In the current political and economic environment, we see a significant shift in the chemical and process industries, as companies increasingly prioritize reshoring—bringing manufacturing operations back to the United States. This movement is driven by a combination of economic incentives, geopolitical factors, and advancements in technology, all aiming to enhance supply chain resilience and national security.
Key Drivers of Reshoring
1. Economic and Policy Incentives: The U.S. government’s implementation of new trade policies has encouraged companies to reconsider their offshore manufacturing strategies and prompting manufacturers to invest in domestic production to avoid additional costs and align with national interests.
2. Supply Chain Vulnerabilities: The COVID-19 pandemic exposed the fragility of global supply chains, particularly in the pharmaceutical sector, according to Missouri Chamber of Commerce and Industry. A significant portion of active pharmaceutical ingredients (APIs) used in the U.S. are sourced from abroad, with 83% of the top 100 generic medicines lacking a domestic API supply
3. Technological Advancements: Companies are leveraging automation, digitalization, and advanced manufacturing technologies, making domestic production more cost-effective and efficient, offsetting higher labor costs.
The Reshoring Momentum in Chemical and Process Industries
Recent developments underscore the growing commitment to reshoring. Here are a few examples:
Eli Lilly’s $27 Billion Investment:
Eli Lilly announced plans to invest $27 billion in expanding its U.S. manufacturing with four new sites, aiming to create 13,000 high-wage jobs. Three of the sites will focus on producing active pharmaceutical ingredients (APIs), while the fourth will expand the company’s manufacturing of injectable therapies.
Johnson & Johnson’s $55 Billion Expansion:
Johnson & Johnson plans to invest over $55 billion in building new manufacturing plants in the United States over the next four years. This strategic move includes constructing four new plants, one of which will be in Wilson, NC, creating thousands of jobs.
Lacamas Labs Seeks to Restart US Output:
Oregon-based Lacamas Labs is reviving U.S. production of critical specialty chemicals, including sebacic acid and salicylic acid, which had ceased domestic production in the early 2000s. With an $86.2 million grant from the U.S. Department of Defense, Lacamas is establishing production facilities in Portland to manufacture seven chemicals vital for military applications, such as energetic materials and stabilizers for explosives. This initiative is part of a broader $193 million effort to reshore 22 essential chemicals previously sourced from other nations.
Pfizer’s Consideration of Reshoring:
Pfizer is actively exploring options to relocate some of its manufacturing operations to the United States in response to potential tariffs on imported pharmaceuticals. This move aims to mitigate supply chain risks and align with domestic production incentives.
What Needs to Be Done to Scale Up Localized Production
To transform reshoring goals into operational plants, companies must overcome several technical and logistical challenges:
1. Rapid Deployment of Facilities
New or expanded plants must come online quickly to qualify for incentives, meet market demand, and reduce exposure to risks. This requires:
- Compressed project timelines
- Fast permitting and regulatory approval
- Proven facility designs
2. Process Optimization for Domestic Production
Many legacy processes were designed for foreign labor, raw materials, or regulations. Scaling up in the U.S. means:
- Reengineering processes for domestic utilities, environmental compliance, and automation
- Integrating advanced controls and safety systems
- Modularizing units to increase deployment speed
3. Navigating Compliance and Regulatory Complexities
Domestic facilities must comply with stringent EPA, OSHA, FDA, and local code requirements—often more stringent than their offshore counterparts.
4. Workforce and Operational Readiness
Facilities must be built with the operational workforce in mind, including:
- Automating tasks to address labor shortages
- Designing intuitive control systems
- Supporting training and maintenance teams post-commissioning
How Process Systems Integrators Like EPIC Systems Help Scale Up
Process systems integrators are uniquely positioned to deliver scalable, turnkey solutions that align with the reshoring movement. Companies like EPIC Systems Group enable rapid, compliant, and future-ready scale-up through a combination of process expertise, modular fabrication, and automation integration.
Here’s how:
1. Modular, Skid-Mounted Systems
EPIC designs and fabricates fully modular systems in-house—ideal for scaling production quickly while minimizing on-site construction and permitting delays.
- Faster deployment than traditional stick-built facilities
- Fully tested before delivery
- Scalable in phases as demand grows
2. Customized Process Design & Engineering
EPIC provides end-to-end process engineering tailored to your product, capacity, and regulatory environment.
- Front-end engineering and design (FEED)
- P&ID development, heat/mass balances, process modeling
- Scale-up from lab or pilot to full production
3. Turnkey Project Execution
From initial design to commissioning and startup, EPIC delivers complete system integration:
- One point of accountability
- In-house mechanical, electrical, and controls teams
- Faster path from concept to production
4. Long-Term Scalability and Support
As demand grows or new products are introduced, EPIC can help:
- Expand capacity through duplicate modules or system upgrades
- Add new processing lines or packaging integration
- Update automation platforms or data collection systems
The U.S. chemical and process manufacturing sectors are at a turning point. Government incentives and national priorities are bringing production back home. But to fully realize the potential of reshoring, manufacturers must be ready to scale up with speed, compliance, and confidence.
Partnering with an experienced process systems integrator like EPIC Systems ensures you don’t just reshore—you scale successfully. From modular systems to turnkey automation, EPIC delivers the expertise and execution needed to meet today’s industrial challenges.