United States Contract Manufacturing Services Market Research Report: Forecast (2026-2032)

United States Contract Manufacturing Services Market Size: Forecast (2026-2032)

The United States Contract Manufacturing Services Market size is valued at around USD 218.22 billion in 2025 and is projected to reach USD 253.44 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 2.16% during the forecast period, i.e., 2026-32.

United States Contract Manufacturing Services Market Outlook:

The U.S. Contract Manufacturing sector is gaining strategic importance as companies reshape supply chains and governments incentivize onshoring. For instance, manufacturing added USD2.90 trillion annually to the U.S. economy in Q1 2025, underlining the scale of domestic production activity that contract manufacturers support. Likewise, federal policy has prioritized supply-chain resilience and domestic capacity-building, creating tailwinds for contract providers across pharmaceuticals, semiconductors, and advanced components. Additionally, the demand for contract services is being driven by sectoral investments. For reference, the U.S. awarded USD1.5 billion to GlobalFoundries to expand domestic semiconductor production, a move that directly benefits contract chipmakers and subcontractors in the supply chain.

Additionally, large grants finalized for major chip projects signal sustained public-private backing that will expand opportunities for specialty contract manufacturing. Pharmaceutical and biologics CDMOs are another clear growth pocket as big pharma expands U.S. footprints; for instance, Johnson & Johnson announced over USD55 billion of U.S. manufacturing, R&D, and technology investments, boosting demand for contract drug-making and fill services.

United States Contract Manufacturing Services Market Recent Developments:

• October 2025: Cambrex Corporation, a major U.S.-based contract development and manufacturing organization (CDMO), announced a USD120 million investment to expand its U.S. operations and support the growing peptide-therapeutics contract manufacturing services market.
• September 2025: Jabil invested USD70 million to establish a 100,000-square-foot X-ray sterilization facility in Marshall County, Mississippi, marking a key expansion of its contract manufacturing and healthcare service capabilities within the U.S. medical-device sector.

United States Contract Manufacturing Services Market Scope:

United States Contract Manufacturing Services Market Drivers:

Strategic Investments and Capacity Expansion

The U.S. Contract Manufacturing Services Source Market is being strengthened by a surge in strategic investments, facility expansions, and cross-industry partnerships aimed at boosting domestic production. In 2025, Siemens AG announced a USD285 million investment to build new smart manufacturing facilities in California and Texas, enhancing automation and energy-efficient production. Similarly, Thermo Fisher Scientific’s acquisition of Sanofi’s Ridgefield, New Jersey site expanded its sterile drug manufacturing capacity, supporting U.S. pharmaceutical supply chains.

In the consumer goods sector, Mars Inc. pledged billions of dollars toward U.S. operations through 2026, improving scalability and local sourcing. These investments reflect a national shift toward reshoring, industrial modernization, and sustainable manufacturing. As companies focus on automation, robotics, and digital process optimization, contract manufacturers are benefiting from greater outsourcing demand and operational collaboration across healthcare, electronics, and defense sectors, further solidifying the U.S. as a global hub for advanced contract manufacturing.

Growing Outsourcing of Production Functions

The market is expanding as more companies outsource production to specialized third-party providers. For instance, Jabil Inc. invested USD70 million in a new sterilization and medical-device facility in Mississippi in 2025 to serve healthcare companies outsourcing manufacturing functions. Similarly, Flex Ltd. provides end-to-end production services for electronics and automotive clients, reflecting a shift toward contract-based, technology-enabled manufacturing.

For reference, the U.S. Census Bureau reports that manufacturing plants increased their spending on outsourced labor by 85%, showing a structural move toward external service partnerships. Additionally, Sanmina Corporation’s USD3 billion acquisition of AMD’s ZT Systems manufacturing business in 2025 underscores the deepening reliance on contract manufacturing for complex, large-scale production. These developments illustrate how outsourcing drives flexibility, cost efficiency, and innovation across U.S. industries.

United States Contract Manufacturing Services Market Trends:

Near-shoring and Localization of Supply Chains

U.S. companies are increasingly shifting production closer to home to enhance supply-chain resilience. For instance, Texas Instruments invested around USD30 billion in new semiconductor fabrication plants in Texas to localize chip production and reduce import dependence. Likewise, Intel’s USD7.5 billion CHIPS Act award supports domestic semiconductor manufacturing expansion. The U.S. Chamber of Commerce reports that nearly 46% of manufacturers now plan to rely on suppliers within North America to mitigate global disruptions.

Similarly, Corning Inc. and T1 Energy’s 2025 partnership to build fully American-made solar panels reflects the same localization trend. These efforts are driving demand for U.S.-based contract manufacturing services, enabling faster production, lower logistics risks, and stronger supply-chain security across key sectors.

Sustainability and Energy-Efficient Operations

Sustainability has become a defining trend in the U.S. contract manufacturing services source industry as companies align operations with cleaner production goals. For instance, Celestica Inc. now sources 82% of its global electricity from renewable energy and aims to achieve net-zero emissions by 2050, reflecting its long-term environmental commitment. Similarly, Sanmina Corporation has introduced energy-efficient lighting, water reuse systems, and waste-minimization programs across U.S. facilities, reducing energy consumption by over 20% since 2022. According to the U.S. Environmental Protection Agency (EPA, 2025), industrial carbon emissions have dropped 14% over the past decade, supported by nationwide sustainable manufacturing initiatives. These efforts not only improve cost efficiency and brand reputation but also strengthen domestic, low-carbon supply chains across key manufacturing sectors.

United States Contract Manufacturing Services Market Challenges:

Workforce Skills Gap and Labor Shortages

The U.S. Contract Manufacturing Services Market is wrestling with a significant workforce skills gap and labor shortage. For instance, 74% of companies report an acute shortage of skilled workers, and 94% expect to hire or repurpose workers due to the adoption of smart manufacturing technologies. As more contract manufacturers adopt automation, robotics, and digital production systems, they need employees with higher technical training.

However, the current supply of such workers isn’t keeping pace, forcing firms to invest more heavily in training programs, skill development initiatives, and employee retention efforts. These investments raise short-term costs and make it harder to scale production rapidly and efficiently. For example, the aging workforce, nearly 25% of manufacturing workers are over 55, adds urgency to the challenge.

United States Contract Manufacturing Services Market (2026-32) Segmentation Analysis:

The United States Contract Manufacturing Services Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Service Type

• Electronics Manufacturing Services (EMS)
• Pharmaceutical and Biopharmaceutical Contract Manufacturing (CMO/CDMO)
• Medical Device Contract Manufacturing
• Automotive & EV Component Manufacturing Services
• Food & Beverage Processing and Packaging Services
• Aerospace & Defense Manufacturing Services
• Industrial and Robotics Equipment Manufacturing
• Consumer Goods and Personal Care Contract Manufacturing  

The Electronics Manufacturing Services (EMS) segment holds the largest share of the U.S. contract manufacturing services industry. Its dominance is driven by the growing demand for consumer electronics, semiconductors, telecommunications equipment, and automotive electronics. Many original equipment manufacturers (OEMs) are outsourcing production to EMS providers to reduce costs, improve efficiency, and focus on product innovation. Advanced technologies such as automation, surface-mount assembly, and smart testing systems are enhancing production quality and scalability.

Additionally, the expansion of 5G infrastructure, electric vehicles, and smart devices continues to boost electronics manufacturing needs. Leading EMS companies like Flex Ltd., Jabil Inc., and Celestica Inc. are investing in digital manufacturing and supply chain optimization, solidifying this segment’s leading position in the U.S. market.

Based on End-User

• Healthcare & Life Sciences
• Electronics & Semiconductors
• Industrial & Energy
• Automotive & Transportation
• Aerospace & Defense
• Food & Beverage
• Consumer Goods & Personal Care

The Healthcare and Life Sciences sector leads the U.S. contract manufacturing services industry, driven by the growing demand for pharmaceuticals, biologics, and medical devices. The rapid expansion of biotechnology, personalized medicine, and advanced drug delivery systems has increased outsourcing to specialized Contract Manufacturing and Development Organizations (CMOs/CDMOs).

Pharmaceutical companies rely on these partners for cost-efficient, high-quality production and regulatory compliance. Additionally, increasing FDA approvals, investments in biologics, and expansion of sterile fill-finish and packaging facilities by firms such as Thermo Fisher Scientific and Catalent Inc. continue to strengthen the sector’s dominance in the U.S. contract manufacturing landscape.

Leading Players of the United States Contract Manufacturing Services Market:

• Flex Ltd.

Flex Ltd. is one of the foremost players in the U.S. contract manufacturing sector, offering end-to-end design, engineering, and production services across multiple industries, including electronics, healthcare, and automotive. The company is recognized for its focus on digital transformation, advanced automation, and sustainable manufacturing practices that align with global quality standards.

• Jabil Inc.

Jabil Inc. stands out as a major contributor to the U.S. contract manufacturing landscape, providing customized manufacturing solutions that combine innovation, scalability, and precision. The company’s emphasis on smart factories, data-driven operations, and advanced supply chain integration enables it to deliver high-quality products efficiently across global markets.

• Celestica Inc.

Celestica Inc. has established a strong presence through its diversified manufacturing capabilities spanning electronics, communications, and industrial systems. The company prioritizes technological innovation and operational excellence, supported by continuous investments in automation, testing, and digital engineering platforms.

Sanmina Corporation, Benchmark Electronics Inc., Plexus Corp., Kimball Electronics Inc., Nortech Systems Incorporated, Asteelflash (USI/ASE Group), Epec Engineered Technologies, and Others are the key players in the United States Contract Manufacturing Services Market.

United States Contract Manufacturing Services Market (2026-32): Regional Projection

The Southern region of the United States leads the country’s contract manufacturing service industry due to its strong industrial base, cost advantages, and supportive business environment. States like Texas, Georgia, and North Carolina have become major manufacturing hubs because of lower operating costs, affordable land, and easy access to ports for imports and exports. The region also benefits from growing investments in sectors such as electronics, aerospace, automotive, and pharmaceuticals, which rely heavily on contract manufacturing services. For instance, Louisiana secured a USD60 million investment in West Baton Rouge for a consolidated manufacturing facility for automotive and defense components, contributing to the market growth.

Additionally, state-level tax incentives, reliable energy infrastructure, and skilled labor availability attract both domestic and international manufacturers. These factors collectively make the South the most dominant and fastest-growing region in the U.S. Contract Manufacturing Industry.

Gain a Competitive Edge with Our United States Contract Manufacturing Services Market Report

• United States Contract Manufacturing Services Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• United States Contract Manufacturing Services Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

*Reports Delivery Format - Market research studies from MarkNtel Advisors are offered in PDF, Excel and PowerPoint formats. Within 24 hours of the payment being successfully received, the report will be sent to your email address.