Balancing domestic production with global sourcing is key to protecting patients and ensuring supply chain stability.
By Kathryn DiBitetto, Vice President of Government Affairs
The U.S. medical supply chain is undergoing a strategic transformation. Manufacturers are prioritizing domestic production as part of a globally-diversified supply chain. This rebalancing reflects lessons learned from global disruptions over the last five years, and is being reshaped by U.S. trade and tariff policies. HIDA continues to advocate for policies that encourage local investment, while opposing tariffs that impose new cost pressures on distributors and manufacturers.
Momentum for U.S.-based production is building. A number of critical medical products are being made in America.
- January 2025: BD announced more than $30 million in investments to expand IV line production at its Utah plant, supporting growth in catheter solutions.
- May 2025: Siemens Healthineers began relocating production of Varian radiotherapy systems from Mexico to Palo Alto, adding 50 new manufacturing jobs.
- August 2025: Thermo Fisher Scientific opened a 375,000-square-foot facility in Mebane, North Carolina, capable of producing 5,000 pipette assemblies per hour and creating 100 new jobs.
These announcements represent more than isolated moves. This expansion represents a commitment to build resiliency into the supply chain and bring critical capabilities closer to U.S. patients. According to HIDA’s October 2025 survey of medical manufacturers:
- Specific Expansion Plans: 52% plan to expand their U.S. footprint within two years.
- Industry-Wide Reshoring Trends: 67% expect an overall increase in domestic manufacturing over the next five years.
- Multi-Modal Approach To Domestic Production: Medical manufacturers are pursuing multiple strategies to expand their U.S. presence – expanding existing lines (65%), building or acquiring new plants (30%), reshoring current production (15%), and creating new products (25%).
Still, domestic production remains an expensive undertaking. Manufacturers face challenges:
- Raw Material Scarcity: Access to medical-grade raw materials remains limited, creating production bottlenecks. According to HIDA’s survey, 98% of medical manufacturers require global raw materials – either in whole or in part – for their domestic production needs.
- Punitive Tariffs: Inputs and components sourced overseas often face multiple layers of tariffs, increasing costs on materials that frequently have no domestic substitute.
A resilient supply chain is a diversified supply chain. Domestic manufacturing is one important component, but the country must maintain a strategic blend of global sourcing to be prepared for future disruptions or emergencies.
Even as U.S. manufacturing grows, domestic production cannot operate in isolation. If federal and state governments can pair industry momentum with smart incentives, the United States can build a stronger, more resilient medical supply chain.