November 24, 2025 The Response to Tariffs is Reshoring with Robotics

US manufacturers are moving toward a new blueprint focused on tech convergence for a resilient future.

By Ryan Hawk and Dallas Dolen

Robotics and smart automation have long been reshaping manufacturing, but 2025 marks a turning point. As tariffs make foreign-made goods more expensive, strategies for building out domestic supply chains must accelerate. With increasing labor costs, automation and robotics are emerging as the cost-effective solution for onshoring production. For CIOs, it’s a jolt to the status quo but the opportunity – and the vulnerability – is a once in a generation catalyst to innovate at speed and scale.

Effectively, tariffs incentivize automation. According to a recent PwC survey, the cost of importing goods for industrials could jump from $23 billion to $127 billion. In technology, media, and telecommunications (TMT) the leap is even greater. New tariffs are projected to increase the expenses associated with global sourcing by $113 billion, which will have a profound effect on companies that previously benefited from tariff exemptions.

This is where bold policy can reshape economics and it’s time to take decisive action. Automate your processes now with the most effective robots available but more importantly, invest in the development of a new R&D ecosystem to make America the global leader in robotics.

The good news for manufacturers is that robots are smarter and more affordable than ever. In 2023, US factories installed more than 44,000 industrial robots – a record high and a 12% increase from 2022. While carmakers and suppliers continue to lead, adoption is growing across sectors from TMT to metals and plastics. Many of the leading robots and automation platforms are still made overseas, with China as the dominant innovator and supplier of the tech needed to integrate automation into factories. For U.S. manufacturers, relying on foreign technology to reshore production comes at a premium. Reducing this dependency is no longer just a matter of national pride, it’s a requirement for operational growth.

As the line blurs between industrial and digital, the calculus for cross-industry collaboration is changing. Big tech companies are developing industrial applications of their AI and cloud platforms, while manufacturers are teaming up with consulting and tech firms to advance capabilities. This convergence is reshaping the workforce as well: tomorrow’s manufacturing jobs will depend on problem solving, programming and systems strategy. To keep pace, capital investment in equipment must be matched by investments in people. Forward-thinking leaders are upskilling their teams and forming partnerships with educational institutions to build talent pipelines in mechatronics, data analysis and process engineering. Companies that adapt to these changes will be better equipped for shifting markets and technologies.

Policy is accelerating this transformation. Tariffs are driving manufacturers to rethink where and how they operate. At the same time, federal incentives like the CHIPS Act and the Inflation Reduction Act are providing a much-needed boost. Together, market pressures and government support are aligning to drive a new era of US manufacturing.

This alignment presents a new blueprint for companies looking to improve agility and position themselves as industry leaders:

Automation is more than just a cost-cutting measure—it’s a strategy for resilience. Tariffs may have lit a fuse but the companies that move now, with urgency and purpose, will be the ones who lead the next industrial revolution.

About the Authors:

Dallas leads PwC‘s Technology, Media and Telecom industry which includes overseeing our cross-line of service delivery, thought leadership and marketing for PwC in this space. Dallas is also the Global Client Partner for PwC’s largest technology client, where he is engaged in the delivery of consulting and compliance services and overseeing our commercial relationship with the market. Dallas has nearly 20 years of experience working with Fortune 500 software, internet, entertainment and media clients, leading deals, divestitures, business expansion and global technology transformation. Dallas also serves on the PwC Network’s Global Board. He enjoys supporting his children’s sports and trail running.

Ryan is a Partner with PwC’s Operations practice, based in Chicago. He has more than 32 years of professional experience. Ryan is PwC’s US Energy & Industrials Leader. He has served some of the firm’s largest, multinational clients in areas such as cost reduction, manufacturing and operations improvement, and deals. He is one of the firm’s leaders around the future of industrials and industry convergence. Ryan holds a BS in Mechanical Engineering from Rose-Hulman Institute of Technology and an MS in Industrial Engineering from the University of Michigan.

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