HP weighs US manufacturing move

March 3, 2025

HP considers shifting production to the US, raising questions about tariffs, supply chains, and costs.

In a recent interview with Bloomberg, HP Inc. CEO Enrique Lores revealed that the company is considering shifting some of its manufacturing operations to the United States. Lores stated that HP is evaluating the feasibility of this move but has yet to make a final decision. This potential shift could reshape HP’s supply chain strategy and have implications for the imaging industry.

The scope of HP’s US manufacturing plans

Another major consideration is whether this shift is preemptive positioning ahead of potential tariff changes, particularly if former President Donald Trump returns to office. Trump has repeatedly proposed tariffs of 60% or more on Chinese imports, which could drastically impact HP’s current supply chain. HP has a history of adjusting production in response to tariff risks—having previously shifted laptop and PC assembly out of China in 2019. By establishing at least some US manufacturing, HP could mitigate these risks, either by avoiding tariffs altogether or by ensuring that key product lines qualify for more favourable trade classifications. However, if this move primarily involves final assembly rather than full-scale production, it could be more of a tariff workaround than a true reshoring effort.

While a US manufacturing presence would bolster HP’s efforts to diversify its supply chain, the scope of such a move remains unclear. Would it apply only to final assembly, or could it extend to component manufacturing? Establishing a full-scale manufacturing operation in the US would require significant investment, not just in facilities but also in supplier networks and logistics infrastructure.

The feasibility of shifting critical component production—such as printer engines, chips, and consumables—raises additional questions. Would HP’s suppliers follow suit and establish US-based production, or would components still be imported from existing Asian manufacturing hubs? The answer to this will determine whether HP’s move is a genuine reshoring of manufacturing or a partial adjustment focused on final assembly.

Furthermore, labour costs, regulatory requirements, and supply chain logistics will be key factors in determining how much of HP’s production could realistically shift to the US. If only final assembly moves while key components continue to be sourced from overseas, the impact on HP’s overall supply chain might be more limited than anticipated.

Beyond China: HP’s global manufacturing strategy

HP has already been working to reduce its reliance on China, aiming to have over 90% of its products sold in North America manufactured elsewhere by the end of fiscal 2025. The company’s existing supply chain spans multiple locations, including:

• Vietnam, Thailand, and Malaysia – key hubs for PC and printer assembly.
• India and Mexico – strategic locations for North American supply.
• Poland and the Czech Republic – primary sites for printer manufacturing in Europe.
• Brazil – serving Latin American markets.
• Spain – home to HP’s wide-format printer manufacturing, particularly for DesignJet, PageWide XL, Latex, and Stitch series models.
• Israel – manufacturing hub for HP Indigo digital presses.
• Oregon, USA & Singapore – key production sites for HP PageWide Industrial printers.
• Corvallis, Oregon & Barcelona, Spain – major centres for HP’s 3D printing research and production.

The Canon factor: Who really makes HP’s laser printers?

One critical element in this discussion is that many HP laser printers are actually manufactured by Canon under a long-standing OEM agreement. HP does not produce its own laser printer engines; instead, they are sourced from Canon’s factories in Japan, Vietnam, and China.

If HP moves some production to the US, it is unlikely to include laser printers unless Canon decides to shift production as well. HP’s inkjet printers, however, could be a different story, as these are more directly under its control.

Implications for the aftermarket and remanufacturing sector

For the imaging consumables industry, particularly remanufacturers, HP’s shift raises several key questions:

• If HP’s cost base rises due to reshoring, will that make remanufactured cartridges more attractive?
• Will HP use a ‘Made in America’ angle to drive demand for its own OEM cartridges?

A wider trend among OEMs?

HP is not the only company rethinking its manufacturing footprint. Brother, Epson, and Lexmark all still rely on Asian factories, and there is little indication of an industry-wide shift to Western production. However, with growing regulatory scrutiny over supply chains and increasing geopolitical uncertainty, more companies may follow HP’s lead in diversifying their operations.

Categories : World Focus

Tags : HP Manufacturing Reshoring Supply Chain Tariffs USA