September 2025 Update: Construction Equipment Firms Boost US Production in Tariff Era

Heavy Equipment Manufacturers Explore US Reshoring Strategies Amid Trump Tariffs in 2025

In the wake of escalating trade tensions, heavy equipment manufacturers in construction, agriculture and manufacturing sectors are increasingly evaluating ways to shift operations back to the United States. This trend mirrors recent moves by tech giants, as highlighted in a CNBC article from Aug. 13, 2025, titled “Nvidia, AMD and Apple: Big Tech is paying its way out of Trump tariffs.”

Just as Nvidia and AMD agreed to share 15% of their China-derived chip revenues with the U.S. government to bypass restrictions, and Apple pledged $600 billion in domestic investments, heavy machinery firms are responding to similar pressures from 100% tariffs on semiconductor and chip imports. These policies, aimed at bolstering American production, are prompting public statements and investments in U.S.-based manufacturing to mitigate costs and secure supply chains.

As we progress through 2025, with the current date being Sept. 4, 2025, this updated article examines public announcements from key players in heavy equipment, focusing on construction, agriculture, cranes and related manufacturing. Drawing insights from industry reports and recent data, we explore how these sectors are adapting to “bring things back” to the U.S., emphasizing reshoring methods such as factory expansions and domestic investments. 

Notable updates include mixed economic results in early 2025, with some revenue declines in agriculture and construction equipment, alongside broader reshoring momentum that has created more than 2 million jobs since 2010. Challenges such as labor shortages and outdated technology are also hindering progress, with 72% of manufacturers reporting that obsolete systems are impacting hiring for reshored operations.

Construction Heavy Equipment: Investments in US Factories Gain Momentum

The construction sector, reliant on robust machinery such as excavators and loaders, is seeing manufacturers publicly commit to U.S.-based production amid tariff uncertainties.

Caterpillar, a leading name in heavy equipment with $54.7 billion in 2024 revenue, continues to emphasize its extensive U.S. operations, which include more than 500 global facilities but with a strong domestic focus.. This aligns with broader reshoring trends driven by the Infrastructure Investment and Jobs Act (IIJA), which prioritizes American-made equipment for projects.

GE Aerospace, while not exclusively in construction, announced a nearly $1 billion investment in U.S. factories and supply chains for 2025, targeting innovative parts and materials.

“Investing in manufacturing and innovation is more critical than ever for the future of our industry and the communities where we operate,” H. Lawrence Culp Jr., chairman and CEO of GE Aerospace, stated. 

Such moves are designed to reduce import dependencies, similar to Apple’s strategy of boosting U.S. investments to avoid tariff hits. Siemens also opened a $190 million Texas manufacturing hub, expanding facilities to support electrical and energy infrastructure, which indirectly benefits construction equipment production.

These efforts reflect a strategic pivot: by localizing production, manufacturers aim to evade tariffs and capitalize on domestic demand, projected to grow with IIJA-funded infrastructure projects. Lenders remain bullish on the sector, citing strong residual values and reshoring efforts as key drivers for equipment financing in 2025. 

However, the resurgence of U.S. manufacturing depends on investing in people, with rising geopolitical tensions and supply chain issues accelerating the need for skilled labor. While 2024 saw 244,000 jobs reshored or created through foreign direct investment, 2025 has shown mixed results, with higher domestic labor costs potentially increasing consumer prices.

Navigating Tariffs: A Broader Industry Shift

As Trump tariffs reshape global trade, heavy equipment manufacturers are publicly embracing U.S. reshoring through investments and expansions, drawing parallels to Nvidia, AMD and Apple’s approaches. Proposed tariffs could increase medium- and heavy-duty truck prices by around 9%, with a 25% tariff on Mexico potentially adding up to $35,000 to new Class 8 tractor costs, affecting trucking and heavy equipment sectors. 

While challenges such as labor shortages persist — 83% of U.S. manufacturing apprenticeships have increased more than the past decade to address gaps — initiatives from GE, Caterpillar and others signal a resilient path forward. For businesses in construction, agriculture and crane manufacturing, these methods not only mitigate costs but also enhance supply chain security in 2025, with 82% of manufacturers actively moving or planning to move factories back to the U.S., up 55% from January 2023.

Stay informed on heavy equipment reshoring trends, U.S. manufacturing investments and tariff impacts — key to optimizing strategies in this evolving landscape. Uncertainty, however, remains as recent tariff developments, such as pending appeals, leave these issues unsettled.