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Manufacturing News · Apr 15th, 2025
Factories are humming again across Indiana. Once quiet shop floors are filling with machines and workers. Signs of growth are everywhere— especially in two industries at the center of a national push to bring manufacturing back home: pharmaceuticals and semiconductors.
At the heart of it all stands Indiana. With its strong industrial roots and central location, the state is becoming a key player in America’s renewed effort to make more of what it needs right here at home.
The push for reshoring didn’t happen overnight. In 2025, the Trump administration announced new trade investigations into imported pharmaceuticals and semiconductors. The goal was simple: reduce the country’s dependence on foreign-made drugs and chips. Tariffs soon followed, targeting key materials and equipment. These changes signaled a clear shift in national policy.
American companies took notice. Many began planning new investments inside U.S. borders, knowing it would be easier to operate under the new rules if they built closer to home. Others responded to growing concerns about supply chain stability after years of disruptions, shortages, and rising tensions abroad.
Indiana, already known for its manufacturing strength, stood out as a prime location.
Nowhere is this shift more visible than in the pharmaceutical industry. Eli Lilly, based in Indianapolis, committed more than $27 billion to expand production in the United States. Two major sites are going up in Indiana— one in Lebanon and another in the company’s hometown.
These aren’t just ordinary facilities. They’ll produce active pharmaceutical ingredients (APIs) and sterile injectable drugs, both of which are vital in hospitals and health clinics. For years, many of these medications were made overseas. That’s beginning to change.
The impact reaches beyond medicine. Lilly’s expansion is expected to bring 3,000 new high-paying jobs to Indiana. Another 10,000 construction workers will help build the new plants. These projects are creating a ripple effect. Local contractors, suppliers, and service providers are landing new business. Restaurants and small shops near the new plants are already seeing more foot traffic.
Lilly’s move isn’t just a response to tariffs. Company leaders have also said they want to help rebuild the country’s medical supply chain. That mission aligns with growing public pressure to secure more critical materials at home, especially after recent drug shortages and international trade disputes.
While pharmaceuticals get most of the headlines, microchips are just as important to the reshoring story. These tiny pieces of technology power everything from smartphones and cars to military systems and medical devices.
For years, the U.S. depended heavily on chip production in Asia. But trade disputes, shipping delays, and national security concerns made that model risky. The federal government responded by launching new investigations and preparing tariffs on imported chips and chipmaking tools.
The result: manufacturers started scouting U.S. locations for new fabrication plants. Indiana is still in the early stages of tapping into this industry, but it’s already showing signs of potential.
The state’s access to highways, railroads, and skilled labor makes it a smart fit for companies looking to build advanced manufacturing hubs. Indiana also offers a business-friendly climate with lower operating costs than coastal tech centers.
Though Indiana hasn’t landed a major chip plant yet, experts believe it’s only a matter of time. The state’s track record in precision manufacturing, along with its growing number of engineering and technical graduates, positions it well for future deals.
One reason Indiana stands out is location. The state sits at the crossroads of America’s freight network. That makes it easier and faster for companies to move products across the country. Whether it’s shipping raw materials to a factory or delivering finished goods to market, time and cost matter.
Indiana also has a deep manufacturing bench. From steel and machinery to auto parts and packaging, the state knows how to build things. That experience gives it an edge in attracting new investments, especially from industries that need speed, skill, and scale.
For example, Spanish-based Saica Group is investing $110 million in a state-of-the-art packaging plant in Anderson. While not as high-profile as semiconductors or pharmaceuticals, packaging plays a key role in modern supply chains. Saica’s project will bring more jobs, more training, and more high-tech equipment to Indiana.
The economic upside of this reshoring movement is hard to ignore. Projects like Lilly’s bring good jobs with solid pay and benefits. They also encourage younger workers to consider careers in manufacturing— something many had written off as outdated or unstable.
But growth doesn’t come without challenges. Building new plants is only part of the equation. Companies will need to find, train, and retain thousands of workers. That means expanding access to education, apprenticeships, and technical programs.
Local colleges and trade schools are already working to close the skills gap. Still, there’s a long road ahead. Producing pharmaceuticals and semiconductors requires precision and safety. That means workers need specialized knowledge—and companies need to invest in their people as much as their equipment.
There’s also the risk of rising costs. Tariffs may protect domestic producers, but they can also drive up prices on imported goods. Consumers and smaller manufacturers may feel the squeeze. Balancing protection with affordability will be a constant challenge.
As global firms expand into Indiana, smaller businesses stand to benefit too. Many large manufacturers rely on local vendors for parts, maintenance, transportation, and other services. When big projects take root, entire supply chains grow around them.
Take construction, for example. Building a new pharmaceutical plant isn’t just about pouring concrete. It involves electricians, HVAC specialists, engineers, and environmental consultants. Each of those jobs creates additional demand in the community.
Retailers, restaurants, and real estate developers often see a boost as well. When workers move into an area for a new job, they need places to live, eat, and shop. That kind of organic growth strengthens the fabric of local towns.
And it’s not just urban centers seeing the gains. Smaller cities and rural communities, often overlooked in national discussions, are playing a bigger role. These areas offer more space, lower costs, and a strong work ethic— exactly what many reshoring companies are looking for.
Reshoring is more than a short-term trend. It’s a response to years of uncertainty, rising global tensions, and a growing desire for stability. For Indiana, it represents a rare opportunity to lead the next chapter of American manufacturing.
However, continued success will require coordination. State leaders, educators, and business owners must work together to ensure that investments turn into lasting prosperity. That means expanding training programs, upgrading infrastructure, and creating policies that support long-term growth.
Federal support will also play a part. Programs that offer tax breaks, research funding, or workforce grants can help communities prepare for the next wave of reshoring.
Indiana has always been a builder. It’s part of the state’s identity. From steel mills to RV plants, from auto parts to aircraft engines, the tradition runs deep. Now, that tradition is evolving.
With billions flowing into new projects, and national policy shifting toward self-reliance, Indiana finds itself in a unique position. It can lead. It can grow. And it can help define what American manufacturing looks like in the years ahead.
This comeback isn’t about nostalgia or looking back. It’s about moving forward with purpose, with pride, and with a renewed belief in what’s possible when a state and a country decide to build again.
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