On September 19, 2025, the White House sent shockwaves through global labor markets by announcing a dramatic change to the H-1B visa program. President Donald Trump signed a proclamation requiring U.S. companies to pay a $100,000 fee for new H-1B visa applications, a massive increase from the previous cost of just a few thousand dollars.

The announcement immediately created confusion. Initial statements from Commerce Secretary Howard Lutnick described the fee as $100,000 per year, sparking panic among workers and companies. Within 24 hours, the White House clarified that the fee is a one-time charge applying only to new H-1B petitions, not renewals or current visa holders (PBS).

Even with that clarification, the implications are significant. For an industry already facing a deep skills gap, U.S. manufacturers must prepare for ripple effects.

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What Is the H-1B Visa Program?

The H-1B program, created in 1990, allows U.S. companies to hire highly educated foreign professionals in specialty occupations such as engineering, computer science, and healthcare. Each year, 65,000 visas are granted, with an additional 20,000 reserved for advanced degree holders.

Historically, tech companies have been the largest users of H-1Bs, but manufacturing employers also rely on the program to fill critical roles in mechanical, industrial, and electrical engineering, as well as R&D and operations management. (USCIS).

Why Manufacturers Should Care

While the policy was framed as a move to protect American jobs, the manufacturing industry is positioned to feel collateral damage.

• Specialized skills. Modern manufacturing relies on engineers trained in robotics, automation, and advanced materials science. These roles often draw from the international talent pool.
• STEM competition. With tech and healthcare fighting hardest for visas, manufacturers risk being crowded out of an already limited pipeline.
• Offshoring risk. If hiring international talent in the U.S. becomes cost-prohibitive, firms may shift engineering and design work offshore, undermining U.S.-based innovation and production.

Manufacturing executives already cite labor shortages as a top challenge. According to the Manufacturing Institute, U.S. manufacturing could face 2.1 million unfilled jobs by 2030. The H-1B fee threatens to make that shortage even worse.

Rising Costs and Uneven Impact

For Big Tech and global conglomerates, $100,000 per hire may be a rounding error. But for mid-sized manufacturers and startups, the costs could be prohibitive. Smaller firms without deep pockets or lobbying power risk losing access to the very engineers who could help them scale, automate, or compete in international markets.

Meanwhile, larger companies may lobby for exemptions or pass costs onto clients. That leaves smaller manufacturers absorbing the impact directly, whether through higher recruiting expenses, slower innovation, or delayed projects.

Related: 25 Highest-Paying Trade Jobs (Official U.S. Labor Data)

Global Competition for Talent

Trump’s visa overhaul is not happening in a vacuum. Other economies are already moving to attract the talent the U.S. risks losing.

• The U.K. is reportedly considering dropping visa fees for top global professionals (Reuters).
• Countries in Europe, Asia, and the Middle East are marketing themselves as alternatives for displaced H-1B applicants (CNBC).
• Indian IT and engineering firms are expanding offshore delivery centers, reducing their reliance on the U.S. (BBC).

For manufacturing companies, this means more competition for talent at home and fewer opportunities to bring international engineers into U.S. facilities. Highly skilled graduates trained in American universities may now choose to stay in Canada, the U.K., or Dubai rather than build careers in the U.S.

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Business Strategy: What Manufacturers Should Do

1. Audit Critical Roles

Identify which positions in your organization have historically relied on H-1B sponsorship, such as mechanical engineers, quality engineers, and automation specialists.

2. Expand Domestic Pipelines

Partner with trade schools, community colleges, and universities to build apprenticeships and internships. This strengthens long-term talent pipelines while reducing dependence on foreign visas.

3. Prepare for offshore options

Some specialized engineering or design work may need to shift overseas. Evaluate whether this is viable without compromising product quality or intellectual property protection.

4. Stay Alert to Policy Shifts

Legal challenges are already being prepared against the executive order. Court rulings or congressional action could change the scope or longevity of the fee.

5. Communicate with Employees

Even if your company does not sponsor visas, reassure staff that leadership is monitoring the situation. Many teams have colleagues on H-1Bs, and uncertainty creates morale risks.

Conclusion

Manufacturers may not grab the same headlines as Silicon Valley, but they face just as much risk from immigration policy shifts. The $100,000 H-1B fee is more than a bureaucratic hurdle, it is a stress test for America’s ability to attract and retain the engineers and specialists who drive modern manufacturing.

If talent goes elsewhere, the U.S. manufacturing sector could find itself falling further behind in global competitiveness.

Amtec Can Help

At Amtec, we specialize in helping manufacturers navigate workforce challenges, from finding specialized engineers to filling critical production roles. If your company is rethinking its talent strategy in light of immigration changes, connect with us today to ensure you stay ahead of the curve.