Matchmaking for Manufacturers: How education and incentives for reshoring can benefit West Virginia
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CHARLESTON – Advocates for West Virginia’s manufacturing industry are educating companies to look at their fellow manufacturers for the supplies they need instead of relying on foreign imports.
The West Virginia Manufacturer’s Association is working with a new group, ReshoreWV, to team up companies in the Mountain State, providing access to goods made in West Virginia to businesses that typically import directly for foreign suppliers or who rely on domestic wholesalers who also rely on international imports.
ReshoreWV is led by Ed Ryan, a manager with years of experience in international trade, working with U.S. Customs and Border Protection, Amazon and lululemon. A native West Virginian and Marshall University graduate, Ryan is bringing his expertise to link West Virginia businesses to rely on each other versus on international imports.
“I was born and raised here. I wanted to come home,” Ryan said. “I think I can use all this weird customs knowledge to benefit ... West Virginia, but how?”
Ryan landed on reshoring, or as he defines it, “import substitution,” working with companies across the state to replace what they are importing with locally sourced materials and goods already manufactured in West Virginia.
According to the Manufacturer’s Association, West Virginia’s current manufacturing base produces approximately $9 billion annually, with every dollar spent yielding $2.69 in economic output. However, manufacturers in the state import $4.9 billion each year from foreign suppliers from more than 100 countries.
Ryan said there is a 60% overlap between these imports and products already manufactured in the state. ReshoreWV seeks to capitalize on a $680 million immediate reshoring opportunity, representing 14% of the state’s total imports, by connecting local companies that currently source goods globally with local manufacturers capable of meeting that demand.
“Our manufacturers don’t always know what’s going on 20 minutes away from them. They’re busy trying to get to Thursday,’ Ryan said. “If we come in and say, ‘Hey, rather than go across an ocean, why not try across a river here at home?’ It’s exciting. Those who have taken advantage of this have been really impressed.”
Economic conditions and recent issues are helping drive the import substitution goal. During the COVID-19 pandemic, supply chain issues overseas caused substantial delays in goods making it to the U.S. Other critical sectors, such as the active ingredients in some pharmaceuticals, semiconductors and drones, require secure, domestic supply chains regardless of the ups and downs of tariffs.
Also, Ryan said shortening the supply chain reduces logistical headaches and benefits all local businesses that begin trading goods.
ReshoreWV and the Manufacturer’s Association are hoping to get the support of the West Virginia Legislature for incentives to help encourage import substitution among in-state companies.
Earlier this year, two bills, Senate Bill 939 and House Bill 5675, would have created the West Virginia Reshoring Manufacturing Act. Neither bill made it past the Finance Committees in the Senate and House of Delegates.
Manufacturing Association President Bill Bissett said the work now is to get the bill considered in the 2027 legislative session, including testifying before lawmakers during September legislative interim meetings beginning Sunday.
“In our defense, we started in the second half of the (2026) session, which is very difficult for a complex issue like this,” Bissett said. “Anyone we sat down with to talk about this said, ‘that’s awesome.’ It’s been universal, but part of it was we started late this session. That’s why we’re trying for this (next) session.”
The Reshoring Manufacturing Act would have offered nonrefundable tax credits to businesses that replace imported goods with those made by qualified West Virginia manufacturers. The Division of Economic Development would have overseen eligibility and certification, while the State Tax Division would have managed the financial offsets against corporate and personal income taxes.
The act would allow eligible taxpayers to claim a 25% tax credit, capped at $1 million per taxpayer per year, on the initial value of reshored goods, with a declining credit (20% down to 5%) for continued purchases over the subsequent four years. The tax credit cannot be combined with existing economic opportunity or manufacturing investment tax credits.
“Import substitution is not dependent upon that bill passing or not passing, although we think that it will be jet fuel to the fire,” Ryan said. “I think if we can add that level of state support for the behavior, we will encourage it to the uttermost.”