Tariffs Revive U.S. Manufacturing, But Nearshore Talent Powers Service Growth

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Sep 22, 2025, 08:23 ET

As renewed tariffs revive domestic manufacturing, more dependence on nearshore and offshore services are key to reshaping the U.S. economy. Unemployment's near historic lows and talent shortages across professional sectors show how global recruiting firms like 1840 & Company are helping U.S. businesses scale amid shifting trade dynamics.

OVERLAND PARK, Kan., Sept. 22, 2025 /PRNewswire/ -- Recently renewed tariffs are pushing manufacturers to re-invest in U.S. factory floors, reigniting a new wave of "Made in America" headlines. Yet as goods production inches back home, professional and technical services are increasingly sourced abroad, reflecting a dual-track economy in which tariffs boost domestic manufacturing while labor shortages fuel nearshore recruiting.

“When domestic labor markets are tapped out, nearshore and offshore teams become the pressure valve that keeps U.S. companies agile, competitive, and growing.”

The trade picture reflects this split. In July, the U.S. trade deficit widened 32.5% to $78.3 billion as imports surged, according to the Commerce Department's Bureau of Economic Analysis.⁽¹⁾ Goods imports rose 6.9% to $283.3 billion, while services imports climbed to a record $75.5 billion.⁽²⁾ Exports also set records, but the imbalance underscores how tariffs and labor scarcity are reshaping U.S. business strategies.

"Full employment means hiring slows, quality becomes scarce, and scalability comes into question. This starts to slow growth-oriented companies," said Bryan DiGiorgio, CEO of 1840 & Company, a global recruiting firm. "When domestic labor markets are tapped out, nearshore and offshore teams become the pressure valve that keeps U.S. companies agile, competitive, and growing."

Tariffs Bring Goods Back Home

Evidence of reshoring slowly mounts. Apple and Corning's recent $2.5 billion expansion in Kentucky to produce Gorilla Glass—a critical iPhone component— is one of many signs that tariffs are nudging manufacturers to reinvest locally.⁽³⁾ Similar investments are expected in advanced materials, semiconductors, and automotive supply chains as companies work to mitigate tariff risks and shorten supply lines.⁽⁴⁾

These announcements support one of the original goals of tariffs: reviving U.S. manufacturing and creating jobs onshore. But the picture for professional services looks vastly different.

Services Tell a Different Story

Professional and technical services cannot be reshored at the same rate as physical production. America already runs a substantial services trade surplus—$266.8 billion in 2023, according to BEA, but that success has stretched the domestic workforce thin.⁽²⁾

Research from the Federal Reserve Bank of St. Louis highlights acute hiring bottlenecks in healthcare, technology, and business services, where job openings consistently outpace available workers.⁽⁵⁾ The result: even as factories reopen, companies struggle to find the workforce to fulfill all of their needs in call center staff, finance and marketing entry level jobs, in addition to various IT developer roles to manage growth.

"Even with AI augmenting some tasks, businesses still need skilled professionals and core support workers to deliver outcomes," DiGiorgio noted. "AI and skilled labor will drive productivity, but that will not outpace the demand for resources."

Services Imports Keep Rising

U.S. imports of digitally delivered services—including IT, consulting, finance, and design—reached $388.8 billion in 2023, and July's $75.5 billion record in services imports shows demand for offshore talent is accelerating alongside goods reshoring.⁽²⁾

"Offshore hiring is no longer just cost arbitrage—it's capacity insurance," said DiGiorgio. "Global talent ensures U.S. businesses of all sizes can execute when opportunities hit, regardless of labor shortages at home."

"Near- and offshoring also allows small and midsized businesses to compete with large enterprises for scarce talent, bridging the global skills gap without sacrificing quality or speed. Businesses no longer must rely solely on local talent," added DiGiorgio. "With the right global partners, they can secure specialized talent —driving growth while controlling costs."

The Nearshore Advantage

Geography is proving crucial. Latin America, particularly Mexico, Colombia, and Argentina, has emerged as a professional services hub for U.S. firms. With overlapping time zones, cultural alignment, and expanding technical expertise, the region is becoming the near-shore equivalent of the supply chain hubs that keep goods flowing.

Nearshore teams offer more than convenience: faster communication cycles, easier compliance, and scalable workforces help U.S. companies maintain momentum even as domestic pipelines dry up.

Where Global Staffing Comes In

This is where 1840 & Company plays a pivotal role. The Kansas-based staffing firm helps businesses build and manage global talent pipelines across nearshore and offshore markets. With hiring capabilities in 150 countries, 1840 ensures compliance, quality, and cultural fit for clients ranging from startups to Fortune 500 enterprises.

"Nearshore teams are the services equivalent of supply chain hubs—close, responsive, and strategically essential," DiGiorgio said. "Tariffs may bring goods back, but it's global talent that keeps America's service-driven economy moving forward."

Looking ahead, 1840 anticipates rising demand from U.S. manufacturers expanding under tariff protection and is preparing to substantially scale its Latin American workforce to meet that need. "COVID-19 reshaped where and how people work," DiGiorgio noted. "Today, skilled bilingual professionals with cloud access can work from anywhere—and be hired from anywhere. As a result, demand for our services has increased by 30 to 40 percent. It's one of the biggest workforce shifts our country has experienced since the industrial revolution."

About 1840 & Company

Bryan DiGiorgio is the Founder and CEO of 1840 & Company, a global staffing and business process outsourcing provider headquartered in Overland Park, Kansas. Transitioning between industrial revolutions, the year 1840 inspired the company's focus on helping businesses excel between their different phases of growth. Today, he leads 1840 & Company in helping businesses scale with flexible talent solutions, from nearshore/offshore staffing to complete business process outsourcing solutions. With a proprietary Agentic AI global talent cloud, 1840 & Company sources, contracts, compensates and operates in150+ countries delivering workforce solutions that reduce costs, ensure compliance, and accelerate growth.

For more information, visit 1840 & Company.

References:

Krauskopf, Lewis, and Davide Barbuscia. "Investors Look for More Aggressive US Rate Cuts after Weak Jobs Data." Reuters, 5 Sept. 2025, reuters.com/business/investors-look-more-aggressive-us-rate-cuts-after-weak-jobs-data-2025-09-05/.
U.S. Bureau of Economic Analysis. "International Services (Expanded Detail)." BEA, 3 July 2025, bea.gov/data/intl-trade-investment/international-services-expanded. bea.gov/data/intl-trade-investment/international-services-expanded?utm_source=chatgpt.com.
Wong, Queenie, "Apple to Commit Another $100 Billion for U.S. Manufacturing, White House Says." Los Angeles Times, 6 Aug. 2025, latimes.com/business/story/2025-08-06/apple-to-commit-another-100-billion-for-u-s-manufacturing-white-house-says.
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Federal Reserve Bank of St. Louis. "How Have U.S. Workers Fared in a Labor Market Reshaped by the Pandemic?" On the Economy, 19 Aug. 2025, stlouisfed.org/on-the-economy/2025/aug/how-us-workers-fared-labor-market-reshaped-pandemic.