Black Book Finds Tariff Pressures Driving Reshoring of U.S. Healthcare Manufacturing

Survey shows executives turning to automation, AI, and domestic production amid geopolitical and regulatory shifts

TAMPA, FLORIDA / ACCESS Newswire / April 2, 2025 / A Q1 2025 ad hoc survey conducted by Black Book Research of 60 pharmaceutical and biotech manufacturing executives - half based in the U.S. and half operating offshore - reveals mounting momentum for reshoring U.S. healthcare manufacturing. The findings point to tariff-driven incentives, automation adoption, and supply chain vulnerabilities as central catalysts prompting a strategic shift in sourcing strategies across pharmaceuticals, diagnostics, and medical supplies.

The data highlights the economic and regulatory realities of rebuilding domestic production capacity in a highly automated, post-pandemic landscape.

Prompted by actual and anticipated tariffs, federal incentives, and ongoing geopolitical uncertainty, U.S. industry leaders are accelerating efforts to reshore key manufacturing sectors, including pharmaceuticals, diagnostic instruments, biomedical equipment, and medical devices. A resounding 96% of U.S.-based executives and 94% of offshore respondents expect new or expanded U.S. facilities to operate on highly automated platforms, integrating robotics, artificial intelligence, and predictive analytics across production, logistics, and quality control functions.

In 2024, approximately 350,000 jobs were announced in reshoring and foreign direct investment (FDI) initiatives, with medical and pharmaceutical manufacturing comprising 14% of that total. However, 90% of the surveyed healthcare industry executives anticipate that job creation from these efforts will be "limited" or "highly specialized," due to increased reliance on automation and digital manufacturing.

This reflects a broader trend, as robotics and AI adoption in U.S. healthcare manufacturing has surged 70% since 2020 according to respondents. "Reshoring doesn't mean reversing automation - it means rethinking workforce needs," said Doug Brown, Founder of Black Book Research. "We're witnessing a pivot away from traditional factory-line labor toward highly skilled, compliance-driven roles in digital pharma, biotech, and medical supply manufacturing."

Regulatory complexity also emerged as a defining factor in reshoring strategy. All respondents expect significantly increased oversight for domestic facilities, with FDA, EPA, and OSHA standards creating a more rigorous compliance environment than many offshore locations. While 97% of U.S. executives cite regulatory complexity as one of their top three reshoring challenges, the majority acknowledged that this oversight results in higher product quality and public trust.

All thirty U.S.-based executives surveyed anticipate increased production costs stemming from compliance burdens, smart factory infrastructure, and rising labor rates. Nevertheless, 67% of respondents support reshoring as a national strategic imperative.

Black Book's consumer sentiment analysis reinforces this stance: 98% of the 100 surveyed Americans favor reshoring critical industries to improve national security, reduce foreign dependency, and stimulate specialized employment.

The urgency is further underscored by supply chain dependency data: the U.S. currently imports more than 80% of its active pharmaceutical ingredients (APIs) from China and India. The COVID-19 pandemic exposed major vulnerabilities, with most domestic manufacturers reporting severe disruptions and initiating reshoring evaluations in its aftermath.

"For healthcare providers and systems, reshoring brings dual outcomes - greater product quality assurance and availability, but also higher procurement costs in the near term," Brown said. "These shifts will ripple across payer-provider negotiations, government purchasing, and long-term public health budgets."

With U.S. healthcare spending projected to reach $6.8 trillion by 2030 - 10% of which will be pharmaceutical-related - the cost implications of domestic manufacturing are poised to become a critical issue in US healthcare economics.

Reshoring is also part of a broader global trend. According to Black Book's manufacturing insights, 80% of surveyed global manufacturers are currently evaluating reshoring or nearshoring strategies to strengthen operational resilience.

About Black Book Research
Black Book is an independent, unbiased, and vendor-agnostic healthcare research firm dedicated to improving patient care and provider staff experiences through data-driven insights. Founded by Doug Brown, author of the best-selling The Black Book of Outsourcing (Wiley & Sons), the firm was originally known for guiding global organizations through the pros and cons of offshore sourcing during the height of the outsourcing boom. Now, two decades later, Black Book applies its expertise to assess the evolving impact of automation, robotics, and AI-particularly as new U.S. tariffs and policy shifts fuel a renewed reshoring movement. The firm brings decades of experience tracking global sourcing, labor, and automation trends.

Today, Black Book applies this expertise to critical issues shaping the future of healthcare manufacturing and technology policy.

SOURCE: Black Book Research