Bringing Back Production: How 3PLs are Key to Reshoring Success

With the “Made in America” movement in full swing, many organizations are assessing their reshoring options and realizing that they may not have the logistics or real estate infrastructure needed to support the shift. They’re turning to experts like Phoenix Logistics for help during the transition, and specifically for the warehousing, transportation and supply chain management support that the company has been providing domestically since 1991.

The need for supply chain, logistics and real estate support right now is profound. Where U.S. companies spent decades outsourcing production and sourcing to foreign countries, the current business climate—namely, the new tariff rules—are driving them to rethink that approach. Black swan events like the global pandemic are also pushing more companies to rethink their global supply chains and find ways to gain more control over these critical networks.

“During COVID, companies quickly realized the impacts of disrupted, global supply chains and how difficult it was to get products from other countries during that period,” says Robert Kriewaldt, senior VP at Phoenix Logistics. “That was an early wakeup call for the need for reshoring.”

Fast-forward to 2025 and that wakeup call got a little louder and more urgent when the new U.S. presidential administration began imposing tariffs on many different imports from a range of countries. The reciprocal tariffs started soon after that and while the situation obviously remains fluid, companies that are sourcing and building domestically may be able to gain a competitive advantage in this environment.

Addressing the Realities of Reshoring

On the surface, moving production and/or sourcing back to the U.S. sounds pretty straightforward. Dig down a bit deeper, however, and the art and science of shifting those vital processes away from foreign countries and back to the U.S. is anything but easy. For starters, the company that chooses to reshore just part of its supply chain may wind up infusing more complexity into the network.

“If you have 20 inputs to your finished product, and if they were shipped here for domestic assembly from five Chinese factories, reshoring won’t be that difficult,” Kriewaldt explains. “However, if four inputs are made in China—and if you move three of them to Vietnam, with all other components produced in the U.S.—your supply chain suddenly becomes a lot more complex.”

The bottom line is that if you’re going to bring back production to the U.S., you really need to “bring back all of it,” says Kriewaldt, “or you really haven’t gained a whole lot.”

The reshoring complexities don’t end there. Companies also need adequate production space in an industrial real estate market where extended lead times are common. A brand-new factory or distribution center (DC), for example, may take up to 3–4 years to complete.

And, existing industrial real estate is particularly scarce in some U.S. markets. Finally, someone must run and work in those factories and DCs at a time when unemployment rates remain low and employee turnover rates are high for these types of jobs.

Availability of power is another underlying roadblock for companies that are reshoring, and it’s something that Phoenix Logistics helps its customers address.

“Our grid is finite but expandable over time; it takes time to get new power to a site,” says Kriewaldt, who points to a current project in New York as proof of the long lead times for new power generation.

“For that project, we need to almost double the power, and it’s going to be 2029 before they can get us that extra power,” says Kriewaldt, who reminds companies that a third-party logistics provider like Phoenix Logistics and its sister company, commercial real estate firm Phoenix Investors, already have expansive, national footprints in place and ready to go. “Having an available, powered-up site ready to go can help to speed up the reshoring process.”

Partnering for Success

Automation has become a viable solution for companies that need to boost their domestic operations—both on the manufacturing and distribution side of things—in a tight labor market, but it’s not the only solution.

Companies that are bringing back operations that don’t already have a physical footprint in the U.S. can also work with a company like Phoenix Logistics to find move-in ready real estate in many different regions of the country. This can take the pressure off of the company itself and make the reshoring process more affordable and feasible.

Take the southern state solar module manufacturer that’s leasing a 1.3 million-square-foot building from Phoenix Investors. The manufacturer retrofitted the space to accommodate production, installing hundreds of millions of dollars of equipment in the space ahead of the tariffs, but also to be closer to the market, save on transportation costs and leverage tax incentives.

“That facility checked all of the company’s boxes and was ready to start operations quickly,” adds Phoenix Investors’ Founder and Chairman Frank P. Crivello of the property.

This is just one of many examples of how third-party logistics and real estate providers are helping companies achieve their reshoring goals as quickly and efficiently as possible. By offering crucial support in navigating complex logistics, securing necessary infrastructure and providing strategic guidance, companies like Phoenix Logistics—which has real estate assets in 27 different states—serve as indispensable partners for businesses navigating the evolving landscape of American manufacturing and supply chains.

As more companies prioritize domestic production, this collaborative approach will undoubtedly play a key role in the success of the “Made in America” movement and the strengthening of the U.S. economy.

“The ongoing push to repopulate American manufacturing isn’t going to end, regardless of politics,” says Kriewaldt. “Companies that get ahead of the curve and make their moves now will have the best options to choose from. We have a lot of different economical alternatives that can allow you to ramp up and get your facilities and workforce in place much faster than if you had to start your reshoring effort from the ground up.”