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HARTFORDBUSINESS.COM | MARCH 9, 2026 25 By: Anthony Harrypersad, Partner, and Omar Brown, Director Current Landscape and Reshoring Momentum Connecticut manufacturers in 2026 face a high-stakes operating environ- ment shaped by labor shortages, rising input and compliance costs, and geopo- litical volatility. Despite these pressures, strong state economic performance and significant public investments have created opportunities to strengthen and localize supply chains. Reshoring momentum is accelerat- ing as companies confront disruptions caused by tariffs, trade tensions, and supply chain disruptions. Over 60% of firms report shifting sourcing to North America, yet labor costs and capital in- vestments remain as significant barriers. To address these challenges, Connecti- cut is implementing strategic tools and incentives to support local suppliers. With persistent economic uncertainty and looming tariff fluctuations, reshoring helps mitigate the increased cost asso- ciated with these challenges. Reshoring provides faster replenishment cycles and reduces dependency on long freight routes that significantly extend lead times. Reshoring can also improve over- sight and strengthen quality control in the production process. State Support and Technology-Driven Solutions The Connecticut Department of Eco- nomic and Community Development (DECD) offers grants to help local firms expand and strengthen their supply chains. This program supports compa- nies expanding operations and increas- ing production capacity. The grants can be used for purchasing machinery and equipment, addition of robotics or new technology to boost productivity, es- tablishing new operations in support of Connecticut's core industries. Supply chain companies can apply for grants ranging from $500,000 to $5,000,000. Localization begins with tar- geting high-risk, high-value components while embracing technology-driven strat- egies to offset workforce shortages. As of Q1 of 2026, there are over 70,000 manu- facturing related jobs that remain unfilled. Digital twins, AI-driven scheduling, and high-performance computing are now central tools for productivity, quality, and cost efficiency. A digital twin is a virtual representation of a physical system or ob- ject that uses real-time data to accurately duplicate its counterpart's behavior, per- formance and conditions. The digital twin market has been significantly expanding, and its use is expected to increase tenfold over the next seven years. Impact of Localizing Suppliers and Long-Term Goals Companies that have shifted suppliers locally report shorter lead times, fewer disruptions, stronger IP protection, and improved customer responsiveness. Al- though labor and equipment costs remain challenging, many firms find that offshor- ing savings are overstated once quality issues and delays are accounted for. Looking ahead, Connecticut aims to reach 235,000 manufacturing jobs by 2033 and grow manufacturing to 20% of state gross domestic product (GDP) by 2029. Continued state investment, ma- turing supplier networks, and advanced manufacturing technologies will drive this growth. Firms that proactively local- ize and adopt automation will be best po- sitioned to withstand future disruptions and capitalize on new opportunities. Recommended Next Steps for Manufacturers To accelerate resilience building and take advantage of Connecticut's reshoring mo- mentum, manufacturers should consider: • Conducting a rapid internal assess- ment of the most vulnerable or high- cost supply chain components. • Identifying automation opportunities. • Gathering baseline operational data (lead times, scrap rates, downtime) to support investment decisions. • Engaging local suppliers to map po- tential reshoring targets. • Evaluating potential productivity gains through robotics, digital twins, or AI- based planning tools. • Continuing workforce upskilling and cross-training efforts to support ad- vanced manufacturing integration. • Initiating conversations with DECD or re- gional partners regarding grant eligibility. Citrin Cooperman's Manufacturing and Distribution Industry Practice is prepared to help your business navigate uncer- tainty in the supply chain to create future value. For more information, reach out to Anthony Harrypersad at aharrypersad@ citrincooperman.com or Omar Brown at obrown@citrincooperman.com. "Citrin Cooperman" is the brand name under which Citrin Cooperman Advisors LLC and Citrin Cooperman & Company, LLP, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. Building a Resilient Local Supply Chain in Connecticut SPONSORED CONTENT