The skilled labor shortage is one of the most immediate and disruptive forces OEMs face when reshoring. As we already explored in previous installments of Reshoring America, onshoring success requires a strategic rebuild of domestic capability, supplier alignment, and systems strong enough to support long-term growth. For OEMs, that means rethinking everything from sourcing structures to operational risk, manufacturing readiness, and execution at scale. However, even the most carefully built reshoring strategy can fail without a skilled workforce or integrated manufacturing partners.
Unfortunately, with an aging workforce and few coming in to replace them, skilled labor will remain in short supply. According to Deloitte and The Manufacturing Institute’s 2024 Workforce Study, almost 2 million U.S. manufacturing jobs will remain unfilled by 2033. For OEMs reshoring production, this labor shortage represents a massive execution risk.
The Skilled Labor Dilemma
Due to a combination of globalization, blue-collar stigma, and schools emphasizing four-year degrees over vocational education, skilled trades have been in decline for decades. Today, the average age of U.S. machinists and toolmakers is now over 50, with retirement outpacing new talent development. OEMs returning to domestic production must carefully consider the skilled labor pool, which is growing increasingly thin, inexperienced, and unstable or even nonexistent in key regions or specialities.
Building internal capabilities and training programs is costly and time-consuming, often taking years to establish. Between long training cycles, narrow hiring pipelines, and increasing retention difficulties, staffing a new line domestically can delay production timelines by 12-24 months or more. However, when operations depend on unreliable and inexperienced labor, timelines stretch, costs climb, and quality suffers. To avoid these risks, OEMs are increasingly turning to fully integrated domestic manufacturers who already have the skilled teams, systems, and automation in place.
Integrated Manufacturing Helps Fill the Labor Gap
Rather than trying to solve the labor shortage alone, many OEMs find success by partnering with vertically integrated manufacturers that already have a skilled workforce in place. These suppliers have not only built cross-disciplinary teams but also the systems to retain them, train them, and align them with production goals across departments.
G.A. Richards Group, for example, leverages internal labor depth across machining, fabrication, finishing, and even design for manufacturability. Established workflows and team agility reduce onboarding lag, and because every process is under the control of a single integrated manufacturer, handoffs are seamless and timelines remain intact. This structure gives OEMs direct access to the labor capacity and production stability they need, without having to build it themselves.
Automation to Enhance, Not Replace, Skilled Labor
While automation still can’t completely replace skilled labor, it can extend the capacity of the existing workforce. For integrated manufacturers, robotics and automated systems reduce reliance on labor-intensive processes and create consistency in areas where staffing is difficult to maintain. Robotic welding, for example, consistently produces reliable weld integrity and precision in repetitive tasks, leaving skilled welders to tackle the more complex projects that demand high-level critical thinking to adapt in real time.
In high-volume manufacturing, especially for precision machined parts, manually inspecting each component for dimensional accuracy is cost-prohibitive, inefficient, and detrimental to worker morale. Automated inspection cells, such as those used at G.A. Richards Industrial Operations and Corlett-Turner, eliminate the need to tie up valuable employees with tedious tasks that are nonetheless critical in ensuring quality and consistency at high volume. Embracing automated processes can greatly improve throughput and provide opportunities to better utilize skilled labor resources on complex operations.
The right automation strategy allows manufacturers to produce more with fewer people, but building automation infrastructure takes significant investment in time and capital, which are often in short supply when reshoring is already underway. By partnering with suppliers who have already invested in automation, OEMs gain immediate access to the benefits without the long development curve. That includes reduced labor burden, higher throughput, and improved repeatability across production runs.
Workforce Development That’s Already in Motion
Integrated manufacturers that prioritize workforce development create real advantages for their partners. Apprenticeships, trade school partnerships, internal mentorships, and ongoing upskilling efforts contribute to long-term labor stability. By aligning with suppliers who have already made workforce development a part of their operating model, OEMs skip the lag time of hiring and training and benefit from a mature, motivated team from the start. That readiness translates to higher productivity, smoother communication, and better retention across the program lifecycle.
Solving the Labor Problem Without Owning It
Trying to reshore without addressing the labor issue is one of the most common ways that reshoring efforts stall or fail outright. When OEMs attempt to replicate offshore models domestically, they can face mounting challenges. Higher wage demands, longer ramp-up periods, and increased turnover all add cost and complexity. Labor shortages not only delay production, but they also introduce costly risk at every step. Integrated manufacturing partners absorb that risk by offering proven labor models, built-in flexibility, and systems designed to perform under pressure.
From Labor Shortage to Increasing Cost Pressure
The skilled labor gap, unfortunately, drives up costs as delays, rework, extended lead times, and unstable production environments all increase the total cost of manufacturing, especially when reshoring is already under financial scrutiny. Partnering with an integrated manufacturer, such as G.A. Richards Group, helps OEMs reduce the risks while accelerating production without absorbing the overhead of hiring, training, or staffing a facility themselves.
Labor, however, is only one piece of the financial equation. As reshoring gains momentum, cost pressure inside domestic markets is growing with material volatility, rising wages, equipment investments, and regulatory compliance expenses. In the next installment of Reshoring America, we’ll examine how OEMs can protect margin, maintain control, and stay competitive without compromising the long-term advantages of manufacturing in the U.S.
Ready to move forward without waiting on the workforce?
Contact G.A. Richards Group and discover what our integrated manufacturing capabilities can do for your onshoring strategy.
