According to Kearney’s 2026 Reshoring Index, which examines imports of goods from 14 Asian countries and regions, the overall manufacturing import ratio has increased for a second year in a row. It now stands at 14.15%, building on a movement toward domestic manufacturing. Does this mean that U.S. automotive manufacturers will bring their operations back to America? The answer depends on many factors, but by far the largest is the labor skills gap.
A Labor Gap Decades in the Making
In 1970, more than 25% of American workers held jobs in manufacturing. Today, it’s only about 8%. According to the Bureau of Labor Statistics, in April 2026 there were 474,000 manufacturing job openings, and Deloitte estimates that 1.9 million manufacturing jobs may go unfilled by 2033. Tariffs may exacerbate the issue through inevitable workforce reductions, leading to a scenario in which there simply aren’t enough people to get the job done. Equally concerning is the fact that there aren’t enough people training for these jobs in America.
According to recent data, the automotive sector has a vacancy rate of 4.3 vacancies per 100 employees, which is 43% higher than the average across all industries. This points to a significant skills gap in the sector. Further, NADA reports that to keep pace with retirements and new jobs, the industry needs to replace approximately 76,000 technicians each year—but America’s technical colleges and training programs graduate about 37,000 new technicians annually, leaving some 39,000 jobs unfilled.
The Trends Behind the Skilled Labor Gap
America’s push for college education has discouraged the pursuit of skilled trades and led to underinvestment in vocational education. Another contributing factor is the aging automotive workforce, which includes many Baby Boomers who are approaching retirement age. At the same time, technological shifts such as EVs and automation require new technical competencies that are in short supply among existing workers.
The Hardest Positions to Fill
Roles that involve manual labor, technical skills, and hands-on work require specialized training, apprenticeships, or certifications. They also demand a high level of expertise, precision, and physical endurance. The list of jobs that are most difficult to fill includes:
- Automotive Service Technicians and Mechanics
- Tool and Die Makers
- CNC Machinists and Programmers
- Industrial Electricians
- Mechanical & Electrical Maintenance Technicians
- Welders (Especially Robotic Welding Techs)
- Paint and Coating Technicians
- Skilled and Advanced Assembly Line Workers
How Manufacturers Can Fill the Gap
Automotive manufacturers need to overcome negative perceptions and outdated stereotypes to attract the next generation. To ensure manufacturing output can meet demand, manufacturers need to bring the existing workforce up to speed with new technology and fill their growing labor gaps.
How AFIMAC Can Help
In these uncertain times, AFIMAC is a long-term partner with the expertise to help you create the operational continuity you need to get the job done.
For more than 40 years, AFIMAC has offered temporary travel labor to help businesses address serious risks to operational continuity. We pride ourselves on partnering with clients to fill labor gaps during times of crisis, opportunity, or regular business operations.
While automotive manufacturing in the U.S. was once considered difficult, largely because of comparatively high labor costs and complex regulation, a shifting technological and global economic reality has sharpened its appeal. U.S.-based manufacturers are nearshoring and reshoring operations after decades of migration away from domestic production. Simultaneously, foreign companies have accelerated investment in U.S.-based manufacturing.
In this paper, we explore the driving forces, trends, and outlook for domestic automotive manufacturing nearshoring and reshoring.
