Faced with these constraints, manufacturers are adapting through consolidation and strategic acquisitions. Zeller's CaneKast exemplifies this trend — he notes that 80 percent of foundries have disappeared over the past 50 years, leaving survivors to capture market share from failed competitors. "You need to have at least 30,000 to 50,000 square feet to avoid being an owner-operator," he said, describing the minimum scale required for viability.

Miller's Bamal has pursued similar acquisition-driven growth, systematically buying competitors rather than trying to win customers organically. "The easiest way to get market share is to buy up the competition," Miller said, noting the difficulty of convincing clients to switch suppliers when products require extensive testing and quality approval processes.

Meanwhile, some companies are taking more dramatic steps. Defense contractor Anduril's plans for a massive 5 million square-foot facility in Ohio illustrate what it takes to succeed in reshoring: Bold scale that can attract talent away from other industries. The project required $452 million in state tax incentives and $70 million in infrastructure spending, demonstrating the level of coordination between government and industry necessary to compete globally.

Critically, Anduril's focus on autonomous weapons systems and defense technology allows it to pull from software engineers and highly skilled technical workers — the kind of talent that commands premium wages but can justify the economics of American manufacturing. The company is already working with local school districts to “train a 6th grader today” and hire them at 18, recognizing that building this workforce requires a generational commitment. It's a model that works for high-value, low-volume defense products, but raises questions about whether such coordination can scale to broader manufacturing sectors.

Growth strategies face significant capital constraints, however. Small Business Administration (SBA) financing limitations make it difficult to fund the equipment needed for modern manufacturing. Zeller highlighted the mismatch between equipment financing terms — typically 5 to 7 years — and the useful life of manufacturing equipment, which can span 20 years. Meanwhile, Chinese manufacturers benefit from government subsidies that American competitors lack, creating an uneven playing field that extends beyond labor costs to fundamental access to capital.

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