CUSMA Uncertainty Makes These 3 U.S. Manufacturing Stocks Worth A Closer Look

Trade friction between the U.S., Canada and Mexico is back in focus as the future of CUSMA turns uncertain, and that has direct implications for stocks tied to cross border supply chains. While many manufacturers rely heavily on tariff friendly trade, some U.S. domestic producers have business models that may be less exposed to potential changes in the agreement. This article looks at how that news backdrop might matter for your portfolio and highlights 3 U.S. domestic manufacturing stocks from our screener that could be positively exposed to the current CUSMA debate.

Overview: Astec Industries designs and services heavy equipment used in road building and construction, from asphalt and concrete plants to crushers, screens, and related materials handling systems, selling mainly to contractors, producers, and government agencies. The company’s gear sits at the heart of infrastructure projects, helping customers produce and move the asphalt, concrete, and aggregates that keep roads and large construction sites running.

Operations: Astec generates most of its revenue from Infrastructure Solutions at about US$893.8 million and Materials Solutions at about US$623 million, with activity concentrated in the United States, where it records roughly US$1.18 billion in sales.

Market Cap: US$1.41b

Astec Industries gives you direct exposure to U.S. road and infrastructure spending while being less tied to cross border trade, a point that stands out as CUSMA uncertainty grows. Around 80% of revenue comes from the U.S., and management has been actively reshoring supply chains and using pricing and dual sourcing to offset tariffs, which may help if North American trade friction increases. At the same time, the company is working to improve margins through operational changes and higher margin parts and acquisitions, even though recent one off losses, high debt and a high P/E highlight real risk. For investors weighing whether this setup is worth the trade off, there is more to unpack in Astec’s earnings quality, backlog and funding profile.

Astec’s efforts to reshore supply chains and improve margins could reflect more than the impact of tariffs. They may also be reshaping the risk reward profile. Get the full picture in the 2 key rewards and 2 important warning signs

NasdaqGS:ASTE Earnings & Revenue Growth as at Jul 2026

Overview: Proto Labs is a digital manufacturer that uses molding, CNC machining, 3D printing, and sheet metal fabrication to produce custom parts on demand for engineers, product developers, and supply chain teams in the U.S. and Europe.

Operations: Proto Labs generates about US$546.3 million in revenue from machinery and industrial equipment customers, with roughly US$444.2 million coming from the U.S. and US$102.1 million from Europe.

Market Cap: US$1.94b

Proto Labs stands out in the CUSMA debate because it already runs a largely U.S. centered production network. Management says around 90% of revenue from American customers is fulfilled by factories in the U.S., and sees tariffs and support for American manufacturing as a possible tailwind. At the same time, the stock trades on a high P/E, growth in Europe has been weaker, and the company absorbs some short term tariff costs instead of fully passing them on, which can pressure margins. For investors trying to judge whether digital manufacturing growth, aerospace and medical demand, and strong cash generation offset those risks, there is more beneath the surface in Proto Labs’ earnings profile, trade exposure, and leadership transition story.

Proto Labs’ digital manufacturing story looks powerful, but the real tension is how growth, margins, and tariffs fit together. See how those threads connect in the analysis report for Proto Labs

NYSE:PRLB Earnings & Revenue Growth as at Jul 2026

Overview: L.B. Foster supplies rail and infrastructure products such as rail track components, friction management and monitoring systems, precast concrete buildings, bridge beams, and protective coatings that support transportation, energy, and public works projects across the U.S. and internationally.

Operations: L.B. Foster generates around US$326.5 million of revenue from its Rail, Technologies, and Services segment and about US$236.9 million from Infrastructure Solutions.

Market Cap: US$472.4m

L.B. Foster sits squarely in the sweet spot of the CUSMA debate, because it serves rail and infrastructure customers that are mostly U.S. based while relying heavily on domestic supply chains, which management says has kept tariff impacts relatively minor. At the same time, the company is leaning into higher margin areas like precast concrete, friction management, and protective coatings. It has returned to profit in recent quarters, even though earnings were under pressure last year and the P/E is high versus some machinery peers. With earnings forecast to grow faster than revenue and new leadership stepping into key operating and finance roles, the real question is whether L.B. Foster can turn that mix shift and cost discipline into durable value as trade policy stays unsettled.

L.B. Foster’s push into higher margin rail and infrastructure work, combined with new leadership and a high P/E, hints at something investors may be missing. See how those pieces fit together in the 1 key reward and 1 important warning sign

NasdaqGS:FSTR Earnings & Revenue Growth as at Jul 2026

The three stocks in this article are only a starting point, and the full U.S. Domestic Manufacturing Stocks screener surfaces 39 more U.S. focused manufacturers with similarly interesting stories that you have not seen yet. Use Simply Wall St to identify, compare, and analyze the specific catalysts and narratives that matter to you, so you can focus on the highest conviction ideas in this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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PODCAST | Could Trade Deal Uncertainty Slow America’s Manufacturing Comeback?

As manufacturers weigh new investments in U.S. capacity, automation and reshoring, trade certainty is becoming a central factor in where companies source components and place final assembly.

The U.S.-Mexico-Canada Agreement, or USMCA, is heading toward its first formal review on July 1. The outcome could affect supply chains, production planning and long-term investment decisions across North America.

Industry insiders fear that the Trump administration’s concerns that Canada and Mexico are not treating the United States fairly in certain areas could complicate the renewal process.

“We’ve got to stay in this relationship and work on it, not be threatening it with a divorce,” says Patrick Lozada, Senior Director of Global Policy at the National Electrical Manufacturers Association.

While acknowledging there are legitimate issues that need to be addressed during the upcoming USMCA review, he argues that manufacturers still need the long-term certainty and integrated North American supply chains that the agreement provides. 

The agreement lays down rules for how components qualify to move across borders duty-free. Lozada says that structure has helped manufacturers deepen investments across North America.

NEMA is urging the three governments to renew the agreement for another 16 years, while still using existing mechanisms to resolve disputes and update portions of the agreement.

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“A long-term renewal would not mean a static agreement,” Lozada says. “But what it would do is provide a sense of direction and certainty for manufacturers.”

That certainty is especially important for electrical manufacturers because the sector relies on a deeply integrated North American value chain.

“USMCA has allowed us to link design, engineering, manufacturing, assembly, testing, certification and services between all three countries,” Lozada says.

He says that integration has also helped the industry reduce reliance on China.

“Since 2018, China’s market share of electrical industry imports to the United States has decreased by 49%,” Lozada says.

Electrical manufacturing is also becoming increasingly important as AI, data centers, automation and advanced manufacturing expand.

“Electrical components comprise approximately one-third of the total spend to build a typical AI data center,” Lozada says. They also represent about 10% of the total spend for a new U.S. manufacturing facility.

NEMA projects U.S. electricity demand will increase by 55% by 2050, with data centers as a major driver. Lozada says AI data centers alone are expected to increase their share of energy demand by 300% over the next 10 years.

“We’ve got to have a grid that keeps pace with the incredible change in demand,” Lozada says.

Trade uncertainty, however, can complicate those investments. Lozada says changing tariff levels are especially difficult for manufacturers planning long-term production.

“If one day you’re paying 0% under a trade agreement, and then the next day you’re facing a 25% tax, and then the next day you’re facing a 10% tax, that is kryptonite for long-term certainty for manufacturers,” he says.

Lozada says NEMA also sees the USMCA review as an opportunity to resolve standards and regulatory issues, especially in Mexico. He says Mexico has not updated its electrical code since 2012, leaving it three editions behind the U.S. and Canada.

“Nobody supports an old electrical code,” Lozada says. “Nobody should support having standards that are out of date.”

If USMCA remains in limbo after the review, Lozada expects manufacturers and investors may interpret continued negotiations as manageable in the near term, but insufficient for long-term planning.

Certainty, Lozada says, is necessary for manufacturers considering new production capacity, new lines or new facilities.

“Manufacturers want to see certainty around what they’re going to pay,” Lozada says. “What they’re going to pay in terms of tariffs and taxes on their inputs, and then what markets they’re going to be able to access.”

NEMA is also advocating for a tariff incentive framework that would provide tariff relief or rebates for companies investing in U.S. manufacturing.

“If you’re investing in America, you’re bringing manufacturing back home, let’s get a discount off of those tariffs,” Lozada says.

According to Lozada, the framework could help advance U.S. manufacturing investment while managing costs for manufacturers and consumers.

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