Manufacturing Jobs Surge Amid Reshoring, Tariff Policies, Report Says

A new report from the Council of Economic Advisors (CEA) indicates a substantial boom in U.S. manufacturing jobs, with 72,000 positions added in 2026 alone. This growth, particularly in durable goods manufacturing such as metal and transportation equipment, marks a reversal of a trend that saw a decline of 200,000 manufacturing jobs in the final two years of the previous administration.

The CEA report attributes the uptick to the current administration's focus on reshoring jobs and its tariff policies. Central to these efforts is the One Big Beautiful Bill Act (OBBB), which provides incentives for American companies to expand domestic operations. The bill allows manufacturers an immediate 100% tax deduction on expenses related to new factory construction and the purchase of machinery and equipment.

Companies highlighted in the report have cited the OBBB's provisions as catalysts for expansion and job creation. Jergens, an Ohio-based manufacturing firm, expanded to Illinois, with its CEO Jack Schron noting that employees are voluntarily working additional hours and keeping more of their earnings, thereby reinvesting in the American economy. Schron also stated that 83% of his workers are taking on overtime, a benefit bolstered by the OBBB's provision exempting overtime pay from taxes.

Another example is Ketchie Inc. in North Carolina, which increased its workforce by 25% after utilizing the 100% expensing provision to acquire new machinery. The company reportedly delayed equipment purchases until the OBBB was enacted.

Beyond job numbers, the report also points to wage growth for manufacturing workers, with pay increasing by 7.9% since January 2025. Adjusted for inflation, this translates to an average annual increase of nearly $2,500 for blue-collar manufacturing workers since the beginning of the current administration.

The construction industry has also seen gains, with approximately 100,000 construction jobs added since the current administration took office. Key sectors like semiconductor chip manufacturing are also experiencing growth, with companies such as Micron and Apple making significant investments in domestic production. Major pharmaceutical firms like GSK and Gilead, along with automakers like Stellantis, are also noted for investing billions in the United States.

Overall, the CEA report suggests that reshoring and tariff policies have led to $11 trillion in investments in the United States during the current administration's term. These economic developments come as the nation approaches midterm elections, with inflation, gas, and grocery prices remaining significant concerns for voters, according to recent polling.