Recent tariff actions have disrupted global trade and introduced a new set of challenges for HR teams. As companies adjust to these still-shifting economic realities, HR is challenged with the task of not only responding but leading with clarity and authority.
This unique moment offers an equally unique opportunity for HR teams to guide organizations through these disruptions by focusing on strategic workforce planning, aligning talent acquisition with reshoring efforts and adapting compensation structures to account for the increasing costs of U.S.-based operations.
As HR has the ability to be a stabilizing force during any period of uncertainty, helping companies navigate complex decisions and position their workforce for long-term success should be second nature. With that mindset, HR teams can turn the challenges brought on by tariffs into meaningful opportunities for growth and resilience.
Bring it Back Home
Tariffs are prompting U.S. companies to reassess their global supply chains, with many opting to bring operations back to the U.S. This shift introduces a dual challenge for HR teams — tapping into the domestic talent pool while managing the rising costs of U.S.-based operations. While industries such as manufacturing and natural gas production stand to benefit from reshoring, the transition requires careful workforce planning, particularly in areas such as talent acquisition, upskilling and adapting to the new economic landscape.
In practice, this looks like:
Identifying new talent pools domestically.
Supporting workforce retraining and development.
Strengthening employee retention through updated benefits packages that align with the reshoring trend.
By tapping into these opportunities, HR can be a driving force in transforming the workforce to meet the needs of reshoring and domestic growth.
Across the board, labor laws and benefits requirements in the U.S. make domestic operations more expensive compared to offshore alternatives.
U.S. Operations Costs
While reshoring offers many advantages, operating in the U.S. certainly comes with higher costs, particularly when it comes to employee benefits like healthcare, retirement plans and other support programs. Across the board, labor laws and benefits requirements in the U.S. make domestic operations more expensive compared to offshore alternatives, where labor costs are lower and benefits packages are often minimal.
In industries such as manufacturing and natural gas production, which are poised to benefit from reshoring, the increased costs of U.S. operations must be carefully planned for. In addition to higher wages, companies must invest significantly in comprehensive healthcare plans, retirement savings programs and wellbeing initiatives to remain competitive in attracting and retaining skilled labor. As labor costs alone can rise dramatically when shifting from overseas to US-based operations, employee benefits become a critical lever for maintaining workforce satisfaction and productivity. In the natural gas industry alone, where work is often physically demanding and requires specialized skill sets, offering benefits that focus on health and long-term financial security becomes essential to reduce turnover and maintain a competitive edge.
In contrast, the retail and tech industries are facing their own unique challenges when it comes to reshoring. In retail particularly, the focus is more on supply chain efficiency and cost-effective labor, with less emphasis on specialized benefits for workers. While wages in retail may increase when operations return to the U.S., benefits packages tend to be less comprehensive compared to the demands in manufacturing or natural gas, where worker health and long-term security are paramount. In tech, the emphasis shifts to attracting highly skilled workers with competitive benefits, often focusing on flexible work arrangements, stock options and performance-based incentives rather than the traditional healthcare and retirement benefits seen in blue-collar industries. These distinctions highlight how the needs of HR teams in reshoring efforts vary significantly across different sectors, with each industry requiring tailored strategies to manage costs and maintain a satisfied workforce.
Pros and Cons of Reshoring
While reshoring introduces significant challenges, it also presents opportunities for HR teams to lead with strategic workforce planning. By developing customized benefits strategies that align with industry needs, HR can help mitigate these costs. The key is balancing the financial pressures with long-term investments in employee retention and productivity, turning the economic challenges of reshoring into opportunities for growth.
Manufacturing
Pro
Tariffs are making U.S. manufacturing more competitive by driving up the cost of imported goods. For HR, this is a chance to lead talent acquisition and development efforts, with a particular focus on skilled labor for reshored production lines.
Con
Companies may face challenges in transitioning workers back from overseas operations or retraining a local workforce to meet new demands. The cost of these initiatives must be managed carefully.
Natural Gas Production
Pro
Tariffs on foreign energy products could boost domestic natural gas production, creating new job opportunities in energy and infrastructure development.
Con
Increased demand could fuel environmental concerns, and labor unions may raise objections to working conditions. HR will need to address both of these issues while ensuring a sustainable workforce.
Technology
Pro
Tariffs on tech imports might encourage U.S. companies to boost domestic production, creating job opportunities in tech development and manufacturing. HR teams can focus on skills development and the expansion of tech talent pools.
Con
The challenge for tech companies will be managing the cost of U.S. operations and staying competitive in the global market while balancing wage pressures and benefits packages.
Retail
Pro
As tariffs make foreign goods more expensive, U.S.-based retailers may turn to domestic suppliers, fostering job creation and growth in local supply chains.
Con
Retailers may face higher costs in raw materials, which could impact pricing strategies. HR teams will need to balance employee wages and benefits to maintain morale and productivity without alienating consumers.
NFP Helps HR Teams Respond with Confidence
Although tariffs introduce significant complexity, they also present a unique opportunity for HR teams to guide organizations through these challenges. By focusing on strategic workforce planning, aligning talent acquisition with reshoring efforts, and adapting compensation structures, HR teams can ensure their organizations remain resilient and successful. Partnering with experts who understand the evolving landscape can provide HR teams with the tools and support needed to navigate economic disruption and achieve long-term success.
The Impact of Tariffs
The impact of tariffs is undeniable, but with the right strategies, HR teams can turn these challenges into long-term advantages. HR professionals have a key role in guiding their organizations through the complexities of reshoring, talent management and adapting benefits strategies. By aligning HR operations with broader business goals, HR teams can mitigate rising operational costs and leverage reshoring efforts to foster growth, adaptability and employee satisfaction.
NFP Human Capital Solutions
NFP Human Capital Solutions offers expert support in both Strategic HR Services and International HR Services to help HR teams navigate the complexities of tariffs and reshoring. Our Strategic HR Services focus on aligning HR strategies with business goals, workforce planning, training, and leadership development. Our International HR Services ensure compliance with global labor laws, offering solutions for talent acquisition, compensation and workforce management across borders. Partnering with NFP allows HR teams to streamline operations, reduce costs and build a resilient workforce for long-term success. Contact us today to start navigating through the intricacies of tariffs with confidence.
