: How do you scale up quickly, safely, and with the right people? Here's what you need to know—and how managed supply chain workforce solutions like FHI’s can help.

 

Why Tariffs Are Making Waves in U.S. Distribution and Logistics

In April 2025, President Trump signed Executive Order 14256, launching a comprehensive Reciprocal Tariff Plan aimed at rebalancing trade and boosting domestic production (White House).

Tariffs of this scale are designed to:

  • Disincentivize overseas manufacturing
  • Encourage U.S.-based production
  • Support domestic job creation in key sectors

The effect? Manufacturing investment in the U.S. is beginning to rebound. Hyundai Steel recently announced a $5.8 billion plant in Louisiana—a clear signal that reshoring is no longer just a theory. It’s happening (JUSDA Global).

 

What Tariffs and Reshoring Mean for Supply Chain Labor in 2025

While manufacturing moves back stateside, it’s distribution and logistics teams that bear the weight of fulfillment, storage, and last-mile demands. This means:

  • Labor needs will rise dramatically at distribution centers and fulfillment hubs
  • Flexible workforce strategies will be key to responding to volume shifts
  • Retention and upskilling will become competitive differentiators

Yet the U.S. already faces a serious warehouse labor shortage—especially in skilled, safety-trained roles.

That’s where companies like FHI come in. We provide full-scale managed workforce solutions that let you scale quickly without sacrificing quality, safety, or operational control.

 

Supply Chain Strategy Shift: Navigating Tariff Disruption

Executives are rethinking sourcing and supply chain models to offset new tariff costs. Here’s what we’re seeing in the field:

  • Supplier diversification to avoid overreliance on tariff-heavy countries
  • Relocation of manufacturing from Asia to U.S. or nearshore options
  • Redesigning warehouse footprints for efficiency and regional fulfillment

For example, U.S. fashion brands are facing tariffs as high as 49% on imports from Vietnam, Cambodia, and Bangladesh, making once-low-cost sourcing far more expensive (Vogue).

All of this translates to a more complex operational environment—and a bigger spotlight on your people.

 

Skilled Labor: The New Bottleneck in Supply Chain Performance

Reshoring doesn't just bring machines back. It brings new labor demands, particularly in:

  • Forklift and material handling
  • Pick/pack and automation-assisted processes
  • Inventory and order accuracy
  • Leadership on the floor

Yet many facilities are understaffed or undertrained, leading to safety risks, overtime burnout, and turnover.

At FHI, we’re helping companies across the U.S. solve this by providing:

  • Pre-trained, safety-certified teams
  • Leadership development programs for frontline supervisors
  • Scalable workforce models built to flex with your volume

 

Need to scale up by 50 team members next week?

Need shift leads who know how to motivate and manage?

We do that. Here’s how.

 

What Supply Chain Executives Should Be Doing Now

If you oversee a high-volume warehouse or regional distribution center, now’s the time to act.

🔹 Rethink your workforce model. Are you built to flex with changing production sources and inventory flows?

🔹 Find a partner, not a vendor. FHI works alongside your team as an extension of your operation—not just a body shop.

🔹 Prepare for volume surges. Reshoring and tariff-based shifts may not hit all at once—but when they do, you need trained labor on deck.

🔹 Talk to economic development groups. Port authorities and local EDOs often offer insights and support for labor planning.

 

Reshoring Is Coming—Is Your Workforce Ready?

Tariffs may be government policy, but their ripple effect is operational.

If your team isn’t proactively managing labor strategy in response to reshoring, you’re already behind.

Don’t wait to get caught short.

 

Is your workforce ready for what’s next?

At FHI, we’ve helped leading retailers, 3PLs, and manufacturers staff entire operations—from scratch to shift-ready, coast to coast.

Talk to our team about how our managed supply chain workforce solutions can support your facility.