EDM Tech Blog
For the better part of two decades, precision machining work migrated offshore — primarily to Asia — driven by lower labor costs and aggressive pricing. That trend has reversed. Federal procurement rules now mandate domestic sourcing for defense-critical components, and the supply chain disruptions of 2020-2024 proved that a 12-week ocean freight timeline is a liability, not a savings.
Texas has emerged as one of the top reshoring destinations in the country. The combination of no state income tax, the Texas Enterprise Fund, robust freight and port infrastructure, and a deep manufacturing workforce makes the state a natural landing zone for precision work returning from overseas.
USMCA rules of origin and the evolving tariff environment are driving Mexican and Canadian manufacturers to partner with Texas EDM shops for domestic content compliance and precision machining they cannot source locally.