Reshoring and Resilience: iPower Inc.'s Strategic Pivot to Domestic Manufacturing

The global supply chain crisis of the past decade has forced companies to rethink their reliance on offshore manufacturing. For U.S. businesses, the calculus has shifted: proximity to demand, sustainability, and operational agility now outweigh the short-term cost savings of distant production. Into this environment steps iPower Inc., whose newly formed joint venture, United Package NV LLC, marks a bold bet on reshoring as both a competitive advantage and a long-term growth strategy.

The Reshoring Imperative

The pandemic, geopolitical tensions, and climate concerns have exposed the fragility of globalized supply chains. Companies like iPower are responding by repatriating manufacturing—a trend that prioritizes resilience over efficiency. United Package NV LLC, launched in June 2025, is the first full-scale implementation of iPower's proprietary SuperSuite Supply Chain Platform, designed to support domestic production of packaging materials. This venture aligns with iPower's broader “Made in USA” initiative, which aims to reduce reliance on offshore suppliers while addressing demand for sustainable, cost-effective solutions.

The strategic logic is clear: domestic manufacturing cuts lead times, minimizes exposure to shipping volatility, and lowers carbon footprints. The SuperSuite ecosystem further enhances this value proposition by integrating transparent vendor collaboration, real-time inventory management, and demand forecasting tools. CEO Lawrence Tan framed the initiative as a “strategic step toward reshoring critical manufacturing capabilities,” signaling a shift from iPower's traditional role as an e-commerce retailer to a supply chain solutions provider.

The Value Proposition: Resilience Meets Sustainability

The joint venture's focus on packaging—a foundational component for e-commerce and consumer goods—positions iPower to capitalize on rising demand for localized production. The SuperSuite platform's “Made in USA” module offers end-to-end support, including legal compliance, facility planning, and access to iPower's nationwide distribution network. This vertical integration not only reduces logistics risks but also creates a moat against competitors still reliant on offshore suppliers.

Investors should note two key financial signals:
1. SuperSuite's growing contribution: The supply chain platform now accounts for ~20% of iPower's revenue, up from 10% in 2024. This suggests strong demand for its services.
2. Profitability challenges: While iPower reported a net loss of $0.011 per share in Q3 2025 (vs. profit of $0.034 in 2024), the decline reflects strategic investments in reshoring infrastructure.

Risks and Realities: Navigating the Reshoring Landscape

The pivot is not without hurdles. iPower's Q3 revenue dropped 29% year-over-year to $16.6 million, underscoring the execution risks of transitioning business models. Higher U.S. labor costs and competition from established domestic manufacturers (e.g., WestRock, Ball Corp.) could pressure margins. Additionally, institutional investors remain divided: some have added to their stakes, while others have reduced holdings, reflecting skepticism about near-term profitability.

Yet the long-term case for reshoring is compelling. A McKinsey analysis estimates that 25-30% of manufacturing could return to the U.S. by 2030, driven by automation and localization. iPower's early move to integrate digital tools (e.g., the SuperSuite dashboard) positions it to lead in this transition.

Investment Considerations

For investors, iPower presents a high-risk, high-reward opportunity. Key metrics to watch include:
- SuperSuite revenue growth: Continued expansion beyond 20% of total revenue signals sustained demand.
- Operational leverage: Can iPower reduce costs while scaling domestic operations?
- Partnership traction: The success of United Package NV LLC and future ventures will determine scalability.

The stock's 26% decline in 2025 and 71% drop over 12 months reflect market skepticism. However, the recent 7% surge post-joint venture announcement hints at potential upside if execution meets expectations.

Conclusion: A Strategic Bet on the Future

iPower's pivot to domestic manufacturing is a strategic realignment for an era demanding resilience and sustainability. While near-term financials are shaky, the reshoring trend is structural—and iPower's early leadership in digital supply chain tools gives it an edge. For investors willing to endure short-term volatility, this could be a foundational play on the reshored economy.

Investment advice: Consider a small position in iPower for thematic exposure to reshoring, but pair it with broader supply chain plays (e.g., C.H. Robinson, XPO Logistics) to mitigate risk. Monitor Q4 results for signs of operational stabilization and SuperSuite's revenue trajectory.

In a world where supply chains are the new battleground for competitive advantage, iPower's gamble on domestic manufacturing may yet pay off—but only if execution meets vision.