Reshoring and Robotics: Rockwell Automation’s Strategic Pivot Amid Tariff Uncertainty

In an era of global economic flux, Rockwell Automation is positioning itself at the forefront of America’s manufacturing renaissance, embracing what CEO Blake Moret calls a “home-field advantage” strategy that prioritizes U.S.-based production and advanced automation technologies.

The Milwaukee-based industrial automation giant reported better-than-expected quarterly results this week, with revenue exceeding $2 billion despite a 6% decline in sales. Investors responded enthusiastically, sending shares up more than 12% at their peak following the announcement, with additional gains the next day, according to Fox Business.

“We had very strong operating performance, solid orders, shipments, margin, EPS above our expectations,” Moret told Fox Business in a recent interview. The company’s performance comes amid growing uncertainty around tariffs and global trade tensions, though Moret indicated the immediate impact has been limited.

“The impact of tariffs in the quarter really were minimal. We’ve done a good job working with distributors to make sure we’re completely aligned in terms of our approach, guarding against excessive pre-buys,” Moret explained. This careful management of distributor relationships has allowed Rockwell to maintain price discipline while expanding its U.S. manufacturing footprint.

The company’s strategic pivot includes significant reshoring initiatives. “We are bringing additional manufacturing back into the U.S.,” Moret said. “We’ve also taken a good look at our supply chain, the components, the semiconductors, the mechanical components to make sure that we are de-risking sources of those components that are important inputs to manufacturing.”

A centerpiece of this strategy is Rockwell’s announcement that it will expand manufacturing of mobile robots at its Milwaukee headquarters. This move reflects both the company’s commitment to domestic production and its belief in automation as a competitive advantage for American industry.

When asked about the influence of potential Trump administration policies on the company’s reshoring decisions, Moret acknowledged the political environment as “a factor” while emphasizing the broader economic rationale. “As people bring manufacturing back to the U.S., it’s no secret that to be as competitive as possible, manufacturers including Rockwell are going to deploy really highly engaged workforce with this advanced manufacturing technology,” he said.

Rockwell sees itself uniquely positioned in this environment. “We have what I would think is a unique position, that home-field advantage. We are the most common manufacturing technology in American industry,” Moret noted.

The company’s focus on margins remains paramount, with price increases designed “primarily to protect the profitability, not to increase top line,” according to Moret. Instead, Rockwell aims to grow revenue by capturing increased market share as manufacturers expand their operations and adopt new technologies.

Beyond business strategy, Moret emphasized manufacturing’s critical role in national security and economic vitality. “There is a growing awareness of manufacturing as vital to the core American economy,” he said. “When you think of the multiple additional services and capital formation that exists only because of manufacturing, making things is really super important for the country.”

Rockwell is also investing in workforce development through its Academy of Advanced Manufacturing, which helps veterans transition to manufacturing careers. This initiative aligns with the company’s belief that America’s competitive advantage lies in “combining that trained, engaged workforce… with the technology.”

Looking ahead, Moret sees some capital project delays due to economic uncertainty but remains optimistic about growth prospects across multiple sectors including warehouse automation, e-commerce, data centers, and life sciences. “We’ve seen some delays but have not seen cancellations,” he noted, adding that companies are “ready to go with additional investment” as the focus on domestic manufacturing intensifies.

As Rockwell navigates this complex landscape, its dual emphasis on reshoring production and advancing automation technology appears to be resonating with investors and customers alike, positioning the company as both a beneficiary of and catalyst for America’s manufacturing resurgence.