Hardware manufacturing is evolving faster than ever. Over the last five years, supply chain strategy, policy, and technology have all undergone dramatic shifts. Even within the last few months, change continues to happen, challenging companies to rethink how they design, source, and produce hardware.
At SEACOMP, we work closely with enterprise leaders and emerging innovators alike, giving us a front-row view of these shifts. Here’s our perspective on the five trends defining hardware manufacturing today.
1. Onshoring Movement
We’re seeing enterprise leaders make strategic moves to bring production closer to home. Large companies are investing in U.S. facilities to secure intellectual property, improve supply chain resilience, and take advantage of incentives such as the CHIPS Act. These high CapEx investments are primarily enterprise-driven, as mid-sized companies still find it challenging to justify the cost.
Despite this shift, labor-intensive or cost-sensitive assembly remains concentrated in Southeast Asia, and U.S.-based high-volume contract electronics manufacturing continues to face workforce constraints and pricing pressures. Onshoring is no longer just a tactical cost decision. It has become a strategic pillar for large enterprises aiming to protect their innovations and ensure continuity.
2. Nearshoring to Mexico
Nearshoring is gaining momentum as North American companies seek a balance between cost, speed, and scale. Mexico has emerged as a key player, offering tariff relief, faster supply chains, and proximity to U.S. operations without sacrificing manufacturing volume.
We’re seeing growing use of Mexican EMS providers for final assembly, sub-assembly, and PCBAs. Benefits include USMCA duty exemptions, reduced lead times, and shared time zones that improve engineering collaboration. Nearshoring to Mexico is defining the current phase of North American manufacturing strategy, providing companies with a practical alternative to fully offshore models while maintaining agility.
3. Strategic Sites: NPI vs. Scale
The choice of manufacturing location is increasingly dictated by the stage of the product lifecycle. Many companies are partnering with China-based suppliers during the New Product Introduction (NPI) phase to accelerate time to market and reduce development costs. Then, scaling through volume manufacturers in other countries. Specifically, Mexico-based manufacturers are handling high-volume production to deliver scale with proximity to U.S. markets.
Strategically splitting innovation and production sites allows companies to optimize costs and speed without compromising quality. Aligning manufacturing location with the product stage is defining how companies bring hardware to market faster while controlling expenses.
4. Policy as a Market Force
US trade policy has become a central factor in manufacturing strategy. Section 301 tariffs on China electronics imports remain at 25% today, and policies such as IEEPA, Reciprocal tariffs, and ad hoc measures continue to reshape global supply chains.
Companies are increasingly embedding tariff and trade strategy into product design. Practices such as tariff engineering to determine legal but cost-efficient HTS codes, supply chain redesigns to capture benefits from FTA countries like Mexico, and the use of Foreign Trade Zones to defer tariffs until final import sale are becoming standard. Trade policy is defining current hardware manufacturing strategy, making regulatory considerations a core element of decision-making.
5. Increased Demand for Connectivity
The rise of smart, connected devices is driving demand across consumer and industrial markets. Consumers expect connected products in their homes, for health tracking, and in personal technology. Meanwhile, the workplace is embracing IoT adoption across hybrid and remote work environments.
Hardware-enabled software subscription services are proliferating, and industrial sectors are increasingly adopting technology for predictive maintenance, remote monitoring, and operational efficiency. Connectivity is defining how hardware is designed and deployed today, making networked intelligence a fundamental requirement for competitive products.
Our Perspective
These five trends - onshoring, nearshoring, strategic site selection, policy influence, and connectivity - are shaping the hardware manufacturing landscape. Companies that successfully navigate these dynamics must balance geography, policy, and technology to optimize cost, resilience, and strategic value.
For organizations bringing hardware to market, choosing a manufacturing partner who understands these shifts is no longer optional. A partner who can align supply chain strategy with product lifecycle, leverage policy insights, and support connected hardware requirements sets your product up for a faster, smoother, and more successful launch.
In a rapidly changing environment, understanding these trends is valuable and essential. By staying ahead of onshoring movements, nearshoring opportunities, policy impacts, and connectivity demands, companies can make informed decisions that drive both innovation and operational excellence.