How supply-chain resilience and tax policy drive US manufacturing momentum

AMT’s Doug Woods discusses how reshoring, AI and capital investment are spurring a US manufacturing tech surge in 2026
Sept. 8, 2026
2 min read
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Key Highlights

  • High-profile disruptions, from COVID-19 to natural disasters and geopolitical conflict, have exposed the hidden risks of low-cost offshore supply chains, prompting manufacturers to factor total lifecycle costs into their production locations.
  • Demand for manufacturing equipment is entering the second half of 2026 with strong momentum, powered heavily by investments in aerospace, defense, space and data-center infrastructure, alongside increased adoption of AI and automation.
  • Overcoming the ongoing shortage of skilled labor relies on community college partnerships and apprenticeships, while long-term industry growth requires policy certainty around R&D tax credits, accelerated depreciation and balanced tariff strategies.

U.S. manufacturing technology is entering the second half of 2026 with considerable momentum, according to Doug Woods, president of the Association for Manufacturing Technology (AMT), the organization that hosts the International Manufacturing Technology Show (IMTS) in Chicago. AMT represents companies that produce and support the technologies used to manufacture goods.

Figure 1: Doug Woods, president, Association for Manufacturing Technology

Figure 1: Doug Woods, president, Association for Manufacturing Technology

In this video interview, Woods discusses the economic forces shaping capital investment, the push to bring more manufacturing back to the United States and the policy issues affecting equipment builders and job shops. He points to strong machine-tool orders, with aerospace, space, defense and data-center-related investment among the sectors helping drive demand.

Woods also explains why supply-chain disruptions have changed the way manufacturers think about where products are made. COVID-19 was a particularly visible wake-up call, but disruptions caused by natural disasters, wars and other geopolitical events have reinforced the risks of relying too heavily on distant, low-cost supply chains. Woods argues that manufacturers need to consider total cost of ownership (TCO), rather than simply comparing initial production costs when deciding where to manufacture.

As reshoring gains momentum, he sees automation, artificial intelligence, apprenticeship programs and partnerships with community colleges as important tools for addressing the perennial challenge of finding enough skilled workers.

The conversation also turns to AMT’s policy priorities in Washington. Woods highlights tax policies that encourage research and development (R&D) and capital investment, including R&D tax treatment, accelerated depreciation and equipment expensing, while pointing to regulation, trade and workforce development as other important concerns. On tariffs, Woods supports their use to address unfair trade practices and recognizes their role in encouraging U.S. investment, but cautions that broad, long-term reliance on tariffs can create the uncertainty manufacturers dislike when making investment decisions. Ultimately, he argues for policies that give manufacturers greater certainty while strengthening the economic case for making more products in the United States.

Chapters

  • 00:00 - USMTO Data & Capital Investment Trends
  • 01:05 - Aerospace, Defense, and Data Centers
  • 02:18 - Reshoring & Total Cost of Ownership (TCO)
  • 04:24 - Workforce Challenges
  • 06:40 - Government Regulations & Tax Incentives
  • 09:41 - Streamlining Industry Workforce Initiatives

About the Author

Mike Bacidore
Email

Mike Bacidore

Editor in Chief

Mike Bacidore is chief editor of Control Design and has been an integral part of the Endeavor Business Media editorial team since 2007. Previously, he was editorial director at Hughes Communications and a portfolio manager of the human resources and labor law areas at Wolters Kluwer. Bacidore holds a BA from the University of Illinois and an MBA from Lake Forest Graduate School of Management. He is an award-winning columnist, earning multiple regional and national awards from the American Society of Business Publication Editors. He may be reached at [email protected] 

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