April 15, 2025 Tariffs, Reshoring and the Demand for Entry-Level Labor

Employers will first need to address worker shortages in warehousing and logistics amid revitalization of domestic manufacturing.

By John E. Dorer, CEO of eb3.work

In recent months, the U.S. has witnessed a significant shift in trade policy under President Donald Trump’s administration.

President Trump has signed executive orders imposing various levels of tariffs on goods from countries around the world. These measures have profound implications for the U.S. economy, particularly in the manufacturing and logistics sectors.

The Tariff Plan and Its Implications

The administration’s tariff strategy is designed to encourage U.S. companies to relocate their manufacturing operations back to domestic soil — a process known as reshoring. By imposing tariffs on imported goods, the government aims to make foreign products less competitive, thereby incentivizing domestic production. This policy shift is expected to lead to increased investments in U.S.-based manufacturing facilities and a corresponding expansion of the logistics and warehousing infrastructure necessary to support them.

Manufacturing Doesn’t Happen Without People

While the prospect of revitalizing domestic manufacturing is promising, it brings to the forefront a critical challenge: the availability of labor. Reshoring efforts will create a surge in demand for entry-level positions such as machine operators, production line workers and warehouse associates. However, the U.S. is currently grappling with a labor shortage in these sectors. The U.S. Chamber of Commerce reports that the manufacturing industry has been facing significant difficulties in filling these essential roles. Even with advancements in automation, human labor remains indispensable for various aspects of production and logistics.

Warehousing and Logistics Will Feel the Labor Pinch First

The logistics and warehousing sectors are poised to experience immediate pressure from reshoring initiatives. The rise of e-commerce had already stretched these industries thin, and the additional demands from increased domestic manufacturing will exacerbate the situation. High turnover rates and existing labor shortages in warehousing mean that companies will need to find effective solutions to meet the growing demand for workers in fulfillment centers, distribution hubs, and related facilities. Warehouse labor turnover can exceed 40% annually in some regions, according to the U.S. Bureau of Labor Statistics.

Why the Entry-Level Labor Crisis Will Worsen

Several factors contribute to the intensifying labor shortage:

• Demographic shifts: An aging workforce and declining birth rates have resulted in a smaller pool of working-age individuals.
• Geographic disparities: Manufacturing facilities are often located in areas where the local labor market cannot supply the necessary workforce.
• Cultural trends: There is a decreasing interest among Americans in pursuing physically demanding, entry-level positions, even when competitive wages are offered.

Practical Workforce Solutions Employers Should Explore Now

To effectively address the labor challenges associated with reshoring, employers should consider a multifaceted workforce strategy:

1. Upskill and reskill the domestic workforce

Collaborate with community colleges and vocational training programs to develop a skilled labor pool.

Engage underrepresented groups, including veterans and individuals seeking career transitions, to broaden the talent base.

2. Hire previously incarcerated individuals or other underserved groups.

• Implement fair-chance hiring practices to tap into a motivated and often overlooked segment of the workforce.
• Partner with reentry programs that provide training and support to facilitate successful employment transitions.

3. Offer creative benefits to attract hourly workers.

• Introduce incentives such as childcare assistance, transportation subsidies, educational opportunities and flexible scheduling to enhance job appeal.
• Recognize that comprehensive benefits can significantly improve employee retention and satisfaction.

4. Leverage the power of workforce technology.

• Utilize advanced scheduling software, applicant tracking systems and predictive analytics to optimize workforce management.
• Implementing technology can streamline operations and reduce reliance on overtime and last-minute staffing.

5. Plan for long-term immigration-based workforce options.

• Explore programs like the EB-3 visa, which allows U.S. employers to sponsor foreign workers for permanent, entry-level positions that are difficult to fill domestically.
• Given the lengthy processing times, initiating immigration-based hiring strategies promptly is crucial for future workforce stability.

Reshoring Without Labor is Just a Policy Idea

The movement toward reshoring presents a unique opportunity to strengthen the U.S. manufacturing sector. However, without a comprehensive plan to address the accompanying labor shortages, these efforts may falter. Employers must proactively implement diverse workforce strategies to ensure they can meet the demands of increased domestic production. By investing in training, embracing inclusive hiring practices, offering attractive benefits, leveraging technology and considering immigration solutions, companies can position themselves to successfully navigate the evolving economic landscape.

About the Author:
John E. Dorer is an accomplished Global Mobility Executive with over 23 years of hands-on experience in the field. As the CEO of eb3.work, he leads an expert team of immigration attorneys and recruiters committed to solving the pervasive problem of entry-level labor shortages through employer-sponsored green card programs, particularly the EB-3 visa program.

Drawing upon an extensive background in global mobility, John has developed an unparalleled level of expertise in EB-3 staffing solutions. Under his leadership, eb3.work utilizes proprietary technology and streamlined processes to expedite the EB-3 application and approval procedures. The team delivers efficient, compliant results, making them a trusted partner for employers in a wide range of industries.

Passionate about solving labor shortage issues, John takes a dual-sided approach to his work. His primary mission is to partner with employers, assisting them in eliminating chronic entry-level labor shortages that hamper productivity and growth. Simultaneously, John is committed to creating meaningful employment opportunities for qualified foreign national workers, thereby contributing to the broader economic and social fabric of the country.

YouTube

Subscribe to Industry Today