Many U.S. manufacturers who want to produce everything domestically are running into problems, according to The Wall Street Journal. Some important materials are either too expensive, hard to find, or only made in small amounts in the U.S. For example, Decked, an Idaho-based company that makes truck organizers, gets 95% of its materials from inside the country but still struggles to replace ball bearings it used to get from China.
Other companies face the same issues. Ricky Cousido from Brooklyn’s Rapid Plastics said they must import metal hooks from China because U.S. suppliers disappeared years ago, and tariffs have now doubled the cost. Haas Automation in California also imports cast iron from China because U.S. foundries can’t meet their needs. Indeed, Haas Vice President Peter Zierhut warned that tariffs could raise machine prices by 20% and delay their new $500 million plant in Nevada.
However, some companies are making progress. Indeed, CorVent Medical in North Dakota now sources 70% of its ventilator parts from U.S. suppliers instead of China. Nevertheless, finding domestic electronics is still hard. In addition, even though “Made in the U.S.A.” branding is popular, NielsenIQ data shows a slight drop in products carrying the label because stricter FTC rules now require almost all parts to be U.S.-made. As a result, Channellock in Pennsylvania, which uses 100% U.S. materials, warned that rising demand for U.S. steel could eventually make it harder for small manufacturers to compete.
Is RSHO Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the Tema American Reshoring ETF (RSHO) based on 21 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RSHO price target of $39.57 per share implies 17% upside potential.
