Made in America, again? Rethinking US manufacturing resilience

Ramping up domestic manufacturing in the United States is essential to mitigate risks from geopolitical fragmentation and supply chain dependencies. McKinsey senior partner Shubham Singhal and senior fellow Rebecca J. Anderson highlight that while the US remains a top global manufacturer, it faces critical vulnerabilities in "Achilles heel" goods—specifically electronics and semiconductors—that require domestic capacity to potentially double or quintuple. Addressing these gaps demands an "all-of-the-above" strategy, integrating workforce training, infrastructure development, and the deployment of AI to boost productivity and offset higher labor costs. Ultimately, the transition from a service-oriented economy toward a more resilient industrial base depends on clear signals and robust business cases to catalyze the estimated $2 trillion in necessary investment. American ingenuity and a history of rapid innovation provide the foundation for this potential reindustrialization effort.