Cubiq in Conversation: Will the US ever achieve manufacturing independence?
Date Posted: Tue Jul 2025
Following the pandemic-era shortages, geopolitical disruption, and growing national interest in reshoring, the phrase “manufacturing independence” has started cropping up both in boardrooms and in policy briefs. But what does that actually look like in practice and is it even a realistic goal?
To dig into this our own Chris Kielthy sat down with Mush Khan, CEO of Alchemy Industrial, for a conversation centred around the operational reality of building modern manufacturing capability in the US.
As someone who’s worked across early-stage venture, industrial operations, and complex product delivery, Mush brings a really qualified perspective to the challenges of rebuilding American manufacturing.
He describes himself as someone who’s “been around hardware” for a long time. After years in private equity and venture capital, he moved into operational roles, building and scaling engineering and manufacturing efforts inside complex organisations. That varied background now underpins his work as CEO of Alchemy Industrial, a Texas-based contract manufacturer focused on helping hardware startups bring products to life.
To catch up on the full conversation, tune in to the on-demand session below.
The manufacturing independence myth?
Asked directly whether the states will ever achieve true manufacturing independence, Mush provides a simple answer.
“No.”
It’s not that he lacks faith in domestic manufacturing capability, but rather, he views “independence” as the wrong framing. Globalisation isn’t slowing, and very few products are truly single-nation in origin. He suggests the focus instead should be on strategic independence: knowing where your risks are, factoring that into supply chain analysis, and making sure that for critical components (such as defence, semiconductors, medical devices) we’re not entirely reliant on fragile overseas dependencies.
In Mush’s words, “Resiliency beats purity.” It’s less about onshoring everything, and more about building smarter, leaner supply chains where more key capabilities are closer to home.
What’s really driving reshoring
Reshoring isn’t a new idea, but the current wave feels different. The catalyst for this isn’t tariffs or new legislation, but a compound effect of COVID-related supply disruption, domestic shortages, and global political uncertainty.
Firms are no longer asking if they should bring parts of their supply chain back to North America, they’re asking how they can do it.
But with this urgency comes a need for clarity. Mush flags that too many startups treat manufacturing as an afterthought, outsourcing it abroad without ever understanding what it takes to do it locally. “You’ve got to design for the supply chain you intend to manufacture in,” he says. Otherwise, by the time you're ready to scale, you're boxed in.
Automation is the enabler, not the threat
A recurring theme in the conversation around manufacturing is automation.
It’s clear that reshoring US manufacturing is not possible without greater levels of automation. Labour is more expensive in the US, and without process efficiency, domestic production just doesn’t make sense economically.
But automation doesn’t mean eliminating people. In fact, it’s a necessary support for skilled labour. It makes roles more accessible, less physically taxing, and more intellectually engaging than traditional manufacturing positions.
“We’re not replacing people. We’re making it easier to build things well.”
So if you’re serious about US-based production, you need to be thinking about automation from day one as an enabler of scale.
Rebuilding the talent pipeline
One of the most pressing concerns when it comes to reshoring manufacturing is the pipeline of skilled talent in the US, a pipeline that’s often reported as being undernourished.
Mush points to cultural perceptions: the idea that manufacturing is potentially seen as “low prestige” work, or that the only good career path is a white-collar one. That mindset, he argues, has hollowed out the trades.
At Alchemy, they’re trying to change that by investing in internal training, partnering with trade schools, and giving younger workers meaningful exposure to modern manufacturing environments.
Advice for startups building in the US
Chris asked Mush for his advice to founders, and what follows is probably the most actionable section of our whole conversation.
Here’s Mush’s advice for hardware startups:
- Design with the US supply chain in mind. Don’t build something that only works in Shenzhen.
- Think about manufacturability from day one.
- Don’t rent a warehouse just to say you’re “manufacturing.” Build relationships with experienced production partners instead.
- Validate early. Get your designs in front of real machinists and fabricators before finalising your BOM.
It’s advice born from experience, and from watching too many startups waste money, time, and credibility trying to scale the wrong way.
The role of government, policy, and incentives
Federal support. Is it working? Is it enough?
During the conversation Mush gives credit where it’s due, highlighting the CHIPS Act and Inflation Reduction Act as positive signals. But he cautions against overreliance. Subsidies are helpful, but they’re not a replacement for solid unit economics or real demand.
“The government can light the match. But it’s private industry that has to keep the fire going.”
That means building models that work both with and without incentives and investing in talent and infrastructure that lasts.
Closing thoughts: What comes next
Manufacturing independence in the absolute sense probably isn’t realistic, but building more resilient, localised supply chains absolutely is. And that’s where most of the focus is now; not on doing everything domestically, but on doing the critical parts closer to home and having the infrastructure and talent on-hand to be able to do it well.
The companies making progress here tend to have a few things in common. They think about manufacturability early. They design with automation in mind from the start, rather than retrofitting it later. And they understand the value of working with partners, whether that’s in production or hiring, who know the landscape well.
With the right approach, and the right people in place, firms are proving it’s possible to build better, more reliable manufacturing setups in the US.
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