The McKinsey Global Institute argues that strengthening U.S. manufacturing is increasingly important as geopolitical tensions expose critical supply chain dependencies. The report finds that roughly one-quarter of U.S. manufactured imports represent strategic vulnerabilities due to their importance, concentrated sourcing, or reliance on geopolitically distant suppliers. Rather than advocating broad reshoring, it recommends prioritizing critical sectors, expanding production through a mix of domestic manufacturing and trusted trade partners, and investing in workforce development, infrastructure, advanced technologies, permitting, and capital. Successfully reducing these vulnerabilities will require coordinated action across government and industry, balancing resilience, competitiveness, and economic efficiency while recognizing that rebuilding manufacturing capacity will take years and significant investment.

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